MAXIMUS INC (MMS) Stock Fundamental Analysis
NYSE:MMS - New York Stock Exchange, Inc. - US5779331041 - Common Stock
Taking everything into account, MMS scores 6 out of 10 in our fundamental rating. MMS was compared to 82 industry peers in the IT Services industry. MMS has an average financial health and profitability rating. MMS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MMS was profitable.
In the past year MMS had a positive cash flow from operations.
Each year in the past 5 years MMS has been profitable.
MMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MMS has a better Return On Assets (7.43%) than 75.95% of its industry peers.
With a decent Return On Equity value of 16.65%, MMS is doing good in the industry, outperforming 78.48% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.20%, MMS is in the better half of the industry, outperforming 78.48% 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 9.86%.
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.
| 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
MMS has a better Profit Margin (5.78%) than 68.35% of its industry peers.
MMS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 9.21%, MMS is doing good in the industry, outperforming 69.62% of the companies in the same industry.
In the last couple of years the Operating Margin of MMS has declined.
MMS's Gross Margin of 23.59% is on the low side compared to the rest of the industry. MMS is outperformed by 69.62% 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.
The number of shares outstanding for MMS has been reduced compared to 1 year ago.
MMS has less shares outstanding than it did 5 years ago.
MMS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.48 indicates that MMS is not in any danger for bankruptcy at the moment.
MMS has a Altman-Z score (3.48) which is comparable to the rest of the industry.
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 Debt to FCF ratio of 2.96. This is in the better half of the industry: MMS outperforms 62.03% 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.
The Debt to Equity ratio of MMS (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 3.48 |
ROIC/WACC0.98
WACC11.43%
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 46.84% 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.
MMS's Quick ratio of 1.49 is in line compared to the rest of the industry. MMS outperforms 48.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
MMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.11%, 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 8.18% in the past year. This is quite good.
MMS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.95% yearly.
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
The Earnings Per Share is expected to grow by 2.34% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 15.94 indicates a correct valuation of MMS.
MMS's Price/Earnings ratio is a bit cheaper when compared to the industry. MMS is cheaper than 79.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. MMS is valued slightly cheaper when compared to this.
MMS is valuated correctly with a Price/Forward Earnings ratio of 16.56.
Based on the Price/Forward Earnings ratio, MMS is valued a bit cheaper than the industry average as 78.48% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MMS to the average of the S&P500 Index (24.44), we can say MMS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 16.56 |
4.2 Price Multiples
MMS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MMS is cheaper than 86.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MMS is valued cheaper than 92.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.54 | ||
| EV/EBITDA | 9.37 |
4.3 Compensation for Growth
The decent profitability rating of MMS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.62
EPS Next 2Y2.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, MMS has a reasonable but not impressive dividend return.
MMS's Dividend Yield is rather good when compared to the industry average which is at 2.88. MMS pays more dividend than 86.08% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.28, MMS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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
23.75% of the earnings are spent on dividend by MMS. This is a low number and sustainable payout ratio.
The dividend of MMS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.75%
EPS Next 2Y2.34%
EPS Next 3YN/A
MAXIMUS INC
NYSE:MMS (1/21/2025, 8:14:48 PM)
After market: 79.68 0 (0%)79.68
+1.3 (+1.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.59%
Inst Owner Change-0.72%
Ins Owners0.59%
Ins Owner Change0.12%
Market Cap4.80B
Analysts76.67
Price Target116.28 (45.93%)
Short Float %3.96%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend1.2
Dividend Growth(5Y)3.84%
DP23.75%
Div Incr Years2
Div Non Decr Years19
Ex-DateN/A
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)0%
PT rev (3m)3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 16.56 | ||
| P/S | 0.91 | ||
| P/FCF | 12.54 | ||
| P/OCF | 9.32 | ||
| P/B | 2.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.37 |
EPS(TTM)5
EY6.28%
EPS(NY)4.81
Fwd EY6.04%
FCF(TTM)6.35
FCFY7.97%
OCF(TTM)8.54
OCFY10.72%
SpS88
BVpS30.56
TBVpS-12.58
PEG (NY)N/A
PEG (5Y)2.62
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 | 3.48 |
F-Score9
WACC11.43%
ROIC/WACC0.98
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 Year20.9%
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%