Summary: Xero Limited

  • The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
  • From a short-term investment perspective, the company presents a deteriorated fundamental situation

Highlights: Xero Limited

  • According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
  • The company's profit outlook over the next few years is a strong asset.
  • The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
  • The company returns high margins, thereby supporting business profitability.
  • Thanks to a sound financial situation, the firm has significant leeway for investment.
  • Over the past year, analysts have regularly revised upwards their sales forecast for the company.
  • Sales forecast by analysts have been recently revised upwards.
  • Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
  • Over the past four months, analysts' average price target has been revised upwards significantly.

Weaknesses: Xero Limited

  • With an expected P/E ratio at 105.94 and 71.04 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
  • Based on current prices, the company has particularly high valuation levels.
  • The company appears highly valued given the size of its balance sheet.
  • The company is highly valued given the cash flows generated by its activity.
  • The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

Ratings Chart: Xero Limited

surperformance-ratings-chart XERO-LIMITED
Source: Surperformance

ESG chart: Xero Limited

esg-ratings-chart XERO-LIMITED
Source: Refinitiv

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Composite Fundamentals Composite Valuation Composite Momentum Capi. ($)
16.64B
241B
108B
72.05B
65.31B
58.92B
52.63B
43.35B
29.71B
23.83B
Average 71.1B
Weighted average by Cap.
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Investor Rating
Trading Rating
ESG Refinitiv
B

Financials

Sales growth
Earnings Growth
EBITDA / Sales
Profitability
Finances

Valuation

P/E ratio
EV / Sales
Price to Book
Price to Free Cash Flow
Yield

Momentum

1 year Revenue revision
4 months Revenue revision
7 days Revenue revision
1 year EPS revision
4 months EPS revision

Consensus

Analyst Opinion
Potential Price Target
4m Target Price Revision
4m Revision of opinion
12m Revision of opinion

Business Predictability

Analyst Coverage
Divergence of Estimates
Divergence of analysts' opinions
Divergence of Target Price
Earnings quality

Environment

Emissions
Innovation
Use of resources

Social

Social commitment
Human Rights
Product liability
Human Resources

Governance

CSR Strategy
Management
Shareholders

Controversy

Controversy

Technical analysis

ST Timing
MT Timing
LT Timing
RSI
Bollinger Spread
Unusual volumes