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

$173.83

11 Jul
2025

-2.580

OPEN

$176.60

-1.46%

HIGH

$177.55

581,356

LOW

$173.16

TARGET
$213.167 22.6% 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) 195.4 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 89.0 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

Morgan Stanley

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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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

26/06/2025

1

Buy

$210.00

20.81%

Citi emphasises the Melio acquisition makes strategic sense with multiple positives for Xero, including the ability to move into the '3x3' jobs-to-be-done in the US expansion, the broker states, which refers to three categories, accounting, payroll & payments business across three geographies North America, Australasia and UK.

Melio also offers relationships with banks which should enable Xero to access the channel for accounting growth.

The analyst highlights Xero's revenue guidance for FY28 is to more than double, which is an upgrade to consensus estimates by 15%-plus.

Melio is noted for being more exposed to SMEs with ARPU of US$250 per month against Xero at US$180.

Xero's share price is expected to come under pressure due to the valuation being paid for the acquisition and the free cash flow margin dilution, but Citi believes Melio will assist in scaling the US business.

Buy rated with $210 target.

FORECAST
Citi forecasts a full year FY26 dividend of 0.00 cents and EPS of 213.93 cents.
Citi forecasts a full year FY27 dividend of 0.00 cents and EPS of 276.54 cents.

UBS

xx/xx/xxxx

1

xxx

$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

24.98%

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 314.59 cents.
Wilsons forecasts a full year FY27 dividend of 0.00 cents and EPS of 429.31 cents.
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
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May 28 2024 - Australia
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7
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Mar 14 2023 - Australia
8
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9
Too Low For Xero?

May 16 2022 - Australia
10
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