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

$188.70

13 Jun
2025

-0.820

OPEN

$189.97

-0.43%

HIGH

$190.38

339,087

LOW

$187.47

TARGET
$212.80 12.8% 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) 195.2 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 96.7 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

 $ 

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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
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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

1.0

No. Of Recommendations

5
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Citi

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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UBS

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Morgan Stanley

16/05/2025

1

Overweight

$220.00

16.59%

Xero reported FY25 revenue of NZ$2,103m, in line with consensus, and earnings (EBITDA) of NZ$640.6m, which was -2% below expectations, notes Morgan Stanley.

Free cash flow was strong at NZ$506.7m, highlight the analysts, lifting the rule-of-40 metric to 44%, up from 41% the prior year.

The broker points out average revenue per user (ARPU) rose to NZ$45.1/month, up 15% year-on-year and 2.5% ahead of consensus. A&NZ ARPU grew 10%, while international markets (UK, US, RoW) delivered 21% growth. 

Management issued FY26 guidance for a cost ratio of 71.5%. Morgan Stanley observes this was higher than the 69.5% expected by consensus, due to a -NZ$45m non-cash charge linked to CEO and CFO remuneration.

Overweight rating. Target $220. Industry view: Attractive.

FORECAST
Morgan Stanley forecasts a full year FY26 dividend of 0.00 cents and EPS of 209.72 cents.

Morgans

xx/xx/xxxx

1

xxxxxxx xx xxx xxxx xxxx

$xx.xx

xx.xx%

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Macquarie

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

04/06/2025

2

Overweight

$197.00

4.40%

Jarden expects Xero to prioritise revenue growth over margin expansion in the near term, with the CFO signalling a shift from the Rule of 40 to a more growth-accommodating ‘Rule of X’ framework.

The broker increases long-term earnings assumptions, including FY35 EPS by 9%, while near-term estimates are revised lower mainly due to increased investment in the US.

Jarden raises its North American subscriber growth forecast to 90,000/year, up from 50,000, and projects FY35 US revenue at NZ$840m, implying a 20% compund annual growth rate (CAGR).

The analysts estimate US cash burn will rise above -NZ$30m/year, with operating leverage to recover over time. 

Jarden raises the target price to $197 from $190 and maintains an Overweight rating.

FORECAST
Jarden forecasts a full year FY26 dividend of 100.57 cents and EPS of 199.42 cents.
Jarden forecasts a full year FY27 dividend of 147.90 cents and EPS of 268.26 cents.
Access Extra Coverage Research History >

XRO STOCK CHART

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Latest Accountancy News

1
Xero: Maximising Long-Term Value Creation

May 20 2025 - Australia
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Xero: The Pause That Refreshes

Jan 23 2025 - Technicals
3
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May 28 2024 - Australia
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