Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Xerox Holdings Corporation experienced a challenging 2023 marked by an uneven macroeconomic environment, resulting in strong growth in full year adjusted operating income and free cash flow but a decrease in revenue.</li><li>The corporation was able to maintain profit and cash flow targets despite weaker-than-expected macroeconomic conditions in the second half of the year, demonstrating a culture of operating discipline and resilience against operational and macroeconomic challenges.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Xerox Holdings Corporation experienced a challenging 2023 marked by an uneven macroeconomic environment, resulting in strong growth in full year adjusted operating income and free cash flow but a decrease in revenue.The corporation was able to maintain profit and cash flow targets despite weaker-than-expected macroeconomic conditions in the second half of the year, demonstrating a culture of operating discipline and resilience against operational and macroeconomic challenges.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Xerox Holdings Corporation: Innovating for the Hybrid Workplace with New Digital Solutions! - Major Drivers

<ul><li>Xerox Holdings Corporation delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.</li><li>In the third quarter, Xerox grew in adjusted operating income, EPS, and free cash flow despite a 5.7% decline in revenue ($1.65 billion) in actual currency and a 7.4% decline in constant currency.</li><li>By 2026, the plan aims to deliver a minimum $300 million improvement in adjusted operating income, reinstating double-digit operating income margins.</li></ul>

Xerox Holdings Corporation delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.In the third quarter, Xerox grew in adjusted operating income, EPS, and free cash flow despite a 5.7% decline in revenue ($1.65 billion) in actual currency and a 7.4% decline in constant currency.By 2026, the plan aims to deliver a minimum $300 million improvement in adjusted operating income, reinstating double-digit operating income margins.

Xerox Holdings Corporation: Will The New Reinvention Strategy & Business Simplification Help Revive Their Fortunes? - Major Drivers

<ul><li>Xerox Holdings Corporation delivered mixed results for the previous quarter, with revenues below the analyst consensus.</li><li>This quarter, Quocirca recognized Xerox as a leader in cloud print services, recognizing the company for its breadth of customer service as well as its strategic vision.</li><li>Xerox Holdings received the renewal of a leading healthcare service company this quarter, boosting the yearly contract value by about 40%.</li></ul>

Xerox Holdings Corporation delivered mixed results for the previous quarter, with revenues below the analyst consensus.This quarter, Quocirca recognized Xerox as a leader in cloud print services, recognizing the company for its breadth of customer service as well as its strategic vision.Xerox Holdings received the renewal of a leading healthcare service company this quarter, boosting the yearly contract value by about 40%.

Xerox Holdings Corporation: Decoding Their Strategy to Slash Costs & Gain A Strong Position In Cloud Print! - Major Drivers

President, Vision Research

Robert C Prather Jr

President

Vision Research

Vision Research was formed in 2004 with the vision of generating the best possible fundamental analysis and investment research for smid cap US equities. In 2008, we broadened our coverage to include mid/large cap US stocks.  After researching a  few ideas outside the US each year for a number of years, we launched a dedicated non-US equity product at the end of 2015.  This was followed by the introduction of a product focused on IPOs in mid-2017.

Fundamental Insight

<ul>
<li>Large portion of the business is in secular decline and facing pricing pressure</li>
<li>
<a href="https://www.smartkarma.com/entities/ricoh-company-ltd" target="_blank" data-smartkarma-citation="entities:15359:1" rel="noopener">Ricoh Company Ltd (7752 JP)</a> appears to be losing share in a shrinking market</li>
<li>Estimates are above overly optimistic guidance making shares look optically inexpensive</li>
</ul>


Large portion of the business is in secular decline and facing pricing pressure

Ricoh Company Ltd (7752 JP) appears to be losing share in a shrinking market
Estimates are above overly optimistic guidance making shares look optically inexpensive


Ricoh (7752 JP) - Long Term Structural Decliner with a Recent Boost in Inorganic Rev & Profits

<ul><li>Despite the fact that 2022 was a challenging year for Xerox Holdings, the company managed an all-around beat in the last result.</li><li>Supply chain challenges, surging inflation, currency disruption, the Ukraine war, higher interest rate, and an uncertain macroeconomic environment impacted revenue and profitability overall.</li><li>Equipment revenue grew significantly in Print and Managed Print Services due to improved product supply.</li></ul>

Despite the fact that 2022 was a challenging year for Xerox Holdings, the company managed an all-around beat in the last result.Supply chain challenges, surging inflation, currency disruption, the Ukraine war, higher interest rate, and an uncertain macroeconomic environment impacted revenue and profitability overall.Equipment revenue grew significantly in Print and Managed Print Services due to improved product supply.

Xerox Holdings Corporation: Major Drivers

United States

Xerox Holdings Corporation operates as a holding company. The Company, through its subsidiaries provides printers, scanners, supplies, and accessories. Xerox Holdings serves health care, insurance, government and retail sectors worldwide.

Xerox Holdings (XRX US)

Xerox Holdings Corporation: Innovating for the Hybrid Workplace with New Digital Solutions! - Major Drivers

Xerox Holdings Corporation experienced a challenging 2023 marked by an uneven macroeconomic environment, resulting in strong growth in full year...

Baptista Research

Xerox Holdings Corporation: Will The New Reinvention Strategy & Business Simplification Help Revive Their Fortunes? - Major Drivers

Xerox Holdings Corporation delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings...

Baptista Research

Xerox Holdings Corporation: Decoding Their Strategy to Slash Costs & Gain A Strong Position In Cloud Print! - Major Drivers

Xerox Holdings Corporation delivered mixed results for the previous quarter, with revenues below the analyst consensus. This quarter, Quocirca...

Baptista Research

Ricoh (7752 JP) - Long Term Structural Decliner with a Recent Boost in Inorganic Rev & Profits

A large portion of Ricoh's business is losing market share in an industry that is facing secular declines. Estimates that above optimistic...

Robert C Prather Jr

Xerox Holdings Corporation: Major Drivers

Despite the fact that 2022 was a challenging year for Xerox Holdings, the company managed an all-around beat in the last result. Supply chain...

Baptista Research