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Computershare

ASX:CPU
Snowflake Description

Proven track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CPU
ASX
A$10B
Market Cap
  1. Home
  2. AU
  3. Software
Company description

Computershare Limited provides investor, plan, communication, business, stakeholder relationship management, and technology services worldwide. The last earnings update was 7 days ago. More info.


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CPU Share Price and Events
7 Day Returns
1.6%
ASX:CPU
1.7%
AU IT
0.7%
AU Market
1 Year Returns
0.9%
ASX:CPU
14.1%
AU IT
1.6%
AU Market
CPU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Computershare (CPU) 1.6% -0.7% -1.8% 0.9% 97.4% 52.1%
AU IT 1.7% 4% 9.2% 14.1% 60.3% 55.4%
AU Market 0.7% 4.7% 6.7% 1.6% 24.9% 4.2%
1 Year Return vs Industry and Market
  • CPU underperformed the IT industry which returned 14.1% over the past year.
Price Volatility
CPU
Industry
5yr Volatility vs Market

Value

 Is Computershare undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Computershare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Computershare.

ASX:CPU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:CPU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 7.7%
IT Unlevered Beta Simply Wall St/ S&P Global 0.61
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.61 (1 + (1- 30%) (28.42%))
0.731
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 7.69%)
8.46%

Discounted Cash Flow Calculation for ASX:CPU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Computershare is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:CPU DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 312.50 397.40 403.75 534.53 553.33
Source Analyst x2 Analyst x5 Analyst x4 Analyst x2 Est @ 3.52%
Present Value
Discounted (@ 8.46%)
288.12 337.81 316.43 386.24 368.62
Present value of next 5 years cash flows $1,697.22
ASX:CPU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $553.33 × (1 + 2.31%) ÷ (8.46% – 2.31%)
$9,204.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $9,204.58 ÷ (1 + 8.46%)5
$6,132.08
ASX:CPU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $1,697.22 + $6,132.08
$7,829.30
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,829.30 / 542.96
$14.42
ASX:CPU Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:CPU)
1.403
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $14.42 x 1.403
A$20.24
Value per share (AUD) From above. A$20.24
Current discount Discount to share price of A$18.08
= -1 x (A$18.08 - A$20.24) / A$20.24
10.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Computershare is available for.
Intrinsic value
11%
Share price is A$18.08 vs Future cash flow value of A$20.24
Current Discount Checks
For Computershare to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Computershare's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Computershare's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Computershare's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Computershare's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:CPU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.71
ASX:CPU Share Price ** ASX (2019-02-19) in AUD A$18.08
ASX:CPU Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.713 $12.88
Australia IT Industry PE Ratio Median Figure of 17 Publicly-Listed IT Companies 18.02x
Australia Market PE Ratio Median Figure of 559 Publicly-Listed Companies 15.9x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Computershare.

ASX:CPU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:CPU Share Price ÷ EPS (both in USD)

= 12.88 ÷ 0.71

18.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Computershare is overvalued based on earnings compared to the AU IT industry average.
  • Computershare is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Computershare's expected growth come at a high price?
Raw Data
ASX:CPU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
2%per year
Australia IT Industry PEG Ratio Median Figure of 15 Publicly-Listed IT Companies 1.12x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.43x

*Line of best fit is calculated by linear regression .

ASX:CPU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.02x ÷ 2%

8.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Computershare is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Computershare's assets?
Raw Data
ASX:CPU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $2.71
ASX:CPU Share Price * ASX (2019-02-19) in AUD A$18.08
ASX:CPU Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.713 $12.88
Australia IT Industry PB Ratio Median Figure of 31 Publicly-Listed IT Companies 2.14x
Australia Market PB Ratio Median Figure of 1,664 Publicly-Listed Companies 1.64x
ASX:CPU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:CPU Share Price ÷ Book Value per Share (both in USD)

