MAXIMUS INC (MMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMS - US5779331041 - Common Stock
97.05 USD
+2.13 (+2.24%)
97.05 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to MMS. MMS was compared to 88 industry peers in the IT Services industry. MMS scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on MMS. Finally MMS also has an excellent dividend rating. This makes MMS very considerable 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.
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
MMS has a better Return On Assets (7.84%) than 78.41% of its industry peers.
With an excellent Return On Equity value of 19.06%, MMS belongs to the best of the industry, outperforming 82.95% of the companies in the same industry.
MMS has a better Return On Invested Capital (11.77%) than 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMS is significantly below the industry average of 28.99%.
The 3 year average ROIC (10.34%) for MMS is below the current ROIC(11.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 19.06% | ||
| ROIC | 11.77% |
ROA(3y)6.44%
ROA(5y)6.3%
ROE(3y)15.14%
ROE(5y)15.65%
ROIC(3y)10.34%
ROIC(5y)9.45%
1.3 Margins
MMS has a better Profit Margin (5.87%) than 64.77% of its industry peers.
In the last couple of years the Profit Margin of MMS has remained more or less at the same level.
The Operating Margin of MMS (9.73%) is better than 69.32% of its industry peers.
MMS's Operating Margin has improved in the last couple of years.
MMS has a Gross Margin of 24.55%. This is in the lower half of the industry: MMS underperforms 71.59% of its industry peers.
In the last couple of years the Gross Margin of MMS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.73% | ||
| PM (TTM) | 5.87% | ||
| GM | 24.55% |
OM growth 3Y15.62%
OM growth 5Y4.76%
PM growth 3Y10.1%
PM growth 5Y-1.06%
GM growth 3Y6.55%
GM growth 5Y3.63%
2. Health
2.1 Basic Checks
MMS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MMS has less shares outstanding
The number of shares outstanding for MMS has been reduced compared to 5 years ago.
MMS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.57 indicates that MMS is not in any danger for bankruptcy at the moment.
MMS has a better Altman-Z score (3.57) than 60.23% of its industry peers.
MMS has a debt to FCF ratio of 3.64. This is a good value and a sign of high solvency as MMS would need 3.64 years to pay back of all of its debts.
MMS has a Debt to FCF ratio (3.64) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.77 indicates that MMS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, MMS perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.21
WACC9.74%
2.3 Liquidity
A Current Ratio of 1.64 indicates that MMS should not have too much problems paying its short term obligations.
The Current ratio of MMS (1.64) is comparable to the rest of the industry.
A Quick Ratio of 1.64 indicates that MMS should not have too much problems paying its short term obligations.
MMS has a Quick ratio (1.64) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.60% over the past year.
MMS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.77% yearly.
MMS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.36%.
Measured over the past years, MMS shows a quite strong growth in Revenue. The Revenue has been growing by 9.43% on average per year.
EPS 1Y (TTM)29.6%
EPS 3Y25.35%
EPS 5Y13.77%
EPS Q2Q%36.13%
Revenue 1Y (TTM)2.36%
Revenue growth 3Y5.46%
Revenue growth 5Y9.43%
Sales Q2Q%0.19%
3.2 Future
The Earnings Per Share is expected to grow by 16.31% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.61% on average over the next years.
EPS Next Y27.34%
EPS Next 2Y16.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.29%
Revenue Next 2Y2.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue 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
The Price/Earnings ratio is 14.98, which indicates a correct valuation of MMS.
Based on the Price/Earnings ratio, MMS is valued a bit cheaper than 78.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. MMS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.76, the valuation of MMS can be described as reasonable.
Based on the Price/Forward Earnings ratio, MMS is valued cheaper than 86.36% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, MMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
84.09% of the companies in the same industry are more expensive than MMS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MMS is valued cheaply inside the industry as 80.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.43 | ||
| EV/EBITDA | 9.49 |
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 16.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)1.09
EPS Next 2Y16.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.39%.
Compared to an average industry Dividend Yield of 0.43, MMS pays a better dividend. On top of this MMS pays more dividend than 85.23% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.90, MMS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of MMS has a limited annual growth rate of 1.30%.
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.
Dividend Growth(5Y)1.3%
Div Incr Years2
Div Non Decr Years19
5.3 Sustainability
MMS pays out 21.54% of its income as dividend. This is a sustainable payout ratio.
MMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.54%
EPS Next 2Y16.31%
EPS Next 3YN/A
97.05
+2.13 (+2.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners106.55%
Inst Owner Change0%
Ins Owners0.75%
Ins Owner Change0.19%
Market Cap5.29B
Revenue(TTM)5.43B
Net Income(TTM)319.03M
Analysts80
Price Target112.2 (15.61%)
Short Float %5.75%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend1.19
Dividend Growth(5Y)1.3%
DP21.54%
Div Incr Years2
Div Non Decr Years19
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.59%
Min EPS beat(2)-3.95%
Max EPS beat(2)51.14%
EPS beat(4)2
Avg EPS beat(4)13.96%
Min EPS beat(4)-35.55%
Max EPS beat(4)51.14%
EPS beat(8)5
Avg EPS beat(8)8.9%
EPS beat(12)5
Avg EPS beat(12)0.11%
EPS beat(16)8
Avg EPS beat(16)3.31%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)3.56%
Revenue beat(4)3
Avg Revenue beat(4)3.2%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)7.73%
Revenue beat(8)6
Avg Revenue beat(8)2.52%
Revenue beat(12)7
Avg Revenue beat(12)1.95%
Revenue beat(16)11
Avg Revenue beat(16)2.64%
PT rev (1m)4.76%
PT rev (3m)4.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4%
EPS NY rev (1m)0%
EPS NY rev (3m)7.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 11.76 | ||
| P/S | 0.97 | ||
| P/FCF | 14.43 | ||
| P/OCF | 12.31 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.49 |
EPS(TTM)6.48
EY6.68%
EPS(NY)8.25
Fwd EY8.5%
FCF(TTM)6.72
FCFY6.93%
OCF(TTM)7.88
OCFY8.12%
SpS99.73
BVpS30.74
TBVpS-15.8
PEG (NY)0.55
PEG (5Y)1.09
Graham Number66.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 19.06% | ||
| ROCE | 15.99% | ||
| ROIC | 11.77% | ||
| ROICexc | 12.62% | ||
| ROICexgc | 71.03% | ||
| OM | 9.73% | ||
| PM (TTM) | 5.87% | ||
| GM | 24.55% | ||
| FCFM | 6.74% |
ROA(3y)6.44%
ROA(5y)6.3%
ROE(3y)15.14%
ROE(5y)15.65%
ROIC(3y)10.34%
ROIC(5y)9.45%
ROICexc(3y)10.91%
ROICexc(5y)9.89%
ROICexgc(3y)61.23%
ROICexgc(5y)57.48%
ROCE(3y)14.05%
ROCE(5y)12.84%
ROICexgc growth 3Y20.97%
ROICexgc growth 5Y17.33%
ROICexc growth 3Y23.18%
ROICexc growth 5Y-2.21%
OM growth 3Y15.62%
OM growth 5Y4.76%
PM growth 3Y10.1%
PM growth 5Y-1.06%
GM growth 3Y6.55%
GM growth 5Y3.63%
F-Score8
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.64 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 47.27% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 3.52 | ||
| Cash Conversion | 64.86% | ||
| Profit Quality | 114.77% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 3.57 |
F-Score8
WACC9.74%
ROIC/WACC1.21
Cap/Depr(3y)71.11%
Cap/Depr(5y)59.18%
Cap/Sales(3y)1.83%
Cap/Sales(5y)1.52%
Profit Quality(3y)125.93%
Profit Quality(5y)131.51%
High Growth Momentum
Growth
EPS 1Y (TTM)29.6%
EPS 3Y25.35%
EPS 5Y13.77%
EPS Q2Q%36.13%
EPS Next Y27.34%
EPS Next 2Y16.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.36%
Revenue growth 3Y5.46%
Revenue growth 5Y9.43%
Sales Q2Q%0.19%
Revenue Next Year0.29%
Revenue Next 2Y2.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.15%
EBIT growth 3Y21.93%
EBIT growth 5Y14.64%
EBIT Next Year36.4%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-4.41%
FCF growth 3Y16.15%
FCF growth 5Y12.42%
OCF growth 1Y-16.67%
OCF growth 3Y14%
OCF growth 5Y11.91%
MAXIMUS INC / MMS FAQ
Can you provide the ChartMill fundamental rating for MAXIMUS INC?
ChartMill assigns a fundamental rating of 6 / 10 to MMS.
What is the valuation status of MAXIMUS INC (MMS) stock?
ChartMill assigns a valuation rating of 8 / 10 to MAXIMUS INC (MMS). This can be considered as Undervalued.
Can you provide the profitability details for MAXIMUS INC?
MAXIMUS INC (MMS) has a profitability rating of 7 / 10.
What is the expected EPS growth for MAXIMUS INC (MMS) stock?
The Earnings per Share (EPS) of MAXIMUS INC (MMS) is expected to grow by 27.34% in the next year.
Is the dividend of MAXIMUS INC sustainable?
The dividend rating of MAXIMUS INC (MMS) is 7 / 10 and the dividend payout ratio is 21.54%.