McMillan Shakespeare Limited (MMS)
Views and News
A Sound Performer: Salary Packaging Services & Vehicle Leasing
A leader in Australian salary packaging services and administration, including vehicle leasing. Credit and treasury operations are sound and provide flexibility. Growth prospects are well into double digits. We see a franked dividend yield above 5 per cent.
Recent News Highlights
As at 31/12/2012 : see details at www.mcms.com.au (new window? Shift+Click)
| 07/12/2012 S&P/ASX 200 Index Quarterly Rebalancing - MMS to Join Index Effective 22 Dec |
| 22/10/2012 2012 AGM - Chairman's Address & CEO Presentation |
| 18/10/2012 Merrill Lynch Emerging Stars Conference 2012 Presentation |
| 10/09/2012 2012 Annual Report to Shareholders |
| 21/08/2012 FY12 Full Year Results & Presentation |
| 25/10/2011 AGM - Chairman's Address & CEO Presentation |
Half-yearly Performance & Estimates - MMS
| Year-end June | FY11A | 1H12A | FY12A | 1H13A | FY13A | FY14E | FY15E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 219.5 | 143.1 | 300.7 | 160.2 | 327.4 | 356.0 | 400.0 |
| EBITDA, $m | 140.8 | 75.8 | 158.1 | 85.3 | 177.3 | 177.9 | 186.7 |
| EBIT, $m | 72.8 | 40.7 | 86.4 | 46.7 | 97.3 | 81.9 | 107.3 |
| Report NPAT, $m | 43.5 | 25.0 | 54.4 | 29.8 | 62.2 | ||
| Adj. NPAT, $m | 62.2 | 59.5 | 78.8 | ||||
| Reported EPS, ¢ | 61.00 | 35.00 | 74.00 | 39.00 | 82.00 | ||
| Adjusted EPS, ¢ | 82.00 | 78.30 | 102.90 | ||||
| EPS %FY/Growth | 47% | 21% | 48% | 11% | -5% | 31% | |
| Dividend, ¢ | 38.0 | 22.0 | 47.0 | 24.0 | 24.0 | 49.40 | 62.00 |
| Franking, % | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 61% | 0 | 53% | 53% | 54% | 50.0% | 46.7% |
| NPAT Margin | 19% | 0 | 18% | 19% | 19% | 16.7% | 19.7% |
| ROE, % | 38% | 0 | 32% | 17 | 32% | ||
| EBIT/Interest | 6.9 | 0.0 | 9.6 | 11.27 | 11.62 | ||
| Net Debt / Equity | 1.00 | 0 | 0.60 | 0.75 | 0.64 | ||
| CashFlow/Sh, ¢ | 52.4 | 12.9 | 28.3 | -13.3 | 37.0 | 80.5 | 86.9 |
| Y/E Shares, m | 68.1 | 70.7 | 74.6 | 74.6 | 74.6 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns, except 1H11A and 1H12A which show the first half % of full year EPS. In a handful of cases, unadjusted share splits may give strange changes in ratios. |
Half-year Performance & Estimates - MMS
| Year-end June | 1H11A | FY11A | 1H12A | FY12A | 1H13A | FY13E | FY14E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 136.4 | 219.5 | 143.1 | 300.7 | 160.2 | 336.0 | 389.0 |
| EBITDA, $m | 69.4 | 140.8 | 75.8 | 158.1 | 85.3 | 167.9 | 202.5 |
| EBIT, $m | 35.3 | 72.8 | 40.7 | 86.4 | 46.7 | 87.4 | 103.9 |
| Report NPAT, $m | 20.6 | 43.5 | 25.0 | 54.4 | 29.8 | ||
| Adj. NPAT, $m | 29.8 | 62.5 | 72.1 | ||||
| Reported EPS, ¢ | 29.00 | 61.00 | 35.00 | 74.00 | 39.00 | ||
| Adjusted EPS, ¢ | 39.00 | 82.70 | 96.00 | ||||
| EPS %FY/Growth | 48% | 47% | 21% | 11% | 12% | 16% | |
| Dividend, ¢ | 16.0 | 38.0 | 22.0 | 47.0 | 24.0 | 52.00 | 60.00 |
| Franking, % | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 47% | 61% | 0 | 53% | 53% | 50.0% | 52.1% |
| NPAT Margin | 23% | 19% | 0 | 18% | 19% | 18.6% | 18.5% |
| ROE, % | 33% | 38% | 0 | 32% | 17% | ||
| EBIT/Interest | 19.6 | 6.9 | 0.0 | 9.6 | 11.27 | ||
| Net Debt / Equity | 1.4 | 1.00 | 0 | 0.60 | 0.75 | ||
| CashFlow/Sh, ¢ | 25.7 | 52.4 | 12.9 | 28.3 | -13.3 | 6.2 | 45.5 |
| Y/E Shares, m | 68.0 | 68.1 | 70.7 | 74.6 | 74.6 |
| Notes |
| EPS Growth compared with the pcp is shown in most columns, except 1H10A and 1H11A which show the first half % of full year EPS. |
Half-yearly Performance & Estimates - MMS
| Year-end June | FY10A | 1H11A | FY11A | 1H12A | FY12A | FY13E | FY14E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 131.1 | 136.4 | 219.5 | 143.1 | 300.7 | 339.0 | 376.0 |
| EBITDA, $m | 61.4 | 69.4 | 140.8 | 75.8 | 158.1 | 173.8 | 205.4 |
| EBIT, $m | 42.1 | 35.3 | 72.8 | 40.7 | 86.4 | 89.2 | 102.4 |
| Report NPAT, $m | 29.7 | 20.6 | 43.5 | 25.0 | 54.4 | ||
| Adj. NPAT, $m | 54.4 | 62.1 | 71.5 | ||||
| Reported EPS, ¢ | 44.00 | 29.00 | 61.00 | 35.00 | 74.00 | ||
| Adjusted EPS, ¢ | 74.00 | 81.70 | 91.80 | ||||
| EPS %FY/Growth | 48% | 39% | 47% | 21% | 10% | 12% | |
| Dividend, ¢ | 24.0 | 16.0 | 38.0 | 22.0 | 47.0 | 51.55 | 58.20 |
