McMillan Shakespeare
Market Cap
AU$511.5m
Last Updated
2020/03/30 10:31 UTC
Data Sources
Company Financials +
Executive Summary
McMillan Shakespeare Limited provides salary packaging, novated leasing, asset management, and related financial products and services in Australia, the United Kingdom, and New Zealand.
Rewards
Risk Analysis
Snowflake Analysis
Good value with proven track record and pays a dividend.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
9.4%
MMS
-2.4%
AU Professional Services
0.3%
AU Market
1 Year Return
-42.9%
MMS
-23.6%
AU Professional Services
-22.9%
AU Market
Return vs Industry: MMS underperformed the Australian Professional Services industry which returned -23.6% over the past year.
Return vs Market: MMS underperformed the Australian Market which returned -22.9% over the past year.
Shareholder returns
| MMS | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.4% | -2.4% | 0.3% |
| 30 Day | -36.8% | -32.2% | -25.3% |
| 90 Day | -47.7% | -39.0% | -29.9% |
| 1 Year | -39.5%-42.9% | -21.5%-23.6% | -19.4%-22.9% |
| 3 Year | -39.1%-47.7% | -6.5%-14.4% | -8.3%-20.8% |
| 5 Year | -28.3%-44.0% | 1.4%-13.9% | 2.9%-20.3% |
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
4 days ago | Simply Wall St
What Is McMillan Shakespeare's (ASX:MMS) P/E Ratio After Its Share Price Tanked?6 days ago | Simply Wall St
Are McMillan Shakespeare Limited’s (ASX:MMS) Returns On Investment Worth Your While?2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At McMillan Shakespeare Limited's (ASX:MMS) P/E RatioValuation
Is McMillan Shakespeare undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MMS (A$6.85) is trading below our estimate of fair value (A$21.05)
Significantly Below Fair Value: MMS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MMS is good value based on its PE Ratio (8.8x) compared to the Professional Services industry average (11.4x).
PE vs Market: MMS is good value based on its PE Ratio (8.8x) compared to the Australian market (12.6x).
Price to Earnings Growth Ratio
PEG Ratio: MMS is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: MMS is overvalued based on its PB Ratio (1.8x) compared to the AU Professional Services industry average (1.2x).
Next Steps
Future Growth
How is McMillan Shakespeare forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
8.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MMS's forecast earnings growth (8.3% per year) is above the savings rate (1.1%).
Earnings vs Market: MMS's earnings (8.3% per year) are forecast to grow slower than the Australian market (9.7% per year).
High Growth Earnings: MMS's earnings are forecast to grow, but not significantly.
Revenue vs Market: MMS's revenue (2.1% per year) is forecast to grow slower than the Australian market (4% per year).
High Growth Revenue: MMS's revenue (2.1% 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 (24.4%)
Next Steps
Past Performance
How has McMillan Shakespeare performed over the past 5 years?
-5.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MMS has high quality earnings.
Growing Profit Margin: MMS's current net profit margins (11.6%) are higher than last year (9%).
Past Earnings Growth Analysis
Earnings Trend: MMS's earnings have declined by -5.9% per year over the past 5 years.
Accelerating Growth: MMS's earnings growth over the past year (28.6%) exceeds its 5-year average (-5.9% per year).
Earnings vs Industry: MMS earnings growth over the past year (28.6%) exceeded the Professional Services industry 12.9%.
Return on Equity
High ROE: Whilst MMS's Return on Equity (21.44%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is McMillan Shakespeare's financial position?
Financial Position Analysis
Short Term Liabilities: MMS's short term assets (A$269.0M) exceed its short term liabilities (A$135.7M).
Long Term Liabilities: MMS's short term assets (A$269.0M) do not cover its long term liabilities (A$358.9M).
Debt to Equity History and Analysis
Debt Level: MMS's debt to equity ratio (110.9%) is considered high.
Reducing Debt: MMS's debt to equity ratio has increased from 95.5% to 110.9% over the past 5 years.
Debt Coverage: MMS's debt is well covered by operating cash flow (43.6%).
Interest Coverage: MMS's interest payments on its debt are well covered by EBIT (12.2x coverage).
Balance Sheet
Inventory Level: MMS has a high level of physical assets or inventory.
Debt Coverage by Assets: MMS's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is McMillan Shakespeare's current dividend yield, its reliability and sustainability?
10.80%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MMS's dividend (10.8%) is higher than the bottom 25% of dividend payers in the Australian market (3.35%).
High Dividend: MMS's dividend (10.8%) is in the top 25% of dividend payers in the Australian market (8.5%)
Stability and Growth of Payments
Stable Dividend: MMS's dividend payments have been volatile in the past 10 years.
Growing Dividend: MMS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (95.1%), MMS's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MMS's dividends in 3 years are forecast to be covered by earnings (62.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Mike Salisbury
5.42s
Tenure
AU$787,874
Compensation
Mr. Michael Neil Salisbury, also known as Mike, MBA has been the Chief Executive Officer of McMillan Shakespeare Ltd. since October 1, 2014 and has been its Managing Director since February 5, 2015. Mr. Sa ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD483.24K) is below average for companies of similar size in the Australian market ($USD815.27K).
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 | 5.42yrs | AU$787.87k | 0.021% A$109.3k | |
| CFO & Company Secretary | 8.42yrs | AU$643.42k | 0.0039% A$19.8k | |
| Managing Director of Maxxia UK | no data | AU$911.97k | no data | |
| Group Executive of Sales & Product Services | no data | no data | no data | |
| Group Executive of Marketing | 1.17yrs | no data | no data | |
| Group Executive of Human Resources | no data | no data | no data | |
| Chief Executive Officer of Plan Management Partners | no data | no data | no data | |
| Group Executive of Innovation | no data | AU$213.80k | no data | |
| Group Executive of Customer Relations | 2.33yrs | no data | no data |
3.9yrs
Average Tenure
Experienced Management: MMS's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 5.42yrs | AU$787.87k | 0.021% A$109.3k | |
| Independent Non-Executive Director | 5.83yrs | AU$133.75k | 0.0016% A$8.3k | |
| Non-Executive Director | 16.25yrs | AU$124.38k | 4.32% A$22.1m | |
| Non-Executive Director | 16.25yrs | AU$122.50k | no data | |
| Non-Executive Chairman | 4.42yrs | AU$208.84k | 0.039% A$198.3k | |
| Independent Non-Executive Director | 1.5yrs | AU$108.85k | 0.026% A$132.2k |
5.8yrs
Average Tenure
57.5yo
Average Age
Experienced Board: MMS's board of directors are considered experienced (5.8 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$511.489m
- Shares outstanding: 77.38m
- Website: https://www.mmsg.com.au
Number of Employees
Location
- McMillan Shakespeare Limited
- The Tower
- 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, asset management, and related financial products and services in Australia, the United Kingdom, and New Zealand. It operates in three segments: Group Remuneration Services, Asset Management, and Retail Financial Services. The Group Remuneration Services segment offers employee benefits administration services for 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 finance brokerage services, and ancillary fleet management related with motor vehicles, commercial vehicles, and equipment; and retails used motor vehicles. The Retail Financial Services segment offers retail brokerage services; and engages in the aggregation of finance originations and extended warranty cover. The company also provides plan management and software development services. It serves federal and state governments, health groups, not-for-profit organizations, and private corporations. The company was founded in 1988 and is headquartered in Melbourne, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 10:31 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.