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Mcmillan Shakespeare Limited
(Sydney:MMS)
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Rating:59Neutral
Price Target:
AU$22.00
▲(8.16% Upside)
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
High gross, EBIT and net margins indicate that MMS retains meaningful profitability across its salary packaging and leasing operations. This provides earnings resilience and potential capacity to fund investment, although cash conversion remains an important constraint.
Negative Factors
High Leverage
The sharp increase in debt against a relatively small equity base leaves MMS highly geared. This reduces financial flexibility and makes earnings, covenant capacity and shareholder returns more sensitive to any sustained weakness in leasing activity or profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
High gross, EBIT and net margins indicate that MMS retains meaningful profitability across its salary packaging and leasing operations. This provides earnings resilience and potential capacity to fund investment, although cash conversion remains an important constraint.
Read all positive factors
Mcmillan Shakespeare Limited (MMS) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.45B
Dividend Yield6.39%
Average Volume (3M)270.66K
Price to Earnings (P/E)13.6
Beta (1Y)0.90
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. Volume221,553
30 Day Avg. Volume270,660
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.51
Revenue Forecast (FY)AU$615.82M
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
19.84
Positive
18.70
Positive
17.22
Positive
Market Momentum
0.18
Positive
57.57
Neutral
63.27
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 20.34, above the 50-day MA of 19.84, and above the 200-day MA of 17.22, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 57.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.27 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$1.46B | 16.25 | 29.94% | 3.82% | 10.49% | 5.31% | |
70 Outperform | AU$326.47M | 17.82 | 10.76% | 4.47% | 15.47% | 60.30% | |
64 Neutral | AU$210.53M | 59.62 | 11.79% | ― | 18.25% | 2.90% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | AU$1.45B | 13.64 | 88.76% | 6.86% | 7.71% | 11.40% | |
54 Neutral | AU$1.97B | 54.50 | 8.79% | 1.31% | 34.24% | 1.87% | |
51 Neutral | AU$75.52M | -8.65 | -6.36% | ― | -19.61% | -81.96% |
* Industrials Sector Average
AU:MMS
Mcmillan Shakespeare Limited
20.87
2.80
15.50%
AU:SIQ
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10.56
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23.39%
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1.53
0.57
59.35%
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4.65
-6.40
-57.92%
AU:MGH
MAAS Group Holdings Ltd.
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1.04
23.64%
AU:PPE
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0.69
-0.02
-2.82%
Mcmillan Shakespeare Limited Corporate Events
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.