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McMillan Shakespeare

ASX:MMS
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MMS
ASX
A$1B
Market Cap
  1. Home
  2. AU
  3. Commercial Services
Company description

McMillan Shakespeare Limited provides salary packaging, novated leasing, asset management, and related financial products and services in Australia, the United Kingdom, and New Zealand. The last earnings update was 91 days ago. More info.


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MMS Share Price and Events
7 Day Returns
-3%
ASX:MMS
0.4%
AU Professional Services
-0.1%
AU Market
1 Year Returns
19.6%
ASX:MMS
20.6%
AU Professional Services
16.5%
AU Market
MMS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
McMillan Shakespeare (MMS) -3% 5.4% 5.2% 19.6% 61.8% 53.6%
AU Professional Services 0.4% 3% 7.6% 20.6% 37.9% 39.2%
AU Market -0.1% 1.5% 3.5% 16.5% 21.9% 20.6%
1 Year Return vs Industry and Market
  • MMS underperformed the Professional Services industry which returned 20.6% over the past year.
  • MMS outperformed the Market in Australia which returned 16.5% over the past year.
Price Volatility
MMS
Industry
5yr Volatility vs Market
Related Companies

Value

 Is McMillan Shakespeare undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of McMillan Shakespeare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for McMillan Shakespeare.

ASX:MMS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-06-30) in AUD A$ 0.78871428571429
Payout Ratio Company Filings (2019-06-30) 8767.8%
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:MMS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.828 (1 + (1- 30%) (26.34%))
0.919
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.919 * 5.96%)
7.79%

Discounted Cash Flow Calculation for ASX:MMS using Dividend Discount Model Model

The calculations below outline how an intrinsic value for McMillan Shakespeare is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

ASX:MMS Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= A$0.79 / (7.79% - 2.31%)
A$13.87
ASX:MMS Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$13.87
Current discount Discount to share price of A$16.28
= -1 x (A$16.28 - A$13.87) / A$13.87
-17.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of McMillan Shakespeare is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for McMillan Shakespeare's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are McMillan Shakespeare's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:MMS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.77
ASX:MMS Share Price ** ASX (2019-11-19) in AUD A$16.28
Australia Professional Services Industry PE Ratio Median Figure of 10 Publicly-Listed Professional Services Companies 21.51x
Australia Market PE Ratio Median Figure of 519 Publicly-Listed Companies 18.7x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of McMillan Shakespeare.

ASX:MMS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:MMS Share Price ÷ EPS (both in AUD)

= 16.28 ÷ 0.77

21.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McMillan Shakespeare is good value based on earnings compared to the AU Professional Services industry average.
  • McMillan Shakespeare is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does McMillan Shakespeare's expected growth come at a high price?
Raw Data
ASX:MMS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
17.5%per year
Australia Professional Services Industry PEG Ratio Median Figure of 7 Publicly-Listed Professional Services Companies 1.94x
Australia Market PEG Ratio Median Figure of 347 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

ASX:MMS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.14x ÷ 17.5%

1.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McMillan Shakespeare is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on McMillan Shakespeare's assets?
Raw Data
ASX:MMS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$4.49
ASX:MMS Share Price * ASX (2019-11-19) in AUD A$16.28
Australia Professional Services Industry PB Ratio Median Figure of 21 Publicly-Listed Professional Services Companies 2.08x
Australia Market PB Ratio Median Figure of 1,584 Publicly-Listed Companies 1.75x
ASX:MMS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:MMS Share Price ÷ Book Value per Share (both in AUD)

