Why MAXIMUS INC (NYSE:MMS) provides a good dividend, while having solid fundamentals.

MAXIMUS INC (NYSE:MMS) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. MMS demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Unpacking MMS's Dividend Rating

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. MMS earns a 7 out of 10:

• MMS's Dividend Yield is rather good when compared to the industry average which is at 3.08. MMS pays more dividend than 87.65% of the companies in the same industry.
• MMS has paid a dividend for at least 10 years, which is a reliable track record.
• MMS has not decreased their dividend for at least 10 years, which is a reliable track record.
• 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.

A Closer Look at Health for MMS

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. MMS has achieved a 5 out of 10:

• MMS has an Altman-Z score of 3.15. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.

A Closer Look at Profitability for 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. MMS has earned a 6 out of 10:

• Looking at the Return On Assets, with a value of 7.00%, MMS is in the better half of the industry, outperforming 75.31% of the companies in the same industry.
• MMS has a better Return On Equity (17.24%) than 79.01% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 10.55%, MMS is in the better half of the industry, outperforming 76.54% of the companies in the same industry.
• The last Return On Invested Capital (10.55%) for MMS is above the 3 year average (8.80%), which is a sign of increasing profitability.
• The Profit Margin of MMS (5.28%) is better than 67.90% of its industry peers.
• MMS's Operating Margin of 8.69% is fine compared to the rest of the industry. MMS outperforms 67.90% of its industry peers.

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For an up to date full fundamental analysis you can check the fundamental report of MMS

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.