Link Administration Holdings Limited provides technology-enabled administration solutions for companies, large asset owners, and trustees worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$4.30|
|52 Week High||AU$4.19|
|52 Week Low||AU$5.68|
|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
|LNK||AU IT||AU Market|
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.
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
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
|LNK fundamental statistics|
Is LNK overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LNK income statement (TTM)|
|Cost of Revenue||AU$621.54m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-0.31|
|Net Profit Margin||-14.08%|
How did LNK perform over the long term?See historical performance and comparison
2.3%Current Dividend Yield
Is Link Administration Holdings undervalued compared to its fair value and its price relative to the market?
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).
How is Link Administration Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
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%).
How has Link Administration Holdings performed over the past 5 years?
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.
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$1.2B).
Debt to Equity History and Analysis
Debt Level: LNK's debt to equity ratio (48.8%) is considered high.
Reducing Debt: LNK's debt to equity ratio has reduced from 50.1% to 48.8% over the past 5 years.
Debt Coverage: LNK's debt is well covered by operating cash flow (25.3%).
Interest Coverage: LNK's interest payments on its debt are not well covered by EBIT (2.8x coverage).
What is Link Administration Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LNK's dividend (2.33%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).
High Dividend: LNK's dividend (2.33%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).
Stability and Growth of Payments
Stable Dividend: LNK has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: LNK's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: LNK is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: LNK's dividends in 3 years are forecast to be covered by earnings (50.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Vivek Bhatia, BEng, MBA, CFA, is Managing Director, Chief Executive Officer and Director of Link Administration Holdings Limited since November 02, 2020. He serves as Non-Executive Director of PEXA Gro...
CEO Compensation Analysis
Compensation vs Market: Vivek's total compensation ($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.
Experienced Management: LNK's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Experienced Board: LNK's board of directors are considered experienced (5.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Link Administration Holdings Limited's employee growth, exchange listings and data sources
- 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
- Link Administration Holdings Limited
- 680 George Street
- Level 12
- New South Wales
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/18 07:04|
|End of Day Share Price||2021/10/18 00:00|
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.