McMillan Shakespeare Earnings: Growth Is Real but Unlikely to Last at This Pace
McMillan's underlying NPATA increased 14% on last year. Group EBITDA margin grew by close to 200 basis points to 30%. Shares were up around 7% intraday.
McMillan Shakespeare Ltd MMS
Bulls Say, Bears Say
Bulls
The majority of McMillan’s clients are in defensive industries, and the firm has long-standing relationships with many of its clients. This should underpin relatively stable salary packaging and disability plan management revenue even during market downturns.
Bears
McMillan can be disrupted by many external factors. Changes to regulation have disrupted its add-on insurance and warranty services business in the past and are now threatening its disability plan management business. The firm relies on favorable FBT concessions, which may be removed in the future.
Trading Information
- Previous Close Price
- A$18.22
- Day Range
- A$18.12–18.44
- 52-Week Range
- A$13.53–21.70
- Bid/Ask
- A$18.15 / A$18.28
- Shares Outstanding
- 69.64M
- Market Cap
- A$1.26B
- Volume/Avg
- 163,301 / 243,714
Key Statistics
- Price/Earnings (Normalized)
- 11.42
- Price/Sales
- 2.68
- Dividend Yield (Trailing)
- 7.27%
- Dividend Yield (Forward)
- 7.71%
- Dividend Payment Schedule
- Mar, Sep
- Total Yield
- 7.51%
Company Profile
McMillan Shakespeare is a provider of salary packaging, novated leasing, disability plan management and support co-ordination, and fleet management services. It actively works to cross-sell its products to clients, for example, selling its salary packaging services to its fleet management customers in Australia and New Zealand. McMillan dominates Australia’s salary packaging market together with Smartgroup (also covered by Morningstar), and is also a large provider of novated leasing services by volumes—together with Smartgroup and SG Fleet. The group has three operating segments: group remuneration services, asset management services, and plan and support services. Most of the group’s revenue is generated from the group remuneration services segment.
- Sector
- Industrials
- Industry
- Staffing & Employment Services
- Stock Style Box
- Small Core
- Total Number of Employees
- 1,294
- Website
- https://www.mmsg.com.au
Competitors
Valuation
|
Metric
|
MMS
|
PAYX
|
SIQ
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.42 | 17.91 | 16.56 |
Price/Book Value | 10.01 | 9.69 | 5.20 |
Price/Sales | 2.68 | 5.48 | 4.22 |
Price/Cash Flow | 155.98 | 13.55 | 15.31 |
Price/Earnings
MMS
PAYX
SIQ
Financial Strength
|
Metric
|
MMS
|
PAYX
|
SIQ
|
|---|---|---|---|
Quick Ratio | 0.21 | 0.52 | 1.02 |
Current Ratio | 1.17 | 1.28 | 1.08 |
Interest Coverage | 3.94 | 9.72 | 22.34 |
Quick Ratio
MMS
PAYX
SIQ
Profitability
|
Metric
|
MMS
|
PAYX
|
SIQ
|
|---|---|---|---|
Return on Assets (Normalized) | 6.98% | 12.26% | 12.77% |
Return on Equity (Normalized) | 91.98% | 52.40% | 31.91% |
Return on Invested Capital (Normalized) | 13.51% | 25.04% | 24.45% |
Return on Assets
MMS
PAYX
SIQ
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United States