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

$96.10

03 Feb
2026

2.410

OPEN

$96.51

2.57%

HIGH

$97.50

1,645,900

LOW

$93.19

TARGET
$188.967

-7.75 change from previous day

 96.6% 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) 132.3 xxx
DPS (cps) 0.0 xxx
EPS Growth N/A xxx
DPS Growth N/A xxx
PE Ratio 62.1 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 © 2026 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

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

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Ord Minnett

04/02/2026

1

Buy

$150.00

56.09%

Ord Minnett continues to ascribe a Buy rating on Xero with a lower target of $150 from $200 due to changes in long term earnings forecasts and a higher risk free rate.

The broker believes the stock is undervalued at current levels, which infers the market is applying “nil value” for the US and Melio operations.

Management has reconfirmed cost guidance for FY26 and outlined guidance for Melio to reach earnings (EBITDA) break-even in 2H28.

The target to return to Rule of 40 was restated for FY28, while the guidance is for revenue more than doubling by FY28 vs FY25, prior to synergies from the Melio acquisition.

No change in the broker's earnings forecasts.

Morgans

xx/xx/xxxx

2

xxxxxxxxxx

$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 >
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

90.43%

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 140.78 cents.
Jarden forecasts a full year FY27 dividend of 0.00 cents and EPS of 156.97 cents.
Access Extra Coverage Research History >

XRO STOCK CHART

FNArena News on XRO

Latest Accountancy News

1
Too Low For Xero?

May 16 2022 - Australia
2
Treasure Chest: Will Xero’s Star Start To Wane?

Jul 27 2021 - Treasure Chest
3
Xero Ramps Reinvestment

May 18 2021 - Australia
4
Customer Churn Concern For Xero

May 18 2020 - Australia
5
Treasure Chest: Xero Defensive

Apr 06 2020 - Treasure Chest
6
Xero Upside

May 21 2019 - Technicals
7
Xero Poised For Substantial Reinvestment

May 20 2019 - Australia
8
MYOB Calculates Better Future Without Reckon

Jun 04 2018 - Australia
9
MYOB’s Year Of Reckoning

Nov 20 2017 - Australia
10
Xero Rally Doesn’t Add Up For Brokers

Nov 14 2017 - Australia