| Franking, % | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 47% | 47% | 61% | 53.0% | 53% | 51.3% | 54.6% |
| NPAT Margin | 23% | 23% | 19% | 17.5% | 18% | 18.3% | 19.0% |
| ROE, % | 33% | 33% | 38% | 32% | |||
| EBIT/Interest | 19.6 | 19.6 | 6.9 | 0.00 | 9.61 | ||
| Net Debt / Equity | 1.4 | 1.4 | 1.00 | 0 | 0.60 | ||
| CashFlow/Sh, ¢ | 53.6 | 25.7 | 52.4 | 12.9 | 28.3 | 37.7 | 42.0 |
| Y/E Shares, m | 67.7 | 68.0 | 68.1 | 70.7 | 74.6 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns, except 1H11A and 1H12A which show the first half % of full year EPS. In a handful of cases, unadjusted share splits may give strange changes in ratios. |
Company Overview
Russell Research in the media
Stock Picks for The Bull.com.au - 29 July 2013
BUY McMillan Shakespeare (MMS)
I believe the company will work extremely hard and will successfully minimise any further adverse impact. In my view, it’s more likely the FBT proposal will be ditched by a change of government, or likely defeated or modified if Labor wins. I believe a good opportunity exists, irrespective of which party wins the next election.
Stock Picks for Sunday Herald Sun – 28 July 2013
BUY McMillan Shakespeare (MMS) $9.80
The salary packaging and vehicle leasing leader has a strong growth record and prospect despite Labour’s new controversial proposal to amend FBT, that sliced the share price.
Stock Picks for Sunday Herald Sun – 2 December 2012
BUY McMillan Shakespeare Limited, MMS, $13.30
This leader in the salary packaging and vehicle leasing business should grow in double digits. Return on equity 32 per cent, 4 per cent franked yield.
Stock Picks for The Bull.com.au - 5 November 2012
BUY McMillan Shakespeare (MMS) ($12.97)
This substantial salary packaging and vehicle-leasing group has averaged 30 per cent earnings per share growth in the past five years. New contract wins and ongoing business growth should retain it in double digits - with a franked yield above 4 per cent. Already a leader in salary packaging, complementary acquisitions of leasing businesses in 2010 have contributed to boosting net profit after tax growth.
Wave Chart
Profile
McMillan Shakespeare
Rating: ♥
Category: Best Stock ; Midcaps
Action: Accumulate
Website: www.mcms.com.au
| ASX code: | MMS |
| Closing Price, 30/12/2013: | $ 11.740 |
| Market Capitalisation: | $ 872 million |
| 52 Week High: | $ 18.64 |
| 52 Week Low: | $ 6.75 |
| Sector: | Human Resource & Employment Services |
| Index: | S&P/ASX 200 Index |
Summary of Fundamentals
| Year-end June | FY12A | FY13A | FY14E | FY15E |
|---|---|---|---|---|
| NPAT, $m | 54.4 | 62.2 | 53.9 | 73.6 |
| Reported EPS, ¢ | 74.00 | 82.00 | ||
| Adjusted EPS, ¢ | 81.90 | 70.95 | 94.95 | |
| EPS Growth, % | 21% | 11% | -13% | 34% |
| P/E Ratio, x | 15.86 | 14.33 | 16.55 | 12.36 |
| Dividend, ¢ | 47.0 | 24.0 | 45.00 | 55.50 |
| Franking, % | 100% | 100% | 100% | 100% |
| Div. Yield, % | 4.00 | 2.04 | 3.83 | 4.73 |
Notes
| Our Adjusted EPS is used for the last year and forward estimates and as basis for EPS Growth and P/E Ratio. We currently use Reported data for all historic NPAT, for the prior year EPS and as base for last year EPS growth. |
| Data & Chart sourced from IRESS Market Technology Ltd. |
One Year Chart
As at 30 December 2013
Other Highlights
| Sector: | Human Resource & Employment Services |
| Return on Equity, FY13 : | 32% |
| Net Debt to Equity, FY13 : | 64 % |
| EBIT / Interest Cover, FY13 : | 11.62 x |
| Gicscode: | 20202010 |
| First Listed: | 15-Mar-04 |
Business Activities
McMillan Shakespeare Limited (MMS) is a major provider of independent salary packaging services in Australia, including vehicle leasing and fleet management.
Glossary:
| ♠ | "A Core Stock" - reliable long-term yield & growth |
| ♥ | "We like it" - a seasoned performer, growth & yield |
| ♦ | "A tough scout" - creating a potential breakthrough |
| ♣ | "A steady performer" - giving reliable yield or growth |
| Best Stocks | Portfolio of selected attractive investments |
| Potential | Stocks that may have good improvement prospects |
| Speculative | More risky usually smaller stocks with spec. upside |
| Midcaps | In RR Midcap Index, $ 70m to 1,500m market cap. |
| Large Stocks | Larger Stocks upwards of $ 1,500m market cap |