Mcmillan Shakespeare Limited (MMS) AI Stock Analysis

• Market Cap: €1.17B
• Dividend Yield: 8.83%
• Average Volume (3M): 262.50K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.63
• 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: 325,429
• 30 Day Avg. Volume: 262,505
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €20.03
• Price Target Upside: 18.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: AU$21.00 ▲(24.26% Upside)

Mcmillan Shakespeare Limited's stock score is driven primarily by its strong valuation metrics, including a high dividend yield and reasonable P/E ratio, which provide a solid investment case. Technical analysis supports a bullish outlook with positive momentum indicators. However, financial performance is a concern due to declining revenue, high leverage, and negative cash flows, which could pose risks if not addressed.

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

McMillan Shakespeare Limited generates revenue through a diverse range of financial services. The primary revenue streams include salary packaging administration fees, where the company assists employees in maximizing their take-home pay by managing their salary packaging arrangements. Novated leasing is another significant source of income, with MMS providing vehicle leasing solutions that allow employees to lease cars using pre-tax salary. Additionally, the company earns from asset management services, which involve managing and financing a wide range of assets for various clients. Strategic partnerships with employers and financial institutions, along with a focus on customer-centric service delivery, contribute significantly to the company's earnings.

Mcmillan Shakespeare Limited Financial Statement Overview

Summary

Mcmillan Shakespeare Limited shows 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	151.25M	170.84M
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: Neutral
• Last Price: 16.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MMS, the sentiment is Neutral. The current price of 16.9 is below the 20-day moving average (MA) of 17.90, below the 50-day MA of 17.40, and above the 200-day MA of 14.96, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 35.89 is Neutral, neither overbought nor oversold. The STOCH value of 0.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	1.11B	13.35	29.27%	6.13%	11.64%	18.08%
MAD	74 Outperform	1.70B	29.51	26.92%	1.11%	12.62%	12.46%
MMS	68 Neutral	€1.17B	12.24	79.56%	8.83%	7.99%	14.07%
ASH	67 Neutral	25.92M	11.92	6.98%	5.78%	-7.29%	60.64%
PPE	52 Neutral	85.64M	-6.54	-8.65%	―	-6.45%	-364.91%
AD1	46 Neutral	14.08M	-0.90	0.00%	―	14.07%	-142.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mcmillan Shakespeare Limited Corporate Events

McMillan Shakespeare to Webcast FY25 Results Presentation

McMillan Shakespeare Limited has announced that it will webcast its FY25 Results Presentation on August 29, 2025, featuring presentations by Managing Director & CEO Rob De Luca and CFO Paul Varro. This event provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

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.

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.