Computershare Limited Share Price Grows

Businessperson Hands Using Laptop

Shares of Computershare Limited [ASX:CPU] have been consistently growing for well over a year. Their shares are now trading, at the time of writing, at $17.53.

Today the share price rose by 0.92%.

Computershare Limited started off in 1978 and is based in Abbotsford, Australia. They specialise in technological services with regards to back-end share registries as well as various other financial services administration tasks.

They have a market cap valued at $9.529 billion and operate globally.

Market updates and current financial situation

CEO Stuart Irving said that 2017 was a positive year for Computershare. They have delivered growth in earnings as well as strong cash flow from operations.

These consistent and positive results were achieved through business decisions that countered a depressed corporate actions revenue that has been ongoing since 2005.

On Computershare’s market announcement, CEO Stuart Irving stated:

Our growth engines of mortgage services and share plans are performing to plan and our cost management strategies are improving our profitability. As we continue to simplify CPU and recycle capital, the balance sheet continues to deleverage, creating additional capacity to enhance shareholder returns.

Their capital management strategies are producing earnings which have driven continued business growth. In the future, CPU wish to transform to a much more simple and transparent platform that will bring them further profit.

Profitability and earnings

CPU reported a strong free cash flow and rise in net profits. Their net debt excluding non-recourse fell by $260.8 million, now standing at $867.7 million.

This year, Computershare expects that the equity market will remain stagnant, while interest rate markets will follow along with their current market expectations.

They have gone through a slight revenue decline with Hong Kong and Canada, which was offset by the US, UK and Australia.

Employee share plans have benefited from client wins and has resulted in an increased transactional activity while offsetting a lower margin income.

Free cash flow was also reported to be up by 7.9% while funds and capital management have also grown.

Regards,

Ryan Dinse,
Editor, Markets & Money

PS: Blue chip stocks sometimes surge after being over sold in Australia. It can be a struggle to invest during times of confusion and dilemmas. Kris Sayce from Markets & Money has constructed a free report titled ‘The Top 5 Oversold Blue-Chip Stocks in Australia’, which outlines important components in investing in blue chip stocks.

Ryan Dinse

Ryan Dinse

Ryan Dinse is an analyst at Markets and Money.

He has two decades of experience in financial planning, equity analysis and credit markets.

Ryan combines fundamental, technical and economic

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