XeroXROLF 72 OCF Margin % is 26.39% as of Mar. 2026, which is 8% above its 10-year median of 24.48. GuruFocus rates XROLF with a GF Score™ of 72/100 and a GF Value™ of $135.04 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,815 Software companies, Xero ranks better than 91.9% on this metric.
OCF Margin % is calculated as Cash Flow from Operations divided by its Revenue. Xero's Cash Flow from Operations for the
six
months ended in Mar. 2026 was $231 Mil. Xero's Revenue for the
six
months ended in Mar. 2026 was $877 Mil. Therefore, Xero's OCF Margin % for the quarter that ended in Mar. 2026 was 26.39%.
The historical rank and industry rank for Xero's OCF Margin % or its related term are showing as below:
XROLF'
s OCF Margin % Range Over the Past 10 Years
Min: -1.49 Med: 24.48 Max: 38.6
Current: 33.64
During the past 13 years, the highest OCF Margin % of Xero was 38.60%. The lowest was -1.49%. And the median was 24.48%.
XROLF's OCF Margin % is ranked better than 91.9% of 2815
companies
in the Software industry
Industry Median: 6.78
vs XROLF: 33.64
Xero OCF Margin % Related Terms
Xero OCF Margin % Historical Data
* Premium members only.
The historical data trend for Xero's OCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Xero's OCF Margin %, along with its competitors' market caps and OCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Xero OCF Margin % vs Software Industry
For the Software industry and Technology sector, Xero's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Xero's OCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Xero (XROLF) has a OCF Margin % of 26.39% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Xero and its competitors. This is near median its historical median of 24.48. According to the industry distribution chart, Xero ranks #228 out of 2815 companies in the Software industry, placing it in the top 8.1%.
Is Xero's OCF Margin % too high?
Xero's current OCF Margin % of 26.39% is near median its 10-year median of 24.48. The Software industry median OCF Margin % is 6.78. Xero's value of 26.39% is 289.2% above this industry median. Based on the distribution chart, Xero ranks #228 out of 2815 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Xero has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Xero's OCF Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Xero ranks #228 out of 2815 companies for OCF Margin %. This places Xero in the top 8% of its industry — outperforming the majority of peers. The industry median OCF Margin % is 6.78. Xero's value of 26.39% is 289.2% above this benchmark. While the company's 10-year median is 24.48 vs. the industry median of 6.78, Xero has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.78, based on 2,815 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Xero's current OCF Margin % of 26.39% is 289.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Xero and its competitors. For the Software industry, the median OCF Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xero's current OCF Margin % is 26.39%, which is near median its own 10-year median of 24.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xero stock overvalued right now?
Based on GuruFocus' analysis, Xero (XROLF) is currently considered Possible Value Trap. The stock's GF Value™ is $135.04, compared to a current price of $48.45 — trading 64.1% below its estimated fair value. The current OCF Margin % is 26.39%, which is near median its 10-year median of 24.48 and 289.2% above the Software industry median of 6.78. Xero's overall GF Score™ is 72/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Xero (XROLF), the current OCF Margin % is 26.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Xero (XROLF) Overvalued in 2026?
Based on GuruFocus' analysis, Xero stock appears to be undervalued.
The current stock price of $48.45 is trading 64.1% below its estimated GF Value™ of $135.04.
GuruFocus considers Xero to be Possible Value Trap.
Key valuation signals for XROLF:
OCF Margin %: 26.39% (near median its 10-year median of 24.48)
GF Value™: $135.04 vs. price of $48.45 (64.1% below fair value)
Industry Position: 289.2% above the Software median (#228 of 2815)
No single metric tells the full story. See the XROLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xero is a technology company originating from New Zealand, providing cloud-based accounting software, primarily for small and midsized enterprises, or SMEs, and accounting practices. As a first mover in the space for cloud-based accounting software, Xero has grown quickly to achieve dominant market share in New Zealand and Australia, displacing legacy providers. Xero has also expanded beyond its home region toward other English-speaking countries, primarily the UK and the US.
72GF Score
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