Since hitting a high of around $15 in mid-2016, McMillan Shakespeare (ASX: MMS) has fallen to around $11. At this price, and with a demonstrated ability to consistently earn high returns on equity, it seemed like a good candidate for inclusion in our portfolios. So we conducted some due diligence. The outcome is a must-read for all would-be investors.
There are now several stocks offering a combination of vehicle leasing, salary packaging and fleet management services listed on ASX. Two years ago there was pretty much just McMillan Shakespeare (MMS), which became caught up in the then federal government’s proposed legislative changes, subsequently rescinded by the incoming government.
The company has retained the salary packaging part of the Queensland government contract, its largest packaging contract. the company is also tendering to remain on the novated panel and success here would be a positive driver of the share price, Macquarie believes.