Computershare Limited (CPU) AI Stock Analysis

• Market Cap: $21.03B
• Dividend Yield: 2.64%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.83
• Revenue Growth: 6.44%
• EPS Growth: 22.38%
• Country: AU
• Employees: 12,359
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 1.07
• Shares Outstanding: 578,387,100
• 10 Day Avg. Volume: 1,066,724
• 30 Day Avg. Volume: 1,276,273
• PEG Ratio: 0.46
• Price to Book (P/B): 9.73
• Price to Sales (P/S): 6.72
• P/FCF Ratio: 26.85
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 5.71
• Enterprise Value/Gross Profit: 19.14
• Enterprise Value/Ebitda: 17.13
• 1Y Price Target: $38.55
• Price Target Upside: 9.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$38.00 ▲(8.05% Upside)

Computershare Limited's overall stock score is primarily supported by its strong financial performance, with solid profitability and a stable balance sheet. Technical analysis indicates a bearish trend, which slightly dampens the outlook. The valuation is reasonable, with a fair P/E ratio and a moderate dividend yield. The absence of earnings call data and corporate events does not impact the score.

Computershare Limited Business Overview & Revenue Model

Company Description

Computershare Limited (CPU) is a global leader in financial services, specializing in the provision of technology-driven solutions for managing shareholder and employee plans. The company operates across various sectors including corporate governance, stock transfer, employee equity plans, and investment services. With a presence in multiple countries, Computershare offers a range of core products and services that include share registry services, stockholder services, and corporate actions, as well as employee equity management and proxy solicitation services, catering to both corporate clients and individual investors.

How the Company Makes Money

Computershare generates revenue primarily through service fees associated with its share registry services, where it charges companies for managing their shareholder records and facilitating transactions. The company also earns money from its employee equity plans by providing administration and management services, including the issuance and tracking of stock options and equity awards. Additional revenue streams come from corporate actions such as mergers, acquisitions, and capital raising, where Computershare acts as an intermediary. Significant partnerships with corporations, governments, and financial institutions bolster its earnings, as these clients rely on Computershare's expertise and technology to manage complex shareholder and employee programs efficiently.

Computershare Limited Financial Statement Overview

Summary

Computershare Limited demonstrates strong profitability and a stable balance sheet, despite recent revenue and cash flow challenges. The company maintains efficient operations with solid margins and a balanced capital structure. While revenue growth has been negative, the firm’s ability to generate profits and manage debt effectively positions it well for future stability and potential recovery.

Income Statement

Computershare Limited's income statement shows a mixed performance. The company experienced a significant revenue decline of 27.25% in the latest year, which is concerning. However, profitability metrics such as the gross profit margin (28.97%) and net profit margin (19.49%) are relatively strong, indicating efficient cost management. The EBIT margin of 29.12% and EBITDA margin of 34.40% further highlight operational efficiency. Despite the revenue drop, the company maintains solid profitability.

Balance Sheet

The balance sheet of Computershare Limited reflects a stable financial position with a debt-to-equity ratio of 0.89, indicating moderate leverage. The return on equity (ROE) is strong at 28.20%, showcasing effective use of equity to generate profits. The equity ratio stands at 40.33%, suggesting a balanced capital structure. Overall, the balance sheet indicates financial stability with a manageable level of debt.

Cash Flow

Cash flow analysis reveals challenges in growth, with a free cash flow decline of 21.54%. The operating cash flow to net income ratio is 0.88, indicating that operating cash flow adequately supports net income. The free cash flow to net income ratio is high at 94.71%, reflecting strong cash generation relative to profits. Despite recent declines, cash flow metrics suggest the company can sustain its operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.28B	3.11B	2.92B	2.78B	2.56B	2.84B
Gross Profit	1.28B	902.21M	768.00M	733.23M	470.42M	610.85M
EBITDA	1.43B	1.07B	1.01B	1.05B	638.72M	559.90M
Net Income	984.58M	607.01M	352.62M	444.74M	227.66M	188.97M
Balance Sheet
Total Assets	7.26B	5.34B	5.12B	12.44B	11.64B	8.87B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.38B	1.30B	2.28B	1.89B	1.36B
Total Debt	3.18B	1.92B	1.79B	5.04B	4.88B	3.22B
Total Liabilities	4.50B	3.18B	3.17B	8.17B	7.53B	5.11B
Stockholders Equity	2.76B	2.15B	2.66B	4.26B	4.11B	3.75B
Cash Flow
Free Cash Flow	994.20M	780.08M	610.13M	961.89M	685.45M	274.15M
Operating Cash Flow	1.07B	823.65M	728.96M	1.18B	878.04M	508.39M
Investing Cash Flow	613.08M	-132.33M	432.04M	-149.01M	-1.50B	-244.11M
Financing Cash Flow	-1.79B	-649.66M	-1.11B	-808.81M	1.07B	42.62M

