Xero shares fell more than 25% in recent weeks after social media stirrings in the UK following two communication mishaps. Social media posts that hint at Xero trying to disintermediate accountants are potentially damaging to its accountant customer relationships.
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 on sales and marketing to replenish churned customers.
|
Metric
|
XRO
|
WDAY
|
INTU
|
|---|---|---|---|
Price/Earnings (Normalized) | 264.10 | 18.31 | 11.63 |
Price/Book Value | 2.09 | 6.97 | 4.00 |
Price/Sales | 3.74 | 4.75 | 3.65 |
Price/Cash Flow | 11.04 | 13.79 | 8.86 |
|
Metric
|
XRO
|
WDAY
|
INTU
|
|---|---|---|---|
Quick Ratio | 1.04 | 0.81 | 1.42 |
Current Ratio | 1.09 | 0.91 | 1.51 |
Interest Coverage | 2.34 | 10.57 | 23.80 |
|
Metric
|
XRO
|
WDAY
|
INTU
|
|---|---|---|---|
Return on Assets (Normalized) | 4.98% | 16.94% | 18.64% |
Return on Equity (Normalized) | 8.39% | 37.25% | 34.45% |
Return on Invested Capital (Normalized) | 6.86% | 24.04% | 25.45% |
|
1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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Capital Allocation
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Economic Moat
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United States