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CPU

ComputershareASX:CPU Stock Report

Market Cap

AU$10.9b

7D

2.0%

1Y

39.0%

Updated

18 Oct, 2021

Data

Company Financials +
CPU fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance1/6
Financial Health3/6
Dividends4/6

CPU Overview

Computershare Limited provides issuer, employee share plans and voucher, business, communication and utilities, technology, and mortgage and property rental services.

Computershare Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Computershare
Historical stock prices
Current Share PriceAU$18.10
52 Week HighAU$11.87
52 Week LowAU$18.38
Beta1.09
1 Month Change8.71%
3 Month Change16.03%
1 Year Change39.02%
3 Year Change-7.89%
5 Year Change70.11%
Change since IPO11,966.67%

Recent News & Updates

Oct 16
Estimating The Fair Value Of Computershare Limited (ASX:CPU)

Estimating The Fair Value Of Computershare Limited (ASX:CPU)

Today we will run through one way of estimating the intrinsic value of Computershare Limited ( ASX:CPU ) by estimating...

Oct 03
What Does Computershare Limited's (ASX:CPU) Share Price Indicate?

What Does Computershare Limited's (ASX:CPU) Share Price Indicate?

Computershare Limited ( ASX:CPU ), might not be a large cap stock, but it saw a decent share price growth in the teens...

Sep 20
We Think Computershare (ASX:CPU) Is Taking Some Risk With Its Debt

We Think Computershare (ASX:CPU) Is Taking Some Risk With Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 12
Analysts Are Updating Their Computershare Limited (ASX:CPU) Estimates After Its Yearly Results

Analysts Are Updating Their Computershare Limited (ASX:CPU) Estimates After Its Yearly Results

The annual results for Computershare Limited ( ASX:CPU ) were released last week, making it a good time to revisit its...

Shareholder Returns

CPUAU ITAU Market
7D2.0%0.7%0.9%
1Y39.0%9.0%20.2%

Return vs Industry: CPU exceeded the Australian IT industry which returned 9% over the past year.

Return vs Market: CPU exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is CPU's price volatile compared to industry and market?
CPU volatility
CPU Beta1.09
Industry Beta1.68
Market Beta1

Stable Share Price: CPU is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CPU's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197812,009Stuart Irvinghttps://www.computershare.com

Computershare Limited provides issuer, employee share plans and voucher, business, communication and utilities, technology, and mortgage and property rental services. The company offers issuer services that include register maintenance, corporate actions, stakeholder relationship management, corporate governance, and related services; mortgage services and property rental, and tenancy bond protection services; and employee share plans and voucher services comprising administration and related services for employee share and option plans, and childcare voucher administration services. It also provides business services, including the provision of bankruptcy, class action, and corporate trust administration services; communication services and utilities operations consisting of document composition and printing, intelligent mailing, inbound process automation, scanning, and electronic delivery; and technology services, such as software solutions in share registry and financial services.

Computershare Fundamentals Summary

How do Computershare's earnings and revenue compare to its market cap?
CPU fundamental statistics
Market CapUS$8.11b
Earnings (TTM)US$188.97m
Revenue (TTM)US$2.28b

42.9x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPU income statement (TTM)
RevenueUS$2.28b
Cost of RevenueUS$1.97b
Gross ProfitUS$312.37m
ExpensesUS$123.40m
EarningsUS$188.97m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 09, 2022

Earnings per share (EPS)0.31
Gross Margin13.68%
Net Profit Margin8.28%
Debt/Equity Ratio75.1%

How did CPU perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

102%

Payout Ratio

Valuation

Is Computershare undervalued compared to its fair value and its price relative to the market?

4.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPU (A$18.1) is trading below our estimate of fair value (A$18.9)

Significantly Below Fair Value: CPU is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CPU is poor value based on its PE Ratio (42.9x) compared to the Australian IT industry average (42.6x).

PE vs Market: CPU is poor value based on its PE Ratio (42.9x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: CPU is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CPU is overvalued based on its PB Ratio (3.6x) compared to the AU IT industry average (3.4x).


Future Growth

How is Computershare forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPU's forecast earnings growth (21.4% per year) is above the savings rate (1.9%).

Earnings vs Market: CPU's earnings (21.4% per year) are forecast to grow faster than the Australian market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CPU's revenue (7.6% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: CPU's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPU's Return on Equity is forecast to be high in 3 years time (21.1%)


Past Performance

How has Computershare performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPU has high quality earnings.

Growing Profit Margin: CPU's current net profit margins (8.3%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: CPU's earnings have declined by 0.4% per year over the past 5 years.

Accelerating Growth: CPU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CPU had negative earnings growth (-18.8%) over the past year, making it difficult to compare to the IT industry average (-11.2%).


Return on Equity

High ROE: CPU's Return on Equity (8.3%) is considered low.


Financial Health

How is Computershare's financial position?


Financial Position Analysis

Short Term Liabilities: CPU's short term assets ($1.7B) exceed its short term liabilities ($995.7M).

Long Term Liabilities: CPU's short term assets ($1.7B) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: CPU's debt to equity ratio (75.1%) is considered high.

Reducing Debt: CPU's debt to equity ratio has reduced from 164.8% to 75.1% over the past 5 years.

Debt Coverage: CPU's debt is not well covered by operating cash flow (17.9%).

Interest Coverage: CPU's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Dividend

What is Computershare current dividend yield, its reliability and sustainability?

2.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CPU's dividend (2.44%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: CPU's dividend (2.44%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: CPU's dividends per share have been stable in the past 10 years.

Growing Dividend: CPU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (102.1%), CPU's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CPU's dividends in 3 years are forecast to be covered by earnings (58% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Stuart Irving (50 yo)

7.25yrs

Tenure

US$3,358,021

Compensation

Mr. Stuart James Irving has been the Chief Executive Officer, President and Executive Director of Computershare Limited since July 1, 2014 and served as its Chief Information Officer since 2008. Mr. Irving...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD3.36M) is above average for companies of similar size in the Australian market ($USD2.16M).

Compensation vs Earnings: Stuart's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CPU's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: CPU's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CPU insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.6%.


Top Shareholders

Company Information

Computershare Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Computershare Limited
  • Ticker: CPU
  • Exchange: ASX
  • Founded: 1978
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: AU$10.929b
  • Shares outstanding: 603.79m
  • Website: https://www.computershare.com

Number of Employees


Location

  • Computershare Limited
  • Yarra Falls
  • 452 Johnston Street
  • Abbotsford
  • Victoria
  • 3067
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:09
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.