Mcmillan Shakespeare Limited (MMS) AI Stock Analysis

• Market Cap: €953.41M
• Dividend Yield: 8.65%
• Average Volume (3M): 270.66K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.86
• Revenue Growth: 7.99%
• EPS Growth: 14.07%
• Country: AU
• Employees: 1,328
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.72
• Shares Outstanding: 69,643,020
• 10 Day Avg. Volume: 221,553
• 30 Day Avg. Volume: 270,660
• PEG Ratio: 0.80
• Price to Book (P/B): 9.60
• Price to Sales (P/S): 2.49
• P/FCF Ratio: -13.71
• 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: €18.12
• Price Target Upside: 32.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.51
• Revenue Forecast (FY): €594.92M

• Rating: 61 Neutral
• Price Target: AU$14.50 ▲(5.92% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Mcmillan Shakespeare Limited's overall stock score is driven by a strong valuation with a low P/E ratio and high dividend yield, making it attractive for value and income-focused investors. However, financial performance is a concern due to declining revenue and high leverage, which could pose risks if not addressed. Technical analysis suggests a neutral to slightly bullish outlook, but the lack of significant earnings call insights or corporate events limits additional context.

Positive Factors

High Return on Equity

An 84.52% ROE indicates the business converts equity into profits very effectively. Over the medium term this suggests management can generate high shareholder returns from existing capital, supporting reinvestment capacity and resilience if earnings remain stable.

Robust Profit Margins

Very high gross and net margins point to strong pricing power or a low variable-cost service model. Sustainable margins provide a buffer against revenue volatility and support cash available for debt service, investment or payouts if top-line stabilizes.

Specialized, Recurring Business Model

A focused offering in salary packaging and novated leasing to employers and public-sector clients creates recurring, contract-like revenues and client stickiness. Structural demand from employers and regulated benefits supports stable demand over several months to years.

Negative Factors

High Financial Leverage

A debt-to-equity ratio of 6.72 signals heavy reliance on borrowed funds, increasing fixed interest obligations and reducing financial flexibility. In the medium term this magnifies downside from revenue weakness and raises refinancing and covenant risk.

Negative Operating Cash Flow

Persistent negative operating cash flow indicates earnings are not converting to cash, undermining liquidity. Even with reported FCF growth, weak cash conversion forces reliance on external funding to meet debt service and capex, elevating medium-term solvency risk.

Material Revenue Contraction

A near-20% revenue drop is a structural warning sign about demand or client retention. Combined with high leverage and cash strain, sustained revenue weakness would pressure margins, cash generation and the company's ability to service debt without strategic corrective actions.

Mcmillan Shakespeare Limited Business Overview & Revenue Model

Company Description

McMillan Shakespeare Limited provides salary packaging, novated leasing, disability plan management and support co-ordination, asset management, and related financial products and services in Australia, the United Kingdom, and New Zealand. It operates through Group Remuneration Services, Asset Management Services, and Plan and Support Services segments. The Group Remuneration Services segment offers salary packaging and ancillary services, including novated leasing asset and finance procurement, motor vehicle administration, and other services. The Asset Management segment provides financing and ancillary management services related with motor vehicles, commercial vehicles, and equipment. This segment also offers retail brokerage services, as well as engages in the aggregation of finance originations and extended warranty cover. The Plan and Support Services segment provides plan management and support coordination services to participants in the national disability insurance scheme. The company also provides fleet management and software development services. It serves federal and state governments, public and private sectors, and health and charitable organizations. McMillan Shakespeare Limited founded in 1988 and is headquartered in Melbourne, Australia.

How the Company Makes Money

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Mcmillan Shakespeare Limited Financial Statement Overview

Summary

Mcmillan Shakespeare Limited demonstrates strong profitability and return on equity, but faces challenges with declining revenue and high leverage. The negative cash flows highlight potential liquidity issues, which could impact future operations if not addressed. The company needs to focus on revenue stabilization and improving cash flow management to enhance financial health.

Income Statement

Mcmillan Shakespeare Limited shows strong profitability with a high net profit margin of 21.89% and a gross profit margin of 100% for the latest year. However, the company experienced a significant revenue decline of 19.53% compared to the previous year, indicating potential challenges in maintaining revenue growth. The EBIT and EBITDA margins are robust, suggesting efficient operations, but the revenue contraction is a concern.

