Loading...

McMillan Shakespeare

ASX:MMS
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MMS
ASX
A$1B
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

McMillan Shakespeare Limited provides salary packaging, vehicle leasing administration, fleet management, and retail financial services in Australia, the United Kingdom, and New Zealand. The last earnings update was 64 days ago. More info.


Add to Portfolio Compare Print
MMS Share Price and Events
7 Day Returns
4.5%
ASX:MMS
-0.8%
AU Professional Services
0.5%
AU Market
1 Year Returns
-16.9%
ASX:MMS
9.4%
AU Professional Services
4.9%
AU Market
MMS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
McMillan Shakespeare (MMS) 4.5% 11% -12.9% -16.9% 7.6% 39.1%
AU Professional Services -0.8% 2.4% 9.6% 9.4% 21.5% 15.5%
AU Market 0.5% 1.9% 8% 4.9% 19.5% 6.3%
1 Year Return vs Industry and Market
  • MMS underperformed the Professional Services industry which returned 9.4% over the past year.
  • MMS underperformed the Market in Australia which returned 4.9% over the past year.
Price Volatility
MMS
Industry
5yr Volatility vs Market
Related Companies

Value

 Is McMillan Shakespeare undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of McMillan Shakespeare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for McMillan Shakespeare.

ASX:MMS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:MMS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.86 (1 + (1- 30%) (33.39%))
1.041
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.041 * 5.96%)
8.52%

Discounted Cash Flow Calculation for ASX:MMS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for McMillan Shakespeare is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:MMS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.52%)
2019 69.28 Analyst x3 63.84
2020 67.87 Analyst x3 57.63
2021 83.02 Analyst x2 64.97
2022 77.47 Est @ -6.68% 55.87
2023 74.39 Est @ -3.98% 49.43
2024 72.83 Est @ -2.1% 44.60
2025 72.26 Est @ -0.77% 40.78
2026 72.37 Est @ 0.15% 37.64
2027 72.95 Est @ 0.8% 34.96
2028 73.87 Est @ 1.25% 32.62
Present value of next 10 years cash flows A$482.36
ASX:MMS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$73.87 × (1 + 2.31%) ÷ (8.52% – 2.31%)
A$1,218.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$1,218.30 ÷ (1 + 8.52%)10
A$538.07
ASX:MMS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$482.36 + A$538.07
A$1,020.43
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$1,020.43 / 82.67
A$12.34
ASX:MMS Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$12.34
Current discount Discount to share price of A$13.51
= -1 x (A$13.51 - A$12.34) / A$12.34
-9.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of McMillan Shakespeare is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for McMillan Shakespeare's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are McMillan Shakespeare's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:MMS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.60
ASX:MMS Share Price ** ASX (2019-04-24) in AUD A$13.51
Australia Professional Services Industry PE Ratio Median Figure of 10 Publicly-Listed Professional Services Companies 17.25x
Australia Market PE Ratio Median Figure of 544 Publicly-Listed Companies 16.19x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of McMillan Shakespeare.

ASX:MMS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:MMS Share Price ÷ EPS (both in AUD)

= 13.51 ÷ 0.60

22.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McMillan Shakespeare is overvalued based on earnings compared to the AU Professional Services industry average.
  • McMillan Shakespeare is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does McMillan Shakespeare's expected growth come at a high price?
Raw Data
ASX:MMS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
19.7%per year
Australia Professional Services Industry PEG Ratio Median Figure of 8 Publicly-Listed Professional Services Companies 1.21x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:MMS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.37x ÷ 19.7%

1.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McMillan Shakespeare is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on McMillan Shakespeare's assets?
Raw Data
ASX:MMS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$4.51
ASX:MMS Share Price * ASX (2019-04-24) in AUD A$13.51
Australia Professional Services Industry PB Ratio Median Figure of 23 Publicly-Listed Professional Services Companies 2.2x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.68x
ASX:MMS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:MMS Share Price ÷ Book Value per Share (both in AUD)

