Mcmillan Shakespeare Limited (MMS) AI Stock Analysis

• Market Cap: AU$1.10B
• Dividend Yield: 10.32%
• Average Volume (3M): 198.62K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.59
• Revenue Growth: 43.44%
• EPS Growth: 165.54%
• Country: AU
• Employees: 1,328
• Sector: Industrials
• Sector Strength: 90
• Industry: Staffing & Employment Services
• EPS (TTM): 1.31
• Shares Outstanding: 69,643,020
• 10 Day Avg. Volume: 177,075
• 30 Day Avg. Volume: 198,620
• PEG Ratio: 1.29
• Price to Book (P/B): 9.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -29.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$20.01
• Price Target Upside: 26.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: AU$17.50 ▲(10.41%Upside)

The overall stock score is driven primarily by a strong valuation, with an attractive P/E ratio and high dividend yield. Technical analysis indicates positive short-term momentum, supporting a positive outlook. However, financial performance presents risks due to high leverage and fluctuating cash flows, which may impact long-term stability if not addressed.

Mcmillan Shakespeare Limited Business Overview & Revenue Model

Company Description

McMillan Shakespeare Limited (MMS) is a leading provider of salary packaging and novated leasing services in Australia. The company operates in the financial services sector, offering a range of products such as salary packaging administration, fleet management, and asset management services. MMS serves both corporate and government clients, aiming to enhance employee benefits and streamline financial solutions.

How the Company Makes Money

McMillan Shakespeare Limited generates revenue primarily through its salary packaging and novated leasing services. The company earns fees from managing salary packaging arrangements for employers, which involves handling the administration and compliance aspects of these services. Additionally, MMS derives income from its fleet management services, where it offers leasing and management solutions for vehicles. Revenue is also generated from asset management services, which include financing and managing a variety of assets. The company's earnings are bolstered by partnerships with employers and government entities, which help expand its client base and service offerings.

Mcmillan Shakespeare Limited Financial Statement Overview

Summary

Mcmillan Shakespeare Limited demonstrates strong gross profit margins and revenue growth, but profitability and cash flow consistency need improvement. The balance sheet indicates high leverage, which poses financial risks. Continued focus on stabilizing cash flows and reducing debt could enhance financial health.

Income Statement

Mcmillan Shakespeare Limited shows strong gross profit margins, indicating effective cost management. Despite recent revenue growth, net income has fluctuated, affecting net profit margins. EBIT margin shows improvement, but further consistency is needed.

Balance Sheet

The company has a high debt-to-equity ratio, reflecting significant leverage, which introduces financial risk. Equity ratio is relatively low, suggesting reliance on debt financing. Return on equity is moderate, indicating reasonable profit generation from equity.

Cash Flow

Operating cash flow has shown volatility, with recent declines impacting free cash flow. The negative free cash flow growth rate is a concern, but past performance indicates potential for recovery. Cash flow to net income ratios suggest effective cash conversion, though improvements are needed.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
541.37M	521.02M	363.88M	337.40M	544.22M	493.12M
	Gross Profit
539.44M	519.94M	51.89M	64.27M	154.33M	121.89M
	EBIT
269.01M	258.94M	2.86M	19.51M	123.76M	83.37M
	EBITDA
220.47M	224.28M	168.06M	151.25M	170.84M	116.99M
	Net Income Common Stockholders
91.19M	83.55M	32.27M	70.35M	61.06M	1.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
146.42M	154.63M	463.19M	600.49M	158.00M	91.41M
	Total Assets
1.44B	1.30B	1.05B	1.12B	685.93M	685.56M
	Total Debt
676.86M	588.13M	325.13M	218.85M	225.21M	288.06M
	Net Debt
530.44M	435.18M	-138.06M	-381.64M	67.21M	196.65M
	Total Liabilities
1.33B	1.17B	903.99M	828.16M	416.74M	456.67M
	Stockholders Equity
114.73M	128.84M	145.58M	291.43M	269.19M	228.89M
Cash Flow		Free Cash Flow
-36.97M	-127.63M	8.30M	110.69M	185.03M	173.75M
	Operating Cash Flow
-35.03M	-106.00M	24.61M	119.94M	194.97M	188.46M
	Investing Cash Flow
-23.06M	-1.35M	-16.31M	-42.39M	-8.06M	-27.30M
	Financing Cash Flow
108.98M	162.02M	-71.52M	-74.06M	-120.53M	-207.56M

Mcmillan Shakespeare Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MMS, the sentiment is Positive. The current price of 15.85 is below the 20-day moving average (MA) of 16.00, above the 50-day MA of 15.30, and above the 200-day MA of 14.54, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 54.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MMS.

Mcmillan Shakespeare Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIQ	76 Outperform	$989.21M	12.51	30.57%	5.21%	21.55%	22.04%
MAD	73 Outperform	AU$1.21B	22.99	31.70%	1.34%	15.46%	15.14%
MMS	72 Outperform	AU$1.10B	12.10	74.00%	10.32%	43.44%	165.54%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
ASH	64 Neutral	AU$26.64M	12.17	6.96%	5.62%	-7.92%	-61.32%
PPE	49 Neutral	AU$69.02M	18.92	-2.93%	3.28%	-3.90%	-142.61%
AD1	46 Neutral	AU$7.76M	―	-245.01%	―	-17.50%	66.33%

Mcmillan Shakespeare Limited Corporate Events

Eagers Automotive and AP Group Cease Substantial Holding in Mcmillan Shakespeare

Mcmillan Shakespeare Limited has announced that Eagers Automotive Limited and AP Group Pty Ltd have ceased to be substantial holders in the company as of June 3, 2025. This change involved the disposal of 3,976,229 voting securities, valued at approximately $61.6 million. The divestment may impact the company’s shareholder structure and influence its market dynamics, potentially affecting its strategic decisions and stakeholder interests.

The most recent analyst rating on (AU:MMS) stock is a Buy with a A$20.78 price target. To see the full list of analyst forecasts on Mcmillan Shakespeare Limited stock, see the AU:MMS Stock Forecast page.

Mcmillan Shakespeare Issues New Performance Rights

Mcmillan Shakespeare Limited announced the issuance of 9,413 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize employees, potentially enhancing productivity and aligning employee interests with company goals.