Computershare Limited (AU:CPU)
ASX:CPU
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Computershare Limited
(Sydney:CPU)
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Rating:64Neutral
Price Target:
AU$30.00
▲(5.89% Upside)
Action:ReiteratedDate:03/26/26
The score is driven mainly by steady underlying financial quality (strong margins and balance-sheet metrics) and supportive valuation (low P/E and solid yield). These positives are partially offset by weak technical momentum (below major moving averages, negative MACD) and financial headwinds from recent revenue and free-cash-flow declines, despite a constructive earnings call with upgraded guidance and a higher dividend.
Positive Factors
Strong profitability & balance sheet
High ROE and moderate leverage indicate efficient capital use and a conservative capital structure. This supports durable shareholder returns, provides flexibility for opportunistic investment or buybacks, and reduces refinancing risk—benefits that persist across economic cycles.
Negative Factors
Sharp historical revenue drop
A large recent revenue contraction highlights sensitivity to transaction volumes and structural headwinds in some markets. Restoring top-line momentum is essential for sustaining margins and cash flow; failure to recover would pressure investment capacity and long-term growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability & balance sheet
High ROE and moderate leverage indicate efficient capital use and a conservative capital structure. This supports durable shareholder returns, provides flexibility for opportunistic investment or buybacks, and reduces refinancing risk—benefits that persist across economic cycles.
Read all positive factors
Computershare Limited (CPU) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$16.39B
Dividend Yield2.69%
Average Volume (3M)1.28M
Price to Earnings (P/E)11.5
Beta (1Y)1.07
Revenue Growth6.44%
EPS Growth22.38%
CountryAU
Employees12,359
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.99
Shares Outstanding578,387,100
10 Day Avg. Volume1,066,724
30 Day Avg. Volume1,276,273
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)7.16
Price to Sales (P/S)4.94
P/FCF Ratio19.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$35.16Price Target Upside24.12% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)1.45
Revenue Forecast (FY)AU$3.22B
Computershare Limited Business Overview & Revenue Model
Company Description
Computershare Limited provides issuer, employee share plans and voucher, business, communication and utilities, technology, and mortgage and property rental services. The company offers issuer services that include register maintenance, corporate ...
How the Company Makes Money
Computershare makes money mainly by charging fees for administration, processing, and technology-enabled services delivered to corporate clients and financial institutions, and by earning interest-related income on client balances it holds while p...
Computershare Limited Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: strong underlying EBIT ex MI growth (+12%), expanded margins (16% excl. MI) and resilient margin income despite large rate falls, supported an upgrade to FY26 EPS guidance and a 22% interim dividend rise. Balance-sheet metrics (ROIC >36%, net leverage 0.3x) and momentum across Issuer Services, Corporate Trust and Employee Share Plans reinforced confidence. However, notable headwinds remain — M&A and corporate actions have not fully recovered, there are one-off investment costs and timing delays in cost-out programs, and the U.K. mortgage services divestment tempers near-term EBIT contribution. On balance, the positives (margin expansion, guidance upgrade, resilient MI, strong returns and dividend) outweigh the operational and timing challenges.Positive Updates
Underlying EBIT Growth
EBIT ex MI (underlying business) increased 12% in 1H FY26, with margins excluding margin income expanding to 16% and management guidance targeting ~19% in FY27 and ~20% by FY28.
Negative Updates
M&A and Corporate Actions Yet to Fully Recover
M&A volumes remain subdued: completed deals were down across most markets (except Australia) and overall corporate action activity is still ~25% below 2021 peak levels, making timing of full recovery uncertain.
Read all updates
Q2-2026 Updates
Positive
Negative
Underlying EBIT Growth
EBIT ex MI (underlying business) increased 12% in 1H FY26, with margins excluding margin income expanding to 16% and management guidance targeting ~19% in FY27 and ~20% by FY28.
