McMillan Shakespeare Ltd
MMS: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$82.00 | Yjdc | Wzzvbpc |
Leaving FBT Alone This Election Is a Positive for McMillan Shakespeare
As McMillan Shakespeare’s salary packaging business was built on laws regarding fringe benefits tax, or FBT, whenever there is a potential change in government, potentially leading to different views on concessions, the risk of a detrimental change increases. While material changes appear unlikely for the foreseeable future, they will remain a lingering risk, contributing to our high earnings uncertainty rating. We make no changes to our AUD 13 fair value estimate, with no-moat McMillan Shakespeare overvalued at the current share price.