# Computershare (CPU.AU)

Canonical: https://gigainvestors.com/s/CPU.AU

Analysis as of: 2026-10-16T07:34:59.289Z. Financial observations: FY2019–FY2026.

Listing currency: AUD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 41.41 per share; close as of 2026-10-15.

Estimated value: low AUD 18.20 per share, central AUD 20.71 per share, high AUD 24.05 per share. Buy at or below the central value AUD 20.71 per share. Valuation as of 2026-10-16T07:34:59.289Z; scenarios are not confidence intervals.

Expected annual return: 6.4% at the stated quote. About 6.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- FY2022 operating-margin dip fully recovered the next year and stayed recovered; holding that year at the preceding margin meets the existing variation limit. Raw variation still determines the price discount.

- 2 revenue declines in the last 10 years (informational)

- Financial history: 8 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.44×

- One fully recovered margin dip: Yes

- Variation with recovered dip held at prior margin: 0.30

- Recovered dip fiscal year: FY2022

Chart: Operating margin; fiscal year observations.

- FY2019: 0.25×

- FY2020: 0.17×

- FY2021: 0.12×

- FY2022: 0.02×

- FY2023: 0.22×

- FY2024: 0.26×

- FY2025: 0.29×

- FY2026: 0.28×

### moat: pass

- ROIC, median of available years: 33.0%

- ROIC, second-lowest year: 10.9%

- Typical minus recent gross margin: -1.7 pp

- Typical gross margin (annual median): 26.5%

- Recent gross margin (lower of latest and 3-year median): 28.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.5%

- ROIC including acquisitions, ten-year median: 14.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: 36.9%

- FY2020: 20.5%

- FY2021: 10.9%

- FY2022: 1.6%

- FY2023: 29.2%

- FY2024: 87.5%

- FY2025: 96.3%

- FY2026: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 1.28×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.9B

- Net income, five-year total: $2.3B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.1 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.84×

- FY2023: 1.46×

- FY2024: 1.11×

- FY2025: 1.15×

- FY2026: 1.17×

### management: pass

- Historical market-dollar context (not the management verdict): 2019 to 2026 (7 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 20.5% vs 96.3%

- Per-share earnings: 0.43 to 1.03 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: $9.3B

- Cumulative retained earnings: $785M

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2019

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 19.1%

- Per-share value change: $0.60

- Per-share value, starting three-year median: $0.43

- Per-share value, ending three-year median: $1.03

- Buybacks concentrated in cheaper years (correlation): -0.02

- Average buyback yield: 0.9%

- Buyback history: 8 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 20.5%

- ROIC, last three-year median: 96.3%

Chart: Earnings per share; fiscal year observations.

- FY2019: $0.76

- FY2020: $0.43

- FY2021: $0.31

- FY2022: $0.38

- FY2023: $0.73

- FY2024: $0.59

- FY2025: $1.03

- FY2026: $1.07

### accounting: pass

- Sloan accruals: -4.4%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.35×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.11×

Chart: Sloan accruals; fiscal year observations.

- FY2019: 2.8%

- FY2020: -7.5%

- FY2021: -2.2%

- FY2022: -4.4%

- FY2023: -2.5%

- FY2024: -7.4%

- FY2025: -4.1%

- FY2026: -4.4%

## Holders

## Price story

Price needs cash profits to grow 9.6% a year for ten years · sales +4.6%

Story as of 2026-10-16T10:00:03.280Z; price observation 2026-10-15.

Price needs cash profits to grow 9.6% a year for ten years

### Sales · FY2025–2026

sales +4.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: $2.3B 

- FY2020: $2.3B 

- FY2021: $2.3B 

- FY2022: $2.6B 

- FY2023: $3.2B 

- FY2024: $2.9B 

- FY2025: $3.1B 

- FY2026: $3.3B 

### Gross margin · FY2026

gross margin 28.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: 30.5% 

- FY2020: 26.7% 

- FY2021: 13.6% 

- FY2022: 14.1% 

- FY2023: 22.0% 

- FY2024: 26.3% 

- FY2025: 28.7% 

- FY2026: 28.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in capital markets; annual sales are USD 3.3 billion.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2026-06-30 (filed 2026-10-16T07:34:59.289Z); FY2026: revenue 3257500000; grossProfit 920100000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CPU.AU: Computershare Limited provides issuer, corporate trust, employee share plans, and other services. It offers issuer services, including register maintenance, corporate actions, stakeholder relationship management, and entity compliance and governance solutions; corporate trust services, including asset-backed securities, statutory trust, longevity, mortgage-backed securities, CLO and loan, business escrow, exchange, collateral trust, catastrophe bond, loan administration and agency, institutional custody, corporate finance, municipal debt, successor trustee, and collateral agency services; and property rental services, as well as childcare voucher administration services. The company also provides utility services; communication services for banks, credit unions, financial services providers, and commercial financing providers; transfer agent services, such as corporate actions, IPO and listing events, annual general meetings, alternative investments, capital solutions, global capital markets, and asset reunification services. In addition, it offers technology services; employee share plans and voucher services, including employee share plan solutions, share plan management services, trading, payment and nominee solutions, financial reporting, tax solutions, trustee services, and other administration and related services for employee share and option plans; and operations and shared services. The company operates in Asia, Australia, New Zealand, Canada, Continental Europe, the United Kingdom, the Channel Islands, Ireland, South Africa, and the United States. Computershare Limited was incorporated in 1978 and is based in Abbotsford, Australia.

