McMillan Shakespeare Ltd
MMS: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$93.00 | Dgk | Cmpkhfxd |
McMillan Shakespeare: Initiating Coverage; Strong Market Position but Commoditized Offerings
We initiate coverage on McMillan Shakespeare with a fair value estimate of AUD 19 per share and assign the group no-moat, High Uncertainty, and Standard Capital Allocation ratings. McMillan is a business services provider with salary packaging, novated leasing, fleet management, and disability plan management as its key offerings. McMillan dominates Australia’s salary packaging market with no-moat-rated Smartgroup, and is Australia’s largest provider of novated leasing services by volumes, marginally ahead of Smartgroup and SG Fleet.