MAXIMUS INC (MMS) Stock Fundamental Analysis
NYSE:MMS - New York Stock Exchange, Inc. - US5779331041 - Common Stock - Currency: USD
MMS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the IT Services industry. Both the profitability and the financial health of MMS get a neutral evaluation. Nothing too spectacular is happening here. MMS may be a bit undervalued, certainly considering the very reasonable score on growth MMS also has an excellent dividend rating. These ratings would make MMS suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year MMS was profitable.
MMS had a positive operating cash flow in the past year.
In the past 5 years MMS has always been profitable.
In the past 5 years MMS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MMS (7.00%) is better than 74.07% of its industry peers.
Looking at the Return On Equity, with a value of 17.24%, MMS is in the better half of the industry, outperforming 79.01% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.55%, MMS is doing good in the industry, outperforming 75.31% of the companies in the same industry.
MMS had an Average Return On Invested Capital over the past 3 years of 8.80%. This is in line with the industry average of 10.72%.
The 3 year average ROIC (8.80%) for MMS is below the current ROIC(10.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 17.24% | ||
| ROIC | 10.55% |
ROA(3y)5.53%
ROA(5y)6.85%
ROE(3y)13.17%
ROE(5y)15.29%
ROIC(3y)8.8%
ROIC(5y)10.15%
1.3 Margins
Looking at the Profit Margin, with a value of 5.28%, MMS is in the better half of the industry, outperforming 65.43% of the companies in the same industry.
In the last couple of years the Profit Margin of MMS has declined.
MMS's Operating Margin of 8.69% is fine compared to the rest of the industry. MMS outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of MMS has declined.
With a Gross Margin value of 23.28%, MMS is not doing good in the industry: 67.90% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MMS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.69% | ||
| PM (TTM) | 5.28% | ||
| GM | 23.28% |
OM growth 3Y-1.13%
OM growth 5Y-3.32%
PM growth 3Y-5.46%
PM growth 5Y-7.06%
GM growth 3Y1.95%
GM growth 5Y0.29%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MMS is still creating some value.
The number of shares outstanding for MMS has been reduced compared to 1 year ago.
The number of shares outstanding for MMS has been reduced compared to 5 years ago.
The debt/assets ratio for MMS has been reduced compared to a year ago.
2.2 Solvency
MMS has an Altman-Z score of 3.17. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
MMS has a Altman-Z score (3.17) which is in line with its industry peers.
The Debt to FCF ratio of MMS is 4.95, which is a neutral value as it means it would take MMS, 4.95 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.95, MMS perfoms like the industry average, outperforming 54.32% of the companies in the same industry.
MMS has a Debt/Equity ratio of 0.82. This is a neutral value indicating MMS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.82, MMS is not doing good in the industry: 64.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.14
WACC9.29%
2.3 Liquidity
MMS has a Current Ratio of 1.72. This is a normal value and indicates that MMS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.72, MMS is in line with its industry, outperforming 58.02% of the companies in the same industry.
MMS has a Quick Ratio of 1.72. This is a normal value and indicates that MMS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.72, MMS is in line with its industry, outperforming 58.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
MMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.97%, which is quite impressive.
MMS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.09% yearly.
The Revenue has grown by 8.01% in the past year. This is quite good.
Measured over the past years, MMS shows a quite strong growth in Revenue. The Revenue has been growing by 12.95% on average per year.
EPS 1Y (TTM)53.97%
EPS 3Y2.38%
EPS 5Y6.09%
EPS Q2Q%-33.65%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%5.7%
3.2 Future
Based on estimates for the next years, MMS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.35% on average per year.
The Revenue is expected to grow by 1.57% on average over the next years.
EPS Next Y23.22%
EPS Next 2Y13.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.07%
Revenue Next 2Y1.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.49, MMS is valued correctly.
Based on the Price/Earnings ratio, MMS is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
MMS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.49 indicates a reasonable valuation of MMS.
Based on the Price/Forward Earnings ratio, MMS is valued cheaply inside the industry as 90.12% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, MMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMS is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MMS is valued cheaper than 87.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.58 | ||
| EV/EBITDA | 8.65 |
4.3 Compensation for Growth
MMS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MMS has a very decent profitability rating, which may justify a higher PE ratio.
MMS's earnings are expected to grow with 13.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)2.38
EPS Next 2Y13.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.78%.
MMS's Dividend Yield is rather good when compared to the industry average which is at 3.23. MMS pays more dividend than 83.95% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.52, MMS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of MMS has a limited annual growth rate of 3.84%.