= 16.28 ÷ 4.49

3.62x

* Primary Listing of McMillan Shakespeare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McMillan Shakespeare is overvalued based on assets compared to the AU Professional Services industry average.
X
Value checks
We assess McMillan Shakespeare's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. McMillan Shakespeare has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is McMillan Shakespeare expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is McMillan Shakespeare expected to grow at an attractive rate?
  • McMillan Shakespeare's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • McMillan Shakespeare's earnings growth is expected to exceed the Australia market average.
  • McMillan Shakespeare's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:MMS Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:MMS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 17.5%
ASX:MMS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 3.3%
Australia Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 15.5%
Australia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 9.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 9.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:MMS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:MMS Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 607 95 109 4
2021-06-30 587 159 100 5
2020-06-30 566 102 92 5
2019-11-19
ASX:MMS Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 550 133 64
2019-03-31 549 130 57
2018-12-31 549 127 50
2018-09-30 547 122 50
2018-06-30 545 118 50
2018-03-31 544 86 56
2017-12-31 542 53 62
2017-09-30 533 50 65
2017-06-30 523 47 68
2017-03-31 518 52 76
2016-12-31 512 58 84
2016-09-30 508 76 83

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • McMillan Shakespeare's earnings are expected to grow by 17.5% yearly, however this is not considered high growth (20% yearly).
  • McMillan Shakespeare's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:MMS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from McMillan Shakespeare Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MMS Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 1.47 1.47 1.47 1.00
2021-06-30 1.26 1.30 1.24 3.00
2020-06-30 1.12 1.15 1.10 3.00
2019-11-19
ASX:MMS Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.77
2019-03-31 0.69
2018-12-31 0.60
2018-09-30 0.61
2018-06-30 0.61
2018-03-31 0.68
2017-12-31 0.75
2017-09-30 0.78
2017-06-30 0.82
2017-03-31 0.91
2016-12-31 1.01
2016-09-30 1.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • McMillan Shakespeare is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess McMillan Shakespeare's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
McMillan Shakespeare has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has McMillan Shakespeare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare McMillan Shakespeare's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • McMillan Shakespeare's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • McMillan Shakespeare's 1-year earnings growth exceeds its 5-year average (26.6% vs -4%)
  • McMillan Shakespeare's earnings growth has not exceeded the AU Professional Services industry average in the past year (26.6% vs 26.7%).
Earnings and Revenue History
McMillan Shakespeare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from McMillan Shakespeare Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MMS Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 549.68 63.67 281.71
2019-03-31 549.21 56.78 279.05
2018-12-31 548.75 49.89 290.69
2018-09-30 547.08 50.10 288.47
2018-06-30 545.40 50.30 271.94
2018-03-31 543.65 56.36 273.90
2017-12-31 541.90 62.42 275.86
2017-09-30 532.67 65.16 271.72
2017-06-30 523.44 67.90 267.59
2017-03-31 517.55 75.93 260.10
2016-12-31 511.66 83.96 252.61
2016-09-30 508.16 83.21 248.71
2016-06-30 504.67 82.47 244.82
2016-03-31 478.03 78.88 226.21
2015-12-31 451.39 75.30 203.93
2015-09-30 420.49 71.39 185.65
2015-06-30 389.59 67.49 167.38
2015-03-31 379.05 67.16 161.07
2014-12-31 368.50 66.84 154.75
2014-09-30 357.98 60.90 151.41
2014-06-30 347.46 54.97 148.06
2014-03-31 339.39 53.32 144.84
2013-12-31 331.33 51.68 141.63
2013-09-30 330.70 56.92 138.24
2013-06-30 330.06 62.16 134.86
2013-03-31 324.62 60.65 136.80
2012-12-31 319.18 59.13 138.73

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • McMillan Shakespeare has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • McMillan Shakespeare used its assets less efficiently than the AU Professional Services industry average last year based on Return on Assets.
  • McMillan Shakespeare's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess McMillan Shakespeare's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
McMillan Shakespeare has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is McMillan Shakespeare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up McMillan Shakespeare's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • McMillan Shakespeare is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • McMillan Shakespeare's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of McMillan Shakespeare's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from McMillan Shakespeare Company Filings, last reported 4 months ago.

