XRO Stock Overview
Xero Limited, together with its subsidiaries, operates as a software as a service company in New Zealand, Australia, the United Kingdom, and internationally.
No risks detected for XRO from our risk checks.
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$77.01|
|52 Week High||AU$156.65|
|52 Week Low||AU$72.53|
|1 Month Change||-10.07%|
|3 Month Change||-25.49%|
|1 Year Change||-44.03%|
|3 Year Change||21.72%|
|5 Year Change||216.39%|
|Change since IPO||1,618.97%|
Recent News & Updates
Should You Investigate Xero Limited (ASX:XRO) At AU$84.78?
While Xero Limited ( ASX:XRO ) might not be the most widely known stock at the moment, it saw a decent share price...
Does This Valuation Of Xero Limited (ASX:XRO) Imply Investors Are Overpaying?
In this article we are going to estimate the intrinsic value of Xero Limited ( ASX:XRO ) by estimating the company's...
Xero (ASX:XRO) Might Have The Makings Of A Multi-Bagger
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
|XRO||AU Software||AU Market|
Return vs Industry: XRO underperformed the Australian Software industry which returned -26.4% over the past year.
Return vs Market: XRO underperformed the Australian Market which returned -12.2% over the past year.
|XRO Average Weekly Movement||8.1%|
|Software Industry Average Movement||11.4%|
|Market Average Movement||9.9%|
|10% most volatile stocks in AU Market||16.6%|
|10% least volatile stocks in AU Market||4.4%|
Stable Share Price: XRO is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: XRO's weekly volatility (8%) has been stable over the past year.
About the Company
Xero Limited, together with its subsidiaries, operates as a software as a service company in New Zealand, Australia, the United Kingdom, and internationally. The company offers Xero, an open platform that connects small businesses to a range of solutions, which helps to manage their finances. It also provides Xero mobile app; and accountant/bookkeeper tools, including Xero HQ, Xero Practice Manager, Xero Workpapers, and Xero Cashbook or Xero Ledger.
Xero Fundamentals Summary
|XRO fundamental statistics|
Is XRO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|XRO income statement (TTM)|
|Cost of Revenue||NZ$139.39m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Nov 10, 2022
|Earnings per share (EPS)||-0.061|
|Net Profit Margin||-0.83%|
How did XRO perform over the long term?See historical performance and comparison
Is XRO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for XRO?
Other financial metrics that can be useful for relative valuation.
|What is XRO's n/a Ratio?|
Price to Sales Ratio vs Peers
How does XRO's PS Ratio compare to its peers?
|XRO PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
WTC WiseTech Global
TNE Technology One
Price-To-Sales vs Peers: XRO is good value based on its Price-To-Sales Ratio (11.5x) compared to the peer average (12x).
Price to Earnings Ratio vs Industry
How does XRO's PE Ratio compare vs other companies in the AU Software Industry?
Price-To-Sales vs Industry: XRO is expensive based on its Price-To-Sales Ratio (11.5x) compared to the Australian Software industry average (4.2x)
Price to Sales Ratio vs Fair Ratio
What is XRO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||11.5x|
|Fair PS Ratio||20x|
Price-To-Sales vs Fair Ratio: XRO is good value based on its Price-To-Sales Ratio (11.5x) compared to the estimated Fair Price-To-Sales Ratio (20x).
Share Price vs Fair Value
What is the Fair Price of XRO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: XRO (A$77.01) is trading above our estimate of fair value (A$74.17)
Significantly Below Fair Value: XRO is trading above our estimate of fair value.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate XRO's PEG Ratio to determine if it is good value.
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How is Xero forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: XRO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).
Earnings vs Market: XRO is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: XRO is expected to become profitable in the next 3 years.
Revenue vs Market: XRO's revenue (16.5% per year) is forecast to grow faster than the Australian market (5.1% per year).
High Growth Revenue: XRO's revenue (16.5% 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 (14.6%).
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How has Xero performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: XRO is currently unprofitable.
Growing Profit Margin: XRO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: XRO is unprofitable, but has reduced losses over the past 5 years at a rate of 51.7% per year.
Accelerating Growth: Unable to compare XRO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: XRO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (21.2%).
Return on Equity
High ROE: XRO has a negative Return on Equity (-0.88%), as it is currently unprofitable.
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How is Xero's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: XRO's short term assets (NZ$1.1B) exceed its short term liabilities (NZ$196.5M).
Long Term Liabilities: XRO's short term assets (NZ$1.1B) do not cover its long term liabilities (NZ$1.1B).
Debt to Equity History and Analysis
Debt Level: XRO has more cash than its total debt.
Reducing Debt: XRO's debt to equity ratio has increased from 0.02% to 85.6% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Insufficient data to determine if XRO has enough cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if XRO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
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What is Xero current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate XRO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate XRO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if XRO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if XRO's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as XRO has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Vamos (64 yo)
Mr. Steven M. Vamos, also known as Steve, BEng Civil (Hons) is the Chief Executive Officer of Xero Ltd since April 1, 2018. Mr. Vamos was an Independent Non-Executive Director at Telstra Corporation Limite...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD4.57M) is above average for companies of similar size in the Australian market ($USD2.54M).
Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.
Experienced Management: XRO's management team is considered experienced (3.8 years average tenure).
Experienced Board: XRO's board of directors are considered experienced (3.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Xero Limited's employee growth, exchange listings and data sources
- Name: Xero Limited
- Ticker: XRO
- Exchange: ASX
- Founded: 2006
- Industry: Application Software
- Sector: Software
- Implied Market Cap: AU$11.514b
- Shares outstanding: 149.51m
- Website: https://www.xero.com
Number of Employees
- Xero Limited
- Xero One
- 19-23 Taranaki Street
- New Zealand
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/03 00:00|
|End of Day Share Price||2022/07/01 00:00|
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.