Balance Sheet

The company's balance sheet reflects high leverage with a debt-to-equity ratio of 6.72, indicating significant reliance on debt financing. Return on equity is strong at 84.52%, showing effective use of equity to generate profits. However, the high debt levels pose a risk to financial stability, especially if revenue continues to decline.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, which are concerning for liquidity. Despite a positive free cash flow growth rate of 113.66%, the company struggles with cash flow generation relative to net income, as indicated by a negative operating cash flow to net income ratio. This suggests potential cash management issues.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	560.20M	435.63M	521.02M	363.88M	337.40M	544.22M
Gross Profit	275.86M	435.63M	519.94M	51.89M	64.27M	154.33M
EBITDA	251.25M	245.09M	224.28M	168.06M	162.43M	172.65M
Net Income	99.54M	95.34M	83.55M	32.27M	70.35M	61.06M
Balance Sheet
Total Assets	1.57B	1.48B	1.30B	1.05B	1.12B	685.93M
Cash, Cash Equivalents and Short-Term Investments	587.79M	126.28M	154.63M	463.19M	600.49M	158.00M
Total Debt	853.60M	758.36M	588.13M	325.13M	218.85M	225.21M
Total Liabilities	1.45B	1.37B	1.17B	903.99M	828.16M	416.74M
Stockholders Equity	112.72M	112.79M	128.84M	145.58M	291.43M	269.19M
Cash Flow
Free Cash Flow	-57.02M	-78.98M	-127.63M	8.30M	110.69M	185.03M
Operating Cash Flow	-45.87M	-59.70M	-106.00M	24.61M	119.94M	194.97M
Investing Cash Flow	-26.77M	-26.68M	-1.35M	-16.31M	-42.39M	-8.06M
Financing Cash Flow	29.06M	59.67M	162.02M	-71.52M	-74.06M	-120.53M

Mcmillan Shakespeare Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MMS, the sentiment is Negative. The current price of 13.69 is below the 20-day moving average (MA) of 14.65, below the 50-day MA of 15.75, and below the 200-day MA of 16.00, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 29.20 is Positive, neither overbought nor oversold. The STOCH value of 7.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	$1.00B	14.94	31.30%	5.51%	11.64%	18.08%
MAD	73 Outperform	AU$1.47B	12.68	27.58%	1.14%	12.62%	12.46%
ASH	64 Neutral	AU$29.20M	2.14	11.53%	5.20%	-7.29%	60.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMS	61 Neutral	€953.41M	6.01	79.56%	8.65%	7.99%	14.07%
PPE	47 Neutral	AU$67.86M	64.68	-6.36%	―	-6.45%	-364.91%
AD1	43 Neutral	AU$10.66M	-1.74	146.06%	―	14.07%	-157.40%

Mcmillan Shakespeare Limited Corporate Events

State Street Group Ceases to Be Substantial Holder in Mcmillan Shakespeare

State Street Corporation and several of its asset management subsidiaries have lodged a notice that they have ceased to be substantial shareholders in Mcmillan Shakespeare Limited. The filing indicates that their relevant interest in the company’s voting securities fell below the substantial holding threshold as at 4 March 2026, marking an exit from a previously disclosed large shareholding position.

The change reflects a reshaping of Mcmillan Shakespeare’s institutional investor base, with one of its major global custodial and asset management groups no longer holding a reportable stake. This may alter the company’s share register dynamics and could signal portfolio rebalancing or strategic repositioning by State Street, though no transaction details or consideration amounts are disclosed in the notice.

The most recent analyst rating on (AU:MMS) stock is a Hold with a A$16.00 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 Unquoted Performance Rights Under Incentive Scheme

McMillan Shakespeare Limited has notified the market of the issue of 4,344 unquoted performance rights under its employee incentive scheme, with an effective issue date of 27 February 2026. The additional performance rights, which are not intended to be quoted on the ASX, underscore the company’s continued reliance on equity-based incentives to align employees with long-term shareholder value and support its talent retention strategy.

The new issue of unquoted performance rights forms part of ongoing capital management and remuneration planning, without altering the company’s quoted share capital on the ASX. For stakeholders, the move highlights the company’s preference for performance-linked compensation, which can moderately increase potential equity dilution over time while aiming to strengthen executive and staff commitment to corporate performance goals.

The most recent analyst rating on (AU:MMS) stock is a Hold with a A$16.00 price target. To see the full list of analyst forecasts on Mcmillan Shakespeare Limited stock, see the AU:MMS Stock Forecast page.

Mcmillan Shakespeare Launches On-Market Share Buy-Back

Mcmillan Shakespeare Limited, an Australian-listed company trading under the MMS ticker, has ordinary fully paid shares on the ASX and is subject to the exchange’s disclosure and governance framework. Its shareholder base and capital structure are managed within this regulated environment.