Read all positive updates
Company Guidance
Computershare upgraded FY26 management EPS guidance to $1.44 (up 6% PCP) after delivering $0.679 in 1H and forecasting a record 2H of $0.76 to reach the full year, versus prior guidance of ~$1.40; margin income (MI) guidance was raised to ~$730m (from $720m) on average client balances of $30.8bn and an assumed MI yield of 2.37% (one US cut in March, one UK cut in May), with hedged yield expected to exceed 3.5% in FY27 and MI sensitivity of roughly $48m per 50 bps move. Cost and cash metrics: BAU OpEx rose 2.6% in 1H, cost-out benefits totaled $16.5m in 1H (Stage 5 $10.3m; Corporate Trust $6.2m), investment spend was $25.7m (including $5m of acquisitions), and pretax cost savings from Stage 5/CCT are now expected to be $23.2m in FY27; below-the-line costs are ~30% lower in FY26 (targeting 55% in FY27 and elimination by H1 FY28). Additional bridge items: organic growth and cost-out contribute ~$0.03/sh to 2H, MI is -$0.02/sh, interest expense -$0.04/sh, buyback accretion +$0.01/sh; net impact of lower rates in 1H was only ~$8m (~1.5% of PBT), ROIC >36%, net leverage ~0.3x, and the interim dividend was increased to AUD 0.55/sh (+22%).Computershare Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.55B | 3.11B | 2.92B | 2.78B | 2.56B | 2.84B |
| Gross Profit | 694.86M | 902.21M | 768.00M | 733.23M | 470.42M | 610.85M |
| EBITDA | 887.71M | 1.07B | 1.01B | 1.05B | 638.72M | 563.78M |
| Net Income | 478.84M | 607.01M | 352.62M | 444.74M | 227.66M | 188.97M |
Balance Sheet | ||||||
| Total Assets | 5.10B | 5.34B | 5.12B | 12.44B | 11.64B | 8.87B |
| Cash, Cash Equivalents and Short-Term Investments | 1.23B | 1.38B | 1.30B | 2.28B | 1.89B | 1.36B |
| Total Debt | 1.65B | 1.92B | 1.79B | 5.04B | 4.88B | 3.22B |
| Total Liabilities | 2.86B | 3.18B | 3.17B | 8.17B | 7.53B | 5.11B |
| Stockholders Equity | 2.25B | 2.15B | 2.66B | 4.26B | 4.11B | 3.75B |
Cash Flow | ||||||
| Free Cash Flow | 805.22M | 780.08M | 610.13M | 961.89M | 685.45M | 274.15M |
| Operating Cash Flow | 841.12M | 823.65M | 728.96M | 1.18B | 878.04M | 508.39M |
| Investing Cash Flow | -13.70M | -132.33M | 432.04M | -149.01M | -1.50B | -244.11M |
| Financing Cash Flow | -858.10M | -649.66M | -1.11B | -808.81M | 1.07B | 42.62M |
Computershare Limited Technical Analysis
Negative
28.33
Price Trends
30.30
Negative
32.22
Negative
34.91
Negative
Market Momentum
-0.62
Negative
41.78
Neutral
75.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CPU, the sentiment is Negative. The current price of 28.33 is below the 20-day moving average (MA) of 28.63, below the 50-day MA of 30.30, and below the 200-day MA of 34.91, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 41.78 is Neutral, neither overbought nor oversold. The STOCH value of 75.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CPU.
Computershare Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$16.39B | 11.54 | 21.78% | 2.69% | 6.44% | 22.38% | |
64 Neutral | AU$5.21B | -724.26 | 32.56% | 1.45% | 28.29% | 39.39% | |
63 Neutral | AU$125.12M | 21.16 | 9.10% | ― | -5.73% | -36.36% | |
56 Neutral | AU$75.15B | 12.15 | 10.75% | 3.27% | 3.65% | 1.58% | |
52 Neutral | AU$324.17M | 9.65 | 15.42% | 2.81% | 24.56% | 59.32% | |
46 Neutral | AU$11.21M | -5.25 | -17.55% | ― | 43.00% | -6078.57% |
* Financial Sector Average
AU:CPU
Computershare Limited
28.33
-5.05
-15.12%
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Computershare Limited Corporate Events
Computershare Confirms DRP Price for Interim Dividend
Mar 9, 2026
Computershare Limited has updated its notification regarding the interim dividend on its ordinary fully paid shares, confirming the dividend reinvestment plan issue price at AUD 30.62 per share. The dividend relates to the six-month period ended 3...
Computershare Lifts Outlook as Underlying Earnings and Transactions Strengthen
Feb 11, 2026
Computershare reported a 12% rise in EBIT excluding margin income for the first half of fiscal 2026, as underlying business performance strengthened and BAU operating expenses were kept below inflation, expanding non-margin income margins to 16%. ...
Computershare lifts earnings, dividend and guidance despite lower rates
Feb 10, 2026
Computershare reported a strong first half for fiscal 2026, with EBIT excluding margin income up 12.0% and operating margin expanding to 16.0%, supported by a 12.9% rise in event and transactional revenues driven by robust employee share plans and...
Computershare Delivers Earnings Growth and Lifts Guidance as Core Businesses Strengthen
Feb 10, 2026
Computershare reported first-half FY26 results broadly in line with its strategic plan, with management revenue and EPS both rising 3.9% and return on invested capital exceeding 36%. Excluding margin income, revenue grew 7.2% and EBIT 12%, expandi...
Computershare Declares A$0.55 Interim Dividend for Half-Year to December 2025
Feb 10, 2026
Computershare Limited has declared an ordinary dividend of AUD 0.55 per fully paid share for the six-month period ending 31 December 2025, payable on 18 March 2026. The shares will trade ex-dividend on 17 February, with a record date of 18 Februar...
Computershare Lifts Revenue but Half-Year Profit Eases as Interim Dividend Rises
Feb 10, 2026
Computershare Limited reported a 5.4% rise in revenue from ordinary activities to $1,579.4 million for the half-year ended 31 December 2025, underscoring continued top-line growth in its registry and broader financial administration services. Howe...
Computershare Reports Lapse of Conditional Share Rights and Restricted Units
Jan 13, 2026
Computershare Limited has notified the market of the lapse of a small tranche of equity-based awards, with 1,101 matching share rights (CPUAR) and 2,778 restricted share units (CPUAA) ceasing on 31 December 2025 after the relevant performance or v...
Computershare Issues New Unquoted Equity Under Employee Incentive Schemes
Jan 13, 2026
Computershare Limited has notified the market of the issue of unquoted equity securities under its employee incentive schemes, comprising 11,169 matching share rights and 176,811 restricted share units, both with an issue date of 31 December 2025....
Computershare Issues New Shares Following Conversion of Unquoted Equity
Jan 13, 2026
Computershare Limited has notified the market of the issue of 1,361 ordinary fully paid shares following the exercise or conversion of previously unquoted equity securities, effective 31 December 2025. The modest increase in issued capital reflect...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.