MAXIMUS INC (MMS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:MMS • US5779331041
94.44 USD
+0.27 (+0.29%)
At close: Jan 30, 2026
94.44 USD
0 (0%)
After Hours: 1/30/2026, 8:06:59 PM
Taking everything into account, MMS scores 6 out of 10 in our fundamental rating. 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. MMS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. MMS also has an excellent dividend rating. With these ratings, MMS could be worth investigating further for value and dividend investing!.
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.
- Each year in the past 5 years MMS has been profitable.
- In the past 5 years MMS always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 7.84%, MMS is doing good in the industry, outperforming 78.41% of the companies in the same industry.
- MMS has a better Return On Equity (19.06%) than 82.95% of its industry peers.
- With an excellent Return On Invested Capital value of 11.77%, MMS belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MMS is significantly below the industry average of 29.07%.
- 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
- With a decent Profit Margin value of 5.87%, MMS is doing good in the industry, outperforming 64.77% of the companies in the same industry.
- In the last couple of years the Profit Margin of MMS has remained more or less at the same level.
- MMS's Operating Margin of 9.73% is fine compared to the rest of the industry. MMS outperforms 69.32% of its industry peers.
- In the last couple of years the Operating Margin of MMS has grown nicely.
- The Gross Margin of MMS (24.55%) is worse than 71.59% of its industry peers.
- MMS's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MMS is still creating some value.
- The number of shares outstanding for MMS has been reduced compared to 1 year ago.
- Compared to 5 years ago, MMS has less shares outstanding
- The debt/assets ratio for MMS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.56 indicates that MMS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.56, MMS is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 3.64, MMS is in line with its industry, outperforming 57.95% of the companies in the same industry.
- A Debt/Equity ratio of 0.77 indicates that MMS is somewhat dependend on debt financing.
- MMS has a Debt to Equity ratio (0.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | 3.56 |
ROIC/WACC1.19
WACC9.89%
2.3 Liquidity
- MMS has a Current Ratio of 1.64. This is a normal value and indicates that MMS is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.64, MMS is in line with its industry, outperforming 50.00% of the companies in the same industry.
- MMS has a Quick Ratio of 1.64. This is a normal value and indicates that MMS is financially healthy and should not expect problems in meeting 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.
- The Earnings Per Share has been growing by 13.77% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 2.36% in the past year.
- The Revenue has been growing by 9.43% on average over the past years. This is quite good.
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
- MMS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.31% yearly.
- Based on estimates for the next years, MMS will show a small growth in Revenue. The Revenue will grow by 2.61% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- With a Price/Earnings ratio of 14.57, MMS is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of MMS indicates a somewhat cheap valuation: MMS is cheaper than 75.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, MMS is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 11.44, the valuation of MMS can be described as reasonable.
- Based on the Price/Forward Earnings ratio, MMS is valued cheaply inside the industry as 84.09% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, MMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
- 80.68% 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 a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.05 | ||
| EV/EBITDA | 9.45 |
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.
- The decent profitability rating of MMS may justify a higher PE ratio.
- A more expensive valuation may be justified as MMS's earnings are expected to grow with 16.31% in the coming years.
PEG (NY)0.53
PEG (5Y)1.06
EPS Next 2Y16.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- MMS has a Yearly Dividend Yield of 1.40%.
- MMS's Dividend Yield is rather good when compared to the industry average which is at 0.44. MMS pays more dividend than 85.23% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.83, MMS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
- The dividend of MMS has a limited annual growth rate of 1.30%.
- 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)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.
- The dividend of MMS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.54%
EPS Next 2Y16.31%
EPS Next 3YN/A
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 7 / 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%.