McMillan Shakespeare
Market Cap
AU$1.0b
Last Updated
2021/09/16 15:30 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet, good value and pays a dividend.
Similar Companies
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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MMS's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
5.9%
MMS
0.6%
AU Professional Services
0.8%
AU Market
1 Year Return
54.6%
MMS
39.2%
AU Professional Services
28.0%
AU Market
Return vs Industry: MMS exceeded the Australian Professional Services industry which returned 38.2% over the past year.
Return vs Market: MMS exceeded the Australian Market which returned 27.3% over the past year.
Shareholder returns
| MMS | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.9% | 0.6% | 0.8% |
| 30 Day | -0.4% | 2.3% | -0.3% |
| 90 Day | 1.8% | 3.0% | 1.5% |
| 1 Year | 62.4%54.6% | 43.6%39.2% | 33.5%28.0% |
| 3 Year | -12.1%-23.2% | 38.3%24.0% | 37.1%20.3% |
| 5 Year | 35.5%5.3% | 77.7%49.6% | 67.0%34.0% |
Long-Term 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
Four Days Left Until McMillan Shakespeare Limited (ASX:MMS) Trades Ex-Dividend3 months ago | Simply Wall St
How Much Did McMillan Shakespeare's(ASX:MMS) Shareholders Earn From Share Price Movements Over The Last Three Years?4 months ago | Simply Wall St
What Kind Of Investors Own Most Of McMillan Shakespeare Limited (ASX:MMS)?Valuation
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$13) is trading below our estimate of fair value (A$51.61)
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 (16.5x) compared to the Australian Professional Services industry average (20.3x).
PE vs Market: MMS is good value based on its PE Ratio (16.5x) compared to the Australian market (18.7x).
Price to Earnings Growth Ratio
PEG Ratio: MMS is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: MMS's PB Ratio (3.7x) is in line with the AU Professional Services industry average.
Future Growth
How is McMillan Shakespeare forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
15.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MMS's forecast earnings growth (15.7% per year) is above the savings rate (1.9%).
Earnings vs Market: MMS's earnings (15.7% per year) are forecast to grow faster than the Australian market (11.2% per year).
High Growth Earnings: MMS's earnings are forecast to grow, but not significantly.
Revenue vs Market: MMS's revenue (3.6% per year) is forecast to grow slower than the Australian market (5.1% per year).
High Growth Revenue: MMS's revenue (3.6% 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 (27.7%)
Past Performance
How has McMillan Shakespeare performed over the past 5 years?
-24.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MMS has a large one-off loss of A$25.0M impacting its June 30 2021 financial results.
Growing Profit Margin: MMS's current net profit margins (11.2%) are higher than last year (0.3%).
Past Earnings Growth Analysis
Earnings Trend: MMS's earnings have declined by 24.7% per year over the past 5 years.
Accelerating Growth: MMS's earnings growth over the past year (4712.1%) exceeds its 5-year average (-24.7% per year).
Earnings vs Industry: MMS earnings growth over the past year (4712.1%) exceeded the Professional Services industry 9.3%.
Return on Equity
High ROE: MMS's Return on Equity (22.7%) is considered high.
Financial Health
How is McMillan Shakespeare's financial position?
Financial Position Analysis
Short Term Liabilities: MMS's short term assets (A$308.5M) exceed its short term liabilities (A$180.1M).
Long Term Liabilities: MMS's short term assets (A$308.5M) exceed its long term liabilities (A$236.7M).
Debt to Equity History and Analysis
Debt Level: MMS's debt to equity ratio (65.6%) is considered high.
Reducing Debt: MMS's debt to equity ratio has reduced from 93.4% to 65.6% over the past 5 years.
Debt Coverage: MMS's debt is well covered by operating cash flow (110.4%).
Interest Coverage: MMS's interest payments on its debt are well covered by EBIT (15.6x coverage).
Balance Sheet
Dividend
What is McMillan Shakespeare current dividend yield, its reliability and sustainability?
4.78%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MMS's dividend (4.78%) is higher than the bottom 25% of dividend payers in the Australian market (2.33%).
High Dividend: MMS's dividend (4.78%) is low compared to the top 25% of dividend payers in the Australian market (5.26%).
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: At its current payout ratio (77.7%), MMS's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MMS's dividends in 3 years are forecast to be covered by earnings (56.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Mike Salisbury
6.92yrs
Tenure
AU$1,268,952
Compensation
Mr. Michael Neil Salisbury, also known as Mike, MBA, is Group Chief Executive Officer of McMillan Shakespeare Limited since October 1, 2014 and has been its Managing Director and Director since February 5,...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD929.70K) is about average for companies of similar size in the Australian market ($USD952.08K).
Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: MMS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
Experienced Board: MMS's board of directors are considered experienced (6.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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$1.006b
- 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
Biography
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, th...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/16 15:30 |
| End of Day Share Price | 2021/09/16 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.