ASX:MMS Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 371.37 329.46 137.76
2019-03-31 371.37 329.46 137.76
2018-12-31 372.60 369.87 112.95
2018-09-30 372.60 369.87 112.95
2018-06-30 371.38 337.88 99.70
2018-03-31 371.38 337.88 99.70
2017-12-31 380.95 347.91 47.80
2017-09-30 380.95 347.91 47.80
2017-06-30 371.00 339.74 59.42
2017-03-31 371.00 339.74 59.42
2016-12-31 379.84 333.64 57.51
2016-09-30 379.84 333.64 57.51
2016-06-30 370.50 346.39 95.58
2016-03-31 370.50 346.39 95.58
2015-12-31 358.32 342.75 67.19
2015-09-30 358.32 342.75 67.19
2015-06-30 318.44 352.40 85.73
2015-03-31 318.44 352.40 85.73
2014-12-31 248.23 239.43 97.37
2014-09-30 248.23 239.43 97.37
2014-06-30 223.85 215.09 71.20
2014-03-31 223.85 215.09 71.20
2013-12-31 202.60 197.36 41.21
2013-09-30 202.60 197.36 41.21
2013-06-30 195.44 182.78 57.24
2013-03-31 195.44 182.78 57.24
2012-12-31 179.85 190.05 54.13
  • McMillan Shakespeare's level of debt (88.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (96.1% vs 88.7% today).
  • Debt is well covered by operating cash flow (40.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.1x coverage).
X
Financial health checks
We assess McMillan Shakespeare's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. McMillan Shakespeare has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is McMillan Shakespeare's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.55%
Current annual income from McMillan Shakespeare dividends. Estimated to be 4.84% next year.
If you bought A$2,000 of McMillan Shakespeare shares you are expected to receive A$91 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • McMillan Shakespeare's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.37%).
  • McMillan Shakespeare's dividend is below the markets top 25% of dividend payers in Australia (5.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:MMS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Australia Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 390 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:MMS Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.83 4.00
2021-06-30 0.80 5.00
2020-06-30 0.74 5.00
2019-11-19
ASX:MMS Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-20 0.740 4.643
2019-02-19 0.740 5.761
2018-08-21 0.730 4.737
2018-02-20 0.680 4.095
2017-08-22 0.660 4.074
2017-02-21 0.650 4.819
2016-08-23 0.680 6.147
2015-08-26 0.520 3.990
2015-08-25 0.520 3.785
2014-08-29 0.520 4.512
2014-08-25 0.520 4.628
2013-10-21 0.420 3.953
2013-02-19 0.490 3.633
2012-09-10 0.500 3.817
2012-08-21 0.500 4.118
2012-02-21 0.440 4.046
2011-08-30 0.440 5.018
2011-02-15 0.300 3.231
2010-09-09 0.240 3.163
2010-08-17 0.240 3.871
2010-02-16 0.205 4.891
2009-08-18 0.190 4.928
2009-02-17 0.175 6.459

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of McMillan Shakespeare's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess McMillan Shakespeare's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can McMillan Shakespeare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. McMillan Shakespeare has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of McMillan Shakespeare's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Salisbury
COMPENSATION A$787,874
TENURE AS CEO 5.1 years
CEO Bio

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. Salisbury served as Managing Director of Remuneration Services at McMillan Shakespeare Ltd. from April 2008 to October 1, 2014 and also served as its General Manager of Remuneration Services from July 1, 2008 to June 30, 2009. Before joining McMillan Shakespeare Limited in April 2008, Mr. Salisbury was a member of the senior management team at AAMI. Mr. Salisbury held a variety of management positions within the organisation, including a number of state management roles and the position of Product Manager for Compulsory Third Party Insurance. He serves as a Director of McMillan Shakespeare Ltd. He is a Director of the National Automotive Leasing & Salary Packaging Association. Mr. Salisbury is a graduate of the Advanced Management Program at Harvard Business School and holds a Master of Business Administration from Southern Cross University. Mr. Salisbury is a member of the Australian Institute of Company Directors.

