When Should You Buy McMillan Shakespeare Limited (ASX:MMS)?
Oct 25
Australian (ASX) Professional Services Industry Analysis
UpdatedOct 31, 2023
DataAggregated Company Financials
Companies26
- 7D-2.0%
- 3M-6.3%
- 1Y-11.2%
- YTD-7.0%
Over the last 7 days, the Professional Services industry has dropped 2.1%, driven by a pullback from Computershare of 3.2%. Meanwhile, McMillan Shakespeare actually outperformed within the industry, gaining 11% in the last week. However, the industry is down 8.3% over the past year. Looking forward, earnings are forecast to grow by 9.4% annually.
Industry Valuation and Performance
Has the Australian Professional Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | AU$27.4b | AU$13.8b | AU$1.2b | 18.5x | 21.9x | 2x |
| Thu, 28 Sep 2023 | AU$28.7b | AU$13.8b | AU$1.2b | 18.2x | 23.1x | 2.1x |
| Sat, 26 Aug 2023 | AU$28.0b | AU$13.2b | AU$674.1m | 19.5x | 41.5x | 2.1x |
| Mon, 24 Jul 2023 | AU$28.7b | AU$12.8b | AU$660.1m | 18x | 43.5x | 2.2x |
| Wed, 21 Jun 2023 | AU$28.0b | AU$12.7b | AU$656.2m | 17x | 42.7x | 2.2x |
| Fri, 19 May 2023 | AU$27.0b | AU$12.8b | AU$655.0m | 16.3x | 41.3x | 2.1x |
| Sun, 16 Apr 2023 | AU$27.9b | AU$12.8b | AU$650.6m | 16.4x | 42.9x | 2.2x |
| Tue, 14 Mar 2023 | AU$12.4b | AU$7.3b | AU$580.8m | 16.6x | 21.4x | 1.7x |
| Thu, 09 Feb 2023 | AU$13.4b | AU$6.7b | AU$488.9m | 20.1x | 27.5x | 2x |
| Sat, 07 Jan 2023 | AU$13.0b | AU$6.7b | AU$489.9m | 19.7x | 26.6x | 2x |
| Mon, 05 Dec 2022 | AU$13.7b | AU$6.7b | AU$489.9m | 19.1x | 27.9x | 2.1x |
| Wed, 02 Nov 2022 | AU$13.9b | AU$6.5b | AU$416.6m | 18.7x | 33.3x | 2.1x |
| Fri, 30 Sep 2022 | AU$13.1b | AU$6.5b | AU$417.3m | 19.9x | 31.3x | 2x |
| Sun, 28 Aug 2022 | AU$14.5b | AU$6.1b | AU$334.2m | 20.6x | 43.4x | 2.4x |
| Tue, 26 Jul 2022 | AU$13.3b | AU$5.9b | AU$318.2m | 28x | 41.7x | 2.2x |
| Thu, 23 Jun 2022 | AU$11.9b | AU$5.9b | AU$318.0m | 25.2x | 37.5x | 2x |
| Sat, 21 May 2022 | AU$14.0b | AU$5.8b | AU$306.0m | 30.8x | 45.7x | 2.4x |
| Mon, 18 Apr 2022 | AU$14.7b | AU$5.8b | AU$306.3m | 32.8x | 47.9x | 2.5x |
| Wed, 16 Mar 2022 | AU$13.9b | AU$8.0b | AU$302.7m | 34x | 45.9x | 1.7x |
| Fri, 11 Feb 2022 | AU$11.4b | AU$4.6b | AU$346.0m | 22.4x | 32.8x | 2.5x |
| Sun, 09 Jan 2022 | AU$12.8b | AU$4.6b | AU$324.7m | 21.1x | 39.3x | 2.8x |
| Tue, 07 Dec 2021 | AU$12.3b | AU$4.6b | AU$325.7m | 21.3x | 37.9x | 2.7x |
| Thu, 04 Nov 2021 | AU$13.1b | AU$4.4b | AU$318.5m | 21.3x | 41.1x | 3x |
| Sat, 02 Oct 2021 | AU$11.9b | AU$4.4b | AU$344.2m | 20.3x | 34.6x | 2.7x |
| Mon, 30 Aug 2021 | AU$11.8b | AU$4.4b | AU$344.3m | 20.5x | 34.2x | 2.7x |
| Tue, 06 Jul 2021 | AU$11.9b | AU$4.3b | AU$341.2m | 22.6x | 34.8x | 2.7x |
| Fri, 09 Apr 2021 | AU$9.3b | AU$4.2b | AU$311.2m | 19.2x | 29.8x | 2.2x |
| Thu, 31 Dec 2020 | AU$9.2b | AU$4.1b | AU$236.9m | 16.1x | 38.9x | 2.2x |
Price to Earnings Ratio
45.4x
Current Industry PE
- Investors are pessimistic on the Australian Professional Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 22.1x which is lower than its 3-year average PE of 36.9x.
- The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Professional Services industry have grown 88% per year over the last three years.
- Revenues for these companies have grown 50% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Australian Industrials industry?
| AU Market | -0.99% | |
| Industrials | -1.75% | |
| Professional Services | -1.98% | |
| HR Services | 4.76% | |
| Research and Consulting Services | -3.32% | |
Industry PE
- Investors are most optimistic about the Research and Consulting Services industry even though it's trading below its 3-year average PE ratio of 37.6x.
- Analysts are expecting annual earnings growth of 9.4%, which is lower than the prior year's growth of 15.3% per year.
- Investors are most pessimistic about the HR Services industry, which is trading below its 3-year average of 29.5x.
Forecasted Growth
- Analysts are most optimistic on the HR Services industry, expecting annual earnings growth of 14% over the next 5 years.
- This is better than its past earnings decline of 2.0% per year.
- In contrast, the Research and Consulting Services industry is expected to see its earnings grow by 9.4% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MMS McMillan Shakespeare | AU$16.76 | 11.2% +AU$117.7m | 27.9% | PE18.1x | |
| SIQ Smartgroup | AU$8.51 | 6.6% +AU$68.8m | 73.0% | PE19.4x | |
| APM APM Human Services International | AU$2.02 | 1.5% +AU$27.5m | -38.2% | PE17.3x | |
| FLN Freelancer | AU$0.22 | 12.8% +AU$11.3m | 0% | PS1.9x | |
| AMX Aerometrex | AU$0.29 | 13.5% +AU$3.3m | -37.2% | PS1.1x |
