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

$120.90

04 Dec
2025

-0.300

OPEN

$123.63

-0.25%

HIGH

$123.64

441,500

LOW

$120.27

TARGET
$200.05 65.5% 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) 137.0 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 86.8 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

UBS

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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Citi

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Ord Minnett

17/11/2025

1

Buy

$200.00

65.43%

Ord Minnett notes Xero's share price fell after FY25 results as the market reacted to higher-than-expected FY26 operating expense guidance, implying an EBIT downgrade to NZ$364m vs consensus NZ$410m.

The interpretation is, however, complicated in the broker's view, due to NZ$26m of one-off items that some analysts include and others exclude, leading to mixed EBITDA estimates.

The broker's adjusted EBITDA forecast is now NZ$770m vs consensus of around NZ$768m. FY27 EBITDA consensus is around NZ$843m, but the broker sees this as conservative given Xero’s path toward achieving the SaaS “Rule of 40” by FY28.

The broker's FY27 EBITDA forecast is NZ$894m, reflecting stronger confidence in Xero’s core growth profile.

Buy. Target unchanged at $200.

Morgans

xx/xx/xxxx

2

xxxxxxxxxx

$xx.xx

xx.xx%

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Morgan Stanley

xx/xx/xxxx

1

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

14/11/2025

1

Buy

$183.00

51.36%

Jarden notes, while operating momentum was strong in the first half, expectations for Xero were also high.

Yet given the share price underperformance leading into the result, the broker was surprised at the market reaction. Group revenue grew 20% with EBITDA up 13%.

Potential reasons behind the negative reaction in the share price include the possibility that product design and development capitalisation rates were unexpectedly high and subscriber momentum below expectations.

Disclosure of the Melio depreciation appears to have been a surprise to some which may have driven downgrades, the broker suggests.

Positive aspects of the company's performance appear to be overlooked, in the broker's opinion, and a Buy rating is maintained. Target is reduced to $183 from $196.

FORECAST
Jarden forecasts a full year FY26 dividend of 0.00 cents and EPS of 141.62 cents.
Jarden forecasts a full year FY27 dividend of 0.00 cents and EPS of 157.90 cents.
Access Extra Coverage Research History >

XRO STOCK CHART

FNArena News on XRO

1
Rudi’s View: Momentum Favours Resources

Dec 04 2025 - Rudi's View
2
November In Review: November’s Nasty Nexus

Dec 03 2025 - Australia
3
Rudi’s View: This Too Shall Pass

Dec 03 2025 - Rudi's View
4
ASX200: What Stocks Are Included And Why It Matters

Nov 28 2025 - FYI
5
Rudi’s View: Un-Bubbling The AI Bubble Talk

Nov 27 2025 - Rudi's View

Latest Accountancy News

1
Sceptics Want Xero To Prove Melio’s Added Value

Nov 18 2025 - Australia
2
Xero’s Bold US Play

Jun 27 2025 - Australia
3
Xero: Maximising Long-Term Value Creation

May 20 2025 - Australia
4
Xero: The Pause That Refreshes

Jan 23 2025 - Technicals
5
Xero’s Growing Cash Balance In Focus

May 28 2024 - Australia
6
Treasure Chest: Xero

May 16 2024 - Treasure Chest
7
Reckon’s New Lease Of Life

Feb 15 2024 - Small Caps
8
Xero Sees The Value Of Profit

Mar 14 2023 - Australia
9
Xero In Focus

Feb 28 2023 - Technicals
10
Too Low For Xero?

May 16 2022 - Australia