- Near term trigger for re-rating expected during investor day from articulation of financial profile of stand-up businesses: CareAR, Parc and Xerox Financial Services.
- Solid 2021E adjusted free cash flow yield of 10.6% excluding $100m Fuji payment in 2021 and delivering positive free cash flow each quarter throughout Covid-19.
- Commitment to shareholders of 50% distribution of free cash flow in dividends and share buy-backs.
- Sum-of-the-parts valuation indicating ~50% upside over current market capitalization.
- Unless everyone will work from home indefinitely, or people will no longer use printers, the downside risk is limited.
For further details see:
Xerox - Grandma Is Going To Shine Soon