Computershare Limited (CPU) AI Stock Analysis

• Market Cap: AU$17.90B
• Dividend Yield: 2.69%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.06
• Revenue Growth: 6.44%
• EPS Growth: 22.38%
• Country: AU
• Employees: 12,359
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.97
• Shares Outstanding: 578,387,100
• 10 Day Avg. Volume: 1,066,724
• 30 Day Avg. Volume: 1,276,273
• PEG Ratio: 0.34
• Price to Book (P/B): 7.16
• Price to Sales (P/S): 4.94
• P/FCF Ratio: 19.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$35.80
• Price Target Upside: 14.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$33.00 ▲(5.70% 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.

Positive Factors

Strong margins and profitability

Computershare’s high gross, EBIT and EBITDA margins indicate durable operational efficiency across its service lines. Strong margins provide a long-term buffer against revenue volatility, support reinvestment and strategic initiatives, and help sustain profit generation through business cycles.

Diversified fee‑based revenue model

A broad mix of recurring, fee‑based services reduces dependence on any single revenue source and increases predictability. The multi-service model supports cross‑selling, mitigates client concentration, and tends to smooth cash flows across corporate action cycles, aiding medium‑term resilience.

Stable balance sheet and high ROE

Moderate leverage combined with a strong 28.2% ROE reflects disciplined capital allocation and effective use of equity to generate returns. This balance supports financial flexibility for investments, M&A or shareholder returns while providing resilience to operational shocks over the medium term.

Negative Factors

Material recent revenue decline

A 27.25% year decline in revenue is a structural concern, reducing scale economics and potentially weakening pricing power. Persistent top‑line declines can constrict investment capacity, limit cross‑sell opportunities and require several quarters of recovery to restore previous operating leverage.

Weaker free cash flow generation

A 21.5% drop in free cash flow and sub‑1.0 cash conversion indicate weaker cash resiliency. Reduced FCF constrains discretionary spending, M&A and shareholder returns, and increases sensitivity to revenue shocks, making it harder to invest in growth or absorb prolonged downturns.

Reliance on interest/float income

Computershare’s ability to earn float income ties profitability to macro interest rates and client balance variability. This exposes structural earnings volatility to rate cycles and to regulatory changes or client arrangements that could limit access to float, reducing a material income component.

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 actions, stakeholder relationship management, corporate governance, and related services; mortgage services and property rental, including tenancy bond protection services; and employee share plans and voucher services comprising administration and related services for employee share and option plans, and childcare voucher administration services. It also provides business services, including the provision of bankruptcy, class action, and corporate trust administration services; communication services and utilities operations consisting of document composition and printing, intelligent mailing, inbound process automation, scanning, and electronic delivery; and technology services, such as software solutions in share registry and financial services, as well as agency services in connection with the administration of debt securities. It operates in Australia, New Zealand, Asia, Canada, Continental Europe, the United Kingdom, the Channel Islands, Ireland, Africa, and the United States. The company was incorporated in 1978 and is based in Abbotsford, Australia.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 31.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 31.22 is below the 20-day moving average (MA) of 31.78, below the 50-day MA of 32.96, and below the 200-day MA of 36.43, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 18.72 is Positive, 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OFX	66 Neutral	AU$142.50M	8.79	9.31%	―	-5.73%	-36.36%
NWL	64 Neutral	AU$6.22B	109.36	67.81%	1.45%	28.29%	39.39%
CPU	61 Neutral	AU$17.90B	19.22	29.52%	2.69%	6.44%	22.38%
COG	54 Neutral	AU$349.57M	17.53	12.36%	2.86%	-26.30%	40.12%
PPS	52 Neutral	AU$370.48M	26.86	12.27%	2.81%	24.56%	59.32%
RZI	48 Neutral	AU$64.29M	-99.19	-0.15%	―	5.03%	52.31%

Computershare Limited Corporate Events

Computershare Lifts Outlook as Underlying Earnings and Transactions Strengthen

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%. Event and transactional revenues grew nearly 13% on increased corporate action activity and higher employee share plan volumes, while margin income fell only 5% despite a sharp decline in U.S. cash rates, supporting an upgraded full-year earnings guidance of 144 cents per share, or 6% growth over the prior comparable period.

