Executive Summary
Computershare Limited provides issuer service, mortgage service, employee equity plans, communication, business, stakeholder relationship management, and technology services in Australia, the United States, the United Kingdom, Canada, Asia, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
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
Stable Share Price: CPU has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-5.5%
CPU
-0.7%
AU IT
-1.4%
AU Market
1 Year Return
-22.5%
CPU
80.6%
AU IT
-7.1%
AU Market
Return vs Industry: CPU underperformed the Australian IT industry which returned 80.6% over the past year.
Return vs Market: CPU underperformed the Australian Market which returned -7.1% over the past year.
Shareholder returns
| CPU | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.5% | -0.7% | -1.4% |
| 30 Day | 0.2% | 18.6% | 3.4% |
| 90 Day | -8.6% | 23.0% | 3.8% |
| 1 Year | -20.1%-22.5% | 83.1%80.6% | -3.7%-7.1% |
| 3 Year | -14.5%-21.0% | 182.1%165.2% | 16.9%2.1% |
| 5 Year | 29.0%12.2% | 107.6%82.2% | 46.0%15.6% |
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
6 days ago | Simply Wall St
The Computershare (ASX:CPU) Share Price Is Up 21% And Shareholders Are Holding On2 weeks ago | Simply Wall St
How Should Investors Feel About Computershare's (ASX:CPU) CEO Remuneration?3 weeks ago | Simply Wall St
We Think Computershare (ASX:CPU) Is Taking Some Risk With Its DebtValuation
Is Computershare undervalued compared to its fair value and its price relative to the market?
8.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CPU (A$12.31) is trading below our estimate of fair value (A$13.43)
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 (20.4x) compared to the AU IT industry average (20.7x).
PE vs Market: CPU is good value based on its PE Ratio (20.4x) compared to the Australian market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: CPU is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: CPU's PB Ratio (3x) is in line with the AU IT industry average.
Next Steps
Future Growth
How is Computershare forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
9.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CPU's forecast earnings growth (9.3% per year) is above the savings rate (2.3%).
Earnings vs Market: CPU's earnings (9.3% per year) are forecast to grow slower than the Australian market (17.7% per year).
High Growth Earnings: CPU's earnings are forecast to grow, but not significantly.
Revenue vs Market: CPU's revenue (2.1% per year) is forecast to grow slower than the Australian market (4.6% per year).
High Growth Revenue: CPU's revenue (2.1% 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 low in 3 years time (18.4%).
Next Steps
Past Performance
How has Computershare performed over the past 5 years?
12.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CPU has high quality earnings.
Growing Profit Margin: CPU's current net profit margins (10.2%) are lower than last year (17.6%).
Past Earnings Growth Analysis
Earnings Trend: CPU's earnings have grown by 12.8% 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 (-43.9%) over the past year, making it difficult to compare to the IT industry average (-10.7%).
Return on Equity
High ROE: CPU's Return on Equity (14.6%) is considered low.
Next Steps
Financial Health
How is Computershare's financial position?
Financial Position Analysis
Short Term Liabilities: CPU's short term assets ($1.4B) exceed its short term liabilities ($1.0B).
Long Term Liabilities: CPU's short term assets ($1.4B) do not cover its long term liabilities ($2.4B).
Debt to Equity History and Analysis
Debt Level: CPU's debt to equity ratio (127.6%) is considered high.
Reducing Debt: CPU's debt to equity ratio has reduced from 147.2% to 127.6% over the past 5 years.
Debt Coverage: CPU's debt is well covered by operating cash flow (30%).
Interest Coverage: CPU's interest payments on its debt are well covered by EBIT (5.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Computershare current dividend yield, its reliability and sustainability?
3.68%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CPU's dividend (3.68%) is higher than the bottom 25% of dividend payers in the Australian market (2.13%).
High Dividend: CPU's dividend (3.68%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).
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 reasonable payout ratio (73.9%), CPU's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CPU's dividends in 3 years are forecast to be covered by earnings (57.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Stuart Irving (49 yo)
6.25yrs
Tenure
US$3,970,049
Compensation
Mr. Stuart James Irving has been the Chief Executive Officer, President and Executive Director of Computershare Limited since July 1, 2014 and served as its Chief Information Officer since 2008. Mr. Irving ...
CEO Compensation Analysis
Compensation vs Market: Stuart's total compensation ($USD3.97M) is above average for companies of similar size in the Australian market ($USD2.51M).
Compensation vs Earnings: Stuart's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Executive Director | 6.25yrs | US$3.97m | 0.046% $ 3.2m | |
| CFO & Global Head of Mortgage Services | 0.83yr | US$1.13m | 0.0084% $ 578.2k | |
| Global Chief Information Officer | 6.25yrs | US$730.11k | no data | |
| Global Head of Issuer Services | 1.08yrs | US$1.42m | 0.010% $ 694.8k | |
| Global Chief Technology Officer | 1.08yrs | no data | no data | |
| Group Counsel & Company Secretary | no data | no data | no data | |
| Global Head of People and Communications | 10.08yrs | no data | no data | |
| Chief Corporate Development Officer | 1.08yrs | no data | no data | |
| Chief of Staff | 6.08yrs | no data | no data | |
| Global Head of Business Services | 1.08yrs | US$824.95k | 0% $ 0 | |
| Chief Security & Special Projects Officer | 3yrs | no data | no data | |
| Global Head of Employee Share Plans | 1.08yrs | no data | no data |
1.1yrs
Average Tenure
Experienced Management: CPU's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Executive Director | 6.25yrs | US$3.97m | 0.046% $ 3.2m | |
| Independent Non-Executive Director | 6yrs | US$158.89k | 0.0027% $ 183.8k | |
| Independent Non-Executive Director | 6yrs | US$169.14k | 0.0031% $ 215.4k | |
| Non-Executive Director | 10.08yrs | US$107.46k | 5.74% $ 393.7m | |
| Independent Chairman of the Board | 4.92yrs | US$250.31k | 0.0086% $ 591.2k | |
| Independent Non-Executive Director | 2.67yrs | US$115.06k | 0.0023% $ 156.4k | |
| Independent Non-Executive Director | 2.67yrs | US$125.21k | 0.0036% $ 249.6k | |
| Independent Non Executive Director | 2yrs | US$128.29k | 0.0015% $ 101.5k |
5.5yrs
Average Tenure
60yo
Average Age
Experienced Board: CPU's board of directors are considered experienced (5.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CPU insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$6.858b
- Shares outstanding: 540.88m
- 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 issuer service, mortgage service, employee equity plans, communication, business, stakeholder relationship management, and technology services in Australia, the United States ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/27 10:31 |
| End of Day Share Price | 2020/10/27 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.