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Computershare Limited
(Sydney:CPU)
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Rating:69Neutral
Price Target:
AU$43.00
â–˛(9.75% Upside)
Action:Downgraded
Date:09/11/26
The score is primarily driven by strong financial performance—accelerating revenue growth, materially improved margins, and robust free cash flow—tempered by near-term technical softness (below key short-term averages with slightly negative MACD) and a valuation that is not especially cheap given the ~26.7 P/E, partly offset by a ~3.1% dividend yield.
Positive Factors
Revenue and margin expansion
Computershare has expanded both scale and profitability, with revenue accelerating sharply in 2026 and margins reaching materially higher levels than earlier periods. If retained, this combination can strengthen internal funding, improve operating leverage, and support durable earnings growth.
Negative Factors
Earnings variability
The uneven earnings path shows that Computershare’s results can be influenced by cyclical or non-recurring factors despite the recent improvement. Such variability makes future profit expansion less predictable and can complicate planning, capital allocation, and assessment of sustainable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin expansion
Computershare has expanded both scale and profitability, with revenue accelerating sharply in 2026 and margins reaching materially higher levels than earlier periods. If retained, this combination can strengthen internal funding, improve operating leverage, and support durable earnings growth.
Read all positive factors
Computershare Limited (CPU) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$24.39B
Dividend Yield2.83%
Average Volume (3M)1.36M
Price to Earnings (P/E)28.3
Beta (1Y)1.21
Revenue Growth0.11%
EPS Growth-2.37%
CountryAU
Employees11,625
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)1.06
Shares Outstanding578,387,100
10 Day Avg. Volume1,460,962
30 Day Avg. Volume1,361,304
Financial Highlights & Ratios
PEG Ratio4.17
Price to Book (P/B)6.71
Price to Sales (P/S)4.66
P/FCF Ratio18.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$40.00Price Target Upside2.09% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)1.55
Revenue Forecast (FY)AU$3.32B
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 primarily by charging service and transaction fees for administering issuer and investor-facing programs, and by earning interest income on client cash balances it holds and manages as part of its administration activitie...
Computershare Limited Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2027
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
83
Very Positive
Balance Sheet
71
Positive
Cash Flow
78
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.29B | 3.11B | 2.98B | 2.78B | 2.56B |
| Gross Profit | 1.38B | 902.21M | 829.28M | 820.30M | 314.51M |
| EBITDA | 901.88M | 1.07B | 1.01B | 1.05B | 638.72M |
| Net Income | 632.28M | 607.01M | 352.62M | 444.74M | 227.66M |
Balance Sheet | |||||
| Total Assets | 4.96B | 5.34B | 5.12B | 12.44B | 11.64B |
| Cash, Cash Equivalents and Short-Term Investments | 1.20B | 1.38B | 1.30B | 1.15B | 1.01B |
| Total Debt | 1.36B | 1.92B | 1.79B | 2.53B | 2.61B |
| Total Liabilities | 2.68B | 3.18B | 3.17B | 8.17B | 7.53B |
| Stockholders Equity | 2.28B | 2.15B | 2.66B | 4.26B | 2.16B |
Cash Flow | |||||
| Free Cash Flow | 818.79M | 780.08M | 610.13M | 961.89M | 685.45M |
| Operating Cash Flow | 854.97M | 823.65M | 728.96M | 1.18B | 878.04M |
| Investing Cash Flow | 33.83M | -132.33M | 432.04M | -75.66M | -1.50B |
| Financing Cash Flow | -1.09B | -649.66M | -1.11B | -410.67M | 604.92M |
Computershare Limited Technical Analysis
Positive
39.18
Price Trends
40.24
Positive
39.25
Positive
34.87
Positive
Market Momentum
0.50
Negative
67.04
Neutral
82.88
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 39.18 is below the 20-day moving average (MA) of 40.77, below the 50-day MA of 40.24, and above the 200-day MA of 34.87, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 82.88 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | AU$24.39B | 28.27 | 27.34% | 2.83% | 0.11% | -2.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$280.30M | 42.03 | 5.79% | 4.35% | 7.20% | -51.06% | |
62 Neutral | AU$92.14B | 19.40 | 13.72% | 2.80% | 4.80% | 30.56% | |
62 Neutral | AU$123.36M | -288.89 | -0.22% | 4.06% | -7.93% | -101.72% | |
56 Neutral | AU$4.07B | 68.14 | 38.95% | 2.48% | 21.01% | -48.10% | |
38 Underperform | AU$11.21M | -3.44 | -19.59% | 2.17% | ― | ― |
* Financial Sector Average
AU:CPU
Computershare Limited
42.39
6.39
17.76%
AU:MQG
Macquarie Group Limited
250.37
31.39
14.33%
AU:PPS
Praemium Ltd
0.58
-0.30
-34.44%
AU:OFX
OFX Group Ltd.
