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Link Administration Holdings Ltd LNK

Morningstar Rating
A$2.25 0.00 (0.00%)
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Company Report

Link's Acquisition by The Trust Bank Allows Shareholders to Exit and Not Be Exposed to Link's Risks

Link is reprioritizing to focus on growing its core retirement and superannuation solutions, and corporate markets businesses. RSS provides account administrating, information security, compliance, and digital and data services to superannuation and pension schemes. CM provides registry services, employee share plans, investor relations, communications, and investment operations services to companies. Link’s product variety helps distinguish the group from smaller peers with fragmented offerings and builds switching costs for clients.

Price vs Fair Value

LNK is trading at a 546% premium.
Price
A$2.25
Fair Value
A$7.96
Uncertainty
High
1-Star Price
A$7.40
5-Star Price
A$5.55
Economic Moat
Msfjd
Capital Allocation
Cvqwkvq

Bulls Say, Bears Say

Bulls

We expect Link’s narrow economic moat to protect its large market shares in the Australian and United Kingdom financial services administration markets.

Bears

Both Link’s superannuation fund administration and share registry services are reasonably commoditized, and sizable competitors are in both segments.

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News

Trading Information

Previous Close Price
A$2.25
Day Range
A$2.252.26
52-Week Range
A$1.072.26
Bid/Ask
A$0.00 / A$0.00
Market Cap
A$1.16 Bil
Volume/Avg
20.4 Mil / 2.6 Mil

Key Statistics

Price/Earnings (Normalized)
1.80
Price/Sales
1.30
Dividend Yield (Trailing)
1.78%
Dividend Yield (Forward)
3.56%
Total Yield
1.91%

Company Profile

Link derives its revenue primarily from providing administration services to the financial services sector in Australia, and the share registry and investment fund sectors in the U.K. The company is the largest provider of superannuation administration services and the second-largest provider of share registry services in Australia. Link’s clients are usually contracted for between two and five years. The customers are relatively sticky, resulting in a high recurring revenue. The capital-light business model means cash flow is relatively strong.
Sector
Financial Services
Industry
Capital Markets
Stock Style Box
Small Value
Total Number of Employees
7,337

Competitors

Valuation

Metric
LNK
PPT
BR
Price/Earnings (Normalized)
1.8011.0625.88
Price/Book Value
3.741.1310.04
Price/Sales
1.301.993.60
Price/Cash Flow
12.3411.4220.14
Price/Earnings
LNK
PPT
BR

Financial Strength

Metric
LNK
PPT
BR
Quick Ratio
0.780.901.25
Current Ratio
0.861.431.39
Interest Coverage
4.802.266.68
Quick Ratio
LNK
PPT
BR

Profitability

Metric
LNK
PPT
BR
Return on Assets (Normalized)
3.67%3.30%10.84%
Return on Equity (Normalized)
38.43%5.67%41.54%
Return on Invested Capital (Normalized)
11.54%5.59%16.56%
Return on Assets
LNK
PPT
BR
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