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Mcmillan Shakespeare Limited
(Sydney:MMS)
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Rating:59Neutral
Price Target:
AU$19.00
â–¼(-6.59% Downside)
Action:Reiterated
Date:08/29/26
The score is held back primarily by financial risk: high leverage and weak/negative free cash flow despite strong reported profitability. Technicals are moderately constructive with price above major moving averages, and valuation is supportive with a moderate P/E and high dividend yield, but balance-sheet and cash-generation durability remain the key swing factors.
Positive Factors
Strong profitability
Strong reported margins indicate that MMS converts its salary-packaging, leasing, and related administration activities into meaningful earnings. If these margins remain broadly sustainable, they provide operating capacity to reinvest, serve customers, and absorb moderate business volatility over the next several quarters.
Negative Factors
Very high leverage
The sharp increase in debt against a relatively small equity base leaves MMS highly sensitive to weaker earnings or cash generation. Elevated leverage can restrict financial flexibility, increase the importance of refinancing, and reduce the company’s ability to fund growth or withstand operating setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
Strong reported margins indicate that MMS converts its salary-packaging, leasing, and related administration activities into meaningful earnings. If these margins remain broadly sustainable, they provide operating capacity to reinvest, serve customers, and absorb moderate business volatility over the next several quarters.
Read all positive factors
Mcmillan Shakespeare Limited (MMS) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.29B
Dividend Yield7.06%
Average Volume (3M)211.11K
Price to Earnings (P/E)12.2
Beta (1Y)1.06
Revenue Growth7.71%
EPS Growth11.40%
CountryAU
Employees1,263
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)1.53
Shares Outstanding69,643,020
10 Day Avg. Volume125,311
30 Day Avg. Volume211,111
Financial Highlights & Ratios
PEG Ratio1.17
Price to Book (P/B)10.74
Price to Sales (P/S)2.34
P/FCF Ratio-507.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$21.07Price Target Upside3.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.64
Revenue Forecast (FY)AU$615.03M
Mcmillan Shakespeare Limited Business Overview & Revenue Model
Company Description
McMillan Shakespeare Limited, an Australian company established in Melbourne in 1988, delivers a diverse portfolio of financial and administrative services across Australia, the United Kingdom, and New Zealand. These offerings include salary packa...
How the Company Makes Money
MMS made money primarily by administering salary packaging and novated leasing programs for employers and employees. Its key revenue streams included: (1) administration and management fees charged for operating salary packaging arrangements (typi...
Mcmillan Shakespeare Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
38
Negative
Cash Flow
24
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 579.69M | 435.63M | 521.02M | 363.88M | 337.40M |
| Gross Profit | 242.41M | 435.63M | 519.94M | 51.89M | 64.27M |
| EBITDA | 252.21M | 245.09M | 224.28M | 168.06M | 162.43M |
| Net Income | 106.13M | 95.34M | 83.55M | 32.27M | 70.35M |
Balance Sheet | |||||
| Total Assets | 1.59B | 1.48B | 1.30B | 1.05B | 1.12B |
| Cash, Cash Equivalents and Short-Term Investments | 566.14M | 126.28M | 154.63M | 463.19M | 600.49M |
| Total Debt | 837.16M | 758.36M | 588.13M | 325.13M | 218.85M |
| Total Liabilities | 1.46B | 1.37B | 1.17B | 903.99M | 828.16M |
| Stockholders Equity | 126.40M | 112.79M | 128.84M | 145.58M | 291.43M |
Cash Flow | |||||
| Free Cash Flow | -2.67M | -78.98M | -127.63M | 8.30M | 110.69M |
| Operating Cash Flow | 8.13M | -59.70M | -106.00M | 24.61M | 119.94M |
| Investing Cash Flow | -13.19M | -26.68M | -1.35M | -16.31M | -42.39M |
| Financing Cash Flow | -24.94M | 59.67M | 162.02M | -71.52M | -74.06M |
Mcmillan Shakespeare Limited Technical Analysis
Positive
20.34
Price Trends
19.09
Negative
18.99
Negative
17.27
Positive
Market Momentum
-0.14
Negative
50.01
Neutral
78.42
Neutral
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 20.34 is above the 20-day moving average (MA) of 18.49, above the 50-day MA of 19.09, and above the 200-day MA of 17.27, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 78.42 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$1.60B | 17.98 | 29.94% | 4.73% | 10.49% | 5.31% | |
70 Outperform | AU$278.08M | 15.01 | 10.76% | 3.94% | 15.47% | 60.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | AU$192.42M | 55.51 | 11.79% | 0.91% | 18.25% | 2.90% | |
59 Neutral | AU$1.29B | 12.19 | 88.76% | 7.06% | 7.71% | 11.40% | |
52 Neutral | AU$1.21B | 10.26 | 14.45% | 1.83% | 34.24% | 1.87% | |
49 Neutral | AU$52.59M | -5.81 | -8.44% | 9.71% | -28.17% | 27.32% |
* Industrials Sector Average
AU:MMS
Mcmillan Shakespeare Limited
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Mcmillan Shakespeare Limited Corporate Events
McMillan Shakespeare Issues 2026 AGM Notice and Proxy Form
Sep 18, 2026
McMillan Shakespeare Limited has released its 2026 Notice of Annual General Meeting and accompanying proxy form to the Australian Securities Exchange. The documentation signals the formal start of the company’s AGM process, enabling sharehol...