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mike's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the McMillan Shakespeare management team in years:

3.5
Average Tenure
  • The tenure for the McMillan Shakespeare management team is about average.
Management Team

Mike Salisbury

TITLE
MD, CEO & Director
COMPENSATION
A$788K
TENURE
5.1 yrs

Mark Blackburn

TITLE
CFO & Company Secretary
COMPENSATION
A$643K
TENURE
8.1 yrs

Geoff Kruyt

TITLE
Managing Director of Maxxia UK
COMPENSATION
A$912K

Simon Haidar

TITLE
Group Executive of Sales & Product Services

Julia Edwards-Smith

TITLE
Group Executive of Marketing
TENURE
0.8 yrs

Suzanne Shepherd

TITLE
Group Executive of Human Resources

Sean Dempsey

TITLE
Chief Executive Officer of Plan Management Partners

Andrew Suckling

TITLE
Group Executive of Innovation
COMPENSATION
A$214K

Ron Steiner

TITLE
Group Executive of Customer Relations
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the McMillan Shakespeare board of directors in years:

5.5
Average Tenure
57.5
Average Age
  • The tenure for the McMillan Shakespeare board of directors is about average.
Board of Directors

Tim Poole

TITLE
Non-Executive Chairman
COMPENSATION
A$209K
AGE
50
TENURE
4.1 yrs

Mike Salisbury

TITLE
MD, CEO & Director
COMPENSATION
A$788K

Ian Elliot

TITLE
Independent Non-Executive Director
COMPENSATION
A$134K
AGE
65
TENURE
5.5 yrs

Ross Chessari

TITLE
Non-Executive Director
COMPENSATION
A$123K
AGE
59
TENURE
15.9 yrs

John Bennetts

TITLE
Non-Executive Director
COMPENSATION
A$124K
AGE
56
TENURE
15.9 yrs

Helen Kurincic

TITLE
Independent Non-Executive Director
COMPENSATION
A$109K
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by McMillan Shakespeare individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
12. Nov 19 Sell Vinva Investment Management Company 08. Jul 19 08. Nov 19 -742,581 A$4.68 A$-3,472,000
12. Nov 19 Buy Vinva Investment Management Company 08. Jul 19 08. Nov 19 919,876 A$15.35 A$14,121,294
08. Nov 19 Buy First Sentier Investors Holdings Pty Limited Company 04. Nov 19 04. Nov 19 43,838 A$16.04 A$703,015
08. Nov 19 Sell Morgan Stanley, Investment Banking and Brokerage Investments Company 04. Nov 19 05. Nov 19 -101,830 A$16.05 A$-1,634,364
08. Nov 19 Buy Morgan Stanley, Investment Banking and Brokerage Investments Company 04. Nov 19 05. Nov 19 63,101 A$16.14 A$1,018,623
22. Sep 19 Sell BlackRock, Inc. Company 19. Mar 19 19. Sep 19 -1,161,923 A$16.20 A$0
22. Sep 19 Buy BlackRock, Inc. Company 18. Mar 19 18. Sep 19 355,922 A$16.02 A$142,106
26. Aug 19 Buy Michael Salisbury Individual 22. Aug 19 23. Aug 19 6,250 A$15.82 A$98,873
26. Aug 19 Buy Ian Elliot Individual 23. Aug 19 23. Aug 19 1,254 A$15.94 A$19,989
29. Jul 19 Sell FMR LLC Company 06. Dec 17 25. Jul 19 -1,851,314 A$17.94 A$-33,219,609
29. Jul 19 Buy FMR LLC Company 22. Dec 16 15. Jan 19 1,015,812 A$17.35 A$17,622,568
18. Apr 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 08. Apr 19 12. Apr 19 -45,661 A$12.19 A$-556,421
18. Apr 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 08. Apr 19 12. Apr 19 42,673 A$12.11 A$516,908
14. Apr 19 Buy Helen Kurincic Individual 10. Apr 19 10. Apr 19 11,000 A$12.11 A$133,160
14. Apr 19 Buy Timothy Poole Individual 10. Apr 19 10. Apr 19 11,000 A$12.05 A$132,506
11. Apr 19 Sell Credit Suisse, Investment Banking and Securities Investments Company 06. Dec 18 05. Apr 19 -1,293,581 A$13.38 A$-17,312,458
11. Apr 19 Buy Credit Suisse, Investment Banking and Securities Investments Company 06. Dec 18 05. Apr 19 1,226,518 A$13.19 A$16,178,313
20. Mar 19 Sell Vinva Investment Management Company 05. Sep 18 18. Mar 19 -596,747 A$12.89 A$-7,694,021
20. Mar 19 Buy Vinva Investment Management Company 05. Sep 18 18. Mar 19 346,809 A$17.76 A$6,159,226
18. Mar 19 Buy BlackRock, Inc. Company 18. Dec 18 15. Mar 19 2,858,121 A$16.15 A$12,495,460
16. Dec 18 Sell BlackRock, Inc. Company 22. Nov 18 11. Dec 18 -15,922 A$14.36 A$-69,487
16. Dec 18 Buy BlackRock, Inc. Company 22. Nov 18 13. Dec 18 111,376 A$14.31 A$219,305
25. Nov 18 Buy BlackRock, Inc. Company 25. Jul 18 21. Nov 18 927,080 A$17.99 A$161,386
X
Management checks
We assess McMillan Shakespeare's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. McMillan Shakespeare has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