= 12.88 ÷ 2.71

4.75x

* Primary Listing of Computershare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Computershare is overvalued based on assets compared to the AU IT industry average.
X
Value checks
We assess Computershare's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Computershare has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Computershare expected to grow at an attractive rate?
  • Computershare's earnings growth is positive but not above the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Computershare's earnings growth is positive but not above the Australia market average.
  • Computershare's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:CPU Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:CPU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 2%
ASX:CPU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 2.3%
Australia IT Industry Earnings Growth Rate Market Cap Weighted Average 18.6%
Australia IT Industry Revenue Growth Rate Market Cap Weighted Average 12.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 5.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 2.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:CPU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:CPU Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30
2022-06-30 2,479 450 1
2021-06-30 2,488 474 408 8
2020-06-30 2,437 497 368 11
2019-06-30 2,355 394 414 10
ASX:CPU Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,410 378 388
2018-09-30 2,354 446 344
2018-06-30 2,298 514 300
2018-03-31 2,240 496 294
2017-12-31 2,183 478 287
2017-09-30 2,147 468 277
2017-06-30 2,110 458 266
2017-03-31 2,099 487 245
2016-12-31 2,088 515 223
2016-09-30 2,026 410 190
2016-06-30 1,964 305 157
2016-03-31 1,956 252 190

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Computershare's earnings are expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
  • Computershare's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:CPU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Computershare Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CPU Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30 0.79 0.79 0.79 1.00
2021-06-30 0.76 0.85 0.70 5.00
2020-06-30 0.68 0.78 0.63 8.00
2019-06-30 0.77 0.84 0.63 7.00
ASX:CPU Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.71
2018-09-30 0.63
2018-06-30 0.55
2018-03-31 0.54
2017-12-31 0.53
2017-09-30 0.51
2017-06-30 0.49
2017-03-31 0.45
2016-12-31 0.41
2016-09-30 0.35
2016-06-30 0.29
2016-03-31 0.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Computershare is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Computershare's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Computershare has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Computershare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Computershare's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Computershare's year on year earnings growth rate has been positive over the past 5 years.
  • Computershare's 1-year earnings growth exceeds its 5-year average (35% vs 14.1%)
  • Computershare's earnings growth has not exceeded the AU IT industry average in the past year (35% vs 40.7%).
Earnings and Revenue History
Computershare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Computershare Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CPU Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,409.67 388.20 29.53
2018-09-30 2,353.65 344.13 28.74
2018-06-30 2,297.64 300.06 27.95
2018-03-31 2,240.36 293.77 26.73
2017-12-31 2,183.07 287.48 25.50
2017-09-30 2,146.74 276.94 24.32
2017-06-30 2,110.42 266.40 23.15
2017-03-31 2,099.37 244.81 22.47
2016-12-31 2,088.32 223.23 21.79
2016-09-30 2,026.34 190.28 21.92
2016-06-30 1,964.37 157.33 22.05
2016-03-31 1,956.17 189.83 19.93
2015-12-31 1,947.98 222.33 17.81
2015-09-30 1,959.62 187.95 16.48
2015-06-30 1,971.25 153.58 15.15
2015-03-31 1,985.10 140.52 15.52
2014-12-31 1,998.94 127.46 15.90
2014-09-30 2,007.03 189.43 16.10
2014-06-30 2,015.11 251.40 16.29
2014-03-31 2,015.55 226.63 13.78
2013-12-31 2,015.98 201.86 11.27
2013-09-30 2,017.96 179.44 14.25
2013-06-30 2,019.95 157.01 17.24
2013-03-31 2,014.78 156.49 24.56
2012-12-31 2,009.60 155.96 31.89
2012-09-30 1,908.39 164.41 32.55
2012-06-30 1,807.17 172.86 33.22
2012-03-31 1,709.14 215.78 29.74

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Computershare has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Computershare used its assets more efficiently than the AU IT industry average last year based on Return on Assets.
  • Computershare has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Computershare's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Computershare has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Computershare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Computershare's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Computershare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Computershare's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Computershare's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Computershare Company Filings, last reported 1 month ago.

