XRO AU

Xero Ltd

TMT


Presented:11/10/2023
Price:A$99.93
Cap:$11.85B
Current Price:A$149.85
Cap:$17.92B

Presented

Date11/10/2023
PriceA$99.93
Market Cap$11.85B
Ent Value$13.38B
P/E RatioN/A
Book ValueA$7.28
Div Yield0%
Shares O/S151.44M
Ave Daily Vol382,867
Short IntN/A

Current

PriceA$149.85
Market Cap$17.92B
Xero Ltd. engages in the provision of online business solutions for small businesses and advisory services. It operates through the Australia and New Zealand, and International geographical segments. The company was founded by Rodney Kenneth Drury and Hamish Edwards on July 6, 2006 and is headquartered in Wellington, New Zealand.

Publicly traded companies mentioned herein: BILL Holdings Inc (BILL), Paycom Software Inc (PAYC), Xero Ltd (XRO AU)

Highlights

The presenter is short shares of Xero Ltd (XRO AU), a New Zealand bookkeeping software provider for SMBs that trades in Australia. He believes that SMBs are in the early innings of a challenging environment, as evidenced by recent trends from XRO, BILL, and PAYC. XRO reported fiscal 1H’24 earlier this week and missed on pretty much every metric (subs, revenue, EPS), sending the stock down 13%. Yet, the lack of hedge fund/pod involvement in the Australian stock caused a less severe trade-down than justified by the current situation. He models low teen% growth next year compared to the consensus forecast in the mid- to high-teen% range, and multiple contraction from ~9x consensus NTM revenues to 6x NTM revenues, creating significant downside from the current AUD$100 per share. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.