Computershare (ASX:CPU): The Unsung Hero of Market Infrastructure

Although Computershare (ASX:CPU) may not be a name that immediately comes to mind when discussing the big names of the stock market (i.e. the big banks or miners), it has long been deeply entwined in the infrastructure behind the scenes supporting capital markets. It is an unsung hero keeping the monetary system moving safely and working seamlessly.

Computershare, capped at $19bn company is one such company. Nonetheless, after gaining 40% in 2024, 2025 has been a flat year as interest rates began to fall. What will 2026 hold?

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It all began in Melbourne

Computershare traces its origins to late 1970s Melbourne. Founder Chris Morris started the company after identifying an opportunity to offer outsourced financial services to businesses seeking to manage their shareholder records.

The Rich Lister (worth ~$1.5bn according to Forbes) was involved with the company for a very long period of time, as CEO up to 2009, then chairman for 6 years, then another 6 years as a non-executive director. In 2021, he gave up his board seat and now dedicates his time to his personal business interests (held under the Morris Group).

Morris saw an opportunity to offer outsourced financial services to businesses seeking to manage their shareholder records. It was well-timed – the corporate governance environment was getting more complex, and companies needed trusted partners to manage their burgeoning numbers of shareholders. By the early 1990s, Computershare became the registrant and transfer agent for the fast-emerging dominant share registry in Australia, conducting records on many of the major companies listed on the ASX.

Expanding abroad

It was not until the late 1990s and early 2000s that Computershare began an aggressive strategy of global expansion. By acquiring several companies, the firm expanded into new markets, especially in North America, Europe, and Asia. It purchased important businesses like Royal Bank of Scotland’s registrar services, Equiserve in the United States, and Georgeson Shareholder Communications.

These actions solidified its place as a global force in share registries and financial services. Computershare now manages more than 75 million customer records across the globe to process transactions and maintain company records, the scale of which is an astounding feat and its place as integral to global market infrastructure.

Today, companies large and small rely on Computershare, which maintains offices on five continents in 20 countries: Australia, the UK, Ireland, the US, Canada, the Channel Islands, South Africa, Hong Kong, New Zealand, Germany, and Denmark.

Formed with more than 12,000 employees, it serves some of the largest listed publicly traded firms around the globe, while leading in share registration needed in capital markets, corporate trust services, employee equity plans, and global capital markets.

Computershare does a lot of the heavy lifting, but it often flies under the radar of big-name financial institutions for these massive contributions. This blog will highlight the importance of this functionality, how it has evolved, and why it remains vital to the operation of modern-day financial markets.

Core Services: The Backbone of Financial Operations

Computershare is a financial services company that provides a variety of services, each essential to the capitalisation of financial markets. They ensure smooth transactions in compliance with regulatory requirements and the integrity of shareholder data.

Transfer Agency and Share Registration

Computershare is primarily known for transfer agency and share registry management services. It’s a middleman between public companies and their shareholders, ensuring that records of ownership are accurate and up-to-date. For corporations, keeping records of their shareholders can be a difficult process. Computershare makes this process easier by administering share transfers, dividend payments, shareholder communications, and corporate actions such as stock splits or mergers.

Employee Equity Plans

Computershare manages employee share schemes and stock option plans for some of the world’s largest companies, simplifying the process for employees to invest in their firms. With its leading technology and compliance capabilities, Computershare helps companies execute employee equity plans in a streamlined manner, while also offering simple portals for employees to manage their holdings. These initiatives are fundamental in creating employee engagement, retention, and financial empowerment, as they enable staff members to share in their company’s success.

Corporate Trust Services

Computershare is a trusted resource for corporate trust solutions for complex financial transactions, with a diverse client base that includes public and private corporations, asset managers, and government institutions. As a result, it is known and trusted by financial institutions and corporate entities looking to execute sophisticated financial deals to assure integrity, reliability, and security.

Global Capital Markets

As we move towards globalisation, most companies today are operating across diverse markets and jurisdictions. They are a global leader in providing services, taking care of the mechanics of holding investments such as securities in cross-border movements, and around the world. These services include dual listings, cross-border share transfers, and international custody solutions, providing companies with the tools to manage their investor base across multiple jurisdictions. Computershare’s global reach provides additional flexibility when managing assets for investors, allowing you (yes, you as an individual investor) to more easily buy, sell, and transfer shares internationally.

2024 was a good year, but 2025 not so much

We mentioned that 2024 was a good year from a share price perspective but 2025 was not so much. This was not necessarily because anything went wrong inside its doors, but there were other factors.

You see, Computershare earns margin income on client cash balances High global interest rates in 2023–24 massively boosted earnings. The market progressively re-rated the stock as it thought higher rates were lasting longer and margin income was structurally higher than previously assumed. By the start of 2025, that benefit was fully recognised in the share price, valuation multiples expanded and expectations were high. Once a stock reprices that much, repeating the performance is very hard.

Investors have inevitably wondered what will happen as rates fall. Now, Australia may see rates go up, but it is the outlier amidst advanced global economies. Keep in mind that management only guided to 4% bottom line growth in constant currency. It also warned investors that tax considerations may make future share buybacks less efficient, prompting a review of payout strategy. So it may pay higher dividends, but perhaps investors preferred buybacks.

In FY25, it delivered 15% bottom line growth and bought back A$750m in shares while paying $0.93 per share in dividends which was a 13.5% increase. Moreover, The company continued exiting non-core, capital-intensive businesses—notably the UK Mortgage Services business—to streamline operations and strengthen the balance sheet.

Significant investments in digital infrastructure were undertaken including modernised cloud-native platforms, expansion of digital channels and mobile apps for issuer services, and continued deployment and up-sell of its EquatePlus employee share plan platform across global markets.

The Future of Computershare

The most recent closing price for Computershare (ASX:CPU) was A$33.90. Analysts’ mean target price is A$37.63. Nonetheless they call for flat revenue in FY26 and FY27 – $3.14bn in both years and $1.42 EPS in both years. FY28 is expected to see growth with US$3.24bn revenue and $1.48 EPS called for. The company’s multiples are 11.3x EV/EBITDA and 16x P/E. But then again, you’re not getting growth.

The Future of Computershare

Computershare is not a company that is going to collapse anytime soon – it is fundamental to the infrastructure of financial markets. At the same time, we think it is one to avoid until there is a global rate hiking cycle again. Australia’s rate hiking cycle may begin next year, but other jurisdictions are likely 1-2 years away.

Frequently Asked Questions (FAQs)

• What is Computershare’s primary function in the financial industry?

  Computershare provides services in areas including transfer agents, employee equity plans, corporate trust, and global capital market solutions to help keep financial markets operating smoothly.

• How extensive is Computershare’s global presence?

  Computershare serves clients in 22 countries, employs over 12,000 staff, and maintains more than 75 million customer records.

• How does Computershare ensure the security of its data?

  The company has strong compliance, audit, risk management, and disaster recovery programs in place to ensure data integrity and privacy.

• What recent acquisitions has Computershare made?

  Some of these included Computershare’s agreement in April 2024 to acquire BNY Trust Company of Canada, thereby expanding its corporate trust services into the Canadian market.

• How does Computershare support employee ownership programs?

  Computershare manages employee equity programs that provide employees the opportunity to share in the success of their company while also promoting ownership and loyalty within the organisation.