Xero Future Growth
Future criteria checks 4/6
Xero is forecast to grow earnings and revenue by 26.6% and 14.4% per annum respectively. EPS is expected to grow by 26.2% per annum. Return on equity is forecast to be 19.3% in 3 years.
Key information
26.6%
Earnings growth rate
26.2%
EPS growth rate
| Software earnings growth | 28.2% |
| Revenue growth rate | 14.4% |
| Future return on equity | 19.3% |
| Analyst coverage | Good |
| Last updated | 22 Nov 2024 |
Recent future growth updates
Recent updates
At AU$171, Is It Time To Put Xero Limited (ASX:XRO) On Your Watch List?
Dec 10
Does Xero (ASX:XRO) Have A Healthy Balance Sheet?
Nov 26Estimating The Fair Value Of Xero Limited (ASX:XRO)
Oct 08Xero (ASX:XRO) Could Easily Take On More Debt
Jun 26Returns Are Gaining Momentum At Xero (ASX:XRO)
Jun 11Xero's (ASX:XRO) Solid Earnings Are Supported By Other Strong Factors
May 29Is Xero Limited (ASX:XRO) Worth AU$125 Based On Its Intrinsic Value?
May 22Pinning Down Xero Limited's (ASX:XRO) P/S Is Difficult Right Now
Mar 22Is It Time To Consider Buying Xero Limited (ASX:XRO)?
Feb 24Is Xero Limited (ASX:XRO) Expensive For A Reason? A Look At Its Intrinsic Value
Feb 05Returns On Capital Are Showing Encouraging Signs At Xero (ASX:XRO)
Jan 16Xero (ASX:XRO) Seems To Use Debt Rather Sparingly
Dec 29Earnings and Revenue Growth Forecasts
| Date | Revenue | Earnings | Free Cash Flow | Cash from Op | Avg. No. Analysts |
|---|---|---|---|---|---|
| 3/31/2027 | 2,936 | 513 | 632 | 1,001 | 15 |
| 3/31/2026 | 2,498 | 371 | 503 | 820 | 15 |
| 3/31/2025 | 2,103 | 245 | 434 | 717 | 16 |
| 9/30/2024 | 1,910 | 216 | 446 | 721 | N/A |
| 6/30/2024 | 1,812 | 195 | 395 | 656 | N/A |
| 3/31/2024 | 1,714 | 175 | 343 | 592 | N/A |
| 12/31/2023 | 1,627 | 66 | 269 | 526 | N/A |
| 9/30/2023 | 1,541 | -43 | 194 | 461 | N/A |
| 6/30/2023 | 1,470 | -78 | 149 | 426 | N/A |
| 3/31/2023 | 1,400 | -114 | 105 | 390 | N/A |
| 12/31/2022 | 1,325 | -66 | 55 | 329 | N/A |
| 9/30/2022 | 1,250 | -19 | 5 | 268 | N/A |
| 6/30/2022 | 1,173 | -14 | 0 | 252 | N/A |
| 3/31/2022 | 1,097 | -9 | -4 | 236 | N/A |
| 12/31/2021 | 1,021 | -15 | 4 | 228 | N/A |
| 9/30/2021 | 945 | -21 | 11 | 220 | N/A |
| 6/30/2021 | 897 | 0 | 34 | 219 | N/A |
| 3/31/2021 | 849 | 20 | 57 | 219 | N/A |
| 12/31/2020 | 819 | 28 | 67 | 220 | N/A |
| 9/30/2020 | 789 | 36 | 77 | 222 | N/A |
| 6/30/2020 | 754 | 20 | 52 | 194 | N/A |
| 3/31/2020 | 718 | 3 | 28 | 167 | N/A |
| 12/31/2019 | 677 | 3 | 24 | 158 | N/A |
| 9/30/2019 | 635 | 3 | 19 | 150 | N/A |
| 6/30/2019 | 594 | -12 | 11 | 132 | N/A |
| 3/31/2019 | 553 | -27 | 3 | 114 | N/A |
| 12/31/2018 | 514 | -31 | -3 | 98 | N/A |
| 9/30/2018 | 475 | -34 | -9 | 82 | N/A |
| 6/30/2018 | 441 | -29 | N/A | 72 | N/A |
| 3/31/2018 | 407 | -25 | N/A | 61 | N/A |
| 12/31/2017 | 376 | -35 | N/A | 43 | N/A |
| 9/30/2017 | 346 | -45 | N/A | 24 | N/A |
| 6/30/2017 | 321 | -57 | N/A | 10 | N/A |
| 3/31/2017 | 295 | -69 | N/A | -4 | N/A |
| 12/31/2016 | 274 | -76 | N/A | -15 | N/A |
| 9/30/2016 | 252 | -82 | N/A | -25 | N/A |
| 6/30/2016 | 229 | -82 | N/A | -30 | N/A |
| 3/31/2016 | 207 | -82 | N/A | -35 | N/A |
| 12/31/2015 | 185 | -86 | N/A | -39 | N/A |
| 9/30/2015 | 162 | -89 | N/A | -44 | N/A |
| 6/30/2015 | 143 | -79 | N/A | -41 | N/A |
| 3/31/2015 | 124 | -70 | N/A | -39 | N/A |
| 12/31/2014 | 109 | -56 | N/A | -34 | N/A |
| 9/30/2014 | 93 | -43 | N/A | -30 | N/A |
| 6/30/2014 | 82 | -39 | N/A | -26 | N/A |
| 3/31/2014 | 70 | -35 | N/A | -21 | N/A |
| 12/31/2013 | 61 | -29 | N/A | -17 | N/A |
Analyst Future Growth Forecasts
Earnings vs Savings Rate: XRO's forecast earnings growth (26.6% per year) is above the savings rate (2.6%).
Earnings vs Market: XRO's earnings (26.6% per year) are forecast to grow faster than the Australian market (12.5% per year).
High Growth Earnings: XRO's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: XRO's revenue (14.4% per year) is forecast to grow faster than the Australian market (5.9% per year).
High Growth Revenue: XRO's revenue (14.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: XRO's Return on Equity is forecast to be low in 3 years time (19.3%).
Discover growth companies
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2024/12/20 07:29 |
| End of Day Share Price | 2024/12/20 00:00 |
| Earnings | 2024/09/30 |
| Annual Earnings | 2024/03/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
|
|
| Market Prices | 30 years |
| |
| Ownership | 10 years |
| |
| Management | 10 years |
| |
| Key Developments | 10 years |
|
* example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .
Analyst Sources
Xero Limited is covered by 27 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Eric Choi | Barrenjoey Markets Pty Limited |
| Aryan Norozi | Barrenjoey Markets Pty Limited |
| Nicholas McGarrigle | Barrenjoey Markets Pty Limited |