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LNK

Link Administration HoldingsASX:LNK Stock Report

Market Cap

AU$2.3b

7D

0.7%

1Y

-12.2%

Updated

18 Oct, 2021

Data

Company Financials +
LNK fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health4/6
Dividends2/6

LNK Overview

Link Administration Holdings Limited provides technology-enabled administration solutions for companies, large asset owners, and trustees worldwide.

Price History & Performance

Summary of all time highs, changes and price drops for Link Administration Holdings
Historical stock prices
Current Share PriceAU$4.30
52 Week HighAU$4.19
52 Week LowAU$5.68
Beta1.06
1 Month Change-5.50%
3 Month Change-8.51%
1 Year Change-12.25%
3 Year Change-44.30%
5 Year Change-43.86%
Change since IPO-39.18%

Recent News & Updates

Shareholder Returns

LNKAU ITAU Market
7D0.7%0.7%0.9%
1Y-12.2%9.0%20.2%

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

Return vs Market: LNK underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is LNK's price volatile compared to industry and market?
LNK volatility
LNK Beta1.06
Industry Beta1.68
Market Beta1

Stable Share Price: LNK is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LNK's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005n/aVivek Bhatiahttps://www.linkgroup.com

Link Administration Holdings Limited provides technology-enabled administration solutions for companies, large asset owners, and trustees worldwide. The company operates through Retirement & Superannuation Solutions (RSS); Corporate Markets (CM); Banking & Credit Management (BCM); and Fund Solutions (FS) segments. The RSS segment provides core member and employer administration services; and a range of value-added services, including integrated clearing house, financial planning and advice, direct investment options, and trustee services.

Link Administration Holdings Fundamentals Summary

How do Link Administration Holdings's earnings and revenue compare to its market cap?
LNK fundamental statistics
Market CapAU$2.26b
Earnings (TTM)-AU$163.35m
Revenue (TTM)AU$1.16b

1.9x

P/S Ratio

-13.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LNK income statement (TTM)
RevenueAU$1.16b
Cost of RevenueAU$621.54m
Gross ProfitAU$538.80m
ExpensesAU$702.15m
Earnings-AU$163.35m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.31
Gross Margin46.43%
Net Profit Margin-14.08%
Debt/Equity Ratio48.8%

How did LNK perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

-33%

Payout Ratio

Valuation

Is Link Administration Holdings undervalued compared to its fair value and its price relative to the market?

1.29x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LNK (A$4.3) is trading above our estimate of fair value (A$3.97)

Significantly Below Fair Value: LNK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LNK is unprofitable, so we can't compare its PE Ratio to the Australian IT industry average.

PE vs Market: LNK is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LNK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LNK is good value based on its PB Ratio (1.3x) compared to the AU IT industry average (3.4x).


Future Growth

How is Link Administration Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

50.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: LNK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LNK's is expected to become profitable in the next 3 years.

Revenue vs Market: LNK's revenue (3.3% per year) is forecast to grow slower than the Australian market (5.5% per year).

High Growth Revenue: LNK's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LNK's Return on Equity is forecast to be low in 3 years time (9.9%).


Past Performance

How has Link Administration Holdings performed over the past 5 years?

-27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNK is currently unprofitable.

Growing Profit Margin: LNK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LNK is unprofitable, and losses have increased over the past 5 years at a rate of 27.2% per year.

Accelerating Growth: Unable to compare LNK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LNK is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-11.2%).


Return on Equity

High ROE: LNK has a negative Return on Equity (-9.35%), as it is currently unprofitable.


Financial Health

How is Link Administration Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LNK's short term assets (A$1.5B) exceed its short term liabilities (A$1.3B).

Long Term Liabilities: LNK's short term assets (A$1.5B) exceed its long term liabilities (A$1.2B).


Debt to Equity History and Analysis

Debt Level: LNK's debt to equity ratio (48.8%) is considered high.

Reducing Debt: LNK's debt to equity ratio has reduced from 50.1% to 48.8% over the past 5 years.

Debt Coverage: LNK's debt is well covered by operating cash flow (25.3%).

Interest Coverage: LNK's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Dividend

What is Link Administration Holdings's current dividend yield, its reliability and sustainability?

2.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LNK's dividend (2.33%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: LNK's dividend (2.33%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: LNK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LNK's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: LNK is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: LNK's dividends in 3 years are forecast to be covered by earnings (50.6% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Vivek Bhatia

0.92

Tenure

AU$3,104,225

Compensation

Mr. Vivek Bhatia, BEng, MBA, CFA, is Managing Director, Chief Executive Officer and Director of Link Administration Holdings Limited since November 02, 2020. He serves as Non-Executive Director of PEXA Gro...


CEO Compensation Analysis

Compensation vs Market: Vivek's total compensation ($USD2.30M) is above average for companies of similar size in the Australian market ($USD1.41M).

Compensation vs Earnings: Insufficient data to compare Vivek's compensation with company performance.


Leadership Team

Experienced Management: LNK's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: LNK's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LNK insiders have bought more shares than they have sold 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

Link Administration Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Link Administration Holdings Limited
  • Ticker: LNK
  • Exchange: ASX
  • Founded: 2005
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: AU$2.262b
  • Shares outstanding: 521.24m
  • Website: https://www.linkgroup.com

Number of Employees


Location

  • Link Administration Holdings Limited
  • 680 George Street
  • Level 12
  • Sydney
  • New South Wales
  • 2000
  • 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 07:04
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.