LNK Link Administration Strategic Valuation

Link Administration share price vs the business valuation starting to look very interesting to me now.

Opportunity or value trap.




LNK has seriously underperformed consensus earnings over the last 4 years (see above, red means underperformed earnings against market expectations.

And yet Link has some very valuable assets.

Extracted from morningstar:



LINK CM is number 2 behind Computer Share, but share registry has barriers to entry. RSS I need to do more homework on.
Maybe the hotcopper community knowledge bank can help on this.


Importantly for me focus on this:




Or from morningstar:




Extracting from the above if earnings can be stabalised at 16c off and then slowly grow into the future, at a share price of $1.20 odd, I think this represents value.

Market fearful because of ineptitude of management. 4 years of constant underperformance, not of share price, but of markets pricing of earnings, which means management implicit guidance to the market has been wrong. Market seriously doesn't trust management.

Market has punished LNK by pushing down the share price.

But given this, is there now an opportunity?

I have taken a 1st position.