= 13.51 ÷ 4.51

2.99x

* Primary Listing of McMillan Shakespeare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McMillan Shakespeare is overvalued based on assets compared to the AU Professional Services industry average.
X
Value checks
We assess McMillan Shakespeare's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. McMillan Shakespeare has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is McMillan Shakespeare expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is McMillan Shakespeare expected to grow at an attractive rate?
  • McMillan Shakespeare's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • McMillan Shakespeare's earnings growth is expected to exceed the Australia market average.
  • McMillan Shakespeare's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:MMS Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:MMS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 19.7%
ASX:MMS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 4.7%
Australia Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 29.3%
Australia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 10.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:MMS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:MMS Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 614 105 110 5
2020-06-30 587 148 98 6
2019-06-30 559 126 85 6
ASX:MMS Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 549 127 50
2018-09-30 547 122 50
2018-06-30 545 118 50
2018-03-31 547 86 56
2017-12-31 542 53 62
2017-09-30 533 50 65
2017-06-30 523 47 68
2017-03-31 518 52 76
2016-12-31 512 58 84
2016-09-30 508 76 83
2016-06-30 505 95 82
2016-03-31 478 53 79

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • McMillan Shakespeare's earnings are expected to grow by 19.7% yearly, however this is not considered high growth (20% yearly).
  • McMillan Shakespeare's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:MMS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from McMillan Shakespeare Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MMS Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 1.31 1.34 1.27 3.00
2020-06-30 1.18 1.22 1.13 4.00
2019-06-30 1.02 1.09 0.98 4.00
ASX:MMS Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.60
2018-09-30 0.61
2018-06-30 0.61
2018-03-31 0.68
2017-12-31 0.75
2017-09-30 0.78
2017-06-30 0.82
2017-03-31 0.91
2016-12-31 1.01
2016-09-30 1.00
2016-06-30 0.99
2016-03-31 0.96

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • McMillan Shakespeare is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess McMillan Shakespeare's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
McMillan Shakespeare has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has McMillan Shakespeare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare McMillan Shakespeare's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • McMillan Shakespeare's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • McMillan Shakespeare's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • McMillan Shakespeare's 1-year earnings growth is negative, it can't be compared to the AU Professional Services industry average.
Earnings and Revenue History
McMillan Shakespeare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from McMillan Shakespeare Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MMS Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 548.75 49.89 290.69
2018-09-30 547.08 50.10 288.47
2018-06-30 545.40 50.30 286.24
2018-03-31 547.36 56.36 280.04
2017-12-31 541.90 62.42 275.86
2017-09-30 532.67 65.16 271.72
2017-06-30 523.44 67.90 267.59
2017-03-31 517.55 75.93 260.10
2016-12-31 511.66 83.96 252.61
2016-09-30 508.16 83.21 248.71
2016-06-30 504.67 82.47 244.82
2016-03-31 478.03 78.88 226.21
2015-12-31 451.39 75.30 203.93
2015-09-30 420.49 71.39 185.65
2015-06-30 389.59 67.49 167.38
2015-03-31 379.05 67.16 161.07
2014-12-31 368.50 66.84 154.75
2014-09-30 357.98 60.90 151.41
2014-06-30 347.46 54.97 148.06
2014-03-31 339.39 53.32 144.84
2013-12-31 331.33 51.68 141.63
2013-09-30 330.70 56.92 138.24
2013-06-30 330.06 62.16 134.86
2013-03-31 324.62 60.65 136.80
2012-12-31 319.18 59.13 138.73
2012-09-30 310.60 56.72 134.05
2012-06-30 302.03 54.31 129.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • McMillan Shakespeare has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • McMillan Shakespeare used its assets less efficiently than the AU Professional Services industry average last year based on Return on Assets.
  • McMillan Shakespeare has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess McMillan Shakespeare's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
McMillan Shakespeare has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is McMillan Shakespeare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up McMillan Shakespeare's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • McMillan Shakespeare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • McMillan Shakespeare's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of McMillan Shakespeare's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from McMillan Shakespeare Company Filings, last reported 3 months ago.

