Link Administration Holdings Limited provides technology-enabled administration solutions to companies, large asset owners, and trustees in Australia and internationally.
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Very undervalued with reasonable growth potential.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: LNK underperformed the Australian IT industry which returned 18.8% over the past year.
Return vs Market: LNK underperformed the Australian Market which returned 7.9% 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 Link Administration Holdings Limited (ASX:LNK) Excessively Paying Its CEO?
2 weeks ago | Simply Wall StIs Link Administration Holdings Limited's (ASX:LNK) 15% ROE Better Than Average?
3 weeks ago | Simply Wall StDoes Link Administration Holdings (ASX:LNK) Have A Healthy Balance Sheet?
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$5) is trading below our estimate of fair value (A$9.98)
Significantly Below Fair Value: LNK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LNK is good value based on its PE Ratio (16.5x) compared to the IT industry average (20.6x).
PE vs Market: LNK is good value based on its PE Ratio (16.5x) compared to the Australian market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: LNK is good value based on its PEG Ratio (0.8x)
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 (2.3x).
How is Link Administration Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LNK's forecast earnings growth (20.1% per year) is above the savings rate (1.1%).
Earnings vs Market: LNK's earnings (20.1% per year) are forecast to grow faster than the Australian market (9.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LNK's revenue (6.4% per year) is forecast to grow faster than the Australian market (4.1% per year).
High Growth Revenue: LNK's revenue (6.4% 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 (11.2%).
How has Link Administration Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LNK has a large one-off gain of A$92.8M impacting its December 31 2019 financial results.
Growing Profit Margin: LNK's current net profit margins (12.3%) are lower than last year (18.7%).
Past Earnings Growth Analysis
Earnings Trend: LNK has become profitable over the past 5 years, growing earnings by 51.9% per year.
Accelerating Growth: LNK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LNK had negative earnings growth (-38.6%) over the past year, making it difficult to compare to the IT industry average (22.6%).
Return on Equity
High ROE: LNK's Return on Equity (7.8%) is considered low.
How is Link Administration Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: LNK's short term assets (A$940.2M) exceed its short term liabilities (A$870.7M).
Long Term Liabilities: LNK's short term assets (A$940.2M) do not cover its long term liabilities (A$1.3B).
Debt to Equity History and Analysis
Debt Level: LNK's debt to equity ratio (52.8%) is considered high.
Reducing Debt: LNK's debt to equity ratio has reduced from 1629.2% to 52.8% over the past 5 years.
Debt Coverage: LNK's debt is well covered by operating cash flow (21.1%).
Interest Coverage: LNK's interest payments on its debt are well covered by EBIT (5.8x coverage).
Inventory Level: LNK has a low level of unsold assets or inventory.
Debt Coverage by Assets: LNK's debt is not covered by short term assets (assets are 0.8x debt).
What is Link Administration Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LNK's dividend (4.1%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).
High Dividend: LNK's dividend (4.1%) is low compared to the top 25% of dividend payers in the Australian market (5.72%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, LNK has been paying a dividend for less than 10 years.
Growing Dividend: LNK's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (67.6%), LNK's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LNK's dividends in 3 years are forecast to be covered by earnings (51.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John McMurtrie 0
Mr. John M. McMurtrie, BEc, BEc(Hons), MEc, A.M., has been Chief Executive Officer and Managing Director at Superpartners Pty Ltd. since December 19, 2014. Mr. McMurtrie has been Managing Director and Exec ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD878.38K) is below average for companies of similar size in the Australian market ($USD1.36M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
|MD & Executive Director||18.1yrs||AU$1.34m||2.65% A$81.3m|
|Chief Financial Officer||1.1yrs||AU$622.91k||0.013% A$393.3k|
|Chief Technology & Operations Officer||1.1yrs||AU$812.87k||0.087% A$2.7m|
|Chief Executive Officer of Fund Administration||0.8yrs||AU$751.30k||0.012% A$377.7k|
|General Counsel & Company Secretary||2.8yrs||no data||no data|
|Chief Human Resources & Brand Officer||1.1yrs||no data||no data|
|Chief Financial Officer of Link Group EMEA||2.3yrs||no data||no data|
|Head of Investor Relations of Corporate Markets||0yrs||no data||no data|
|Chief Risk Officer||0.7yrs||no data||no data|
|Chief Executive Officer of Banking & Credit Management||0.5yrs||no data||no data|
Experienced Management: LNK's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
|MD & Executive Director||18.1yrs||AU$1.34m||2.65% A$81.3m|
|Independent Non-Executive Director||3.3yrs||AU$186.04k||0.0086% A$265.1k|
|Independent Non-Executive Director||1.9yrs||AU$289.76k||0.0049% A$150.3k|
|Independent Non-Executive Director||3.6yrs||AU$186.04k||0.0061% A$188.4k|
|Independent Non-Executive Director||4.4yrs||AU$214.74k||0.013% A$407.5k|
|Independent Chairman||5yrs||AU$365.60k||0.33% A$10.1m|
|Independent Non-Executive Director||4.4yrs||AU$218.33k||0.0058% A$177.0k|
|Independent Non-Executive Director||4.4yrs||AU$211.15k||0.019% A$596.8k|
Experienced Board: LNK's board of directors are considered experienced (4.4 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 been diluted in the past year, with total shares outstanding growing by 2.7%.
Link Administration Holdings Limited's company bio, employee growth, exchange listings and data sources
- Name: Link Administration Holdings Limited
- Ticker: LNK
- Exchange: ASX
- Founded: 2006
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: AU$3.068b
- Shares outstanding: 530.83m
- 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 to companies, large asset owners, and trustees in Australia and internationally. The company operates in four segments: Fund Administration, Corporate Markets, Technology & Innovation, and Link Asset Services. The Fund Administration segment provides core member and employer administration services; and a range of value-added services, including integrated clearinghouse, financial planning and advice, direct investment options, and trustee services. The Corporate Markets segment offers shareholder management and analytics, stakeholder engagement, share and unit registry, employee share plans, and company secretarial support services, as well as insolvency solutions. The Technology and Innovation segment provides services for the development and maintenance of proprietary IT systems and platforms; and value-added services of data analytics, digital solutions, and digital communications. The Link Asset Services segment provides a range of financial and administrative services comprising share registration and plan services, and treasury solutions; third-party administration and transfer agency services, and various investment funds; finance and accounting, company secretarial, entity management, trust, and inter-generational transfer services; and loan origination and servicing, debt work-out, compliance, and regulatory oversight services. The company was incorporated in 2006 and is headquartered in Sydney, Australia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/27 10:47|
|End of Day Share Price||2020/02/27 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.