Computershare Limited (AU:CPU)
ASX:CPU
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Computershare Limited
(Sydney:CPU)
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Rating:70Outperform
Price Target:
AU$41.00
▲(33.16% Upside)
Action:Upgraded
Date:06/12/26
The score is driven by strong technical strength and a positive earnings-call outlook (guidance upgrade, strong returns, dividend increase). Financial fundamentals are solid on margins and balance-sheet stability but are held back by the sharp revenue decline and softer free cash flow. Valuation is the main constraint due to the elevated P/E despite a moderate yield.
Positive Factors
Recurring, diversified revenue model
Computershare’s core business is fee-based administration across registries, employee plans, corporate trust and transactional services. That recurring, high-visibility revenue mix creates durable cash flows, smoothing cycles tied to deal activity and supporting long-term planning and investment.
Negative Factors
Large reported revenue decline
A near-30% revenue drop is a structural headwind that can compress absolute profits and limit investment optionality. Even with strong margins, sustained top-line weakness reduces scale economics, increases sensitivity to fixed costs and limits organic growth potential over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, diversified revenue model
Computershare’s core business is fee-based administration across registries, employee plans, corporate trust and transactional services. That recurring, high-visibility revenue mix creates durable cash flows, smoothing cycles tied to deal activity and supporting long-term planning and investment.
Read all positive factors
Computershare Limited (CPU) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$21.34B
Dividend Yield2.69%
Average Volume (3M)1.28M
Price to Earnings (P/E)31.5
Beta (1Y)1.07
Revenue Growth7.21%
EPS Growth-10.01%
CountryAU
Employees12,359
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)1.06
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$35.66Price Target Upside15.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.45
Revenue Forecast (FY)AU$3.21B
Computershare Limited Business Overview & Revenue Model
Company Description
Computershare Limited, an Australian enterprise established in Abbotsford in 1978, offers a broad spectrum of financial and administrative support services globally. The company's diverse offerings include: Corporate and Shareholder Management: Th...
How the Company Makes Money
Computershare makes money by providing recurring, service-based administration and transaction services tied to securities ownership, corporate actions, and related financial workflows. Key revenue streams include: (1) Issuer/registry and transfer...
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 | 2.98B | 2.78B | 2.56B | 2.28B |
| Gross Profit | 694.86M | 902.21M | 829.28M | 820.30M | 314.51M | 494.04M |
| 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 | 1.15B | 1.01B | 824.99M |
| Total Debt | 1.65B | 1.92B | 1.79B | 2.53B | 2.61B | 1.96B |
| Total Liabilities | 2.86B | 3.18B | 3.17B | 8.17B | 7.53B | 5.11B |
| Stockholders Equity | 2.25B | 2.15B | 2.66B | 4.26B | 2.16B | 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 | -75.66M | -1.50B | -148.24M |
| Financing Cash Flow | -858.10M | -649.66M | -1.11B | -410.67M | 604.92M | 26.02M |
Computershare Limited Technical Analysis
Positive
30.79
Price Trends
31.38
Positive
31.08
Positive
33.17
Positive
Market Momentum
1.25
Negative
78.62
Negative
92.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CPU, the sentiment is Positive. The current price of 30.79 is below the 20-day moving average (MA) of 33.62, below the 50-day MA of 31.38, and below the 200-day MA of 33.17, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 78.62 is Negative, neither overbought nor oversold. The STOCH value of 92.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$21.34B | 31.48 | 21.78% | 2.69% | 7.21% | -10.01% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$86.21B | 18.84 | 13.72% | 3.27% | 4.80% | 30.56% | |
64 Neutral | AU$5.23B | 92.98 | 32.56% | 1.45% | 26.82% | -44.32% | |
61 Neutral | AU$125.14M | -320.01 | -0.22% | ― | -7.93% | -101.72% | |
52 Neutral | AU$338.79M | 19.29 | 15.42% | 2.81% | 12.61% | 69.59% | |
46 Neutral | AU$11.21M | -3.46 | -17.55% | ― | 43.00% | -6078.57% |
* Financial Sector Average
AU:CPU
Computershare Limited
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-3.05
-7.63%
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Computershare Limited Corporate Events
Computershare Reaffirms FY26 EPS Guidance and Lifts Margin Income Outlook
May 5, 2026
Computershare has reaffirmed its upgraded FY26 guidance for management earnings per share at around 144 cents, implying about 6% growth on the prior year, underpinned by stable performance in register maintenance, rising corporate action pipelines...
Computershare Updates Investors on Lapse of Equity Incentive Securities
Apr 8, 2026
Computershare Limited has reported changes to its issued capital, detailing the cessation of various equity-based incentive instruments. The company filed an Appendix 3H notifying that certain performance rights, matching share rights, and restric...
Computershare Issues New Shares on Conversion of Unquoted Equity
Apr 8, 2026
Computershare Limited has notified the market of the issue of 4,966 new ordinary fully paid shares on March 31, 2026, arising from the exercise or conversion of previously unquoted equity securities. The modest increase in capital reflects routine...
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.