The Xero Ltd (ASX:XRO) share price has risen 3.7% since the start of 2025. Meanwhile, the James Hardie Industries plc (ASX:JHX) share price is 19.4% away from its 52-week high. This article explains why it could be worth popping XRO and JHX shares on your watchlist.
XRO share price in focus
Founded in 2006 in Wellington, New Zealand, by Rod Drury, Xero has grown into a global leader in cloud-based accounting software. Under Drury’s leadership until 2018 and under a new CEO since, the company has expanded to employ over 3,000 people and now serves millions of subscribers worldwide.
Xero’s “beautiful accounting software” is designed primarily for accountants and bookkeepers, enabling them to better serve small business clients. It offers real-time financial data accessible on any device, empowering small business owners and their advisors with up-to-date insights.
Xero’s core cloud accounting platform is widely used in New Zealand, Australia, the UK, and, to a lesser extent, the United States.
JHX shares
James Hardie Industries is a leading building solutions company and the world’s largest producer of fibre cement and gypsum products.
With operations spanning North America, Europe, Australia, and New Zealand, the company employs over 5,200 people.
Fibre cement is a popular choice for building materials due to its non-combustible nature, resistance to water and termite damage, durability, and low maintenance requirements.
XRO & JHX share price valuation
As a growth company, some of the trends we might investigate from XRO include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, XRO has grown revenue at a rate of 26.4% per year to reach $1,714m in FY24. Over the same stretch of time, net profit has increased from -$9m to $175m. XRO last reported a ROE of 14.3%.
Over the last 3 years, JHX has increased revenue at a rate of 10.6% per year to hit $3,936m in FY24. Meanwhile, net profit has increased from $263m to $510m. JHX’s last reported ROE was 29.4%.
Please keep in mind that context is important. These metrics give us some indication of company performance, but it’s just the start of valuing XRO or JHX shares. To learn more about valuation, check out one of our free online investing courses.