McMillan Shakespeare Limited (ASX:MMS): What Can We Expect From This High Growth Stock?

The most recent earnings release McMillan Shakespeare Limited's (ASX:MMS) announced in August 2019 confirmed that the company gained from a robust tailwind, eventuating to a double-digit earnings growth of 27%. … Below is my commentary, albeit very simple and high-level, on how market analysts view McMillan Shakespeare's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … View our latest analysis for McMillan Shakespeare Analysts' outlook for the upcoming year seems buoyant, with earnings rising by a robust 44%.

Simply Wall St -

Why It Might Not Make Sense To Buy McMillan Shakespeare Limited (ASX:MMS) For Its Upcoming Dividend

McMillan Shakespeare's next dividend payment will be AU$0.40 per share, on the back of last year when the company paid a total of AU$0.74 to shareholders. … Check out our latest analysis for McMillan Shakespeare Dividends are typically paid from company earnings. … It's good to see that while McMillan Shakespeare's dividends were not well covered by profits, at least they are affordable from a cash perspective.

Simply Wall St -

How Many McMillan Shakespeare Limited (ASX:MMS) Shares Did Insiders Buy, In The Last Year?

So we'll take a look at whether insiders have been buying or selling shares in McMillan Shakespeare Limited (ASX:MMS). … See our latest analysis for McMillan Shakespeare McMillan Shakespeare Insider Transactions Over The Last Year In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Helen Kurincic bought AU$133k worth of shares at a price of AU$12.11 per share. … While McMillan Shakespeare insiders bought shares last year, they didn't sell.

Simply Wall St -

If You Had Bought McMillan Shakespeare (ASX:MMS) Stock Five Years Ago, You Could Pocket A 25% Gain Today

For example, the McMillan Shakespeare Limited (ASX:MMS) share price is up 25% in the last 5 years, clearly besting than the market return of around 8.9% (ignoring dividends). … During five years of share price growth, McMillan Shakespeare actually saw its EPS drop 2.7% per year. … With EPS falling, but a modestly increasing share price, it seems that the market was probably too pessimistic about the stock in the past.

Simply Wall St -

Is McMillan Shakespeare (ASX:MMS) Using Too Much Debt?

ASX:MMS Historical Debt, July 19th 2019 How Strong Is McMillan Shakespeare's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching McMillan Shakespeare's balance sheet over time. … Considering this range of data points, we think McMillan Shakespeare is in a good position to manage its debt levels.

