Work with your personal adviser to grow your wealth

Defensive Aussie Stock


Computershare is the largest share registry business in the world and the only provider with a global footprint. The company has a narrow competitive advantage underpinned by customer switching costs and cost advantages. Computershare operates a capital-light business model with a high proportion of defensive and recurring earnings. We expect this to enable regular dividends and the elimination of net debt within a decade.

We expect rising interest rates, cost-cutting, and an expansion of the mortgage servicing business to drive underlying earnings at a Compound Annual Growth Rate (CAGR) of around 8% for Computershare over the next decade. The core issuer services division, which constitute around 40% of group EBITDA (Earnings Before Tax Interest Depreciation and Amortisation), is reasonably mature, and we expect a revenue CAGR of 3% over the next decade, supported by rising interest rates and margin income. In contrast, we expect mortgage services growth to drive a revenue CAGR of around 4%, underpinning a group revenue CAGR of 3%. We expect an increase in interest rates and margin income, which has a near-100% EBIT margin, to drive group EBIT margin expansion over the next decade.

Related Posts

Is it Time to Rethink your Term Deposit Strategy?

Term deposits are currently riding near a 15-year peak, offering investors a temporary high. However, this…


Dovish sentiment favours accommodative policies, aiming to stimulate economic growth even at the cost of higher…

International Women’s Day

International Women’s Day provides an important opportunity to fundraise for female-focused charities, help raise their visibility,…

Investing for Income

Tom McBride and Richard Parkin hosted an investor seminar at the Novotel Cathedral Christchurch on Thursday…