Discover MAXIMUS INC (NYSE:MMS)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:MMS showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.
Deciphering NYSE:MMS's Dividend Rating
An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:MMS has received a 7 out of 10:
Compared to an average industry Dividend Yield of 2.70, MMS pays a better dividend. On top of this MMS pays more dividend than 88.89% of the companies listed in the same industry.
MMS has been paying a dividend for at least 10 years, so it has a reliable track record.
MMS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
MMS pays out 23.75% of its income as dividend. This is a sustainable payout ratio.
The dividend of MMS is growing, but earnings are growing more, so the dividend growth is sustainable.
A Closer Look at Health for NYSE:MMS
ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MMS, the assigned 5 for health provides valuable insights:
MMS has an Altman-Z score of 3.36. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
MMS has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as MMS would need 2.96 years to pay back of all of its debts.
MMS has a better Debt to FCF ratio (2.96) than 61.73% of its industry peers.
Profitability Examination for NYSE:MMS
ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:MMS has earned a 6 out of 10:
Looking at the Return On Assets, with a value of 7.43%, MMS is in the better half of the industry, outperforming 76.54% of the companies in the same industry.
MMS has a better Return On Equity (16.65%) than 80.25% of its industry peers.
MMS has a Return On Invested Capital of 11.20%. This is in the better half of the industry: MMS outperforms 79.01% of its industry peers.
The last Return On Invested Capital (11.20%) for MMS is above the 3 year average (8.80%), which is a sign of increasing profitability.
MMS has a better Profit Margin (5.78%) than 67.90% of its industry peers.
MMS has a Operating Margin of 9.21%. This is in the better half of the industry: MMS outperforms 70.37% of its industry peers.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.