Mcmillan Shakespeare Limited (MMS) AI Stock Analysis

• Market Cap: €1.13B
• Dividend Yield: 8.79%
• Average Volume (3M): 270.66K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.69
• Revenue Growth: 7.99%
• EPS Growth: 14.07%
• Country: AU
• Employees: 1,328
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.77
• 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: €19.66
• Price Target Upside: 16.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: AU$18.00 ▲(6.89% Upside)

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

Profitability

A high net profit margin indicates efficient operations and the ability to convert revenue into actual profit, which is crucial for long-term sustainability.

Return on Equity

High return on equity suggests effective use of shareholders' funds to generate profits, enhancing investor confidence and supporting future growth.

Earnings Growth

Earnings per share growth indicates the company's ability to increase profitability, which is essential for attracting investment and funding expansion.

Negative Factors

Revenue Decline

A significant drop in revenue can impact the company's ability to sustain operations and invest in growth, posing a challenge to long-term stability.

High Leverage

High leverage indicates reliance on debt, which can increase financial risk and limit flexibility, especially if revenue continues to decline.

Negative Cash Flow

Negative cash flows can strain liquidity and hinder the company's ability to meet obligations and invest in growth, affecting long-term viability.

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

MMS generates revenue through several key streams, primarily from salary packaging and novated leasing arrangements. The company charges fees for managing these services, including set-up and ongoing administration fees. Additionally, MMS earns income from commissions on vehicle sales and leasing, as well as from partnerships with automotive manufacturers and dealerships that provide discounts and incentives for their clients. The company also benefits from its fleet management services, which involve managing vehicles for businesses and charging for maintenance, insurance, and other related services. Strategic partnerships with financial institutions and corporate clients further contribute to its earnings by providing access to a broader customer base and enhancing service offerings.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	541.37M	435.63M	521.02M	363.88M	337.40M	544.22M
Gross Profit	539.44M	435.63M	519.94M	51.89M	64.27M	154.33M
EBITDA	220.47M	245.09M	224.28M	168.06M	162.43M	172.65M
Net Income	91.19M	95.34M	83.55M	32.27M	70.35M	61.06M
Balance Sheet
Total Assets	1.44B	1.48B	1.30B	1.05B	1.12B	685.93M
Cash, Cash Equivalents and Short-Term Investments	146.42M	126.28M	154.63M	463.19M	600.49M	158.00M
Total Debt	676.86M	758.36M	588.13M	325.13M	218.85M	225.21M
Total Liabilities	1.33B	1.37B	1.17B	903.99M	828.16M	416.74M
Stockholders Equity	114.73M	112.79M	128.84M	145.58M	291.43M	269.19M
Cash Flow
Free Cash Flow	-36.97M	-78.98M	-127.63M	8.30M	110.69M	185.03M
Operating Cash Flow	-35.03M	-59.70M	-106.00M	24.61M	119.94M	194.97M
Investing Cash Flow	-23.06M	-26.68M	-1.35M	-16.31M	-42.39M	-8.06M
Financing Cash Flow	108.98M	59.67M	162.02M	-71.52M	-74.06M	-120.53M

Mcmillan Shakespeare Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.84
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 16.84 is above the 20-day moving average (MA) of 16.58, above the 50-day MA of 16.72, and above the 200-day MA of 15.97, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.88 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	79 Outperform	$1.19B	14.38	31.30%	5.57%	11.64%	18.08%
MAD	73 Outperform	AU$1.58B	27.40	30.67%	1.17%	12.62%	12.46%
ASH	70 Outperform	AU$28.80M	13.25	7.05%	5.07%	-7.29%	60.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMS	61 Neutral	€1.13B	11.86	79.56%	8.79%	7.99%	14.07%
PPE	52 Neutral	AU$92.74M	-7.04	-8.39%	―	-6.45%	-364.91%
AD1	46 Neutral	AU$15.98M	-0.97	―	―	14.07%	-157.40%

Mcmillan Shakespeare Limited Corporate Events

McMillan Shakespeare Announces Director’s Interest Change

McMillan Shakespeare Limited announced a change in the director’s interest, specifically for Roberto De Luca, who has been issued 55,123 unquoted performance rights as part of an incentive-based remuneration under the Executive Incentive Plan. This issuance, approved by shareholders at the recent AGM, reflects the company’s commitment to aligning executive compensation with performance, potentially impacting its operational efficiency and stakeholder interests positively.

