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) | 170.01 | 41.73 | 43.96 |
Price/Book Value | 16.42 | 10.52 | 8.38 |
Price/Sales | 12.72 | 11.94 | 9.38 |
Price/Cash Flow | 42.54 | 36.84 | 31.20 |
|
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
| Uber Technologies Inc | Qpfxfgx | Gqwvq | $144.4 Bil | |
SHOP
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CDNS
| Cadence Design Systems Inc | Zjnfgpwplr | Mkgbkf | $75.6 Bil | |
WDAY
| Workday Inc Class A | Tghpnzqvd | Kbcf | $67.6 Bil | |
ROP
| Roper Technologies Inc | Qgslqhpzb | Zzqh | $57.6 Bil | |
DASTY
| Dassault Systemes SE ADR | Fzczskgf | Jtm | $54.7 Bil |
