MAXIMUS INC (MMS)
US5779331041 - Common Stock
MMS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MMS had positive earnings in the past year.
MMS had a positive operating cash flow in the past year.
MMS had positive earnings in each of the past 5 years.
In the past 5 years MMS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MMS (7.43%) is better than 76.54% of its industry peers.
The Return On Equity of MMS (16.65%) is better than 80.25% of its industry peers.
The Return On Invested Capital of MMS (11.20%) is better than 79.01% of its industry peers.
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 9.40%.
The 3 year average ROIC (8.80%) for MMS is below the current ROIC(11.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 16.65% | ||
| ROIC | 11.2% |
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
With a decent Profit Margin value of 5.78%, MMS is doing good in the industry, outperforming 67.90% of the companies in the same industry.
MMS's Profit Margin has declined in the last couple of years.
MMS's Operating Margin of 9.21% is fine compared to the rest of the industry. MMS outperforms 70.37% of its industry peers.
MMS's Operating Margin has declined in the last couple of years.
MMS's Gross Margin of 23.59% is on the low side compared to the rest of the industry. MMS is outperformed by 70.37% of its industry peers.
MMS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.21% | ||
| PM (TTM) | 5.78% | ||
| GM | 23.59% |
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 below the Cost of Capital (WACC), so MMS is destroying value.
Compared to 1 year ago, MMS has less shares outstanding
MMS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MMS has an improved debt to assets ratio.
2.2 Solvency
MMS has an Altman-Z score of 3.37. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.37, MMS perfoms like the industry average, outperforming 54.32% of the companies in the same industry.
The Debt to FCF ratio of MMS is 2.96, which is a good value as it means it would take MMS, 2.96 years of fcf income to pay off all of its debts.
MMS has a Debt to FCF ratio of 2.96. This is in the better half of the industry: MMS outperforms 61.73% of its industry peers.
MMS has a Debt/Equity ratio of 0.59. This is a neutral value indicating MMS is somewhat dependend on debt financing.
MMS has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: MMS underperforms 61.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.96
WACC11.64%
2.3 Liquidity
A Current Ratio of 1.49 indicates that MMS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.49, MMS is in line with its industry, outperforming 45.68% of the companies in the same industry.
A Quick Ratio of 1.49 indicates that MMS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.49, MMS perfoms like the industry average, outperforming 46.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 90.11% over the past year.
Measured over the past 5 years, MMS shows a small growth in Earnings Per Share. The EPS has been growing by 6.09% on average per year.
MMS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.18%.
The Revenue has been growing by 12.95% on average over the past years. This is quite good.
EPS 1Y (TTM)90.11%
EPS 3Y2.38%
EPS 5Y6.09%
EPS Q2Q%23.96%
Revenue 1Y (TTM)8.18%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%4.44%
3.2 Future
MMS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.34% yearly.
The Revenue is expected to grow by 1.07% on average over the next years.
EPS Next Y-3.75%
EPS Next 2Y2.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.65%
Revenue Next 2Y1.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 14.59, which indicates a correct valuation of MMS.
MMS's Price/Earnings ratio is rather cheap when compared to the industry. MMS is cheaper than 83.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, MMS is valued a bit cheaper.
MMS is valuated correctly with a Price/Forward Earnings ratio of 15.16.
82.72% of the companies in the same industry are more expensive than MMS, based on the Price/Forward Earnings ratio.
MMS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 15.16 |
4.2 Price Multiples
MMS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MMS is cheaper than 83.95% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMS indicates a rather cheap valuation: MMS is cheaper than 87.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.48 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
MMS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.39
EPS Next 2Y2.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.66%.
Compared to an average industry Dividend Yield of 2.74, 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's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
The dividend of MMS has a limited annual growth rate of 3.84%.
MMS has paid a dividend for at least 10 years, which is 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.
Dividend Growth(5Y)3.84%
Div Incr Years2
Div Non Decr Years19
5.3 Sustainability
MMS pays out 23.75% of its income as dividend. This is a sustainable payout ratio.
MMS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.75%
EPS Next 2Y2.34%
EPS Next 3YN/A
MAXIMUS INC
NYSE:MMS (12/20/2024, 8:25:01 PM)
After market: 72.94 0 (0%)72.94
+0.74 (+1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.59%
Inst Owner Change-0.81%
Ins Owners0.59%
Ins Owner Change-0.23%
Market Cap4.40B
Analysts76.67
Price Target116.28 (59.42%)
Short Float %3.5%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Dividend Growth(5Y)3.84%
DP23.75%
Div Incr Years2
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.66%
Min EPS beat(2)-21.19%
Max EPS beat(2)7.88%
EPS beat(4)3
Avg EPS beat(4)3.85%
Min EPS beat(4)-21.19%
Max EPS beat(4)26.75%
EPS beat(8)3
Avg EPS beat(8)-6.82%
EPS beat(12)6
Avg EPS beat(12)-0.24%
EPS beat(16)9
Avg EPS beat(16)6.13%
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)1.3%
Revenue beat(4)3
Avg Revenue beat(4)1.84%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)4.28%
Revenue beat(8)4
Avg Revenue beat(8)1.32%
Revenue beat(12)8
Avg Revenue beat(12)2.45%
Revenue beat(16)12
Avg Revenue beat(16)4.13%
PT rev (1m)3.64%
PT rev (3m)1.79%
EPS NQ rev (1m)-6.93%
EPS NQ rev (3m)-6.52%
EPS NY rev (1m)-12.41%
EPS NY rev (3m)-4.95%
Revenue NQ rev (1m)-1.58%
Revenue NQ rev (3m)-3.39%
Revenue NY rev (1m)-1.76%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 15.16 | ||
| P/S | 0.83 | ||
| P/FCF | 11.48 | ||
| P/OCF | 8.54 | ||
| P/B | 2.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.71 |
EPS(TTM)5
EY6.85%
EPS(NY)4.81
Fwd EY6.6%
FCF(TTM)6.35
FCFY8.71%
OCF(TTM)8.54
OCFY11.71%
SpS88
BVpS30.56
TBVpS-12.58
PEG (NY)N/A
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 16.65% | ||
| ROCE | 14.7% | ||
| ROIC | 11.2% | ||
| ROICexc | 11.85% | ||
| ROICexgc | 68.98% | ||
| OM | 9.21% | ||
| PM (TTM) | 5.78% | ||
| GM | 23.59% | ||
| FCFM | 7.22% |
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-Score9
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.96 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 105.31% | ||
| Cap/Sales | 2.49% | ||
| Interest Coverage | 6.19 | ||
| Cash Conversion | 83.91% | ||
| Profit Quality | 124.81% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 3.37 |
F-Score9
WACC11.64%
ROIC/WACC0.96
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)90.11%
EPS 3Y2.38%
EPS 5Y6.09%
EPS Q2Q%23.96%
EPS Next Y-3.75%
EPS Next 2Y2.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.18%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%4.44%
Revenue Next Year-0.65%
Revenue Next 2Y1.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y65.71%
EBIT growth 3Y6.43%
EBIT growth 5Y9.2%
EBIT Next Year22.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y71.32%
FCF growth 3Y-7.29%
FCF growth 5Y5.73%
OCF growth 1Y63.94%
OCF growth 3Y-0.13%
OCF growth 5Y7.63%