ComputershareASX:CPU -1.23%82 Gross Margin % is 26.54% as of Dec. 2025, which is 48% above its 10-year median of 17.88. GuruFocus rates ASX:CPU with a GF Score™ of 82/100 and a GF Value™ of A$30.18 (Modestly Overvalued). Among 617 Capital Markets companies, Computershare ranks worse than 66.77% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Computershare had a gross margin of 26.54% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Computershare Gross Margin % Related Terms
Computershare Gross Margin % Historical Data
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The historical data trend for Computershare's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:CPU vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, Computershare's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Computershare Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Computershare's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Computershare's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Computershare (ASX:CPU) has a Gross Margin % of 26.54% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Computershare and its competitors. This is 48% above median its historical median of 17.88. Over the past decade, Computershare's Gross Margin % has ranged from 11.91 to 27.82. According to the industry distribution chart, Computershare ranks #412 out of 617 companies in the Capital Markets industry, placing it in the top 66.8%.
Is Computershare's Gross Margin % too high?
Computershare's current Gross Margin % of 26.54% is 48% above median its 10-year median of 17.88. Over the past 10 years, this metric has ranged from a low of 11.91 to a high of 27.82. The Capital Markets industry median Gross Margin % is 48.30. Computershare's value of 26.54% is 45.1% below this industry median. Based on the distribution chart, Computershare ranks #412 out of 617 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Computershare has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Computershare's Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Computershare ranks #412 out of 617 companies for Gross Margin %. This places Computershare in the lower half of its industry. The industry median Gross Margin % is 48.30. Computershare's value of 26.54% is 45.1% below this benchmark. Historically, Computershare's own Gross Margin % has ranged from 11.91 to 27.82 over the past decade. While the company's 10-year median is 17.88 vs. the industry median of 48.30, Computershare has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Capital Markets company?
The median Gross Margin % among Capital Markets companies is 48.30, based on 617 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Computershare's current Gross Margin % of 26.54% is 45.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Computershare and its competitors. For the Capital Markets industry, the median Gross Margin % is 48.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Computershare's current Gross Margin % is 26.54%, which is 48% above median its own 10-year median of 17.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Computershare stock overvalued right now?
Based on GuruFocus' analysis, Computershare (ASX:CPU) is currently considered Modestly Overvalued. The stock's GF Value™ is A$30.18, compared to a current price of A$36.88 — trading 22.2% above its estimated fair value. The current Gross Margin % is 26.54%, which is 48% above median its 10-year median of 17.88 and 45.1% below the Capital Markets industry median of 48.30. Computershare's overall GF Score™ is 82/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Computershare (ASX:CPU), the current Gross Margin % is 26.54% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Computershare (ASX:CPU) Overvalued in 2026?
Based on GuruFocus' analysis, Computershare stock appears to be overvalued.
The current stock price of A$36.88 is trading 22.2% above its estimated GF Value™ of A$30.18.
GuruFocus considers Computershare to be Modestly Overvalued.
Key valuation signals for ASX:CPU:
Gross Margin %: 26.54% (48% above median its 10-year median of 17.88)
GF Value™: A$30.18 vs. price of A$36.88 (22.2% above fair value)
Industry Position: 45.1% below the Capital Markets median (#412 of 617)
No single metric tells the full story. See the ASX:CPU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in Australia in 1978, Computershare has grown via acquisitions to become the world's leading provider of issuer services. Employee share plans and communications services are commonly sold together with issuer services to corporations. The company also has a business services offering and a corporate trust business, alongside a small mortgage administration business that's due to be divested. Over the medium term, around half of group EBITDA is expected to be generated from interest income on client cash balances, or margin income, which is exposed to interest-rate movements.
82GF Score
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