General presentation of the Xerox Company:
The Xerox Company was created in the 1950s and over time has become the global leader in the design, production and sale of document processing and management systems and equipment.
Among the products developed and marketed by the Xerox Group we particularly note office printers, copiers and fax machines as well as digital printers and multifunctional machines and systems as well as related supplies such as ink cartridges, cleaning products, binding accessories, labels and other consumables.
However, recently the Xerox Group has significantly increased the range of its products. It now also offers data management software and flow administration software as well as improved administrative procedural software, invoice processing and IT network configuration.
This internationally sized American company still achieves the major part of its revenue from the United States with 64.1% of its global turnover. However it is also highly present in the European market where it generates 24.6% of its turnover. The remainder of its income is derived from various other countries around the world.
Know the competition to the Xerox share price:
To complete a pertinent fundamental analysis of the Xerox share price you will of course need to take into account the major competition in this activity sector. To assist you here is some significant information relating to the principal direct competitors of this company.
First it is essential to understand that the market where Xerox operates its activities is one of the most competitive and relies heavily on innovative technology. The major competitors to Xerox can therefore be classified according to their activity.
In the document processing services and technology sector its major competitors are:
Strategic alliances implemented by the Xerox Group:
To ensure its growth and development, the Xerox Group can count on its long experience as well as its ability to create significant strategic alliances with other companies and groups around the world. Here are some examples of recent partnerships signed by the group.
- Techniprint: In 2014 for example the Xerox Group implemented a partnership with the Techniprint Group, a specialist in the barcode printing and reading systems solutions distribution. Through this partnership Techniprint thereby assured the distribution of Xerox products through its office solutions destined for its professional clients in France as well as other countries.
- Adecco: In 2016 Xerox implemented a partnership with the temporary work company Adecco. The two companies thereby launched a sales academy. From graduates of this specialised academy Xerox was able to recruit over 200 employees in sales positions and thereby strengthen its sales teams.
- Fujifilm: More recently in the beginning of 2018 it was not a partnership that marked the history of Xerox, it was an acquisition. The Japanese manufacturer Fujifilm announced that it had signed an agreement with Xerox relating to a merger of the two companies. Fujifilm would be the major contributor with 50.1% of the capital of the new company which would be named New Fuji Xerox. Through this joint venture the new company would be in the leading position of the document solutions activity sector.
Analysis of the Xerox share price
This period began with a peak of $39.03 in May 2008. But rapidly, beginning in September of that same year, we observe a strong falling correction towards $11.01 that was reached in March 2009. This strong drop in the share price led to strategic purchases that enabled this share price to regain numerous points and rise to $32.12 in December 2010.
This was followed by a new, gradual falling trend marked by numerous micro-movements that led to a share price of $16.69 in November 2012.
The following trend was positive but highly volatile which enabled the Xerox share price to rally over a two year period to $38.32 in the month of December 2014. Unfortunately the year 2015 marked the return to a drop in this share price that succumbed to major profit taking and a new drop towards $23.29 up to December 2016 after several rising corrections.
Since this time this asset has progressed through a series of zigzag movements while trying to break through the resistance level at $30 which it managed to do in July 2017 although it again sunk below this psychologically significant threshold and ended the year close to but slightly below this amount.
Although the historical stock market charts can be highly informative for enabling the analysis of the Xerox share price through different technical configurations it is also necessary to take into account the events that could initiate or amplify significant and visible trends. To assist you we offer you the opportunity here to learn more about major recent events that have influenced this company’s progress.
Firstly in 2002 the Xerox Group was at the heart of a financial scandal. In fact, during this time the company admitted it had voluntarily manipulated its financial results. This fraudulent action concerned sums in excess of 1.9 billion dollars and in particular related to sales completed in South America. Of course, this event resulted in negative consequences for the group’s reputation and movements in its share price as the investors lost trust.
Later in 2009 the Xerox Group announced the acquisition of the American company Affiliated Computer Services, or ACS, for the amount of 5.5 billion dollars. This company is one of the leading specialists in IT services and outsourcing solutions.
In 2014, Xerox sold part of its outsourcing activities to the Atos Company for the amount of 1.05 billion dollars. This transaction in fact occurred through the sale of ACS which the company had acquired in 2009 and which accounted for 10,000 employees.
In 2016 Xerox announced its intention to separate its activities into two parts, one dedicated to services which would be named Conduent and another that would keep the Xerox name and concentrate on the materials and products. This separation was supposed to occur at the beginning of 2017.
Finally, the most recent event concerned the announcement by Fujifilm at the beginning of 2018 that it would participate at 50.1% in the Xerox capital for the sum of 6.1 billion dollars through the joint company Fuji-Xerox which was specifically created for this purpose. Following this news the group also announced the forthcoming cut of 10,000 jobs.