MAXIMUS INC (MMS)
US5779331041 - Common Stock
We assign a fundamental rating of 5 out of 10 to MMS. MMS was compared to 84 industry peers in the IT Services industry. MMS has only an average score on both its financial health and profitability. MMS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MMS had positive earnings in the past year.
In the past year MMS had a positive cash flow from operations.
Of the past 5 years MMS 4 years were profitable.
Of the past 5 years MMS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MMS (7.34%) is better than 75.61% of its industry peers.
MMS's Return On Equity of 16.14% is fine compared to the rest of the industry. MMS outperforms 79.27% of its industry peers.
The Return On Invested Capital of MMS (10.79%) is better than 78.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MMS is in line with the industry average of 9.59%.
The last Return On Invested Capital (10.79%) for MMS is above the 3 year average (8.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 16.14% | ||
| ROIC | 10.79% |
ROA(3y)5.41%
ROA(5y)8.12%
ROE(3y)14.18%
ROE(5y)15.82%
ROIC(3y)8.05%
ROIC(5y)11.25%
1.3 Margins
MMS's Profit Margin of 5.59% is fine compared to the rest of the industry. MMS outperforms 67.07% of its industry peers.
In the last couple of years the Profit Margin of MMS has declined.
With a decent Operating Margin value of 9.06%, MMS is doing good in the industry, outperforming 68.29% of the companies in the same industry.
MMS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.63%, MMS is doing worse than 71.95% of the companies in the same industry.
In the last couple of years the Gross Margin of MMS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.06% | ||
| PM (TTM) | 5.59% | ||
| GM | 23.63% |
OM growth 3Y-7.06%
OM growth 5Y-11.76%
PM growth 3Y-18.95%
PM growth 5Y-18.6%
GM growth 3Y0.7%
GM growth 5Y-3.33%
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.
MMS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
MMS has an Altman-Z score of 3.59. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
MMS has a Altman-Z score (3.59) which is in line with its industry peers.
MMS has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as MMS would need 3.13 years to pay back of all of its debts.
MMS has a better Debt to FCF ratio (3.13) than 63.41% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that MMS is somewhat dependend on debt financing.
MMS has a worse Debt to Equity ratio (0.61) than 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.03
WACC10.51%
2.3 Liquidity
A Current Ratio of 1.59 indicates that MMS should not have too much problems paying its short term obligations.
MMS's Current ratio of 1.59 is in line compared to the rest of the industry. MMS outperforms 54.88% of its industry peers.
A Quick Ratio of 1.59 indicates that MMS should not have too much problems paying its short term obligations.
The Quick ratio of MMS (1.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 100.38% over the past year.
MMS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.21% yearly.
EPS 1Y (TTM)100.38%
EPS 3Y4.19%
EPS 5Y7.21%
EPS Q2Q%52.08%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.44%
3.2 Future
Based on estimates for the next years, MMS will show a small growth in Earnings Per Share. The EPS will grow by 3.50% on average per year.
The Revenue is expected to grow by 1.66% on average over the next years.
EPS Next Y4.26%
EPS Next 2Y3.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.12%
Revenue Next 2Y1.66%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.28 indicates a correct valuation of MMS.
Based on the Price/Earnings ratio, MMS is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
MMS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.65.
Based on the Price/Forward Earnings ratio of 14.66, the valuation of MMS can be described as correct.
81.71% of the companies in the same industry are more expensive than MMS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.56. MMS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
MMS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MMS is cheaper than 82.93% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MMS is valued cheaply inside the industry as 89.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.32 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MMS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.59
PEG (5Y)2.12
EPS Next 2Y3.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.50%.
Compared to an average industry Dividend Yield of 2.85, MMS pays a better dividend. On top of this MMS pays more dividend than 87.80% of the companies listed in the same industry.
MMS's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
On average, the dividend of MMS grows each year by 43.98%, which is quite nice.
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)43.98%
Div Incr Years1
Div Non Decr Years18
5.3 Sustainability
MMS pays out 24.48% of its income as dividend. This is a sustainable payout ratio.
The dividend of MMS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.48%
EPS Next 2Y3.5%
EPS Next 3YN/A
MAXIMUS INC
NYSE:MMS (11/20/2024, 8:04:00 PM)
Premarket: 75.05 -5.48 (-6.8%)80.53
+0.72 (+0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 14.66 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.59
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 16.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.06% | ||
| PM (TTM) | 5.59% | ||
| GM | 23.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)100.38%
EPS 3Y4.19%
EPS 5Y
EPS Q2Q%
EPS Next Y4.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y