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

$176.50

03 Jul
2025

-1.740

OPEN

$180.23

-0.98%

HIGH

$180.23

574,795

LOW

$176.06

TARGET
$211.50 19.8% 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) 195.3 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 91.1 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

0.8

No. Of Recommendations

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

Morgans

xx/xx/xxxx

2

xxxxxxxxxx

$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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UBS

26/06/2025

1

Buy

$215.00

21.81%

Xero has bid -US$2.5bn to acquire Melio, a US bill payments platform with FY25 revenue of US$153m and a free cash flow (FCF) loss of -US$88m. There is a US$400m earn-out possible over the next three years.

The deal values Melio at 13.4 times annualised March 2025 sales, or 9.7 times including an estimated US$70m in revenue synergies by FY28, notes UBS.

The broker views the transaction as aligned with Xero’s 3x3 strategy by expanding US payments capabilities and strengthening its syndicated accounting presence, targeting a US$29bn total adressable market (TAM).

Management maintains FY26 opex guidance and raises FY28 goals to more than double FY25 revenue and surpass the Rule of 40, with peak leverage forecast at 2.3 times net debt/EBITDA.

UBS retains a Buy rating and keeps its price target unchanged at $215.

FORECAST
UBS forecasts a full year FY26 dividend of 0.00 cents and EPS of 188.87 cents.
UBS forecasts a full year FY27 dividend of 0.00 cents and EPS of 270.99 cents.

Morgan Stanley

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Ord Minnett

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

2

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

xx/xx/xxxx

2

xxxxxxxxxx

$xx.xx

xx.xx%

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Wilsons

26/06/2025

3

Market Weight

$217.26

23.09%

Wilsons believes Xero’s acquisition of Melio will materially accelerate its US expansion and enhance the overall product offering.

The deal is worth -US$2.6bn upfront, with up to -US$0.5bn in earn-outs over three years.

Funding will come from a mix of equity (including a $1.2bn placement at $176 per share), existing cash, debt, and a non-underwritten share purchase plan (SPP) for circa $200m.

Melio, with 80,000 customers and US$153m in FY25 revenue, recorded 88% revenue growth, highlights Wilsons, and boasts an average revenue per user (ARPU) 14 times higher than Xero’s current US levels.

Wilsons increases its target price to $217.26 from $213.00 and retains an Overweight rating.

FORECAST
Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 314.51 cents.
Wilsons forecasts a full year FY27 dividend of 0.00 cents and EPS of 429.20 cents.
Access Extra Coverage Research History >

XRO STOCK CHART

FNArena News on XRO

1
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Jul 03 2025 - Rudi's View
2
Australian Broker Call *Extra* Edition – Jun 30, 2025

Jun 30 2025 - Daily Market Reports
3
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Jun 30 2025 - FYI
4
Next Week At A Glance – 30 June-July 4 2025

Jun 27 2025 - Weekly Reports
5
Xero’s Bold US Play

Jun 27 2025 - Australia

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