Computershare Share Price Continues to Grow

Today Computershare Ltd [ASX:CPU] slightly grew in share value by 0.46%.

They have experienced consistent growth over the last six months and are now trading at $17.52 a share.

With a market cap of $9.507 billion, Computershare works across the information technology industry and provides services around the world.

How are their shares growing so rapidly?

Computershare operates globally, so overall currency changes can have a big effect on their share value.

Last month, Computershare’s statutory revenue increased by 12.4% and their management revenue increased by 10.8%.

Free cash flow also increased by 10.9% and dividends went up by 11.8%.

Computershare recently stated that they have made solid progress in pushing forward their growth and profitability.

Their firm free cash flow allows the company to self-fund their growth plans, increase returns to their shareholders and reduce their debt.

They expect to continue their share buy-back in March.

In their half year report, Computershare stated that improved operating performance was mainly led by growth in US stakeholder relation management as well as corporate actions and mortgage service businesses.

Earnings per share displayed an overall improvement in comparison to December 31 2016 results.

Overall growth factors

Their UK mortgage services integration is currently ahead of schedule, while US mortgage services are gaining an edge with their strategy.

Structural growth in employee share plans is rising at a significant rate.

Computershare’s cost out program is ahead of schedule and they are expecting further benefits to arise down the track.

Net debt has also decreased by 23.1%

Computershare expects management earnings per share to increase 7.5% by the end of the financial year.


Ryan Dinse,
Editor, Money Morning

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Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.

Ryan's premium publications include:

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