Computershare Ltd CPU

Morningstar Rating
A$25.00 −0.11 (0.44%)
View Full Chart

Company Report

Computershare's Earnings Outlook for Core Businesses Is Looking Favorable

Computershare services more than 25,000 firms globally. Alongside its register maintenance services, the firm leverages its records management skills to service adjacent areas like corporate actions or annual general meetings. Acquisitions are pursued to bolster growth, such as the acquisition of Wells Fargo’s corporate trust arm in 2021 and Equatex, an employee share plan provider, in 2018. Its product variety supports cross-selling. Competition is fragmented, and peers struggle to compete with Computershare’s breadth of products, long-dated contracts, high retention, integration experience, and capability in servicing an increasingly transnational securities industry.

Price vs Fair Value

CPU is trading within a range we consider fairly valued.
Price
A$25.00
Fair Value
A$32.10
Uncertainty
Medium
1-Star Price
A$96.48
5-Star Price
A$58.64
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Computershare’s global footprint, financial strength, and transnational capability provide a strong edge over competitors.

Bears

Computershare’s core registry and related services businesses are mature, and revenue is likely to only grow modestly. Integration and overpayment risks could arise if the firm keeps growing via acquisitions.

Trading Information

Previous Close Price
A$25.11
Day Range
A$24.8525.18
52-Week Range
A$22.8728.76
Bid/Ask
A$24.92 / A$25.20
Market Cap
A$14.95 Bil
Volume/Avg
936,232 / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
10.41
Price/Sales
3.37
Dividend Yield (Trailing)
3.28%
Dividend Yield (Forward)
3.36%
Total Yield
5.86%

Company Profile

Founded in Australia in 1978, Computershare has grown via acquisitions to become the world's leading provider of issuer services. Employee share plans and communications services are commonly sold together with issuer services to corporations. The company also has a business services offering and a corporate trust business, alongside a retail mortgage administration business that's due to be divested. Over the medium term, around half of group EBITDA is expected to be generated from interest income on client cash balances, or margin income, which is exposed to interest-rate movements.
Sector
Financial Services
Industry
Capital Markets
Stock Style Box
Large Core
Total Number of Employees
12,359

Competitors

Valuation

Metric
CPU
BR
PPT
Price/Earnings (Normalized)
10.4127.369.40
Price/Book Value
5.1711.411.16
Price/Sales
3.373.881.58
Price/Cash Flow
12.0223.226.93
Price/Earnings
CPU
BR
PPT

Financial Strength

Metric
CPU
BR
PPT
Quick Ratio
2.840.960.36
Current Ratio
2.941.080.52
Interest Coverage
5.856.76−5.78
Quick Ratio
CPU
BR
PPT

Profitability

Metric
CPU
BR
PPT
Return on Assets (Normalized)
12.18%11.30%5.54%
Return on Equity (Normalized)
34.68%42.43%9.71%
Return on Invested Capital (Normalized)
17.57%17.42%7.88%
Return on Assets
CPU
BR
PPT

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