The Computershare Ltd (ASX: CPU) share price has managed to avoid the wreckage across the ASX so far today.
At the time of writing, the Computershare share price is up slightly at $24.51 per share.
The ASX tech share provides investor services, plan services, communication services, business services, shareholder relationship management services and technology services.
Image source: Getty Images
Computershare remains stoic in the face of tech sell-off
Computershare is holding its ground on a tumultuous day on the ASX as the S&P/ASX 200 Index (ASX: XJO) is down 2.45%.
The tech sector is suffering second-worst on the ASX, plummeting 3.2% at the time of writing. High growth and unprofitable companies continue to bear most of the brunt.
The major reason for today's market turmoil is the report of higher-than-expected inflation in the United States. Consumer prices in the US, released overnight Australian time, rose by 0.1% in August.
The core consumer price index, which does not account for volatile food and energy prices, increased more than expected, rising to 6.3% over the year to August. This is up from 5.9% in July.
The current state of Computershare
Computershare's recent annual results, covered by my colleague Zach Bristow, may point to some potential reasons for its resilience.
Computershare recorded positive results across nearly every aspect of its business. Revenue went up by 12% in FY22 and net profit after tax (NPAT) rose 20.5% compared to FY21.
The company also provided a forecast of earnings per share (EPS) growth of 55% for FY23, despite ongoing inflationary pressures as witnessed today.
Whilst Computershare did perform quite well in FY22, investors should note there is a significant amount of long-term debt on its balance sheet. Long-term borrowings was $1.84 billion as of FY22.
Computershare share price snapshot
In the last year, the Computershare price has been immune from the tech sell-off, rising by 48% and jumping 11% in the past six months.
The S&P/ASX 200 Index (ASX: XJO) is down 8% in the past year and dropped by 5% in the last six months.
Computershare has a market capitalisation of around $14.75 billion.
The price-to-earnings multiple is hovering around 44x.
