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Mcmillan Shakespeare Limited (AU:MMS)
:MMS

Mcmillan Shakespeare Limited (MMS) AI Stock Analysis

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AU

Mcmillan Shakespeare Limited

(Frankfurt:MMS)

Rating:72Outperform
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 (MMS) vs. iShares MSCI Australia ETF (EWA)

Mcmillan Shakespeare Limited Business Overview & Revenue Model

Company DescriptionMcMillan 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 MoneyMcMillan 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
65
Positive
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
58
Neutral
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
62
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
541.37M521.02M363.88M337.40M544.22M493.12M
Gross Profit
539.44M519.94M51.89M64.27M154.33M121.89M
EBIT
269.01M258.94M2.86M19.51M123.76M83.37M
EBITDA
220.47M224.28M168.06M151.25M170.84M116.99M
Net Income Common Stockholders
91.19M83.55M32.27M70.35M61.06M1.27M
Balance SheetCash, Cash Equivalents and Short-Term Investments
146.42M154.63M463.19M600.49M158.00M91.41M
Total Assets
1.44B1.30B1.05B1.12B685.93M685.56M
Total Debt
676.86M588.13M325.13M218.85M225.21M288.06M
Net Debt
530.44M435.18M-138.06M-381.64M67.21M196.65M
Total Liabilities
1.33B1.17B903.99M828.16M416.74M456.67M
Stockholders Equity
114.73M128.84M145.58M291.43M269.19M228.89M
Cash FlowFree Cash Flow
-36.97M-127.63M8.30M110.69M185.03M173.75M
Operating Cash Flow
-35.03M-106.00M24.61M119.94M194.97M188.46M
Investing Cash Flow
-23.06M-1.35M-16.31M-42.39M-8.06M-27.30M
Financing Cash Flow
108.98M162.02M-71.52M-74.06M-120.53M-207.56M

Mcmillan Shakespeare Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.85
Price Trends
50DMA
15.30
Positive
100DMA
14.69
Positive
200DMA
14.54
Positive
Market Momentum
MACD
0.12
Positive
RSI
53.02
Neutral
STOCH
54.12
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUSIQ
76
Outperform
$989.21M12.5130.57%5.21%21.55%22.04%
AUMAD
73
Outperform
AU$1.21B22.9931.70%1.34%15.46%15.14%
AUMMS
72
Outperform
AU$1.10B12.1074.00%10.32%43.44%165.54%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
AUASH
64
Neutral
AU$26.64M12.176.96%5.62%-7.92%-61.32%
AUPPE
49
Neutral
AU$69.02M18.92-2.93%3.28%-3.90%-142.61%
AUAD1
46
Neutral
AU$7.76M-245.01%-17.50%66.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:MMS
Mcmillan Shakespeare Limited
15.85
0.50
3.26%
AU:SIQ
Smartgroup Corporation Ltd
7.29
-0.51
-6.51%
AU:MAD
Mader Group Ltd
5.98
0.02
0.34%
AU:AD1
AD1 Holdings Ltd
0.05
0.00
0.00%
AU:PPE
Peoplein Limited
0.64
-0.11
-14.67%
AU:ASH
Ashley Services Group Ltd.
0.18
-0.07
-28.00%

Mcmillan Shakespeare Limited Corporate Events

Eagers Automotive and AP Group Cease Substantial Holding in Mcmillan Shakespeare
Jun 4, 2025

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
Apr 23, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.