Latest news with #ComputershareLimited
Yahoo
12-05-2025
- Business
- Yahoo
Why Computershare Limited (ASX:CPU) Looks Like A Quality Company
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Computershare Limited (ASX:CPU). ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Computershare is: 29% = US$551m ÷ US$1.9b (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each A$1 of shareholders' capital it has, the company made A$0.29 in profit. See our latest analysis for Computershare Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As you can see in the graphic below, Computershare has a higher ROE than the average (12%) in the Professional Services industry. That's what we like to see. Bear in mind, a high ROE doesn't always mean superior financial performance. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used. It's worth noting the high use of debt by Computershare, leading to its debt to equity ratio of 1.09. There's no doubt the ROE is impressive, but it's worth keeping in mind that the metric could have been lower if the company were to reduce its debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to take a peek at this data-rich interactive graph of forecasts for the company. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Why Computershare Limited (ASX:CPU) Looks Like A Quality Company
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Computershare Limited (ASX:CPU). ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Computershare is: 29% = US$551m ÷ US$1.9b (Based on the trailing twelve months to December 2024). The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each A$1 of shareholders' capital it has, the company made A$0.29 in profit. See our latest analysis for Computershare Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As you can see in the graphic below, Computershare has a higher ROE than the average (12%) in the Professional Services industry. That's what we like to see. Bear in mind, a high ROE doesn't always mean superior financial performance. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used. It's worth noting the high use of debt by Computershare, leading to its debt to equity ratio of 1.09. There's no doubt the ROE is impressive, but it's worth keeping in mind that the metric could have been lower if the company were to reduce its debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to take a peek at this data-rich interactive graph of forecasts for the company. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Business Insider
07-05-2025
- Business
- Business Insider
Analysts Offer Insights on Financial Companies: Lemonade (LMND) and Computershare Limited (OtherCMSQF)
Analysts fell to the sidelines weighing in on Lemonade (LMND – Research Report) and Computershare Limited (CMSQF – Research Report) with neutral ratings, indicating that the experts are neither bullish nor bearish on the stocks. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Lemonade (LMND) In a report released yesterday, Adam Klauber from William Blair maintained a Hold rating on Lemonade. The company's shares closed last Tuesday at $30.31. According to Klauber is a 4-star analyst with an average return of 10.5% and a 59.4% success rate. Klauber covers the Financial sector, focusing on stocks such as Skyward Specialty Insurance Group, Inc., Marsh & Mclennan Companies, and Baldwin Insurance Group. Currently, the analyst consensus on Lemonade is a Moderate Sell with an average price target of $27.86. Computershare Limited (CMSQF) Morgan Stanley analyst Andrei Stadnik maintained a Hold rating on Computershare Limited today and set a price target of A$34.70. The company's shares closed last Friday at $21.78, equals to its 52-week high of $21.78. According to Stadnik is a 4-star analyst with an average return of 7.1% and a 54.4% success rate. Stadnik covers the Financial sector, focusing on stocks such as Insurance Australia Group Limited, QBE Insurance Group Limited, and Macquarie Group Limited. The word on The Street in general, suggests a Hold analyst consensus rating for Computershare Limited with a $23.97 average price target.
Yahoo
26-04-2025
- Business
- Yahoo
Computershare Limited (ASX:CPU) is favoured by institutional owners who hold 49% of the company
Given the large stake in the stock by institutions, Computershare's stock price might be vulnerable to their trading decisions A total of 25 investors have a majority stake in the company with 49% ownership Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Every investor in Computershare Limited (ASX:CPU) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 49% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. Let's take a closer look to see what the different types of shareholders can tell us about Computershare. Check out our latest analysis for Computershare Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in Computershare. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Computershare's earnings history below. Of course, the future is what really matters. We note that hedge funds don't have a meaningful investment in Computershare. Looking at our data, we can see that the largest shareholder is Australian Super Pty Ltd with 12% of shares outstanding. For context, the second largest shareholder holds about 8.5% of the shares outstanding, followed by an ownership of 6.3% by the third-largest shareholder. A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. We can report that insiders do own shares in Computershare Limited. It is a very large company, and board members collectively own AU$928m worth of shares (at current prices). we sometimes take an interest in whether they have been buying or selling. The general public, who are usually individual investors, hold a 46% stake in Computershare. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Computershare is showing 1 warning sign in our investment analysis , you should know about... If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Business Insider
22-04-2025
- Business
- Business Insider
Analysts Offer Insights on Financial Companies: Challenger Limited (OtherCFIGF) and Computershare Limited (OtherCMSQF)
Analysts have been eager to weigh in on the Financial sector with new ratings on Challenger Limited (CFIGF – Research Report) and Computershare Limited (CMSQF – Research Report). Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Challenger Limited (CFIGF) In a report released today, Nigel Pittaway from Citi maintained a Buy rating on Challenger Limited, with a price target of A$7.55. The company's shares closed last Thursday at $3.05, equals to its 52-week low of $3.05. According to Pittaway is a 3-star analyst with an average return of 0.9% and a 51.0% success rate. Pittaway covers the Financial sector, focusing on stocks such as Insurance Australia Group Limited, QBE Insurance Group Limited, and Computershare Limited. Currently, the analyst consensus on Challenger Limited is a Strong Buy with an average price target of $4.46, implying a 46.2% upside from current levels. In a report issued on April 8, Bell Potter also maintained a Buy rating on the stock with a A$7.80 price target. Computershare Limited (CMSQF) Morgan Stanley analyst Andrei Stadnik maintained a Hold rating on Computershare Limited today and set a price target of A$34.70. The company's shares closed last Friday at $21.78, equals to its 52-week high of $21.78. According to Stadnik is a 4-star analyst with an average return of 6.0% and a 53.7% success rate. Stadnik covers the Financial sector, focusing on stocks such as Insurance Australia Group Limited, QBE Insurance Group Limited, and Macquarie Group Limited. Currently, the analyst consensus on Computershare Limited is a Hold with an average price target of $23.80, representing a 9.3% upside. In a report issued on April 14, Jarden also maintained a Hold rating on the stock with a A$34.00 price target.
