McMillan Shakespeare
Market Cap
AU$732.0m
Last Updated
2020/10/21 10:34 UTC
Data Sources
Company Financials +
Executive Summary
McMillan Shakespeare Limited provides salary packaging, novated leasing, disability plan management, asset management, and related financial products and services in Australia, the United Kingdom, and New Zealand. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with mediocre balance sheet.
Share Price & News
How has McMillan Shakespeare's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MMS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.5%
MMS
-0.4%
AU Professional Services
0.01%
AU Market
1 Year Return
-36.9%
MMS
-7.4%
AU Professional Services
-5.7%
AU Market
Return vs Industry: MMS underperformed the Australian Professional Services industry which returned -7.4% over the past year.
Return vs Market: MMS underperformed the Australian Market which returned -5.7% over the past year.
Shareholder returns
| MMS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | -0.4% | 0.01% |
| 30 Day | 8.7% | 5.0% | 5.4% |
| 90 Day | 2.0% | 11.9% | 4.0% |
| 1 Year | -34.8%-36.9% | -4.3%-7.4% | -2.4%-5.7% |
| 3 Year | -30.6%-38.9% | 9.2%-2.1% | 18.0%3.0% |
| 5 Year | -7.1%-25.9% | 42.0%16.2% | 42.1%13.2% |
Price Volatility Vs. Market
How volatile is McMillan Shakespeare's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
McMillan Shakespeare (ASX:MMS) Seems To Use Debt Quite Sensibly3 weeks ago | Simply Wall St
Is McMillan Shakespeare Limited (ASX:MMS) Popular Amongst Insiders?1 month ago | Simply Wall St
McMillan Shakespeare Limited (ASX:MMS) Insiders Increased Their HoldingsValuation
Is McMillan Shakespeare undervalued compared to its fair value and its price relative to the market?
41.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MMS (A$9.37) is trading below our estimate of fair value (A$16.1)
Significantly Below Fair Value: MMS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MMS is poor value based on its PE Ratio (582.9x) compared to the AU Professional Services industry average (15.7x).
PE vs Market: MMS is poor value based on its PE Ratio (582.9x) compared to the Australian market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: MMS is poor value based on its PEG Ratio (12.4x)
Price to Book Ratio
PB vs Industry: MMS is overvalued based on its PB Ratio (3.2x) compared to the AU Professional Services industry average (2.7x).
Next Steps
Future Growth
How is McMillan Shakespeare forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
47.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MMS's forecast earnings growth (47.2% per year) is above the savings rate (2.3%).
Earnings vs Market: MMS's earnings (47.2% per year) are forecast to grow faster than the Australian market (17.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MMS's revenue (4.1% per year) is forecast to grow slower than the Australian market (4.7% per year).
High Growth Revenue: MMS's revenue (4.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MMS's Return on Equity is forecast to be high in 3 years time (28.7%)
Next Steps
Past Performance
How has McMillan Shakespeare performed over the past 5 years?
-14.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MMS has a large one-off loss of A$65.8M impacting its June 30 2020 financial results.
Growing Profit Margin: MMS's current net profit margins (0.3%) are lower than last year (11.6%).
Past Earnings Growth Analysis
Earnings Trend: MMS's earnings have declined by 14.4% per year over the past 5 years.
Accelerating Growth: MMS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MMS had negative earnings growth (-98%) over the past year, making it difficult to compare to the Professional Services industry average (-5.6%).
Return on Equity
High ROE: MMS's Return on Equity (1%) is considered low.
Next Steps
Financial Health
How is McMillan Shakespeare's financial position?
Financial Position Analysis
Short Term Liabilities: MMS's short term assets (A$283.2M) exceed its short term liabilities (A$162.0M).
Long Term Liabilities: MMS's short term assets (A$283.2M) do not cover its long term liabilities (A$293.6M).
Debt to Equity History and Analysis
Debt Level: MMS's debt to equity ratio (115.9%) is considered high.
Reducing Debt: MMS's debt to equity ratio has increased from 109.2% to 115.9% over the past 5 years.
Debt Coverage: MMS's debt is well covered by operating cash flow (71%).
Interest Coverage: MMS's interest payments on its debt are well covered by EBIT (11.3x coverage).
Balance Sheet
Next Steps
Dividend
What is McMillan Shakespeare current dividend yield, its reliability and sustainability?
6.94%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MMS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MMS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MMS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MMS's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MMS is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MMS's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average management tenure
CEO
Mike Salisbury
6yrs
Tenure
AU$827,462
Compensation
Mr. Michael Neil Salisbury, also known as Mike, MBA has been the Chief Executive Officer of McMillan Shakespeare Limited since October 1, 2014 and has been its Managing Director since February 5, 2015. Mr. ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD583.54K) is about average for companies of similar size in the Australian market ($USD711.63K).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 6yrs | AU$827.46k | 0.021% A$ 156.4k | |
| CFO & Company Secretary | 9yrs | AU$730.04k | 0.0039% A$ 28.4k | |
| Chief Operating Officer | no data | AU$958.49k | 0.0091% A$ 66.2k | |
| CFO & Company Secretary | no data | no data | no data | |
| Chief Information Officer | 0.75yr | no data | no data | |
| Group Executive of Sales & Product Services | no data | no data | no data | |
| Chief Human Resources Officer | no data | no data | no data | |
| Chief Customer Officer | 0.75yr | no data | no data | |
| Head of Corporate Affairs | 0.083yr | no data | no data | |
| Chief Executive Officer of Plan Partners | no data | no data | no data | |
| Group Executive of Innovation | no data | AU$213.80k | no data |
0.8yrs
Average Tenure
Experienced Management: MMS's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 6yrs | AU$827.46k | 0.021% A$ 156.4k | |
| Independent Non-Executive Director | 6.42yrs | AU$128.25k | 0.0016% A$ 11.9k | |
| Non-Executive Director | 16.83yrs | AU$95.63k | 4.32% A$ 31.6m | |
| Non-Executive Director | 16.83yrs | AU$93.75k | no data | |
| Independent Non-Executive Chairman | 5yrs | AU$157.59k | 0.039% A$ 283.8k | |
| Independent Non-Executive Director | 2.08yrs | AU$130.63k | 0.026% A$ 189.2k | |
| Independent Non-Executive Director | 0.42yr | AU$11.79k | 0.0018% A$ 13.2k |
5.7yrs
Average Tenure
58.5yo
Average Age
Experienced Board: MMS's board of directors are considered experienced (5.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MMS insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
McMillan Shakespeare Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: McMillan Shakespeare Limited
- Ticker: MMS
- Exchange: ASX
- Founded: 1988
- Industry: Human Resource and Employment Services
- Sector: Commercial Services
- Market Cap: AU$732.025m
- Shares outstanding: 77.38m
- Website: https://www.mmsg.com.au
Number of Employees
Location
- McMillan Shakespeare Limited
- 360 Elizabeth Street
- Level 21
- Melbourne
- Victoria
- 3000
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MMS | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Mar 2004 |
| MMS | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Mar 2004 |
| NMN | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Mar 2004 |
Biography
McMillan Shakespeare Limited provides salary packaging, novated leasing, disability plan management, asset management, and related financial products and services in Australia, the United Kingdom, and New ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/21 10:34 |
| End of Day Share Price | 2020/10/21 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.