Link Administration Holdings Limited provides technology-enabled administration solutions trustees in Australia, New Zealand, the United Kingdom, Channel Islands, and internationally. More Details
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.
7 Day Return
1 Year Return
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.
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
3 days ago | Simply Wall StIs It Too Late To Consider Buying Link Administration Holdings Limited (ASX:LNK)?
3 weeks ago | Simply Wall StHow Much Are Link Administration Holdings Limited (ASX:LNK) Insiders Spending On Buying Shares?
1 month ago | Simply Wall StAn Intrinsic Calculation For Link Administration Holdings Limited (ASX:LNK) Suggests It's 48% Undervalued
Is Link Administration Holdings undervalued compared to its fair value and its price relative to the market?
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).
How is Link Administration Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 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 (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%).
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, 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.
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$1.4B).
Debt to Equity History and Analysis
Debt Level: LNK's debt to equity ratio (52.8%) is considered high.
Reducing Debt: LNK's debt to equity ratio has reduced from 1310.7% to 52.8% over the past 5 years.
Debt Coverage: LNK's debt is not well covered by operating cash flow (18.7%).
Interest Coverage: LNK is unprofitable, therefore interest payments are not well covered by earnings.
What is Link Administration Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LNK's dividend (2.1%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.15%).
High Dividend: LNK's dividend (2.1%) is low compared to the top 25% of dividend payers in the Australian market (5.48%).
Stability and Growth of Payments
Stable Dividend: LNK has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: LNK's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: LNK is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: LNK's dividends in 3 years are forecast to be covered by earnings (56.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. John M. McMurtrie, BEc, BEc(Hons), MEc, A.M., has been Chief Executive Officer and Managing Director at Superpartners Pty Ltd. since December 19, 2014. Mr. McMurtrie has been Managing Director and Exec ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($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.
|MD, CEO & Executive Director||18.75yrs||AU$1.34m||2.66% |
|Chief Financial Officer||1.75yrs||AU$699.95k||0.018% |
|Chief Technology & Operations Officer||1.75yrs||AU$770.80k||0.15% |
|Chief Executive Officer of Fund Administration||1.42yrs||AU$1.01m||0.012% |
|Chief Executive Officer of Banking & Credit Management||1.17yrs||AU$774.95k||0.0094% |
|Chief Executive Officer of Fund Solutions||1.75yrs||AU$694.22k||0.0090% |
|Co-Chief Executive Officer of Corporate Markets||0.75yr||AU$407.45k||0.0099% |
|Co-Chief Executive Officer of Corporate Markets||0.75yr||AU$433.26k||no data|
|General Counsel||3.42yrs||no data||no data|
|Chief Human Resources & Brand Officer||1.75yrs||no data||no data|
|Head of Investor Relations of Corporate Markets||no data||no data||no data|
|Chief Risk Officer||1.33yrs||no data||no data|
Experienced Management: LNK's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
|MD, CEO & Executive Director||18.75yrs||AU$1.34m||2.66% |
|Independent Non-Executive Director||3.92yrs||AU$187.57k||0.0089% |
|Independent Non-Executive Director||2.58yrs||AU$277.24k||0.0049% |
|Independent Non-Executive Director||4.25yrs||AU$187.57k||0.0062% |
|Independent Non-Executive Director||5.08yrs||AU$209.02k||0.016% |
|Independent Chairman||5.58yrs||AU$336.80k||0.37% |
|Independent Non-Executive Director||5.08yrs||AU$209.82k||0.0059% |
|Independent Non-Executive Director||5.08yrs||AU$206.83k||0.023% |
Experienced Board: LNK's board of directors are considered experienced (5.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Link Administration Holdings Limited's company bio, 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$2.561b
- Shares outstanding: 531.27m
- Website: https://www.linkgroup.com
Number of Employees
- Link Administration Holdings Limited
- 680 George Street
- Level 12
- New South Wales
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LNK||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Oct 2015|
|LNK||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Oct 2015|
|1LK||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Oct 2015|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/29 10:38|
|End of Day Share Price||2020/10/29 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.