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

$123.15

27 Nov
2025

2.760

OPEN

$120.74

2.29%

HIGH

$124.40

431,550

LOW

$120.72

TARGET
$200.05 62.4% 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) 137.1 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

 $ 

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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
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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Morgan Stanley

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Ord Minnett

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Macquarie

17/11/2025

1

Outperform

$230.30

87.01%

Macquarie believes Xero’s growth story remains intact, with execution in the US tracking ahead of schedule. The broker highlights strong cost discipline and an improved outlook, and notes Melio is outperforming expectations.

North America is seen as the key growth driver, with Melio integration and Gusto payroll rollout advancing earlier than forecast.

Outperform. Target rises to $230.30 from $228.90.

A summary of Macquarie's initial thoughts on the result follows.

In a flash update, Macquarie points to a guidance upgrade for FY26 with opex/sales lowered to 70.5% from 71.5% ex-Melio due to improved efficiency. FY28 targets were reiterated at two times Xero's standalone FY25 revenue and over the Rule of 40.

The result shows subscriptions in line, with average revenue per user better than expected by 3% and 21% above consensus. Annualised monthly recurring revenue was 3% better than the analyst's estimate and 5% above consensus.

The strong monthly recurring revenue infers the company only requires NZ$141m of revenue growth to achieve consensus sales. First half payments revenue rose 40% annually, with Melio achieving robust revenue growth of 68% y/y, with over 7k customers. 

UK growth advanced to over 56k net subs added against over 49k a year earlier.

FORECAST
Macquarie forecasts a full year FY26 dividend of 0.00 cents and EPS of 136.28 cents.
Macquarie forecasts a full year FY27 dividend of 0.00 cents and EPS of 106.31 cents.

Citi

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Morgans

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

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

48.60%

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 141.72 cents.
Jarden forecasts a full year FY27 dividend of 0.00 cents and EPS of 158.02 cents.
Access Extra Coverage Research History >

XRO STOCK CHART

FNArena News on XRO

1
ASX200: What Stocks Are Included And Why It Matters

11:00 AM - FYI
2
Rudi’s View: Un-Bubbling The AI Bubble Talk

Nov 27 2025 - Rudi's View
3
Rudi’s View: Focus On 2026

Nov 26 2025 - Rudi's View
4
Outlook Intact Post Tech1’s FY25 Punishment

Nov 24 2025 - Australia
5
Australian Broker Call *Extra* Edition – Nov 19, 2025

Nov 19 2025 - Daily Market Reports

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