Mcmillan Shakespeare Limited (MMS) AI Stock Analysis

• Market Cap: €1.20B
• Dividend Yield: 8.24%
• Average Volume (3M): 177.03K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.56
• Revenue Growth: 43.44%
• EPS Growth: 165.54%
• Country: AU
• Employees: 1,328
• Sector: Industrials
• Sector Strength: 91
• Industry: Staffing & Employment Services
• EPS (TTM): 0.71
• Shares Outstanding: 69,643,020
• 10 Day Avg. Volume: 191,455
• 30 Day Avg. Volume: 177,028
• PEG Ratio: 1.45
• Price to Book (P/B): 10.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -32.74
• 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: €15.99
• Price Target Upside: -9.02% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: AU$19.00 ▲(8.08%Upside)

The overall score reflects strong technical momentum and attractive valuation, which are the most significant contributors. Financial performance indicates potential areas for improvement, particularly in terms of cash flow consistency and leverage reduction. The absence of earnings call data and notable corporate events places greater emphasis on the available financial and technical analysis.

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 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	521.02M	363.88M	337.40M	544.22M	493.12M
Gross Profit	519.94M	51.89M	64.27M	154.33M	121.89M
EBITDA	224.28M	168.06M	151.25M	170.84M	116.99M
Net Income	83.55M	32.27M	70.35M	61.06M	1.27M
Balance Sheet
Total Assets	1.30B	1.05B	1.12B	685.93M	685.56M
Cash, Cash Equivalents and Short-Term Investments	154.63M	463.19M	600.49M	158.00M	91.41M
Total Debt	588.13M	325.13M	218.85M	225.21M	288.06M
Total Liabilities	1.17B	903.99M	828.16M	416.74M	456.67M
Stockholders Equity	128.84M	145.58M	291.43M	269.19M	228.89M
Cash Flow
Free Cash Flow	-127.63M	8.30M	110.69M	185.03M	173.75M
Operating Cash Flow	-106.00M	24.61M	119.94M	194.97M	188.46M
Investing Cash Flow	-1.35M	-16.31M	-42.39M	-8.06M	-27.30M
Financing Cash Flow	162.02M	-71.52M	-74.06M	-120.53M	-207.56M

Mcmillan Shakespeare Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 17.58 is above the 20-day moving average (MA) of 16.34, above the 50-day MA of 16.12, and above the 200-day MA of 14.77, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 74.51 is Negative, neither overbought nor oversold. The STOCH value of 90.04 is Negative, 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
MMS	71 Outperform	€1.20B	13.40	74.00%	8.24%	43.44%	165.54%
Sector *	71 Outperform	¥255.73B	13.62	8.48%	3.01%	6.34%	13.16%
STGXF	―	$686.63M	13.27	30.57%	4.60%	―	―
MAD	71 Outperform	AU$1.42B	27.22	31.70%	1.13%	15.46%	15.14%
ASH	64 Neutral	AU$24.48M	11.18	6.96%	9.41%	-7.92%	-61.32%
PPE	57 Neutral	AU$72.82M	18.92	-2.93%	3.28%	-3.90%	-142.61%
AD1	46 Neutral	AU$7.32M	―	-245.01%	―	-17.50%	66.33%

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.

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.