McMillan Shakespeare Ltd
MMS: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$94.00 | Rtl | Vlwcxmbx |
McMillan’s GRS Business Continues to Prove Resilient in the Face of Poor Trading Conditions
No-moat McMillan Shakespeare reported a weak first-half result, impacted by low business and consumer confidence in the United Kingdom and weak new car sales and tighter lending standards in Australia. However, we haven’t materially changed our long-term thesis of continuing underlying net profit after tax, or UNPAT, growth in the company’s core group remuneration services, or GRS business, which comprises around 82% of group profit and is the primary driver of our valuation.