ASX:LNK

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Link Administration Holdings

Executive Summary

Link Administration Holdings Limited provides technology-enabled administration solutions trustees in Australia, New Zealand, the United Kingdom, Channel Islands, and internationally. More Details


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

How has Link Administration Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LNK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

LNK

-1.7%

AU IT

-2.4%

AU Market


1 Year Return

-15.0%

LNK

79.0%

AU IT

-8.3%

AU Market

Return vs Industry: LNK underperformed the Australian IT industry which returned 79% over the past year.

Return vs Market: LNK underperformed the Australian Market which returned -8.3% over the past year.


Shareholder returns

LNKIndustryMarket
7 Day-3.6%-1.7%-2.4%
30 Day23.3%14.9%1.8%
90 Day19.6%21.8%1.7%
1 Year-13.1%-15.0%81.5%79.0%-5.0%-8.3%
3 Year-37.9%-42.8%170.7%154.3%14.6%-0.08%
5 Year-20.5%-32.6%98.7%74.3%41.6%12.1%

Price Volatility Vs. Market

How volatile is Link Administration Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

37.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LNK (A$4.76) is trading below our estimate of fair value (A$7.59)

Significantly Below Fair Value: LNK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LNK is unprofitable, so we can't compare its PE Ratio to the AU 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 (3.2x).


Next Steps

Future Growth

How is Link Administration Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

53.8%

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 (2.3%).

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 (4.9% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: LNK's revenue (4.9% 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 (9.3%).


Next Steps

Past Performance

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

25.5%

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, but has reduced losses over the past 5 years at a rate of 25.5% 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 (-10.7%).


Return on Equity

High ROE: LNK has a negative Return on Equity (-5.95%), as it is currently unprofitable.


Next Steps

Financial Health

How is Link Administration Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LNK's short term assets (A$1.2B) exceed its short term liabilities (A$989.7M).

Long Term Liabilities: LNK's short term assets (A$1.2B) do not cover its long term liabilities (A$1.4B).


Debt to Equity History and Analysis

Debt Level: LNK's debt to equity ratio (52.8%) is considered high.

Reducing Debt: LNK's debt to equity ratio has reduced from 1310.7% to 52.8% over the past 5 years.

Debt Coverage: LNK's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: LNK is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LNK's dividend (2.1%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.15%).

High Dividend: LNK's dividend (2.1%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).


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 4 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 (56.8% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

John McMurtrie

18.75yrs

Tenure

AU$1,340,680

Compensation

Mr. John M. McMurtrie, BEc, BEc(Hons), MEc, A.M., has been Chief Executive Officer and Managing Director at Superpartners Pty Ltd. since December 19, 2014. Mr. McMurtrie has been Managing Director and Exec ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD947.01K) is below average for companies of similar size in the Australian market ($USD1.41M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
John McMurtrie
MD, CEO & Executive Director18.75yrsAU$1.34m2.66%
A$ 68.2m
Andrew MacLachlan
Chief Financial Officer1.75yrsAU$699.95k0.018%
A$ 463.2k
Paul Gardiner
Chief Technology & Operations Officer1.75yrsAU$770.80k0.15%
A$ 3.8m
Dee McGrath
Chief Executive Officer of Fund Administration1.42yrsAU$1.01m0.012%
A$ 315.0k
Robbie Hughes
Chief Executive Officer of Banking & Credit Management1.17yrsAU$774.95k0.0094%
A$ 240.2k
Chris Addenbrooke
Chief Executive Officer of Fund Solutions1.75yrsAU$694.22k0.0090%
A$ 231.5k
Lysa McKenna
Co-Chief Executive Officer of Corporate Markets0.75yrAU$407.45k0.0099%
A$ 253.8k
Susan Ring
Co-Chief Executive Officer of Corporate Markets0.75yrAU$433.26kno data
Janine Rolfe
General Counsel3.42yrsno datano data
Michael Rosmarin
Chief Human Resources & Brand Officer1.75yrsno datano data
Craig Curry
Head of Investor Relations of Corporate Marketsno datano datano data
Wendy Phillis
Chief Risk Officer1.33yrsno datano data

1.8yrs

Average Tenure

Experienced Management: LNK's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John McMurtrie
MD, CEO & Executive Director18.75yrsAU$1.34m2.66%
A$ 68.2m
Peeyush Kumar Gupta
Independent Non-Executive Director3.92yrsAU$187.57k0.0089%
A$ 227.4k
Andrew Green
Independent Non-Executive Director2.58yrsAU$277.24k0.0049%
A$ 125.5k
Anne McDonald
Independent Non-Executive Director4.25yrsAU$187.57k0.0062%
A$ 159.0k
Sally Anne Pitkin
Independent Non-Executive Director5.08yrsAU$209.02k0.016%
A$ 412.3k
Michael Carapiet
Independent Chairman5.58yrsAU$336.80k0.37%
A$ 9.5m
Fiona Trafford-Walker
Independent Non-Executive Director5.08yrsAU$209.82k0.0059%
A$ 151.6k
Glen Boreham
Independent Non-Executive Director5.08yrsAU$206.83k0.023%
A$ 586.2k

5.1yrs

Average Tenure

61yo

Average Age

Experienced Board: LNK's board of directors are considered experienced (5.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 company bio, 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$2.561b
  • Shares outstanding: 531.27m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNKASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2015
LNKCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2015
1LKDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2015

Biography

Link Administration Holdings Limited provides technology-enabled administration solutions trustees in Australia, New Zealand, the United Kingdom, Channel Islands, and internationally. The company operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 10:38
End of Day Share Price2020/10/29 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.