ASX:MMS Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 372.60 369.87 112.95
2018-09-30 372.60 369.87 112.95
2018-06-30 371.38 337.88 99.70
2018-03-31 371.38 337.88 99.70
2017-12-31 380.95 347.91 47.80
2017-09-30 380.95 347.91 47.80
2017-06-30 371.00 339.74 59.42
2017-03-31 371.00 339.74 59.42
2016-12-31 379.84 333.64 57.51
2016-09-30 379.84 333.64 57.51
2016-06-30 370.50 346.39 95.58
2016-03-31 370.50 346.39 95.58
2015-12-31 358.32 342.75 67.19
2015-09-30 358.32 342.75 67.19
2015-06-30 318.44 352.40 85.73
2015-03-31 318.44 352.40 85.73
2014-12-31 248.23 239.43 97.37
2014-09-30 248.23 239.43 97.37
2014-06-30 223.85 215.09 71.20
2014-03-31 223.85 215.09 71.20
2013-12-31 202.60 199.46 41.21
2013-09-30 202.60 199.46 41.21
2013-06-30 195.44 182.78 57.24
2013-03-31 195.44 182.78 57.24
2012-12-31 179.85 190.05 54.13
2012-09-30 179.85 190.05 54.13
2012-06-30 168.05 157.25 54.42
  • McMillan Shakespeare's level of debt (99.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (98.4% vs 99.3% today).
  • Debt is well covered by operating cash flow (34.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14.2x coverage).
X
Financial health checks
We assess McMillan Shakespeare's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. McMillan Shakespeare has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is McMillan Shakespeare's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.48%
Current annual income from McMillan Shakespeare dividends. Estimated to be 5.7% next year.
If you bought A$2,000 of McMillan Shakespeare shares you are expected to receive A$110 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • McMillan Shakespeare's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.52%).
  • McMillan Shakespeare's dividend is below the markets top 25% of dividend payers in Australia (5.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:MMS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Australia Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:MMS Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.85 5.00
2020-06-30 0.77 7.00
2019-06-30 0.71 7.00
ASX:MMS Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-19 0.740 5.940
2018-08-21 0.730 4.737
2018-02-20 0.680 4.095
2017-08-22 0.660 4.074
2017-02-21 0.650 4.819
2016-08-23 0.680 6.147
2015-08-26 0.520 3.990
2015-08-25 0.520 3.785
2014-08-29 0.520 4.512
2014-08-25 0.520 4.628
2013-10-21 0.420 3.953
2013-02-19 0.490 3.633
2012-09-10 0.500 3.817
2012-08-21 0.500 4.118
2012-02-21 0.440 4.046
2011-08-30 0.440 5.018
2011-02-15 0.300 3.231
2010-09-09 0.240 3.163
2010-08-17 0.240 3.871
2010-02-16 0.205 4.891
2009-08-18 0.190 4.928

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of McMillan Shakespeare's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess McMillan Shakespeare's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can McMillan Shakespeare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. McMillan Shakespeare has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of McMillan Shakespeare's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Salisbury
COMPENSATION A$1,227,365
TENURE AS CEO 4.5 years
CEO Bio

Mr. Michael Neil Salisbury, also known as Mike, MBA has been the Chief Executive Officer of McMillan Shakespeare Ltd. since October 1, 2014 and has been its Managing Director since February 5, 2015. Mr. Salisbury served as Managing Director of Remuneration Services at McMillan Shakespeare Ltd. from April 2008 to October 1, 2014 and also served as its General Manager of Remuneration Services from July 1, 2008 to June 30, 2009. Before joining McMillan Shakespeare Limited in April 2008, Mr. Salisbury was a member of the senior management team at AAMI. Mr. Salisbury held a variety of management positions within the organisation, including a number of state management roles and the position of Product Manager for Compulsory Third Party Insurance. He serves as a Director of McMillan Shakespeare Ltd. He is a Director of the National Automotive Leasing & Salary Packaging Association. Mr. Salisbury is a graduate of the Advanced Management Program at Harvard Business School and holds a Master of Business Administration from Southern Cross University. Mr. Salisbury is a member of the Australian Institute of Company Directors.

