Computershare Limited
Computershare Limited Fundamental Analysis
Computershare Limited (CPU.AX) shows moderate financial fundamentals with a PE ratio of 26.66, profit margin of 18.80%, and ROE of 21.78%. The company generates $2.5B in annual revenue with moderate year-over-year growth of 6.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CPU.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakCPU.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateCPU.AX shows balanced valuation metrics.
Growth Score
ExcellentCPU.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCPU.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentCPU.AX achieves industry-leading margins.
Key Financial Metrics
Is CPU.AX Expensive or Cheap?
P/E Ratio
CPU.AX trades at 26.66 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CPU.AX's PEG of -2.26 indicates potential undervaluation.
Price to Book
The market values Computershare Limited at 5.68 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.77 times EBITDA. This signals the market has high growth expectations.
How Well Does CPU.AX Make Money?
Net Profit Margin
For every $100 in sales, Computershare Limited keeps $18.80 as profit after all expenses.
Operating Margin
Core operations generate 38.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.78 in profit for every $100 of shareholder equity.
ROA
Computershare Limited generates $9.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Computershare Limited generates strong operating cash flow of $841.12M, reflecting robust business health.
Free Cash Flow
Computershare Limited generates strong free cash flow of $805.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.39 in free cash annually.
FCF Yield
CPU.AX converts 6.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How CPU.AX Stacks Against Its Sector Peers
| Metric | CPU.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.66 | 18.94 | Worse (Expensive) |
| ROE | 21.78% | 846.00% | Weak |
| Net Margin | 18.80% | 4054.00% | Weak |
| Debt/Equity | 0.74 | 0.89 | Neutral |
| Current Ratio | 2.78 | 660.05 | Strong Liquidity |
| ROA | 9.38% | -24865.00% (disorted) | Weak |
CPU.AX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Computershare Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-8.86%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
143.11%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-37.69%
Industry Style: Value, Dividend, Cyclical
Declining