### Why customers stay

Margins ranged from 26.3% to 28.7% during 2024–26; it earns 33% on its capital.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2024-06-30 (filed 2026-10-16T07:34:59.289Z); FY2024: grossProfit / revenue = 26.3%.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2025-06-30 (filed 2026-10-16T07:34:59.289Z); FY2025: grossProfit / revenue = 28.7%.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2026-06-30 (filed 2026-10-16T07:34:59.289Z); FY2026: grossProfit / revenue = 28.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:59.289Z); 8-year return on capital observations [[2019,0.36896360663256483],[2020,0.20519060583903156],[2021,0.10944608861777963],[2022,0.01608127933039691],[2023,0.29202157962513203],[2024,0.8753060084633564],[2025,0.962694776357603],[2026,1.3477793262681619]]; median 0.33049259312884843. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 8 years; bought back USD 82.2 million of shares.

- Source: https://content-assets.computershare.com/eh96rkuu9740/0efaf30db4bc416cb5da2c08afce456c/0d4dfe4bc67e6e4f6e7ce63681f2cacd/FY20_CPU_Annual_Report.pdf (filed 2026-10-16T07:34:59.289Z); FY2019: growth capex 0; upkeep 157448000; owner earnings 397349000. Growth capex / owner earnings = 0.

- Source: https://content-assets.computershare.com/eh96rkuu9740/0efaf30db4bc416cb5da2c08afce456c/0d4dfe4bc67e6e4f6e7ce63681f2cacd/FY20_CPU_Annual_Report.pdf (filed 2026-10-16T07:34:59.289Z); FY2020: growth capex 0; upkeep 211583000; owner earnings 186828200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2021-06-30 (filed 2026-10-16T07:34:59.289Z); FY2021: growth capex 0; upkeep 16294000; owner earnings 363151400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2022-06-30 (filed 2026-10-16T07:34:59.289Z); FY2022: growth capex 0; upkeep 42803000; owner earnings 418306400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2023-06-30 (filed 2026-10-16T07:34:59.289Z); FY2023: growth capex 0; upkeep 41891000; cash acquisitions 0; owner earnings 647635600. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2024-06-30 (filed 2026-10-16T07:34:59.289Z); FY2024: growth capex 0; upkeep 118832000; cash acquisitions 0; owner earnings 390809400. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2025-06-30 (filed 2026-10-16T07:34:59.289Z); FY2025: growth capex 0; upkeep 43500000; cash acquisitions 88800000; owner earnings 700474800. Growth capex plus acquisitions / owner earnings = 0.12677115579318485.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2026-06-30 (filed 2026-10-16T07:34:59.289Z); FY2026: growth capex 0; upkeep 35400000; cash acquisitions 0; owner earnings 726100000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:59.289Z); Dividend observations: [[2019,163616000],[2020,167403000],[2021,170929000],[2022,188686000],[2023,213809000],[2024,273643000],[2025,290500000],[2026,399100000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/QCH.F.json#2026-06-30 (filed 2026-10-16T07:34:59.289Z); FY2026: cash repurchases 82200000 USD.

### Are managers owners

Insiders own 9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CPU.AU SharesStats.PercentInsiders = 9.016 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:59.289Z); Ten-year compound average after fade. Initial solved rate 0.12521617365836046. Price 41.41; FX 1.4454626926079037; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 10.45 per share