CEO Compensation
  • Mike's compensation has increased by more than 20% in the past year.
  • Mike's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the McMillan Shakespeare management team in years:

3
Average Tenure
  • The tenure for the McMillan Shakespeare management team is about average.
Management Team

Mike Salisbury

TITLE
MD, CEO & Director
COMPENSATION
A$1M
TENURE
4.5 yrs

Mark Blackburn

TITLE
CFO & Company Secretary
COMPENSATION
A$883K
TENURE
7.5 yrs

Geoff Kruyt

TITLE
Managing Director of Maxxia UK
COMPENSATION
A$1M

Simon Haidar

TITLE
Group Executive of Sales & Product Services

Tania Turnbull

TITLE
Group Executive of Marketing
TENURE
0.3 yrs

Suzanne Shepherd

TITLE
Group Executive of Human Resources

Sean Dempsey

TITLE
Chief Executive Officer of Plan Management Partners

Andrew Suckling

TITLE
Group Executive of Innovation
COMPENSATION
A$214K

Ron Steiner

TITLE
Group Executive of Customer Relations
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the McMillan Shakespeare board of directors in years:

4.9
Average Tenure
56.5
Average Age
  • The tenure for the McMillan Shakespeare board of directors is about average.
Board of Directors

Tim Poole

TITLE
Chairman
COMPENSATION
A$205K
AGE
49
TENURE
3.5 yrs

Mike Salisbury

TITLE
MD, CEO & Director
COMPENSATION
A$1M

Ian Elliot

TITLE
Independent Non-Executive Director
COMPENSATION
A$130K
AGE
64
TENURE
4.9 yrs

Ross Chessari

TITLE
Non-Executive Director
COMPENSATION
A$115K
AGE
58
TENURE
15.3 yrs

John Bennetts

TITLE
Non-Executive Director
COMPENSATION
A$115K
AGE
55
TENURE
15.3 yrs

Helen Kurincic

TITLE
Independent Non-Executive Director
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by McMillan Shakespeare insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
18. Apr 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 08. Apr 19 12. Apr 19 -45,661 A$12.19 A$-556,421
18. Apr 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 08. Apr 19 12. Apr 19 42,673 A$12.11 A$516,908
14. Apr 19 Buy Helen Kurincic Individual 10. Apr 19 10. Apr 19 11,000 A$12.11 A$133,160
14. Apr 19 Buy Timothy Poole Individual 10. Apr 19 10. Apr 19 11,000 A$12.05 A$132,506
11. Apr 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 06. Dec 18 05. Apr 19 -1,293,581 A$13.38 A$-17,312,458
11. Apr 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 06. Dec 18 05. Apr 19 1,226,518 A$13.19 A$16,178,313
20. Mar 19 Sell Vinva Investment Management Company 05. Sep 18 18. Mar 19 -596,747 A$12.89 A$-7,694,021
20. Mar 19 Buy Vinva Investment Management Company 05. Sep 18 18. Mar 19 346,809 A$17.76 A$6,159,226
18. Mar 19 Buy BlackRock, Inc. Company 18. Dec 18 15. Mar 19 2,858,121 A$16.15 A$12,495,460
16. Dec 18 Sell BlackRock, Inc. Company 22. Nov 18 11. Dec 18 -15,922 A$14.36 A$-69,487
16. Dec 18 Buy BlackRock, Inc. Company 22. Nov 18 13. Dec 18 111,376 A$14.31 A$219,305
25. Nov 18 Buy BlackRock, Inc. Company 25. Jul 18 21. Nov 18 927,080 A$17.99 A$161,386
20. Nov 18 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 15. Nov 18 16. Nov 18 75,248 A$14.59 A$1,094,796
06. Sep 18 Sell Vinva Investment Management Company 21. Jun 18 04. Sep 18 -1,516,802 A$15.98 A$-24,234,428
06. Sep 18 Buy Vinva Investment Management Company 21. Jun 18 04. Sep 18 1,794,023 A$17.28 A$30,998,882
22. Jun 18 Sell Vinva Investment Management Company 02. Feb 18 20. Jun 18 -654,126 A$16.77 A$-10,972,697
22. Jun 18 Buy Vinva Investment Management Company 02. Feb 18 20. Jun 18 326,510 A$17.30 A$5,647,941
X
Management checks
We assess McMillan Shakespeare's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. McMillan Shakespeare has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is McMillan Shakespeare Limited's (ASX:MMS) Balance Sheet Strong Enough To Weather A Storm?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Understanding the company's financial health becomes. … We'll look at some basic checks that can form a snapshot the company’s financial strength.