Management highlighted that its natural hedge helped cushion the impact of faster-than-expected interest rate cuts on margin income, underscoring resilience in its interest-sensitive revenue streams. The combination of disciplined cost control, improving transactional activity and a more favourable outlook for margin income positions Computershare to move toward its 20% EBIT ex-margin income margin target and signals a stronger earnings trajectory for investors.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$35.30 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare lifts earnings, dividend and guidance despite lower rates

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 IPO activity. Margin income fell 5.4% as interest rates declined, but the group’s natural hedge helped limit the impact, while debt leverage was reduced to 0.3x, the interim dividend was lifted 22% to AUD 55 cents per share, and full-year guidance was upgraded with management EPS now expected to be around 144 cents, signalling confidence in earnings resilience despite a lower-rate environment.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Delivers Earnings Growth and Lifts Guidance as Core Businesses Strengthen

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%, expanding EBIT margins to 16% as operating costs rose below inflation and recurring client-paid fees increased about 5% on the back of new business wins.

Event and transaction revenues rebounded 12.9% amid higher corporate action and employee share plan activity, while margin income slipped 5.4% as lower interest rates were largely offset by a natural hedge, stronger activity and higher client balances. A robust balance sheet with leverage reduced to 0.3x allowed the board to lift the interim dividend by 22.2%, as Issuer Services, Corporate Trust and Employee Share Plans all delivered solid growth and Computershare upgraded FY26 EPS guidance to around 144 cps, up about 6%.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Declares A$0.55 Interim Dividend for Half-Year to December 2025

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 February and a dividend reinvestment plan election deadline set for 19 February, providing shareholders with both cash income and the option to reinvest in additional stock.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Lifts Revenue but Half-Year Profit Eases as Interim Dividend Rises

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. However, profit after tax attributable to members slipped 2.6% to $280.4 million, indicating some margin pressure or higher costs despite the revenue increase.

The board declared an interim dividend of AU 55 cents per share, up from the prior year’s final dividend of AU 48 cents, with the interim payout franked to 30%, signalling confidence in cash generation and balance sheet strength. The result suggests a solid operating performance with growing distributions to shareholders, even as profitability moderates, which will be closely watched by investors assessing earnings quality and future capital returns.

The most recent analyst rating on (AU:CPU) stock is a Hold with a A$33.00 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Reports Lapse of Conditional Share Rights and Restricted Units

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 vesting conditions were not met. The cessation of these conditional rights modestly reduces Computershare’s pool of potential equity issuance under its employee or incentive plans but does not affect existing issued capital, and signals that some performance-linked incentives tied to these instruments were not achieved by the applicable deadline.

The most recent analyst rating on (AU:CPU) stock is a Sell with a A$31.90 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Issues New Unquoted Equity Under Employee Incentive Schemes

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. The move reflects the company’s continued use of equity-based remuneration to align employees’ interests with shareholders, potentially affecting future dilution levels while reinforcing retention and incentive structures across its workforce.

The most recent analyst rating on (AU:CPU) stock is a Sell with a A$31.90 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Issues New Shares Following Conversion of Unquoted Equity

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 reflects the routine conversion of unquoted options or other convertible instruments, signalling ongoing execution of equity-based arrangements without materially altering the company’s capital structure or ownership dynamics.

The most recent analyst rating on (AU:CPU) stock is a Sell with a A$31.90 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Director’s Interest Update: New Performance Rights Acquired

Computershare Limited announced a change in the interests of its director, Stuart James Irving, with an acquisition of 100,741 performance rights, bringing his total to 389,120 performance rights. This change is part of Mr. Irving’s FY26 Long-Term Incentive (LTI) award, as outlined in the 2025 AGM notice of meeting. The announcement reflects the company’s commitment to aligning executive interests with long-term performance goals, potentially impacting stakeholder confidence and market perception.

The most recent analyst rating on (AU:CPU) stock is a Sell with a A$31.90 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.

Computershare Issues New Performance Rights to Employees

Computershare Limited announced the issuance of 433,079 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move reflects the company’s ongoing commitment to employee engagement and retention, potentially enhancing its operational efficiency and competitive positioning in the financial services sector.

The most recent analyst rating on (AU:CPU) stock is a Sell with a A$31.90 price target. To see the full list of analyst forecasts on Computershare Limited stock, see the AU:CPU Stock Forecast page.