Xero (XROLF) ROCE %: 7.38% (As of Mar. 2026)


XROLF Xero Ltd XROLF
72 GF Score
Price $48.45
GF Value $135.04
Valuation Possible Value Trap
! 7 Warning Signs
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What is Xero ROCE %?

Xero XROLF 72 ROCE % is 7.38% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Xero's annualized ROCE % for the quarter that ended in Mar. 2026 was 7.38%.

Xero  (OTCPK:XROLF) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Xero ROCE % Related Terms

Xero ROCE % Historical Data

* Premium members only.

The historical data trend for Xero's ROCE % 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.

Xero ROCE % Chart

Xero Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.95 -1.69 11.94 18.62 11.40

Xero Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.81 21.92 19.75 15.97 7.38
XROLF
72GF Score
Xero Ltd XROLF
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Xero ROCE % Calculation

Xero's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=296.019/( ( (2555.778 - 1191.765) + (5323.203 - 1495.199) )/ 2 )
=296.019/( (1364.013+3828.004)/ 2 )
=296.019/2596.0085
=11.40 %

Xero's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=242.65/( ( (4023.117 - 1275.501) + (5323.203 - 1495.199) )/ 2 )
=242.65/( ( 2747.616 + 3828.004 )/ 2 )
=242.65/3287.81
=7.38 %

(1) Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 7.38% mean?
Xero (XROLF) has a ROCE % of 7.38% as of Mar. 2026.
Is Xero's ROCE % too high?
Xero's current ROCE % is 7.38%. The Software industry median ROCE % is 5.27. Xero's value of 7.38% is 40% above this industry median. 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 ROCE % compare to CRM and SHOP?
Xero's ROCE % of 7.38% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. Xero's value of 7.38% is 40% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.27, based on 2,711 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Xero's current ROCE % of 7.38% is 40% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xero's current ROCE % is 7.38%. 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 ROCE % is 7.38% and 40% above the Software industry median of 5.27. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Xero (XROLF), the current ROCE % is 7.38% 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:

  • ROCE %: 7.38%
  • GF Value™: $135.04 vs. price of $48.45 (64.1% below fair value)
  • GF Score™: 72/100 with 7 warning signs
  • Industry Position: 40% above the Software median

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 Business Description

Other Exchanges 0XE:GermanyXRO:Australia
Address 19-23 Taranaki Street, Te Aro, Wellington, NTL, NZL, 6011
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

Get the complete analysis for XROLF

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$48.45
Price
$135.04
GF Value