Executive Summary
Computershare Limited provides investor, plan, communication, business, stakeholder relationship management, and technology services in Australia, the United States, the United Kingdom, Canada, Switzerland, and internationally.
Snowflake
Fundamentals
Proven track record average dividend payer.
Similar Companies
Share Price & News
How has Computershare's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-1.5%
CPU
-6.4%
AU IT
0.1%
AU Market
1 Year Return
-18.9%
CPU
15.7%
AU IT
11.9%
AU Market
Return vs Industry: CPU underperformed the Australian IT industry which returned 15.7% over the past year.
Return vs Market: CPU underperformed the Australian Market which returned 11.9% over the past year.
Shareholder returns
| CPU | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.5% | -6.4% | 0.1% |
| 30 Day | -0.4% | -1.9% | -1.1% |
| 90 Day | -0.5% | 2.2% | -1.4% |
| 1 Year | -16.7%-18.9% | 18.0%15.7% | 18.5%11.9% |
| 3 Year | 62.4%50.6% | 50.7%39.7% | 36.4%18.1% |
| 5 Year | 51.3%31.7% | 72.3%51.5% | 50.9%16.7% |
Price Volatility Vs. Market
How volatile is Computershare's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Is Computershare Limited's (ASX:CPU) CEO Overpaid Relative To Its Peers?1 week ago | Simply Wall St
Is Computershare Limited's (ASX:CPU) P/E Ratio Really That Good?3 weeks ago | Simply Wall St
A Look At The Fair Value Of Computershare Limited (ASX:CPU)Valuation
Is Computershare undervalued compared to its fair value and its price relative to the market?
20.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CPU (A$15.87) is trading below our estimate of fair value (A$19.95)
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 good value based on its PE Ratio (14.2x) compared to the IT industry average (22.8x).
PE vs Market: CPU is good value based on its PE Ratio (14.2x) compared to the Australian market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: CPU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CPU is overvalued based on its PB Ratio (3.8x) compared to the AU IT industry average (2.4x).
Next Steps
Future Growth
How is Computershare forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-0.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPU's earnings are forecast to decline over the next 3 years (-0.5% per year).
Earnings vs Market: CPU's earnings are forecast to decline over the next 3 years (-0.5% per year).
High Growth Earnings: CPU's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CPU's revenue (1.1% per year) is forecast to grow slower than the Australian market (3.6% per year).
High Growth Revenue: CPU's revenue (1.1% 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 (22.9%)
Next Steps
Past Performance
How has Computershare performed over the past 5 years?
19.2%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: CPU's earnings have grown by 19.2% per year over the past 5 years.
Accelerating Growth: CPU's earnings growth over the past year (38.5%) exceeds its 5-year average (19.2% per year).
Earnings vs Industry: CPU earnings growth over the past year (38.5%) underperformed the IT industry 60.9%.
Return on Equity
High ROE: Whilst CPU's Return on Equity (26.62%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: CPU has a higher Return on Assets than the IT industry average last year.
Return on Capital Employed
ROCE Improving: CPU has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Computershare's financial position?
Financial Position Analysis
Short Term Liabilities: CPU's short term assets ($1.5B) exceeds its short term liabilities ($701.1M)
Long Term Liabilities: CPU's short term assets (1.5B) do not cover its long term liabilities (2.4B)
Debt to Equity History and Analysis
Debt Level: CPU's debt to equity ratio (128.9%) is considered high
Reducing Debt: CPU's debt to equity ratio has increased from 127.7% to 128.9% over the past 5 years.
Debt Coverage: CPU's debt is not well covered by operating cash flow (14.1%).
Interest Coverage: CPU's interest payments on its debt are well covered by EBIT (7.1x coverage).
Balance Sheet
Inventory Level: CPU has a low level of unsold assets or inventory.
Debt Coverage by Assets: CPU's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is Computershare's current dividend yield, its reliability and sustainability?
2.83%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: CPU's dividend (2.83%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).
High Dividend: CPU's dividend (2.83%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).
Stable Dividend: CPU's dividend payments have been volatile 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 reasonably low payout ratio (40.3%), CPU's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CPU's dividends in 3 years are forecast to be well covered by earnings (47.3% payout ratio).
Next Steps
Management
What is the CEO of Computershare's salary, the management and board of directors tenure and is there insider trading?