- 2016-11: AUD 11.49 per share

- 2016-12: AUD 12.34 per share

- 2017-01: AUD 12.76 per share

- 2017-02: AUD 13.38 per share

- 2017-03: AUD 13.92 per share

- 2017-04: AUD 14.60 per share

- 2017-05: AUD 14.27 per share

- 2017-06: AUD 14.00 per share

- 2017-07: AUD 13.93 per share

- 2017-08: AUD 13.91 per share

- 2017-09: AUD 14.33 per share

- 2017-10: AUD 15.43 per share

- 2017-11: AUD 16.31 per share

- 2017-12: AUD 16.14 per share

- 2018-01: AUD 16.54 per share

- 2018-02: AUD 17.67 per share

- 2018-03: AUD 17.14 per share

- 2018-04: AUD 16.83 per share

- 2018-05: AUD 17.17 per share

- 2018-06: AUD 18.25 per share

- 2018-07: AUD 18.01 per share

- 2018-08: AUD 19.03 per share

- 2018-09: AUD 19.75 per share

- 2018-10: AUD 19.58 per share

- 2018-11: AUD 17.97 per share

- 2018-12: AUD 17.02 per share

- 2019-01: AUD 17.60 per share

- 2019-02: AUD 17.08 per share

- 2019-03: AUD 16.91 per share

- 2019-04: AUD 17.66 per share

- 2019-05: AUD 16.52 per share

- 2019-06: AUD 16.05 per share

- 2019-07: AUD 15.68 per share

- 2019-08: AUD 15.23 per share

- 2019-09: AUD 15.99 per share

- 2019-10: AUD 15.68 per share

- 2019-11: AUD 17.56 per share

- 2019-12: AUD 16.62 per share

- 2020-01: AUD 17.81 per share

- 2020-02: AUD 15.17 per share

- 2020-03: AUD 9.61 per share

- 2020-04: AUD 12.06 per share

- 2020-05: AUD 12.97 per share

- 2020-06: AUD 13.12 per share

- 2020-07: AUD 13.30 per share

- 2020-08: AUD 13.16 per share

- 2020-09: AUD 12.10 per share

- 2020-10: AUD 12.03 per share

- 2020-11: AUD 14.14 per share

- 2020-12: AUD 14.45 per share

- 2021-01: AUD 14.23 per share

- 2021-02: AUD 13.14 per share

- 2021-03: AUD 15.04 per share

- 2021-04: AUD 14.12 per share

- 2021-05: AUD 15.71 per share

- 2021-06: AUD 16.90 per share

- 2021-07: AUD 15.60 per share

- 2021-08: AUD 16.50 per share

- 2021-09: AUD 18.22 per share

- 2021-10: AUD 18.76 per share

- 2021-11: AUD 19.09 per share

- 2021-12: AUD 20.00 per share

- 2022-01: AUD 19.49 per share

- 2022-02: AUD 21.66 per share

- 2022-03: AUD 24.70 per share

- 2022-04: AUD 25.33 per share

- 2022-05: AUD 23.20 per share

- 2022-06: AUD 24.64 per share

- 2022-07: AUD 24.98 per share

- 2022-08: AUD 24.70 per share

- 2022-09: AUD 24.76 per share

- 2022-10: AUD 25.27 per share

- 2022-11: AUD 27.84 per share

- 2022-12: AUD 26.20 per share

- 2023-01: AUD 23.75 per share

- 2023-02: AUD 24.80 per share

- 2023-03: AUD 21.59 per share

- 2023-04: AUD 22.40 per share

- 2023-05: AUD 22.36 per share

- 2023-06: AUD 23.38 per share

- 2023-07: AUD 25.08 per share

- 2023-08: AUD 25.18 per share

- 2023-09: AUD 25.96 per share

- 2023-10: AUD 24.79 per share

- 2023-11: AUD 23.61 per share

- 2023-12: AUD 24.39 per share

- 2024-01: AUD 25.39 per share

- 2024-02: AUD 25.92 per share

- 2024-03: AUD 26.11 per share

- 2024-04: AUD 27.23 per share

- 2024-05: AUD 26.54 per share

- 2024-06: AUD 26.34 per share

- 2024-07: AUD 27.65 per share

- 2024-08: AUD 28.43 per share

- 2024-09: AUD 25.27 per share

- 2024-10: AUD 26.38 per share

- 2024-11: AUD 31.89 per share

- 2024-12: AUD 33.95 per share

- 2025-01: AUD 35.16 per share

- 2025-02: AUD 41.07 per share

- 2025-03: AUD 39.13 per share

- 2025-04: AUD 40.72 per share

- 2025-05: AUD 40.22 per share

- 2025-06: AUD 39.89 per share

- 2025-07: AUD 42.15 per share

- 2025-08: AUD 38.17 per share

- 2025-09: AUD 36.29 per share

- 2025-10: AUD 36.57 per share

- 2025-11: AUD 35.90 per share

- 2025-12: AUD 34.14 per share

- 2026-01: AUD 32.71 per share

- 2026-02: AUD 30.99 per share

- 2026-03: AUD 28.39 per share

- 2026-04: AUD 30.18 per share

- 2026-05: AUD 34.59 per share

- 2026-06: AUD 38.28 per share

- 2026-07: AUD 40.94 per share

- 2026-08: AUD 39.76 per share

- 2026-09: AUD 40.75 per share

- 2026-10: AUD 40.79 per share

## Annual estimated value (AUD per share)

- FY2023: low AUD 13.50 per share, central AUD 15.36 per share, high AUD 17.84 per share

- FY2024: low AUD 12.23 per share, central AUD 13.92 per share, high AUD 16.17 per share

- FY2025: low AUD 13.66 per share, central AUD 15.54 per share, high AUD 18.05 per share

- FY2026: low AUD 18.16 per share, central AUD 20.66 per share, high AUD 23.99 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.