XERO LIMITED (XRO)
Share Price Analysis and Chart

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XRO

XRO - XERO LIMITED

FNArena Sector : Accountancy
Year End: March
GICS Industry Group : Software & Services
Debt/EBITDA: 2.32
Index: ASX50 | ASX100 | ASX200 | ASX300 | ALL-ORDS | ALL-TECH

Xero Ltd is a New Zealand software company providing cloud-based accounting software platforms to small and medium sized businesses. Xero has over two million subscribers. Founded in 2006 the company listed in 2012 and has since expanded into Australia, the UK and the US.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$174.38

13 May
2025

2.930

OPEN

$171.10

1.71%

HIGH

$175.72

300,418

LOW

$171.00

TARGET
$196.483

+0.33 change from previous day

 12.7% upside
Franking for last dividend paid out: 0%
OTHER COMPANIES IN THE SAME SECTOR
RKN .
FNARENA'S MARKET CONSENSUS FORECASTS
XRO: 1
Title FY25
Forecast		 FY26
Forecast
EPS (cps) 134.3 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 129.5 xxx
Dividend Yield 0.0% xxx
Div Pay Ratio(%) N/A xxx
This company reports in NZD.
All estimates have been converted into AUD by FNArena at present FX values.

Dividend yield today if purchased 3 years ago: 0.00%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 0.00

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages
HISTORICAL DATA ARE ALL IN AUD
Copyright © 2025 FactSet UK Limited. All rights reserved
Title 201920202021202220232024
EPS Basic xxxxxxxxxxxxxxx106.9
DPS All xxxxxxxxxxxxxxx0.0
Sales/Revenue xxxxxxxxxxxxxxx1,588.6 M
Book Value Per Share xxxxxxxxxxxxxxx838.6
Net Operating Cash Flow xxxxxxxxxxxxxxx548.5 M
Net Profit Margin xxxxxxxxxxxxxxx10.19 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201920202021202220232024
Return on Capital Employed xxxxxxxxxxxxxxx14.32 %
Return on Invested Capital xxxxxxxxxxxxxxx7.33 %
Return on Assets xxxxxxxxxxxxxxx6.43 %
Return on Equity xxxxxxxxxxxxxxx14.32 %
Return on Total Capital xxxxxxxxxxxxxxx10.98 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx542.4 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201920202021202220232024
Short-Term Debt xxxxxxxxxxxxxxx18 M
Long Term Debt xxxxxxxxxxxxxxx1,105 M
Total Debt xxxxxxxxxxxxxxx1,122 M
Goodwill - Gross xxxxxxxxxxxxxxx308 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx1,403 M
Price To Book Value xxxxxxxxxxxxxxx15.90

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201920202021202220232024
Capex xxxxxxxxxxxxxxx230.4 M
Capex % of Sales xxxxxxxxxxxxxxx14.50 %
Cost of Goods Sold xxxxxxxxxxxxxxx417 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx927 M
Research & Development xxxxxxxxxxxxxxx295 M
Investments - Total xxxxxxxxxxxxxxx56 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

0.7

No. Of Recommendations

6
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Citi

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Macquarie

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Ord Minnett

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Morgans

18/11/2024

3

Hold

$188.00

7.81%

Xero reported 23% revenue growth for 1H25, meeting consensus expectations, Morgans notes. Annual recurring revenue increased 21% year-on-year, with average revenue per user rising 15% and subscriber growth of 6%.

The broker highlights most of the increase in revenue per user was driven by price rises and the removal of idle subscribers.

Morgans raises EBITDA estimates by 1% for FY25 and 13% for FY26. The target price increases 34% to $188, reflecting higher valuations for Xero's peers.

The Hold rating is maintained, as the analyst believes achieving critical mass in the North American market, the company’s next growth lever, will take longer.

FORECAST
Morgans forecasts a full year FY25 dividend of 0.00 cents and EPS of 93.91 cents.
Morgans forecasts a full year FY26 dividend of 0.00 cents and EPS of 177.79 cents.

UBS

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Morgan Stanley

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

3

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Goldman Sachs

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Jarden

07/04/2025

2

Overweight

$180.00

3.22%

At the time of 1H25 result in November, Jarden believed Xero's FY25 opex ratio was conservative at 73%, given 1H was only 71.2%.

However, the broker has now increased opex ratio forecast to 72.9% from 72.1% following a significant revision to CEO Sukhinder Singh Cassidy's remuneration and an increase in hiring activity. Additionally, the FY26 forecast will also be impacted by the new CFO's sign-on incentives and compensation.

The broker cut FY25-26 EPS estimates by -3.2% and -6.5%, respectively, after factoring in higher operating cost assumptions, updated forex and some changes to subscriber forecasts.

Target rises to $180 from $177. Overweight maintained.

FORECAST
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 155.63 cents.
Jarden forecasts a full year FY26 dividend of 98.83 cents and EPS of 160.65 cents.

Wilsons

xx/xx/xxxx

3

xxxxxx xxxxxx

$xx.xx

xx.xx%

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XRO STOCK CHART

FNArena News on XRO

1
Rudi’s View: Awaiting The Real World Ramifications (continued)

May 14 2025 - Rudi's View
2
Australian Broker Call *Extra* Edition – May 06, 2025

May 06 2025 - Daily Market Reports
3
Rudi’s View: Mag7 Dominance & Profit Warnings

May 01 2025 - Rudi's View
4
Rudi’s View: Awaiting The Real World Ramifications

Apr 30 2025 - Rudi's View
5
In Brief: Equity Portfolio, Aristocrat & US Copper

Apr 24 2025 - Weekly Reports

Latest Accountancy News

1
Xero: The Pause That Refreshes

Jan 23 2025 - Technicals
2
Xero’s Growing Cash Balance In Focus

May 28 2024 - Australia
3
Treasure Chest: Xero

May 16 2024 - Treasure Chest
4
Reckon’s New Lease Of Life

Feb 15 2024 - Small Caps
5
Xero Sees The Value Of Profit

Mar 14 2023 - Australia
6
Xero In Focus

Feb 28 2023 - Technicals
7
Too Low For Xero?

May 16 2022 - Australia
8
Treasure Chest: Will Xero’s Star Start To Wane?

Jul 27 2021 - Treasure Chest
9
Xero Ramps Reinvestment

May 18 2021 - Australia
10
Customer Churn Concern For Xero

May 18 2020 - Australia