McMillan Shakespeare Limited (MMS)
All research reports and stock updates for McMillan Shakespeare Limited.
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Earnings catchup
MMS’s stronger than expected result was driven by its core Group Remuneration Services (GRS) and Plan and Support Services (PSS) divisions.
Fairly Priced
Investor day was underwhelming: MMS presentation provided investors with a greater understanding of the group’s growth direction and the macro theme across each of the divisions.
More to come
MMS robust cash generation and strong cash balance have allowed them to declare a final dividend of 74cps, bringing the full-year dividend to 108cps, a payout ratio of 100% (FY21 66%).
To those who wait
Vehicle supply issues are distorting the picture for novated lease companies such as McMillan Shakespeare. This issue is expected to persist through CY22, but the associated earnings are simply being deferred.
A key partner in NDIS growth
MacMillan Shakespeare’s subsidiary, Plan Partners, is quickly becoming a key division in the company’s portfolio as it capitalises on the vigorous growth of the NDIS. We think NDIS plan management can become a $600 million market by FY25f.