0.53
-0.29
-35.37%
AU:NWL
Netwealth Group Ltd.
16.92
-15.02
-47.03%
AU:FNX
Finexia Financial Group Ltd
0.18
0.04
28.57%
Computershare Limited Corporate Events
Computershare Confirms DRP Price for Half‑Year Dividend
Sep 7, 2026
Computershare Limited has confirmed the dividend reinvestment plan (DRP) price for its ordinary fully paid shares at AUD 39.67, updating details previously announced on 11 August 2026. The distribution relates to the six‑month period ended 3...
Computershare Reports Lapse of 6,969 Performance Rights
Sep 6, 2026
Computershare Limited has notified the market that a tranche of its performance rights, trading under the ASX code CPUAK, has lapsed. The company reported that 6,969 performance rights ceased on 31 July 2026 because the conditions attached to thes...
Computershare Names Alexis Ann George to Board, Reports No Current Shareholdings
Sep 2, 2026
Computershare Limited has notified the Australian Securities Exchange of the appointment of Alexis Ann George as a director, effective 3 September 2026, in line with the exchange’s disclosure requirements. The filing confirms that George cur...
Computershare Sets Out 2026 Corporate Governance Framework
Aug 31, 2026
Computershare Limited is a global share registry and financial services provider that offers investor services, corporate trust, employee equity plans, and related governance and administrative solutions to listed companies and other issuers. The ...
Computershare Releases 2026 Annual Report and Operating Review
Aug 31, 2026
Computershare Limited’s 2026 annual report covers the consolidated entity comprising the parent company and its controlled entities, with financial information prepared in U.S. dollars to match its global operating profile. The report confir...
Computershare lifts FY26 earnings, margins and dividend on strong core growth
Aug 12, 2026
Computershare reported a solid FY26 performance, highlighting that its long-term simplification strategy and continued technology investments are driving margin expansion and consistent earnings growth. Management EPS rose 7% to 145 cents per shar...
Computershare Adds Former AMP CEO Alexis George to Board
Aug 11, 2026
Computershare Limited has appointed former AMP Limited chief executive Alexis George as an independent non-executive director, effective 3 September 2026, with her election to be put to shareholders at the November annual general meeting. George&#...
Computershare Lifts FY26 Earnings and Dividend on Strong Margin Income
Aug 11, 2026
Computershare Limited operates in the financial and professional services sector, providing shareholder registry, corporate trust, and related administrative services to listed companies and other institutions. The group generates margin income fr...
Computershare lifts dividend as FY26 profit momentum accelerates
Aug 11, 2026
Computershare reported another year of solid growth in FY26, with management EPS rising over 7% to 145.2 cents per share and revenue up 3%, supported by expanding client-paid fees and strong event-driven and transactional activity. The capital-lig...
Computershare Announces AUD 0.65 Half‑Year Dividend for June 2026
Aug 11, 2026
Computershare Limited has declared an ordinary fully paid share dividend of AUD 0.65 for the six‑month period ended 30 June 2026, payable on 14 September 2026 to shareholders on the register as at 19 August 2026. The ex‑dividend date i...
Computershare lifts annual revenue and profit as core services grow
Aug 11, 2026
Computershare Limited reported a 4.6% rise in revenue to $3,257.5 million for the year to 30 June 2026, with profit after tax attributable to members up 1.9% to $618.7 million. The group declared a final dividend of AU 65 cents per share, followin...
Computershare Reports Lapse of Employee Equity Incentive Securities
Jul 8, 2026
Computershare Limited has notified the market of the cessation of certain equity-based employee incentive securities, including matching share rights and restricted share units. The announcement details that 772 matching share rights and 1,525 res...
Computershare Issues Small Parcel of Shares on Option Conversion
Jul 8, 2026
Computershare Limited has notified the market of the issue and transfer of 1,372 ordinary fully paid shares following the conversion or exercise of unquoted equity securities. The new CPU shares were issued on 30 June 2026, reflecting routine equi...
Computershare Issues New Unquoted Equity Under Employee Incentive Schemes
Jul 8, 2026
Computershare Limited has notified the market of the issue of unquoted equity securities under its employee incentive schemes. The company will grant 12,253 matching share rights and 82 restricted share units effective 30 June 2026, reinforcing it...
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.