Computershare Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 35.17 is below the 20-day moving average (MA) of 36.64, below the 50-day MA of 36.71, and below the 200-day MA of 38.53, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 35.75 is Neutral, neither overbought nor oversold. The STOCH value of 32.06 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWL	68 Neutral	AU$7.56B	64.73	67.81%	1.30%	28.29%	39.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COG	66 Neutral	AU$489.39M	24.55	12.36%	2.51%	-26.30%	40.12%
CPU	61 Neutral	$21.03B	22.76	29.52%	2.64%	6.44%	22.38%
OFX	61 Neutral	AU$136.71M	5.64	14.15%	―	-4.69%	-18.65%
PPS	57 Neutral	AU$430.58M	31.80	12.27%	2.65%	24.56%	59.32%
RZI	53 Neutral	€99.07M	-151.61	-0.15%	―	5.03%	52.31%

Computershare Limited Corporate Events

Computershare Limited Announces Cessation of Certain Securities

Computershare Limited announced the cessation of certain securities due to unmet conditions, affecting 1,719 matching share rights and 8,306 restricted share units. This development may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s operational and financial strategies.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$39.50 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Limited Unveils FY25 Sustainability Report

Computershare Limited has released its Sustainability Report for FY25, highlighting its commitment to sustainability through strategic accomplishments and a comprehensive governance framework. The report outlines the company’s sustainability goals, climate risk framework, and decarbonization plan, emphasizing the importance of risk management and climate scenario analysis. The focus on calculating the carbon footprint and investing in beyond value-chain mitigation demonstrates Computershare’s proactive approach to addressing climate-related risks and opportunities.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$40.40 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Confirms DRP Price in Dividend Update

Computershare Limited has announced an update to its previous dividend distribution statement, confirming the Dividend Reinvestment Plan (DRP) price at AUD 37.64. This update pertains to the dividend distribution for the six-month period ending June 30, 2025, with the record date set for August 20, 2025. This announcement is significant as it provides clarity on the DRP pricing, potentially impacting shareholder decisions and the company’s financial strategies.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$39.00 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Limited Issues New Securities

Computershare Limited announced the issuance of 489,727 ordinary fully paid securities, effective from September 1, 2025. This development may impact the company’s financial structure and market positioning by potentially increasing its equity base, which could have implications for stakeholders and investors.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$39.00 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Announces Executive Share Vesting and Sales

Computershare Limited announced the vesting of performance rights and the awarding of shares to Stuart Irving, the company’s director, under the Long Term Incentive Plan and Short Term Incentive award. The vesting of these rights, approved by shareholders, reflects the company’s commitment to rewarding its leadership, while the sale of shares addresses tax obligations, indicating a structured approach to executive compensation.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$39.00 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Limited Reports Strong Profit Growth

Computershare Limited is a global leader in financial services, specializing in share registry, corporate trust, and employee share plan services. The company operates across various sectors, including issuer services, corporate trust, and technology services, with a strong presence in multiple regions worldwide.

Computershare Limited Reports Strong FY25 Results Amid Strategic Simplification

Computershare Limited announced its FY25 results, highlighting a 15% increase in Management EPS and a 17% rise in Management EBIT, driven by strategic simplification and capital recycling. The company’s focus on long-term growth trends and resilient margin income has helped it navigate market volatility and a low-interest-rate environment, positioning it well for future growth.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$27.70 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Limited Reports Strong FY25 Financial Results

Computershare Limited reported strong financial performance for FY25, with a 15% increase in Management EPS and a 17.4% rise in Margin Income, reflecting robust operational efficiency. The company also announced a 14.3% increase in final dividends per share, signaling confidence in its financial health and commitment to returning value to shareholders.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$27.70 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Reports Strong FY25 Results with Positive Outlook

Computershare Limited reported strong financial results for FY25, with a 15% increase in Management EPS and a 4.4% rise in revenues, excluding the US Mortgage Services sold in 2024. The company has streamlined operations, focusing on long-term growth trends, and achieved significant growth across its core businesses, including a notable performance in Corporate Trust and Employee Share Plans. With a strong balance sheet, Computershare completed a significant share buyback and increased its dividend, reflecting confidence in continued growth and shareholder returns.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$27.70 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Limited Announces Dividend Distribution for 2025

Computershare Limited has announced a dividend distribution of AUD 0.48 per fully paid ordinary share, relating to the six-month period ending June 30, 2025. The ex-dividend date is set for August 19, 2025, with a record date of August 20, 2025, and payment scheduled for September 15, 2025. This announcement reflects the company’s ongoing commitment to returning value to shareholders and may influence investor sentiment positively.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$27.70 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Reports Revenue Growth in Core Operations Despite Overall Decline

Computershare Limited reported a decrease in total revenue to $3,114.6 million for the year ending June 2025, primarily due to the sale of its US Mortgage Services business. Despite this, revenue from continuing operations increased by 4.8% driven by higher core fees and increased event and transactional revenue. Key growth areas included Issuer Services, Corporate Trust, and Employee Share Plans. The company also experienced a significant increase in profit after tax, up 72.1% to $607 million, reflecting strong operational performance and favorable currency exchange impacts.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$27.70 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.