Computershare Limited (CPU) AI Stock Analysis

• Market Cap: AU$19.61B
• Dividend Yield: 2.74%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.96
• Revenue Growth: 6.44%
• EPS Growth: 22.38%
• Country: AU
• Employees: 12,359
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 1.05
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$37.93
• Price Target Upside: 11.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$38.00 ▲(12.00% 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

Profitability

Strong profitability metrics indicate efficient cost management and operational efficiency, supporting long-term financial health.

Balance Sheet Stability

A stable balance sheet with moderate leverage and strong ROE suggests effective use of equity and financial stability.

Cash Generation

High free cash flow relative to net income indicates strong cash generation, supporting operational sustainability and growth.

Negative Factors

Revenue Decline

A substantial revenue decline poses challenges to growth and may impact future profitability and market competitiveness.

Cash Flow Challenges

Declining free cash flow can limit the company's ability to invest in growth opportunities and manage financial obligations.

Negative Revenue Growth

Negative revenue growth indicates potential market challenges and could hinder long-term business expansion and competitiveness.

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	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	1.41B	1.07B	1.01B	1.05B	638.72M	563.78M
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: 33.93
• 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 33.93 is below the 20-day moving average (MA) of 34.88, below the 50-day MA of 35.74, and below the 200-day MA of 38.04, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 37.24 is Neutral, neither overbought nor oversold. The STOCH value of 42.80 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

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%
NWL	64 Neutral	AU$6.50B	55.62	67.81%	1.43%	28.29%	39.39%
CPU	61 Neutral	AU$19.61B	21.22	29.52%	2.74%	6.44%	22.38%
OFX	60 Neutral	AU$118.17M	7.29	9.31%	―	-5.73%	-36.36%
COG	55 Neutral	AU$427.95M	21.47	12.36%	2.90%	-26.30%	40.12%
RZI	53 Neutral	AU$80.62M	-119.35	-0.15%	―	5.03%	52.31%
PPS	50 Neutral	AU$363.60M	26.86	12.27%	2.96%	24.56%	59.32%

Computershare Limited Corporate Events

Computershare Reports Strong FY25 Performance Amid Strategic Growth

At the 2025 Annual General Meeting, Computershare Limited reported a strong financial performance for FY25, with earnings slightly surpassing guidance and a 15% increase in Management Earnings Per Share. The company experienced growth in recurring client fees and a recovery in market-sensitive events and transaction revenues, attributed to a lower interest-rate environment. This performance underscores Computershare’s strategic focus on delivering consistent earnings and returns on invested capital, positioning it well for future business cycles.

Computershare Limited Announces 2025 AGM Results

Computershare Limited announced the results of its 2025 Annual General Meeting, where several resolutions were passed with significant shareholder support. The resolutions included the re-election of Tiffany Fuller as a director and the approval of the remuneration report, both of which received overwhelming votes in favor, indicating strong investor confidence in the company’s governance and strategic direction.

Computershare Releases 2025 AGM Presentations and Proxy Summary

Computershare Limited has released the presentations for its 2025 Annual General Meeting, which will be delivered by Chairman Paul Reynolds and CEO Stuart Irving. The materials include a summary of direct and proxy votes received on each resolution ahead of the meeting, highlighting the company’s transparency and engagement with its stakeholders.

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.

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.

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.

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.

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.