McMillan Shakespeare Issues New Unquoted Share Rights Under Staff Incentive Plan
Sep 16, 2026
McMillan Shakespeare Limited has notified the market of the issue of 25,482 unquoted share rights under its employee incentive scheme, effective 15 September 2026. These MMSAR share rights are not intended to be quoted on the ASX, reflecting the c...
Mcmillan Shakespeare Flags Lapse of 10,430 Unvested Performance Rights
Sep 10, 2026
Mcmillan Shakespeare Limited has notified the market that 10,430 performance rights, designated as MMSAD, have ceased following the lapse of conditional rights to securities after the relevant conditions were not met or became incapable of being s...
Mcmillan Shakespeare Issues New Shares on Option Conversion
Sep 10, 2026
Mcmillan Shakespeare Limited is an ASX-listed company operating in the financial and services sector, with its ordinary fully paid shares traded under the ticker MMS. The company’s capital structure includes both quoted ordinary shares and u...
McMillan Shakespeare Names Andrew Moore Director With No Initial Shareholding
Sep 6, 2026
McMillan Shakespeare Limited has appointed Andrew Moore as a director effective 7 September 2026, with an initial disclosure confirming he holds no relevant interests in the company’s securities at the time of appointment. The notice also st...
McMillan Shakespeare refreshes board as long-serving director exits
Sep 6, 2026
McMillan Shakespeare Limited has appointed Andrew Moore as an independent non-executive director, bringing extensive experience in finance, banking, wealth management and financial technology to the board. Moore, who has held senior roles at Westp...
McMillan Shakespeare posts record FY26 profit on EV-led novated growth
Aug 27, 2026
McMillan Shakespeare Limited reported a record FY26 performance, with revenue rising 6.8% to $602.1 million and EBITDA up 14.1% as margin expansion and technology-driven productivity boosted profitability. The group saw customer growth across all ...
McMillan Shakespeare Declares AUD 0.70 Interim Dividend for Half-Year 2026
Aug 27, 2026
McMillan Shakespeare Limited has declared a fully franked interim dividend of AUD 0.70 per ordinary share for the six months ended 30 June 2026. The dividend will trade ex on 10 September, with a record date of 11 September and payment scheduled f...
McMillan Shakespeare Files 2026 Governance Statement with ASX
Aug 27, 2026
McMillan Shakespeare Limited has lodged its 2026 Appendix 4G and Corporate Governance Statement with the Australian Securities Exchange, confirming compliance with ASX Listing Rules on governance reporting. The statement, current as at 28 August 2...
McMillan Shakespeare Sets Date for FY26 Results Webcast
Jul 7, 2026
McMillan Shakespeare Limited has scheduled a webcast of its FY26 results presentation for Friday 28 August 2026 at 9:00am AEST, to be led by Managing Director and CEO Rob De Luca and CFO Paul Varro. The event will be accessible via the companyR...
Mcmillan Shakespeare Trims Incentive Pool as Rights Lapse
Jul 7, 2026
Mcmillan Shakespeare Limited has notified the market of the cessation of a tranche of equity-based incentive securities, including 15,431 performance rights (MMSAD) and 1,489 share rights (MMSAR) that lapsed after their conditions were not met or ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.