We expect Xero’s near- and medium-term strategic focus to revolve around rationalizing its areas of investment, especially against a backdrop of normalizing demand for business software.
Xero holds a dominant market position in Australia and New Zealand, where its business is supported by network effects.
Xero’s customer base of SMEs is low-quality, due to the segment’s inherently high business failure rates. This will require constant spending into sales and marketing to replenish churned customers.
|
Metric
|
XRO
|
INTU
|
WDAY
|
|---|---|---|---|
Price/Earnings (Normalized) | 177.31 | 44.00 | 43.93 |
Price/Book Value | 17.13 | 11.10 | 8.38 |
Price/Sales | 13.27 | 12.59 | 9.38 |
Price/Cash Flow | 44.37 | 38.84 | 31.18 |
|
Metric
|
XRO
|
INTU
|
WDAY
|
|---|---|---|---|
Quick Ratio | 6.16 | 0.57 | 1.87 |
Current Ratio | 6.26 | 1.17 | 1.97 |
Interest Coverage | 0.30 | 13.53 | 1.48 |
|
Metric
|
XRO
|
INTU
|
WDAY
|
|---|---|---|---|
Return on Assets (Normalized) | 4.07% | 15.60% | 10.93% |
Return on Equity (Normalized) | 9.47% | 26.20% | 23.82% |
Return on Invested Capital (Normalized) | 4.36% | 19.07% | 14.34% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
CRM
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SAP
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INTU
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NOW
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UBER
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CDNS
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SHOP
| Shopify Inc Registered Shs -A- Subord Vtg | Rgpbmrhd | Dnbtsc | $75.9 Bil | |
WDAY
| Workday Inc Class A | Xssjdlzf | Xzrpn | $68.4 Bil | |
ROP
| Roper Technologies Inc | Vffcxvzt | Znsn | $58.5 Bil | |
SNOW
| Snowflake Inc Ordinary Shares - Class A | Gnsymdymjr | Yrcsr | $55.1 Bil |