ASX:CPU Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,474.13 1,988.03 539.71
2018-09-30 1,474.13 1,988.03 539.71
2018-06-30 1,333.40 1,481.14 511.79
2018-03-31 1,333.40 1,481.14 511.79
2017-12-31 1,301.49 1,634.72 527.49
2017-09-30 1,301.49 1,634.72 527.49
2017-06-30 1,237.03 1,573.07 498.01
2017-03-31 1,237.03 1,573.07 498.01
2016-12-31 1,151.48 1,795.43 585.94
2016-09-30 1,151.48 1,795.43 585.94
2016-06-30 1,106.53 1,863.31 547.34
2016-03-31 1,106.53 1,863.31 547.34
2015-12-31 1,111.20 1,881.26 499.45
2015-09-30 1,111.20 1,881.26 499.45
2015-06-30 1,177.64 1,769.10 555.90
2015-03-31 1,177.64 1,769.10 555.90
2014-12-31 1,122.41 1,695.29 439.82
2014-09-30 1,122.41 1,695.29 439.82
2014-06-30 1,267.21 1,659.25 465.42
2014-03-31 1,267.21 1,659.25 465.42
2013-12-31 1,198.50 1,721.00 668.25
2013-09-30 1,198.50 1,721.00 668.25
2013-06-30 1,130.94 1,711.66 458.61
2013-03-31 1,130.94 1,711.66 458.61
2012-12-31 1,188.29 1,781.71 446.20
2012-09-30 1,188.29 1,781.71 446.20
2012-06-30 1,154.34 1,754.80 445.75
2012-03-31 1,154.34 1,754.80 445.75
  • Computershare's level of debt (134.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (143.4% vs 134.9% today).
  • Debt is not well covered by operating cash flow (19%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.1x coverage).
X
Financial health checks
We assess Computershare's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Computershare has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.31%
Current annual income from Computershare dividends. Estimated to be 2.82% next year.
If you bought A$2,000 of Computershare shares you are expected to receive A$46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Computershare's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.74%).
  • Computershare's dividend is below the markets top 25% of dividend payers in Australia (6.08%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:CPU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Australia IT Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 420 Stocks 4.4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.7%
Australia Top 25% Dividend Yield 75th Percentile 6.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:CPU Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30 0.41 1.00
2021-06-30 0.39 10.00
2020-06-30 0.37 13.00
2019-06-30 0.32 12.00
ASX:CPU Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-12 0.298 2.292
2018-08-14 0.294 2.253
2018-02-13 0.275 2.136
2017-08-15 0.285 2.472
2017-02-14 0.250 2.390
2016-09-20 0.244 2.944
2016-08-09 0.254 3.408
2016-02-09 0.227 3.320
2015-08-11 0.219 2.978
2015-02-10 0.218 2.418
2014-09-22 0.232 2.552
2014-08-12 0.266 2.463
2014-02-11 0.250 2.263
2013-09-23 0.244 2.605
2013-08-13 0.249 2.834
2013-02-12 0.249 2.748
2012-09-27 0.285 3.120
2012-08-07 0.285 3.323
2012-02-21 0.271 3.516
2011-08-10 0.264 3.646
2011-02-09 0.275 3.103
2010-08-10 0.246 2.792
2010-02-09 0.228 2.459
2009-08-12 0.181 2.023
2009-02-20 0.139 2.540

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Computershare's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Computershare's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Computershare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Computershare has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Computershare's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Stuart Irving
COMPENSATION $3,335,335
AGE 47
TENURE AS CEO 4.6 years
CEO Bio

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 held a number of roles at The Royal Bank of Scotland before joining Computershare in 1998 as IT Development Manager in the UK. Mr. Irving worked in South Africa, Canada and the USA before becoming Chief Information Officer for North America in 2005. He was responsible for leading all aspects of Computershare’s global information technology infrastructure and line-of-business application management. He has been the Chairman of Karvy Computershare Private Limited since April 18, 2017. He has been a Director of Karvy Computershare Private Limited since April 07, 2016. He serves as a Director of SETL Development Ltd.

CEO Compensation
  • Stuart's compensation has increased by more than 20% in the past year.
  • Stuart's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Computershare management team in years:

4.6
Average Tenure
  • The tenure for the Computershare management team is about average.
Management Team

Stuart Irving

TITLE
CEO, President & Executive Director
COMPENSATION
$3M
AGE
47
TENURE
4.6 yrs

Mark Davis

TITLE
Chief Financial Officer
COMPENSATION
$2M
TENURE
5.6 yrs

Mark McDougall

TITLE
Chief Information Officer
COMPENSATION
$1M
TENURE
4.6 yrs

Steve Rothbloom

TITLE
CEO & President of North America for Computershare Inc (US)
COMPENSATION
$2M

Paul Conn

TITLE
President of Global Capital Markets - Computershare Inc (US)
COMPENSATION
$1M
TENURE
13.1 yrs

