OTCPK:CMSQ.Y

Stock Analysis Report

Executive Summary

Computershare Limited provides investor, plan, communication, business, stakeholder relationship management, and technology services in Australia, the United States, the United Kingdom, Canada, Switzerland, and internationally.


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Computershare's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.9%

CMSQ.Y

-4.6%

US IT

-4.2%

US Market


1 Year Return

-12.3%

CMSQ.Y

29.5%

US IT

14.0%

US Market

Return vs Industry: CMSQ.Y underperformed the US IT industry which returned 29.5% over the past year.

Return vs Market: CMSQ.Y underperformed the US Market which returned 14% over the past year.


Shareholder returns

CMSQ.YIndustryMarket
7 Day-4.9%-4.6%-4.2%
30 Dayn/a-0.4%-1.8%
90 Day-8.4%7.4%2.6%
1 Year-12.3%-12.3%30.9%29.5%16.3%14.0%
3 Year11.2%6.3%101.3%92.6%43.2%34.0%
5 Year22.0%8.8%137.9%116.7%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Computershare undervalued compared to its fair value and its price relative to the market?

20.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMSQ.Y ($10.95) is trading below our estimate of fair value ($13.72)

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


Price To Earnings Ratio

PE vs Industry: CMSQ.Y is good value based on its PE Ratio (21.3x) compared to the IT industry average (30.9x).

PE vs Market: CMSQ.Y is poor value based on its PE Ratio (21.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CMSQ.Y is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CMSQ.Y is good value based on its PB Ratio (3.8x) compared to the US IT industry average (4.1x).


Next Steps

Future Growth

How is Computershare forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMSQ.Y's forecast earnings growth (11% per year) is above the savings rate (1.7%).

Earnings vs Market: CMSQ.Y's earnings (11% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: CMSQ.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: CMSQ.Y's revenue (1.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CMSQ.Y's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMSQ.Y's Return on Equity is forecast to be high in 3 years time (23.3%)


Next Steps

Past Performance

How has Computershare performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMSQ.Y has high quality earnings.

Growing Profit Margin: CMSQ.Y's current net profit margins (12%) are lower than last year (17%).


Past Earnings Growth Analysis

Earnings Trend: CMSQ.Y's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: CMSQ.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CMSQ.Y had negative earnings growth (-27.6%) over the past year, making it difficult to compare to the IT industry average (12%).


Return on Equity

High ROE: CMSQ.Y's Return on Equity (18%) is considered low.


Next Steps

Financial Health

How is Computershare's financial position?


Financial Position Analysis

Short Term Liabilities: CMSQ.Y's short term assets ($1.5B) exceed its short term liabilities ($834.6M).

Long Term Liabilities: CMSQ.Y's short term assets ($1.5B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: CMSQ.Y's debt to equity ratio (134.3%) is considered high.

Reducing Debt: CMSQ.Y's debt to equity ratio has reduced from 147.3% to 134.3% over the past 5 years.

Debt Coverage: CMSQ.Y's debt is well covered by operating cash flow (21.4%).

Interest Coverage: CMSQ.Y's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet

Inventory Level: CMSQ.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: CMSQ.Y's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Computershare's current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMSQ.Y's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: CMSQ.Y's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (3.77%).


Stability and Growth of Payments

Stable Dividend: CMSQ.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: CMSQ.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.2%), CMSQ.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMSQ.Y's dividends in 3 years are forecast to be covered by earnings (52.6% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Stuart Irving (48yo)

5.6yrs

Tenure

US$3,335,335

Compensation

Mr. Stuart James Irving has been the Chief Executive Officer, President and Executive Director of Computershare Limited since July 1, 2014 and served as its Chief Information Officer since 2008. Mr. Irving ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD6.39M).

Compensation vs Earnings: Stuart's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Irving
CEO, President & Executive Director 5.6yrsUS$3.34m0.046% $2.8m
Mark McDougall
Global Chief Information Officer5.6yrsUS$1.01mno data
Naz Sarkar
Global Head of Issuer Services0.4yrsUS$1.37m0.0099% $593.4k
Stuart Swartz
Global Head of Business Services0.4yrsUS$824.95k0.0029% $171.1k
Steven Rothbloom
CEO & President of North America for Computershare Inc (US)0yrsUS$2.31m0.031% $1.8m
Paul Conn
President of Global Capital Markets - Computershare Inc (US)14.1yrsUS$1.15m0.10% $6.0m
Steffen H. Herfurth
CEO of Computershare EMEA & Georgeson1.1yrsUS$848.89k0.0032% $190.8k
Chee Yap
President & CEO of Computershare Asia1.8yrsUS$628.67kno data
Nick Oldfield
CFO & Global Head of Loan Services0.2yrsno datano data
Carlos Leira
Global Chief Technology Officer0.4yrsno datano data

1.1yrs

Average Tenure

Experienced Management: CMSQ.Y's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stuart Irving
CEO, President & Executive Director 5.6yrsUS$3.34m0.046% $2.8m
Tiffany Fuller
Non-Executive Director5.3yrsUS$174.55k0.0010% $61.0k
Joseph Velli
Non-Executive Director5.3yrsUS$160.00k0.0019% $110.7k
Christopher Morris
Non-Executive Director9.4yrsUS$116.37kno data
Simon Jones
Independent Chairman of the Board4.3yrsUS$271.86k0.0043% $257.2k
Abigail Cleland
Independent Non-Executive Director2yrsUS$44.12k0.0022% $132.2k
Lisa Gay
Independent Non-Executive Director2yrsUS$50.90k0.0036% $217.8k
Paul Reynolds
Independent Non Executive Director1.3yrsno data0.0015% $88.5k

4.8yrs

Average Tenure

59yo

Average Age

Experienced Board: CMSQ.Y's board of directors are considered experienced (4.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Computershare Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Computershare Limited
  • Ticker: CMSQ.Y
  • Exchange: OTCPK
  • Founded: 1978
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: AU$9.044b
  • Listing Market Cap: AU$5.982b
  • Shares outstanding: 540.88m
  • Website: https://www.computershare.com

Number of Employees


Location

  • Computershare Limited
  • Yarra Falls
  • 452 Johnston Street
  • Abbotsford
  • Victoria
  • 3067
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMSQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1994
CPUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1994
QCHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1994
CPUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1994
CMSQ.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 2004

Biography

Computershare Limited provides investor, plan, communication, business, stakeholder relationship management, and technology services in Australia, the United States, the United Kingdom, Canada, Switzerland, and internationally. The company’s issuer services comprise the provision of registry maintenance and related services; plan services operations include the provision of administration and related services for employee share and option plans; and communication services consist of document composition and printing, intelligent mailing, inbound process automation, scanning, and electronic delivery. Its business services operations include the provision of corporate trust, class action, bankruptcy, childcare voucher administration, tenant bond protection, utilities administration, and mutual fund administration support services, as well as mortgage servicing activities; and stakeholder relationship management services group offers investor analysis, investor communication and management, and information services to companies, including its employees, shareholders, and other security industry participants. The company’s technology services consist of the provision of software in share registry and financial services. It also offers transfer agencies, licensed dealers, and deposit protection services. The company was founded in 1978 and is headquartered in Abbotsford, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:16
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.