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: 3.85
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

$115.33

21 Sep
2023

0.950

OPEN

$113.00

0.83%

HIGH

$115.61

717,960

LOW

$112.87

TARGET
$117.567 1.9% upside
Franking for last dividend paid out: 0%
OTHER COMPANIES IN THE SAME SECTOR
RKN .
FNARENA'S MARKET CONSENSUS FORECASTS
XRO: 1
Title FY24
Forecast		 FY25
Forecast
EPS (cps) 91.1 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 125.9 xxx
Dividend Yield 0.0% xxx
Div Pay Ratio(%) 0.0% 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 © 2023 FactSet UK Limited. All rights reserved
Title 201820192020202120222023
EPS Basic xxxxxxxxxxxxxxx-69.0
DPS All xxxxxxxxxxxxxxx0.0
Sales/Revenue xxxxxxxxxxxxxxx1,275.5 M
Book Value Per Share xxxxxxxxxxxxxxx651.8
Net Operating Cash Flow xxxxxxxxxxxxxxx355.8 M
Net Profit Margin xxxxxxxxxxxxxxx-8.11 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201820192020202120222023
Return on Capital Employed xxxxxxxxxxxxxxx-10.65 %
Return on Invested Capital xxxxxxxxxxxxxxx-5.27 %
Return on Assets xxxxxxxxxxxxxxx-4.60 %
Return on Equity xxxxxxxxxxxxxxx-10.65 %
Return on Total Capital xxxxxxxxxxxxxxx3.93 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx349.6 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 201820192020202120222023
Short-Term Debt xxxxxxxxxxxxxxx16 M
Long Term Debt xxxxxxxxxxxxxxx1,052 M
Total Debt xxxxxxxxxxxxxxx1,068 M
Goodwill - Gross xxxxxxxxxxxxxxx309 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx1,044 M
Price To Book Value xxxxxxxxxxxxxxx13.72

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201820192020202120222023
Capex xxxxxxxxxxxxxxx260.4 M
Capex % of Sales xxxxxxxxxxxxxxx20.42 %
Cost of Goods Sold xxxxxxxxxxxxxxx353 M
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx845 M
Research & Development xxxxxxxxxxxxxxx290 M
Investments - Total xxxxxxxxxxxxxxx30 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

0.3

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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Citi

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Macquarie

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

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Ord Minnett

19/06/2023

5

Sell

$75.00

-34.97%

Ord Minnett believes the market is overestimating the quality of the Xero business while underestimating the ongoing expenditure on sales and marketing that is required to maintain it, particularly in international markets.

The main challenges are relatively low quality of his SME customers, which inherently have higher business failures than larger corporates, the broker assesses.

Moreover, the previous three years have been "unusually supportive". Ord Minnett retains a Sell rating and raises the target to $75 from $66 following the transfer of coverage to a new analyst.

FORECAST
Ord Minnett forecasts a full year FY24 dividend of 0.00 cents and EPS of 74.43 cents.
Ord Minnett forecasts a full year FY25 dividend of 0.00 cents and EPS of 106.85 cents.

Morgans

xx/xx/xxxx

3

xxxxxxxxx xx xxxx xxxx xxx

$xx.xx

xx.xx%

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Morgan Stanley

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Access Stockbroker Research History >

XRO STOCK CHART

FNArena News on XRO

1
Rudi’s Comprehensive August 2023 Review

Sep 21 2023 - Feature Stories
2
Rudi’s View: Navigating The Post-August Complexities

Sep 20 2023 - Rudi's View
3
Rudi’s View: Outlook Negative, With Plenty Of Silver Linings

Sep 06 2023 - Rudi's View
4
Rudi’s View: Helia, Hub24, Judo, QBE, ResMed, Santos, Telstra & Xero

Aug 09 2023 - Rudi's View
5
Australian Broker Call *Extra* Edition – Aug 08, 2023

Aug 08 2023 - Daily Market Reports

Latest Accountancy News

1
Xero Sees The Value Of Profit

Mar 14 2023 - Australia
2
Xero In Focus

Feb 28 2023 - Technicals
3
Too Low For Xero?

May 16 2022 - Australia
4
Treasure Chest: Will Xero’s Star Start To Wane?

Jul 27 2021 - Treasure Chest
5
Xero Ramps Reinvestment

May 18 2021 - Australia
6
Customer Churn Concern For Xero

May 18 2020 - Australia
7
Treasure Chest: Xero Defensive

Apr 06 2020 - Treasure Chest
8
Xero Upside

May 21 2019 - Technicals
9
Xero Poised For Substantial Reinvestment

May 20 2019 - Australia
10
MYOB Calculates Better Future Without Reckon

Jun 04 2018 - Australia