Computershare (ASX:CPU) experienced a mixed performance in FY21, with management NPAT (US$284m) dipping approximately 7.5% compared to the prior corresponding period (pcp). However, the results remained broadly in line with Bloomberg Consensus (US$281m) and company guidance (-8%).
Performance Analysis
The FY21 results for Computershare can be characterized by strong performances in the Issuer Services and Employee Share Plans segments, counterbalanced by weaker results in Mortgage Services and Business Services. Despite these fluctuations, the company's FY22 EPS guidance fell slightly below expectations.
Forecast Adjustments
In light of the performance and guidance, adjustments have been made to the FY22F/FY23F EPS forecasts, reflecting a more conservative outlook on growth assumptions for the coming years.
Investment Insights
While Computershare maintains its status as a quality franchise, the current valuation reflects fair value, trading at approximately 24 times FY22F PE. As investors assess their positions, it's essential to consider the potential for growth in FY23 and beyond against the backdrop of the current market conditions.
In conclusion, Computershare's performance in FY21 presents a nuanced picture, with strengths and weaknesses across various business segments. While FY22 may see relatively flat growth, the outlook for FY23 suggests potential for stronger performance. As analysts recalibrate their forecasts and investors evaluate their positions, the long-term prospects of Computershare remain a focal point amidst evolving market dynamics.
Morgans clients receive access to detailed market analysis and insights, provided by our award-winning research team. Begin your journey with Morgans today to view the exclusive coverage.