Mcmillan Shakespeare Limited Issues New Performance Rights

Mcmillan Shakespeare Limited has announced the issuance of 55,123 performance rights as part of an employee incentive scheme. These unquoted securities are intended to motivate and retain key personnel, potentially impacting the company’s operational efficiency and competitive positioning in the market.

McMillan Shakespeare Limited Amends Constitution to Strengthen Governance

McMillan Shakespeare Limited announced that its shareholders have approved an amendment to the company’s Constitution during the Annual General Meeting held on November 17, 2025. This change reflects the company’s commitment to maintaining robust governance practices and could potentially impact its operational framework, offering reassurance to stakeholders about its dedication to corporate governance.

McMillan Shakespeare Limited Reports Successful 2025 AGM Resolutions

McMillan Shakespeare Limited announced the results of its 2025 Annual General Meeting, where all resolutions were passed by a poll. The resolutions included amendments to the company’s constitution, renewal of takeover provisions, and re-election of directors, reflecting strong shareholder support and potentially strengthening the company’s governance and strategic direction.

McMillan Shakespeare Limited Releases 2025 AGM Presentation

McMillan Shakespeare Limited has announced the release of its 2025 Annual General Meeting Presentation, which is accessible to shareholders online. This announcement highlights the company’s commitment to transparency and engagement with its stakeholders, potentially impacting its market positioning positively by fostering trust and openness.

McMillan Shakespeare Limited Highlights Growth and Sustainability at AGM

McMillan Shakespeare Limited’s recent annual general meeting highlighted the completion of their Simply Stronger program, which aims to enhance customer experiences and digital solutions for long-term growth. The company emphasized its commitment to sustainability and responsible business practices, which have contributed to improved customer outcomes, productivity gains, and sustained shareholder returns.

McMillan Shakespeare Appoints New Company Secretary

McMillan Shakespeare Limited has announced the appointment of Michelle Siekierka as the new Company Secretary, effective immediately. Siekierka, who joined the company in September 2025 as General Counsel, brings extensive experience in corporate and commercial law, as well as risk and compliance management, having previously worked with organizations such as Growthpoint Properties Australia and the Treasury Corporation of Victoria. Her appointment is expected to strengthen the company’s governance and compliance functions, enhancing its communication with the ASX and potentially impacting its operational efficiency and stakeholder relations.

McMillan Shakespeare Limited Announces Hybrid 2025 AGM

McMillan Shakespeare Limited has announced its 2025 Annual General Meeting (AGM) will be held on 17 November 2025 as a hybrid event, allowing shareholders to participate either in person or online. This format aims to maximize accessibility for stakeholders. The AGM will include a review of the company’s performance for the financial year ended 30 June 2025, and shareholders will consider various resolutions as outlined in the meeting’s Notice and Explanatory Notes.

McMillan Shakespeare Limited Unveils 2025 Sustainability Report

McMillan Shakespeare Limited has released its 2025 Sustainability Report, highlighting its commitment to sustainable practices and corporate responsibility. This announcement underscores the company’s ongoing efforts to integrate sustainability into its operations, potentially strengthening its market position and enhancing stakeholder trust.

McMillan Shakespeare Limited Announces Director’s Interest Changes

McMillan Shakespeare Limited announced a change in the director’s interest, specifically regarding Roberto De Luca. The changes include the acquisition of 5,884 share rights as incentive-based remuneration and the conversion and lapsing of performance rights. This adjustment in director interests reflects the company’s ongoing commitment to aligning executive incentives with shareholder interests, potentially impacting its governance and stakeholder confidence.

McMillan Shakespeare Limited Announces Cessation of Securities

McMillan Shakespeare Limited announced the cessation of certain securities, specifically 29,962 performance rights and 2,096 share rights, due to unmet conditions. This development may impact the company’s capital structure and reflects the challenges in meeting the conditions tied to these securities, potentially affecting stakeholder confidence and market perception.

Mcmillan Shakespeare Limited Issues Unquoted Equity Securities

Mcmillan Shakespeare Limited has announced the issuance of 5,884 unquoted equity securities under an employee incentive scheme. This issuance, which is not intended to be quoted on the ASX, reflects the company’s ongoing efforts to incentivize its workforce and align employee interests with company performance.

Mcmillan Shakespeare Limited Issues New Share Rights Under Employee Incentive Scheme

Mcmillan Shakespeare Limited announced the issuance of 14,407 unquoted share rights under an employee incentive scheme, effective from September 12, 2025. This move is part of the company’s strategy to motivate and retain its workforce, potentially enhancing employee engagement and aligning their interests with the company’s long-term goals.