MMS has been paying a dividend for at least 10 years, so it has a reliable track record.
MMS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.84%
Div Incr Years2
Div Non Decr Years19
5.3 Sustainability
25.59% of the earnings are spent on dividend by MMS. This is a low number and sustainable payout ratio.
MMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP25.59%
EPS Next 2Y13.35%
EPS Next 3YN/A
67.36
-0.02 (-0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.55%
Inst Owner Change0%
Ins Owners0.75%
Ins Owner Change-1.33%
Market Cap3.81B
Analysts80
Price Target104.04 (54.45%)
Short Float %3.2%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend1.2
Dividend Growth(5Y)3.84%
DP25.59%
Div Incr Years2
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.37%
Min EPS beat(2)-35.55%
Max EPS beat(2)-21.19%
EPS beat(4)2
Avg EPS beat(4)-5.53%
Min EPS beat(4)-35.55%
Max EPS beat(4)26.75%
EPS beat(8)3
Avg EPS beat(8)-9.35%
EPS beat(12)5
Avg EPS beat(12)-3.93%
EPS beat(16)8
Avg EPS beat(16)3.09%
Revenue beat(2)1
Avg Revenue beat(2)3.71%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)7.73%
Revenue beat(4)3
Avg Revenue beat(4)3.25%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)7.73%
Revenue beat(8)4
Avg Revenue beat(8)1.3%
Revenue beat(12)8
Avg Revenue beat(12)2.7%
Revenue beat(16)12
Avg Revenue beat(16)3.95%
PT rev (1m)0%
PT rev (3m)-10.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.45%
EPS NY rev (1m)0%
EPS NY rev (3m)28.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 10.49 | ||
| P/S | 0.71 | ||
| P/FCF | 13.58 | ||
| P/OCF | 9.22 | ||
| P/B | 2.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.65 |
EPS(TTM)4.65
EY6.9%
EPS(NY)6.42
Fwd EY9.54%
FCF(TTM)4.96
FCFY7.36%
OCF(TTM)7.31
OCFY10.85%
SpS95.09
BVpS29.1
TBVpS-16.61
PEG (NY)0.62
PEG (5Y)2.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 17.24% | ||
| ROCE | 13.84% | ||
| ROIC | 10.55% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 49.49% | ||
| OM | 8.69% | ||
| PM (TTM) | 5.28% | ||
| GM | 23.28% | ||
| FCFM | 5.22% |
ROA(3y)5.53%
ROA(5y)6.85%
ROE(3y)13.17%
ROE(5y)15.29%
ROIC(3y)8.8%
ROIC(5y)10.15%
ROICexc(3y)9.11%
ROICexc(5y)10.57%
ROICexgc(3y)51.88%
ROICexgc(5y)50.78%
ROCE(3y)11.55%
ROCE(5y)13.32%
ROICexcg growth 3Y3.62%
ROICexcg growth 5Y6.66%
ROICexc growth 3Y7.03%
ROICexc growth 5Y-8.8%
OM growth 3Y-1.13%
OM growth 5Y-3.32%
PM growth 3Y-5.46%
PM growth 5Y-7.06%
GM growth 3Y1.95%
GM growth 5Y0.29%
F-Score7
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 4.95 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 106.13% | ||
| Cap/Sales | 2.47% | ||
| Interest Coverage | 6.16 | ||
| Cash Conversion | 69.75% | ||
| Profit Quality | 98.86% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 3.17 |
F-Score7
WACC9.29%
ROIC/WACC1.14
Cap/Depr(3y)69.43%
Cap/Depr(5y)57.85%
Cap/Sales(3y)1.85%
Cap/Sales(5y)1.52%
Profit Quality(3y)125.89%
Profit Quality(5y)127.56%
High Growth Momentum
Growth
EPS 1Y (TTM)53.97%
EPS 3Y2.38%
EPS 5Y6.09%
EPS Q2Q%-33.65%
EPS Next Y23.22%
EPS Next 2Y13.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.01%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%5.7%
Revenue Next Year0.07%
Revenue Next 2Y1.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y42.83%
EBIT growth 3Y6.43%
EBIT growth 5Y9.2%
EBIT Next Year20.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y203.48%
FCF growth 3Y-7.29%
FCF growth 5Y5.73%
OCF growth 1Y161.81%
OCF growth 3Y-0.13%
OCF growth 5Y7.63%