1.4yrs
Average management tenure
CEO
Stuart Irving (48yo)
5.3yrs
Tenure
US$3,335,335
Compensation
Mr. Stuart James Irving has been the Chief Executive Officer, President and Executive Director of Computershare Limited since July 1, 2014 and served as its Chief Information Officer since 2008. Mr. Irving ...
CEO Compensation Analysis
Compensation vs. Market: Stuart's total compensation ($USD3.34M) is about average for companies of similar size in the Australian market ($USD2.82M).
Compensation vs Earnings: Stuart's compensation has increased by more than 20% in the past year.
Management Age and Tenure
1.4yrs
Average Tenure
Experienced Management: CPU's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Age and Tenure
4.5yrs
Average Tenure
59yo
Average Age
Experienced Board: CPU's board of directors are considered experienced (4.5 years average tenure).
Insider Trading
Insider Buying: CPU insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chairman of the Board Independent Chairman of the Board |
| Shares | 2,000 |
| Max Price | US$14.82 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 3,500 |
| Max Price | US$14.50 |
| Entity | Company |
| Shares | 450,000 |
| Max Price | US$18.00 |
| Entity | Company |
| Shares | 3,436,112 |
| Max Price | US$20.71 |
| Entity | Company |
| Shares | 618,000 |
| Max Price | US$18.41 |
| Entity | Company |
| Shares | 1,251,802 |
| Max Price | US$19.14 |
| Entity | Company |
| Shares | 554,215 |
| Max Price | US$19.91 |
| Entity | Company |
| Shares | 3,980,548 |
| Max Price | US$18.58 |
| Entity | Company |
| Shares | 5,502,848 |
| Max Price | US$19.18 |
Ownership Breakdown
Management Team
Mark Davis
Chief Financial Officer
- Tenure: 6.3yrs
- Compensation: US$2.06m
Steve Rothbloom
CEO & President of North America for Computershare Inc (US)
- Tenure: 0yrs
- Compensation: US$2.31m
Paul Conn
President of Global Capital Markets - Computershare Inc (US)
- Tenure: 13.8yrs
- Compensation: US$1.15m
Stuart Irving (48yo)
CEO, President & Executive Director
- Tenure: 5.3yrs
- Compensation: US$3.34m
Steffen H. Herfurth
CEO of Computershare EMEA & Georgeson
- Tenure: 0.8yrs
- Compensation: US$848.89k
Naz Sarkar
Global Head of Issuer Services
- Tenure: 0.08yrs
- Compensation: US$1.37m
Mark McDougall
Global Chief Information Officer
- Tenure: 5.3yrs
- Compensation: US$1.01m
Stuart Swartz
Global Head of Business Services
- Tenure: 0.08yrs
- Compensation: US$824.95k
CP Yap
President & CEO of Computershare Asia
- Tenure: 1.4yrs
- Compensation: US$628.67k
Carlos Leira
Global Chief Technology Officer
- Tenure: 0.08yrs
Board Members
Tiffany Fuller (49yo)
Non-Executive Director
- Tenure: 5yrs
- Compensation: US$174.55k
Joe Velli (61yo)
Non-Executive Director
- Tenure: 5yrs
- Compensation: US$160.00k
Chris Morris (71yo)
Non-Executive Director
- Tenure: 9.1yrs
- Compensation: US$116.37k
Simon Jones (63yo)
Independent Chairman of the Board
- Tenure: 3.9yrs
- Compensation: US$271.86k
Abi Cleland (45yo)
Independent Non-Executive Director
- Tenure: 1.7yrs
- Compensation: US$44.12k
Lisa Gay (57yo)
Independent Non-Executive Director
- Tenure: 1.7yrs
- Compensation: US$50.90k
Stuart Irving (48yo)
CEO, President & Executive Director
- Tenure: 5.3yrs
- Compensation: US$3.34m
Paul Reynolds (62yo)
Independent Non Executive Director
- Tenure: 1yrs
Company Information
Computershare Limited's company bio, 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$8.677b
- Shares outstanding: 541.27m
- Website: https://www.computershare.com
Number of Employees
Location
- Computershare Limited
- Yarra Falls
- 452 Johnston Street
- Abbotsford
- Victoria
- 3067
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CMSQ.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 1994 |
| CPU | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jun 1994 |
| QCH | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 1994 |
| CPU | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jun 1994 |
| CMSQ.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Jul 2004 |
Biography
Computershare Limited provides investor, plan, communication, business, stakeholder relationship management, and technology services in Australia, the United States, the United Kingdom, Canada, Switzerland ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 10:31 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.