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: 2.07
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

$140.00

12 Nov
2025

-3.190

OPEN

$143.30

-2.23%

HIGH

$143.63

551,449

LOW

$139.69

TARGET
$215.317 53.8% upside
Franking for last dividend paid out: 0%
OTHER COMPANIES IN THE SAME SECTOR
RKN .
FNARENA'S MARKET CONSENSUS FORECASTS
XRO: 1
Title FY26
Forecast		 FY27
Forecast
EPS (cps) 174.6 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 72.9 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 202020212022202320242025
EPS Basic xxxxxxxxxxxxxxx135.8
DPS All xxxxxxxxxxxxxxx0.0
Sales/Revenue xxxxxxxxxxxxxxx1,914.0 M
Book Value Per Share xxxxxxxxxxxxxxx1,299.3
Net Operating Cash Flow xxxxxxxxxxxxxxx738.9 M
Net Profit Margin xxxxxxxxxxxxxxx10.83 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 202020212022202320242025
Return on Capital Employed xxxxxxxxxxxxxxx12.67 %
Return on Invested Capital xxxxxxxxxxxxxxx9.30 %
Return on Assets xxxxxxxxxxxxxxx6.13 %
Return on Equity xxxxxxxxxxxxxxx12.67 %
Return on Total Capital xxxxxxxxxxxxxxx11.75 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx726.9 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 202020212022202320242025
Short-Term Debt xxxxxxxxxxxxxxx1,133 M
Long Term Debt xxxxxxxxxxxxxxx83 M
Total Debt xxxxxxxxxxxxxxx1,217 M
Goodwill - Gross xxxxxxxxxxxxxxx369 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx2,118 M
Price To Book Value xxxxxxxxxxxxxxx11.91

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 202020212022202320242025
Capex xxxxxxxxxxxxxxx275.9 M
Capex % of Sales xxxxxxxxxxxxxxx14.41 %
Cost of Goods Sold xxxxxxxxxxxxxxx459 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx1,126 M
Research & Development xxxxxxxxxxxxxxx354 M
Investments - Total xxxxxxxxxxxxxxx519 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

0.9

No. Of Recommendations

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

Macquarie

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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xxx

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xx/xx/xxxx

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Morgan Stanley

30/10/2025

1

Overweight

$235.00

67.86%

Morgan Stanley remains Overweight-rated on Xero, arguing the -$2.5bn Melio acquisition strengthens the company’s strategic position in the US small and medium business (SMB) market.

The broker believes combining Xero’s accounting platform with Melio’s payments capabilities creates a US$700m revenue and US$200m gross profit opportunity by 2030.

The broker's forecasts assume total payment volume rising to US$117bn from US$42bn, take-rates lifting to 0.63%, and US subscribers growing 12% annually through FY25-FY30.

A separate report by Morgan Stanley identifies Xero’s upcoming first half FY26 result on November 13 as a key catalyst likely to drive heightened share price volatility.

The broker notes shares are down -10% year-to-date and -23% since the June announcement of the Melio acquisition, amid investor concern over integration and the broader “AI eats software” narrative.

The analysts forecast high-single to low-double-digit average revenue per user (ARPU) growth, low churn and improving customer economics, with most upside in the US self-employed segment.

Its base case (50% probability) assumes revenue growth of 21% and earnings (EBITDA) growth of 11% versus the prior year.

Target $235. Industry View: Attractive.

FORECAST
Morgan Stanley forecasts a full year FY26 dividend of 0.00 cents and EPS of 113.37 cents.
Morgan Stanley forecasts a full year FY27 dividend of 0.00 cents and EPS of 62.58 cents.

Ord Minnett

xx/xx/xxxx

1

xxxxxxx xx xxx xxxx xxxxxxxxxx

$xx.xx

xx.xx%

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Morgans

xx/xx/xxxx

2

xxxxxxxxxx

$xx.xx

xx.xx%

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Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

1

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

Jarden

22/10/2025

1

Upgrade to Buy from Overweight

$196.00

40.00%

Xero’s earlier-than-expected completion of the Melio acquisition prompts Jarden to lower its FY26 earnings forecast by -10% due to timing and tax effects. The FY27 forecast and beyond remain unchanged.

Xero’s share price had fallen -20.3% by October 17, since the June 25 announcement of deal completion, wiping around -$6.3bn in market value, equivalent to 137% of Melio’s purchase cost, highlights the broker.

Nonetheless, the analyst expects long-term benefits from the acquisition.

Jarden raises its rating to Buy from Overweight and maintains a $196 target price.
Access Extra Coverage Research History >

XRO STOCK CHART

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Latest Accountancy News

1
Xero’s Bold US Play

Jun 27 2025 - Australia
2
Xero: Maximising Long-Term Value Creation

May 20 2025 - Australia
3
Xero: The Pause That Refreshes

Jan 23 2025 - Technicals
4
Xero’s Growing Cash Balance In Focus

May 28 2024 - Australia
5
Treasure Chest: Xero

May 16 2024 - Treasure Chest
6
Reckon’s New Lease Of Life

Feb 15 2024 - Small Caps
7
Xero Sees The Value Of Profit

Mar 14 2023 - Australia
8
Xero In Focus

Feb 28 2023 - Technicals
9
Too Low For Xero?

May 16 2022 - Australia
10
Treasure Chest: Will Xero’s Star Start To Wane?

Jul 27 2021 - Treasure Chest