XERO LIMITED (XRO)
Share Price Analysis and Chart

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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

$168.17

23 Dec
2024

2.130

OPEN

$166.97

1.28%

HIGH

$168.77

191,624

LOW

$166.26

TARGET
$196.15 16.6% 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) 130.3 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 © 2024 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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Ord Minnett

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Morgans

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Macquarie

15/11/2024

1

Outperform

$191.90

14.11%

After updating forecasts following yesterday's 1H results by Xero, Macquarie raises its target to $191.90 from $188.50 and maintains an Outperform rating.

Yesterday's Broker Call summary: Macquarie's initial take on Xero's 1H25 results shows improved cost management, with a gross margin around 89%, opex to sales at 71.2%, and a free cash flow margin of 21%, driven by 8.9% sales growth in small businesses.

Average revenue per user was better than anticipated at NZ$43.01, up 11% year-on-year, due to strong uptake of higher-priced plans in Australia, robust payments performance, and "idle" subscription churn.

Management reiterated FY25 guidance.

FORECAST
Macquarie forecasts a full year FY25 dividend of 0.00 cents and EPS of 142.18 cents.
Macquarie forecasts a full year FY26 dividend of 27.15 cents and EPS of 220.14 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

20/11/2024

2

Overweight

$177.00

5.25%

Jarden notes Xero reported strong 1H25 results, with revenue increasing by 24.6% to NZ$995.9m, and earnings by 125% to NZ$175m, which were above the analyst's and consensus estimates.

The broker highlights the operating cost ratio guidance of 73% appears conservative, given the reported 71.2% in 1H25.

Free cash flow doubled to NZ$198.5m in 1H25 which is 16% above Jarden's forecast, prompting an 11% upgrade to the analyst's estimate for FY26 free cash flow to NZ$519m.

Jarden lifts EPS forecasts for FY25 by 3%. Overweight rating retained while raising the price target to $177 from $151.

FORECAST
Jarden forecasts a full year FY25 dividend of 0.00 cents and EPS of 161.62 cents.
Jarden forecasts a full year FY26 dividend of 106.40 cents and EPS of 210.79 cents.

Wilsons

xx/xx/xxxx

3

xxxxxx xxxxxx

$xx.xx

xx.xx%

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Latest Accountancy News

1
Xero’s Growing Cash Balance In Focus

May 28 2024 - Australia
2
Treasure Chest: Xero

May 16 2024 - Treasure Chest
3
Reckon’s New Lease Of Life

Feb 15 2024 - Small Caps
4
Xero Sees The Value Of Profit

Mar 14 2023 - Australia
5
Xero In Focus

Feb 28 2023 - Technicals
6
Too Low For Xero?

May 16 2022 - Australia
7
Treasure Chest: Will Xero’s Star Start To Wane?

Jul 27 2021 - Treasure Chest
8
Xero Ramps Reinvestment

May 18 2021 - Australia
9
Customer Churn Concern For Xero

May 18 2020 - Australia
10
Treasure Chest: Xero Defensive

Apr 06 2020 - Treasure Chest