Stocks Down Under 20 August 2020: Computershare, Heartland Group, OM Holdings

Computershare Limited: A premium not worth paying

Computershare is a global financial administration company featuring 12,000 employees and over 25,000 clients across 21 different countries. With approximately 40% of their $2.31bn of annual revenue derived from issuer services, they are one of Australia’s largest share registries. Despite COVID-19 pressuring its revenue, Computershare is still a cash generating machine and, therefore, has been able to maintain its FY20 dividend without sacrifice. While there are growth opportunities for Computershare, we believe the overall growth of the company will be hard pressed to pass five percent in the coming years. Therefore, the company does not warrant the current valuation, in our view.

Also in today’s edition, Kiwi bank Heartland Group (ASX:HGH) and specialty metals producer OM Holdings (ASX:OMH).

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