Naz Sarkar

TITLE
President of UK
COMPENSATION
$1M

Steffen H. Herfurth

TITLE
President of Continental Europe for CPU Deutschland GmbH & Co KG
COMPENSATION
$849K

Scott Cameron

TITLE
President of Australia & New Zealand - Computershare Investor Services Pty Ltd
COMPENSATION
$808K

Stuart Swartz

TITLE
CEO & President - Computershare Trust Company of Canada
COMPENSATION
$825K
TENURE
4.3 yrs

CP Yap

TITLE
President & CEO of Computershare Asia
COMPENSATION
$629K
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Computershare board of directors in years:

3.8
Average Tenure
58
Average Age
  • The tenure for the Computershare board of directors is about average.
Board of Directors

Simon Jones

TITLE
Chairman of the Board
COMPENSATION
$272K
AGE
62
TENURE
3.3 yrs

Stuart Irving

TITLE
CEO, President & Executive Director
COMPENSATION
$3M
AGE
47
TENURE
4.6 yrs

Chris Morris

TITLE
Non-Executive Director
COMPENSATION
$116K
AGE
70
TENURE
8.4 yrs

Tiffany Fuller

TITLE
Non-Executive Director
COMPENSATION
$175K
AGE
48
TENURE
4.3 yrs

Joe Velli

TITLE
Non-Executive Director
COMPENSATION
$160K
AGE
60
TENURE
4.3 yrs

Abi Cleland

TITLE
Independent Non-Executive Director
COMPENSATION
$44K
AGE
44
TENURE
1 yrs

Lisa Gay

TITLE
Independent Non-Executive Director
COMPENSATION
$51K
AGE
56
TENURE
1 yrs

Paul Reynolds

TITLE
Independent Non Executive Director
AGE
61
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
29. Nov 18 Buy BlackRock, Inc. Company 31. Jul 18 28. Nov 18 3,436,112 A$20.71 A$70,279,739
23. Nov 18 Sell Challenger Limited Company 21. Nov 18 21. Nov 18 -618,000 A$18.41 A$-11,380,160
22. Nov 18 Sell Challenger Limited Company 07. Nov 18 20. Nov 18 -554,215 A$19.91 A$-11,031,982
22. Nov 18 Buy Challenger Limited Company 16. Nov 18 20. Nov 18 1,251,802 A$19.14 A$23,962,992
07. Nov 18 Sell Challenger Limited Company 26. Apr 18 02. Nov 18 -5,502,848 A$19.18 A$-105,558,650
07. Nov 18 Buy Challenger Limited Company 23. Apr 18 01. Nov 18 3,980,548 A$18.58 A$73,947,220
04. Sep 18 Sell Penelope Maclagan Individual 04. Sep 18 04. Sep 18 -25,000 A$18.92 A$-473,089
02. Sep 18 Sell Finico Pty. Ltd., Asset Management Arm Company 16. Aug 18 31. Aug 18 -2,100,000 A$19.28 A$-40,076,601
21. Aug 18 Sell UBS Asset Management Company 16. Aug 18 17. Aug 18 -821,653 A$19.15 A$-15,729,471
21. Aug 18 Buy UBS Asset Management Company 16. Aug 18 17. Aug 18 1,004,236 A$19.15 A$19,232,818
27. Aug 18 Buy Lisa Gay Individual 27. Aug 18 27. Aug 18 2,672 A$18.71 A$49,993
24. Apr 18 Buy Challenger Limited Company 19. Apr 18 20. Apr 18 313,000 A$17.43 A$5,305,540
20. Apr 18 Sell Challenger Limited Company 18. Apr 18 18. Apr 18 -68,800 A$17.54 A$-1,206,731
18. Apr 18 Sell Challenger Limited Company 15. Feb 18 05. Apr 18 -1,140,204 A$17.76 A$-20,253,360
18. Apr 18 Buy Challenger Limited Company 28. Feb 18 16. Apr 18 1,216,798 A$17.44 A$21,218,117
13. Mar 18 Buy Abigail Cleland Individual 08. Mar 18 08. Mar 18 11,500 A$17.62 A$202,630
27. Feb 18 Buy Lisa Gay Individual 26. Feb 18 26. Feb 18 11,031 A$18.12 A$199,855
22. Feb 18 Sell Finico Pty. Ltd., Asset Management Arm Company 21. Feb 18 21. Feb 18 -250,000 A$18.02 A$-4,504,060
22. Feb 18 Sell Penelope Maclagan Individual 21. Feb 18 22. Feb 18 -250,000 A$18.12 A$-4,530,861
X
Management checks
We assess Computershare's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Computershare has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Can We Make Of Computershare Limited’s (ASX:CPU) High Return On Capital?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … The formula for calculating the return on capital employed is:

Simply Wall St -

Computershare Limited (ASX:CPU): A Fundamentally Attractive Investment

Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … Computershare Limited (ASX:CPU) is a company with exceptional fundamental characteristics. … company with

Simply Wall St -

Before Investing In Computershare Limited (ASX:CPU), Consider This

If you are currently a shareholder in Computershare Limited (ASX:CPU), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … Today we will examine Computershare’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Free cash flow (FCF) is the amount of cash Computershare has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

Will Computershare Limited's (ASX:CPU) Earnings Grow In The Years Ahead?

The latest earnings update Computershare Limited (ASX:CPU) released in June 2018a … suggested

Simply Wall St -

What Should You Know About The Future Of Computershare Limited's (ASX:CPU)?

Based on Computershare Limited's (ASX:CPU) earnings update in June 2018,. … with earnings expected to grow by 18% in the upcoming year … the past 5-year average growth rate of 11%

Simply Wall St -

Can Computershare Limited's (ASX:CPU) ROE Continue To Surpass The Industry Average?

Computershare has a ROE of 23%, based on the last twelve months. … That means that for every A$1 worth of shareholders' equity, it generated A$0.23 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do You Know What Computershare Limited's (ASX:CPU) P/E Ratio Means?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 21.89 = $12.08 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.55

Simply Wall St -

Have Insiders Been Selling Computershare Limited (ASX:CPU) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Computershare Limited (ASX:CPU). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Over the last year, we can see that the biggest insider sale was by Penelope Maclagan for AU$4.5m worth of shares, at about AU$18.12 per share.

Simply Wall St -

An Intrinsic Calculation For Computershare Limited (ASX:CPU) Shows It's 27.64% Undervalued

by estimating the company's future cash flows and discounting them to their present value. … discounted cash flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Computershare Limited (ASX:CPU): Assessing Capital Returns

and want a simplistic look at the return on Computershare Limited (ASX:CPU) stock. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … To understand Computershare’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Company Info

Map
Description

Computershare Limited provides investor, plan, communication, business, stakeholder relationship management, and technology services worldwide. The company’s investor services comprise the provision of registry maintenance and related services; plan services operations include the provision of administration and related services for employee share and option plans; and communication services consist of document composition and printing, intelligent mailing, inbound process automation, scanning, and electronic delivery. Its business services operations include the provision of corporate trust, class action, bankruptcy, childcare voucher administration, tenant bond protection, utilities administration, and mutual fund administration support services, as well as mortgage servicing activities; and stakeholder relationship management services group offers investor analysis, investor communication and management, and information services to companies, including their employees, shareholders, and other security industry participants. The company’s technology services consist of the provision of software in share registry and financial services. It also offers transfer agencies, licensed dealers, and deposit protection services. The company was founded in 1978 and is headquartered in Abbotsford, Australia.

Details
Name: Computershare Limited
CPU
Exchange: ASX
Founded: 1978
A$9,816,642,093
542,955,868
Website: http://www.computershare.com
Address: Computershare Limited
Yarra Falls,
452 Johnston Street,
Abbotsford,
Victoria, 3067,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX CPU Ordinary Shares Australian Securities Exchange AU AUD 02. Jun 1994
OTCPK CMSQ.F Ordinary Shares Pink Sheets LLC US USD 02. Jun 1994
DB QCH Ordinary Shares Deutsche Boerse AG DE EUR 02. Jun 1994
CHIA CPU Ordinary Shares Chi-X Australia AU AUD 02. Jun 1994
OTCPK CMSQ.Y SPONSORED ADR Pink Sheets LLC US USD 06. Jul 2004
Number of employees
Current staff
Staff numbers
18,360
Computershare employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/19 10:32
End of day share price update: 2019/02/19 00:00
Last estimates confirmation: 2019/02/19
Last earnings filing: 2019/02/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.