ASX:CPU

Stock Analysis Report

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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


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

-1.2%

CPU

1.7%

AU IT

0.3%

AU Market


1 Year Return

-19.1%

CPU

83.0%

AU IT

-5.4%

AU Market

Return vs Industry: CPU underperformed the Australian IT industry which returned 83% over the past year.

Return vs Market: CPU underperformed the Australian Market which returned -5.4% over the past year.


Shareholder returns

CPUIndustryMarket
7 Day-1.2%1.7%0.3%
30 Day6.1%22.3%6.3%
90 Day-5.2%20.4%3.7%
1 Year-16.6%-19.1%85.4%83.0%-2.1%-5.4%
3 Year-9.2%-16.1%190.7%173.6%18.3%3.3%
5 Year37.0%19.2%113.5%87.4%43.1%14.0%

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

Valuation

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

4.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPU (A$12.81) is trading below our estimate of fair value (A$13.46)

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 (21.2x) compared to the AU IT industry average (21x).

PE vs Market: CPU is poor value based on its PE Ratio (21.2x) compared to the Australian market (21x).


Price to Earnings Growth Ratio

PEG Ratio: CPU is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: CPU is overvalued based on its PB Ratio (3.1x) compared to the AU IT industry average (2.9x).


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 (17.4% 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?

3.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CPU's dividend (3.54%) is higher than the bottom 25% of dividend payers in the Australian market (2.15%).

High Dividend: CPU's dividend (3.54%) is low compared to the top 25% of dividend payers in the Australian market (5.43%).


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 (57.1% 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 ($USD3.97M) is above average for companies of similar size in the Australian market ($USD2.61M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Irving
CEO, President & Executive Director 6.25yrsUS$3.97m0.046%
$ 3.3m
Nick Oldfield
CFO & Global Head of Mortgage Services0.83yrUS$1.13m0.0084%
$ 593.7k
Mark McDougall
Global Chief Information Officer6.25yrsUS$730.11kno data
Naz Sarkar
Global Head of Issuer Services1.08yrsUS$1.42m0.010%
$ 713.4k
Carlos Leira
Global Chief Technology Officer1.08yrsno datano data
Dominic Horsley
Group Counsel & Company Secretaryno datano datano data
Lucy Newcombe
Global Head of People and Communications10.08yrsno datano data
Fiona Chalmers
Chief Corporate Development Officer1.08yrsno datano data
Peter Belval
Chief of Staff6.08yrsno datano data
Stuart Swartz
Global Head of Business Services1.08yrsUS$824.95k0%
$ 0
Craig Thomas
Chief Security & Special Projects Officer3yrsno datano data
Francis Catterall
Global Head of Employee Share Plans1.08yrsno datano 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

NamePositionTenureCompensationOwnership
Stuart Irving
CEO, President & Executive Director 6.25yrsUS$3.97m0.046%
$ 3.3m
Tiffany Fuller
Independent Non-Executive Director6yrsUS$158.89k0.0027%
$ 188.7k
Joseph Velli
Independent Non-Executive Director6yrsUS$169.14k0.0031%
$ 221.1k
Christopher Morris
Non-Executive Director10.08yrsUS$107.46k5.74%
$ 404.2m
Simon Jones
Independent Chairman of the Board4.92yrsUS$250.31k0.0086%
$ 607.0k
Abigail Cleland
Independent Non-Executive Director2.67yrsUS$115.06k0.0023%
$ 160.6k
Lisa Gay
Independent Non-Executive Director2.67yrsUS$125.21k0.0036%
$ 256.3k
Paul Reynolds
Independent Non Executive Director2yrsUS$128.29k0.0015%
$ 104.2k

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$7.042b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMSQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1994
CPUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1994
QCHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1994
CPUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1994
CMSQ.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 10:30
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.