Simply Wall St -

Do Insiders Own Lots Of Shares In McMillan Shakespeare Limited (ASX:MMS)?

A look at the shareholders of McMillan Shakespeare Limited (ASX:MMS) can tell us which group is most powerful. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … McMillan Shakespeare is a smaller company with a market capitalization of AU$992m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Does McMillan Shakespeare Limited’s (ASX:MMS) ROCE Reflect Well On The Business?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

McMillan Shakespeare Limited (ASX:MMS): 4 Days To Buy Before The Ex-Dividend Date

On the 22 March 2019, McMillan Shakespeare Limited (ASX:MMS) will be paying shareholders an upcoming dividend amount of AU$0.34 per share. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … 5 checks you should use to assess a dividend stock?

Simply Wall St -

Why McMillan Shakespeare Limited's (ASX:MMS) High P/E Ratio Isn't Necessarily A Bad Thing

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use McMillan Shakespeare Limited's (ASX:MMS) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Worry About McMillan Shakespeare Limited's (ASX:MMS) CEO Salary Level?

Mike Salisbury has been the CEO of McMillan Shakespeare Limited (ASX:MMS) since 2014. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mike Salisbury's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is There An Opportunity With McMillan Shakespeare Limited's (ASX:MMS) 21.76% Undervaluation?

by taking the expected future cash flows and discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

McMillan Shakespeare Limited (ASX:MMS): What Are The Future Prospects?

The latest earnings update McMillan Shakespeare Limited (ASX:MMS) released in June 2018a

Simply Wall St -

McMillan Shakespeare Limited (ASX:MMS): Time For A Financial Health Check

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Are McMillan Shakespeare Limited’s (ASX:MMS) High Returns Really That Great?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Company Info

Description

McMillan Shakespeare Limited provides salary packaging, vehicle leasing administration, fleet management, and retail financial services in Australia, the United Kingdom, and New Zealand. The company operates in three segments: Group Remuneration Services, Asset Management, and Retail Financial Services. The Group Remuneration Services segment offers administrative services related to salary packaging; and facilitates the settlement of motor vehicle novated leases for customers. It also provides ancillary services associated with motor vehicle novated lease products. The Asset Management segment offers financing and ancillary management services associated with motor vehicles, commercial vehicles, and equipment. The Retail Financial services segment provides retail brokerage services, aggregation of finance originations, and extended warranty covers. The company is also involved in the software development business. It serves federal and state governments, health groups, not-for-profit organizations, and private corporations. McMillan Shakespeare Limited was founded in 1988 and is headquartered in Melbourne, Australia.

Details
Name: McMillan Shakespeare Limited
MMS
Exchange: ASX
Founded: 1988
A$1,107,732,319
82,666,591
Website: http://www.mmsg.com.au
Address: McMillan Shakespeare Limited
The Tower,
Floor 21,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX MMS Ordinary Shares Australian Securities Exchange AU AUD 15. Mar 2004
OTCPK MCSL.F Ordinary Shares Pink Sheets LLC US USD 15. Mar 2004
DB NMN Ordinary Shares Deutsche Boerse AG DE EUR 15. Mar 2004
CHIA MMS Ordinary Shares Chi-X Australia AU AUD 15. Mar 2004
Number of employees
Current staff
Staff numbers
1,283
McMillan Shakespeare employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 10:30
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.