Simply Wall St -

A Spotlight On McMillan Shakespeare Limited's (ASX:MMS) Fundamentals

In the case of McMillan Shakespeare Limited (ASX:MMS), there's is a company with a a great history of dividend payments as well as a excellent future outlook. … High growth potential average dividend payer MMS is an attractive stock for growth-seeking investors, with an expected earnings growth of 21% in the upcoming year which is expected to flow into an impressive return on equity of 24% over the next couple of years. … ASX:MMS Historical Dividend Yield, June 26th 2019 Next Steps: For McMillan Shakespeare, I've put together three important aspects you should look at: Historical Performance: What has MMS's returns been like over the past?

Simply Wall St -

Does McMillan Shakespeare Limited (ASX:MMS) Create Value For Shareholders?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for McMillan Shakespeare: 0.18 = AU$137m ÷ (AU$887m - AU$143m) (Based on the trailing twelve months to December 2018.) So, McMillan Shakespeare has an ROCE of 18%. … What Are Current Liabilities, And How Do They Affect McMillan Shakespeare's ROCE? … The Bottom Line On McMillan Shakespeare's ROCE Overall, McMillan Shakespeare has a decent ROCE and could be worthy of further research.

Simply Wall St -

Should You Buy McMillan Shakespeare Limited (ASX:MMS) For Its 5.8% Dividend?

Today we'll take a closer look at McMillan Shakespeare Limited (ASX:MMS) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. In this case, McMillan Shakespeare likely looks attractive to investors, given its 5.8% dividend yield and a payment history of over ten years. We'd guess that plenty of investors have purchased it for the income. Some simple analysis can reduce the risk of holding McMillan Shakespeare for its dividend, and we'll focus on the most important aspects below. Explore this interactive chart for our latest analysis on McMillan Shakespeare! ASX:MMS Historical Dividend Yield, June 4th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. McMillan Shakespeare paid out 123% of its profit as dividends, over the trailing twelve month period. Unless there are extenuating circumstances, from the perspective of an investor who hopes to own the company for many years, a payout ratio of above 100% is definitely a concern. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. McMillan Shakespeare paid out 51% of its free cash flow last year, which is acceptable, but is starting to limit the amount of earnings that can be reinvested into the business. It's good to see that while McMillan Shakespeare's dividends were not covered by profits, at least they are affordable from a cash perspective. If executives were to continue paying more in dividends than the company reported in profits, we'd view this as a warning sign. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits. Is McMillan Shakespeare's Balance Sheet Risky? As McMillan Shakespeare's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … For the purpose of this article, we only scrutinise the last decade of McMillan Shakespeare's dividend payments. … Conclusion To summarise, shareholders should always check that McMillan Shakespeare's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Is McMillan Shakespeare Limited's (ASX:MMS) ROE Of 13% Impressive?

Our data shows McMillan Shakespeare has a return on equity of 13% for the last year. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for McMillan Shakespeare: 13% = AU$50m ÷ AU$373m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does McMillan Shakespeare Have A Good Return On Equity?

Simply Wall St -

Have Insiders Been Buying McMillan Shakespeare Limited (ASX:MMS) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in McMillan Shakespeare Limited (ASX:MMS). … McMillan Shakespeare Insider Transactions Over The Last Year. … Happily, the McMillan Shakespeare insiders decided to buy shares at close to current prices.

Simply Wall St -

Company Info

Description

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.

Details
Name: McMillan Shakespeare Limited
MMS
Exchange: ASX
Founded: 1988
A$1,251,003,681
76,842,978
Website: http://www.mmsg.com.au
Address: McMillan Shakespeare Limited
The Tower,
Level 21,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX MMS Ordinary Shares Australian Securities Exchange AU AUD 15. Mar 2004
OTCPK MCSL.F Ordinary Shares Pink Sheets LLC US USD 15. Mar 2004
DB NMN Ordinary Shares Deutsche Boerse AG DE EUR 15. Mar 2004
CHIA MMS Ordinary Shares Chi-X Australia AU AUD 15. Mar 2004
Number of employees
Current staff
Staff numbers
1,335
McMillan Shakespeare employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/19 10:30
End of day share price update: 2019/11/19 00:00
Last estimates confirmation: 2019/11/17
Last earnings filing: 2019/08/20
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.