The company has announced a new on-market share buy-back of its ordinary fully paid MMS shares, notifying investors that it will repurchase stock through the exchange. This capital management move may reduce the number of shares on issue and can signal confidence in the company’s valuation, potentially affecting shareholder returns and the stock’s trading dynamics.

The most recent analyst rating on (AU:MMS) stock is a Buy with a A$21.50 price target. To see the full list of analyst forecasts on Mcmillan Shakespeare Limited stock, see the AU:MMS Stock Forecast page.

McMillan Shakespeare Declares AUD 0.62 Interim Dividend for Half-Year to December 2025

McMillan Shakespeare Limited has declared a fully franked interim dividend of AUD 0.62 per ordinary share for the six-month period ended 31 December 2025, with an ex-dividend date of 12 March 2026, a record date of 13 March 2026 and payment scheduled for 27 March 2026. The announcement underscores the company’s continued practice of distributing earnings to investors on a semi-annual basis, offering income visibility to shareholders and signaling confidence in its financial performance over the reported half-year period.

The most recent analyst rating on (AU:MMS) stock is a Buy with a A$21.50 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 1HFY26 results overview with cautionary guidance

McMillan Shakespeare Limited has released a presentation outlining its 1HFY26 results, noting that the document is a high-level summary of the group’s performance and activities as at 23 February 2026. The company emphasises that the material is informational only, is not investment advice or an offer of securities, and that any forward-looking statements are subject to significant risks and uncertainties, with no assurance given on their accuracy or future outcomes.

The most recent analyst rating on (AU:MMS) stock is a Buy with a A$21.50 price target. To see the full list of analyst forecasts on Mcmillan Shakespeare Limited stock, see the AU:MMS Stock Forecast page.

McMillan Shakespeare lifts profit, boosts capital returns on novated leasing and finance growth

McMillan Shakespeare Limited reported a 9.7% rise in statutory net profit after tax from continuing operations to $49.6 million for the half year to 31 December 2025, with group revenue climbing 11.2% to $297.4 million on growth across all segments. The company declared a fully franked interim dividend of 62 cents per share and approved an on‑market share buyback of up to $10 million over the next 12 months, taking total potential capital returns for the half to $53.2 million.

Operationally, novated leases increased 7% year on year, Oly’s SME client base expanded 233% and contributed 5.2% of group novated lease sales, and Onboard Finance receivables grew 31% to $539 million, while productivity gains lifted customers per FTE by 14.1% and improved the cost‑to‑income ratio to 59.7%. Management said results are no longer normalised following the successful scaling of Onboard Finance and forecast that second‑half underlying earnings will be supported by customer growth, higher finance receivables, and efficiencies from prior strategic investments, despite regulatory reviews under way for the Electric Car Discount and NDIS pricing.

The most recent analyst rating on (AU:MMS) stock is a Buy with a A$21.50 price target. To see the full list of analyst forecasts on Mcmillan Shakespeare Limited stock, see the AU:MMS Stock Forecast page.

McMillan Shakespeare Lifts Half-Year Profit and Raises Interim Dividend

McMillan Shakespeare Limited reported revenue from continuing operations of $297.4 million for the half year ended 31 December 2025, a 7.4% increase on the prior corresponding period, with profit from ordinary activities after tax rising 9.7% to $49.6 million. Net profit for the period attributable to members, including a small discontinued operations loss, was $49.4 million, up 9.3% year on year, reflecting solid operating performance and disciplined cost control.

The board declared an interim fully franked dividend of $0.62 per share for 2026, following a fully franked final 2025 dividend of $0.77 per share, underscoring continued cash generation and a shareholder-focused capital return policy. Net tangible assets per share increased to 25 cents from 17 cents since June 2025, indicating a stronger balance sheet, while the absence of acquisitions or divestments in the period suggests a stable operating footprint supported by independently reviewed interim financials.

The most recent analyst rating on (AU:MMS) stock is a Buy with a A$21.50 price target. To see the full list of analyst forecasts on Mcmillan Shakespeare Limited stock, see the AU:MMS Stock Forecast page.

McMillan Shakespeare Sets Date for 1H FY26 Results Webcast

McMillan Shakespeare Limited has scheduled a webcast of its first-half FY26 interim results presentation for 9:00am on 23 February 2026, to be led by managing director and CEO Rob De Luca and CFO Paul Varro. The results briefing, which will be accessible live and later via an archived recording through both the company’s website and a dedicated webcast link, underscores the group’s efforts to maintain transparency and engagement with investors and other stakeholders around its financial performance and outlook.

The most recent analyst rating on (AU:MMS) stock is a Buy with a A$21.50 price target. To see the full list of analyst forecasts on Mcmillan Shakespeare Limited stock, see the AU:MMS Stock Forecast page.