MAXIMUS INC (MMS) Stock Fundamental Analysis
USA - NYSE:MMS - US5779331041 - Common Stock
87.76 USD
-0.21 (-0.24%)
87.76 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to MMS. MMS was compared to 86 industry peers in the IT Services industry. MMS has only an average score on both its financial health and profitability. MMS has a correct valuation and a medium growth rate. MMS also has an excellent dividend rating. With these ratings, MMS could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
MMS had positive earnings in the past year.
MMS had a negative operating cash flow in the past year.
In the past 5 years MMS has always been profitable.
In the past 5 years MMS always reported a positive cash flow from operatings.
1.2 Ratios
MMS's Return On Assets of 7.09% is fine compared to the rest of the industry. MMS outperforms 75.58% of its industry peers.
Looking at the Return On Equity, with a value of 17.84%, MMS belongs to the top of the industry, outperforming 80.23% of the companies in the same industry.
MMS has a Return On Invested Capital of 10.49%. This is in the better half of the industry: MMS outperforms 74.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MMS is significantly below the industry average of 21.79%.
The 3 year average ROIC (8.80%) for MMS is below the current ROIC(10.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.09% | ||
| ROE | 17.84% | ||
| ROIC | 10.49% |
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 (5.83%) than 68.60% of its industry peers.
In the last couple of years the Profit Margin of MMS has declined.
The Operating Margin of MMS (9.53%) is better than 67.44% of its industry peers.
MMS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 23.98%, MMS is not doing good in the industry: 74.42% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MMS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.53% | ||
| PM (TTM) | 5.83% | ||
| GM | 23.98% |
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
MMS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
The debt/assets ratio for MMS has been reduced compared to a year ago.
2.2 Solvency
MMS has an Altman-Z score of 3.31. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MMS (3.31) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.91 indicates that MMS is somewhat dependend on debt financing.
MMS's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. MMS is outperformed by 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.31 |
ROIC/WACC1.16
WACC9.08%
2.3 Liquidity
MMS has a Current Ratio of 2.27. This indicates that MMS is financially healthy and has no problem in meeting its short term obligations.
MMS's Current ratio of 2.27 is fine compared to the rest of the industry. MMS outperforms 67.44% of its industry peers.
A Quick Ratio of 2.27 indicates that MMS has no problem at all paying its short term obligations.
MMS has a Quick ratio of 2.27. This is in the better half of the industry: MMS outperforms 68.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.83% over the past year.
Measured over the past 5 years, MMS shows a small growth in Earnings Per Share. The EPS has been growing by 6.09% on average per year.
The Revenue has been growing slightly by 3.40% in the past year.
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)26.83%
EPS 3Y2.38%
EPS 5Y6.09%
EPS Q2Q%47.95%
Revenue 1Y (TTM)3.4%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%2.55%
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 12.93% yearly.
Based on estimates for the next years, MMS will show a small growth in Revenue. The Revenue will grow by 3.98% on average per year.
EPS Next Y50.49%
EPS Next 2Y24.11%
EPS Next 3Y12.93%
EPS Next 5YN/A
Revenue Next Year2.17%
Revenue Next 2Y2.72%
Revenue Next 3Y3.98%
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 accelerating.
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
MMS is valuated correctly with a Price/Earnings ratio of 14.51.
Compared to the rest of the industry, the Price/Earnings ratio of MMS indicates a somewhat cheap valuation: MMS is cheaper than 79.07% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, MMS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.40, the valuation of MMS can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMS indicates a rather cheap valuation: MMS is cheaper than 86.05% of the companies listed in the same industry.
MMS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMS is valued a bit cheaper than the industry average as 75.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.14 |
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 12.93% in the coming years.
PEG (NY)0.29
PEG (5Y)2.38
EPS Next 2Y24.11%
EPS Next 3Y12.93%
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
MMS's Dividend Yield is rather good when compared to the industry average which is at 2.36. MMS pays more dividend than 84.88% of the companies in the same industry.
With a Dividend Yield of 1.33, MMS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of MMS has a limited annual growth rate of 3.84%.
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)3.84%
Div Incr Years2
Div Non Decr Years19
5.3 Sustainability
MMS pays out 22.11% 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.
DP22.11%
EPS Next 2Y24.11%
EPS Next 3Y12.93%
87.76
-0.21 (-0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.05%
Inst Owner Change-0.74%
Ins Owners0.73%
Ins Owner Change-0.58%
Market Cap4.95B
Analysts80
Price Target107.1 (22.04%)
Short Float %4.23%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend1.2
Dividend Growth(5Y)3.84%
DP22.11%
Div Incr Years2
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.67%
Min EPS beat(2)44.21%
Max EPS beat(2)51.14%
EPS beat(4)2
Avg EPS beat(4)9.65%
Min EPS beat(4)-35.55%
Max EPS beat(4)51.14%
EPS beat(8)5
Avg EPS beat(8)8.43%
EPS beat(12)6
Avg EPS beat(12)5.52%
EPS beat(16)8
Avg EPS beat(16)3.2%
Revenue beat(2)2
Avg Revenue beat(2)3.88%
Min Revenue beat(2)3.56%
Max Revenue beat(2)4.19%
Revenue beat(4)3
Avg Revenue beat(4)3.79%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)7.73%
Revenue beat(8)6
Avg Revenue beat(8)2.66%
Revenue beat(12)8
Avg Revenue beat(12)2.53%
Revenue beat(16)12
Avg Revenue beat(16)2.87%
PT rev (1m)1.94%
PT rev (3m)1.94%
EPS NQ rev (1m)6.37%
EPS NQ rev (3m)13.99%
EPS NY rev (1m)14.62%
EPS NY rev (3m)14.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.28%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 11.4 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.14 |
EPS(TTM)6.05
EY6.89%
EPS(NY)7.7
Fwd EY8.78%
FCF(TTM)-2.55
FCFYN/A
OCF(TTM)-1
OCFYN/A
SpS96.34
BVpS31.46
TBVpS-14
PEG (NY)0.29
PEG (5Y)2.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.09% | ||
| ROE | 17.84% | ||
| ROCE | 13.77% | ||
| ROIC | 10.49% | ||
| ROICexc | 10.66% | ||
| ROICexgc | 34.74% | ||
| OM | 9.53% | ||
| PM (TTM) | 5.83% | ||
| GM | 23.98% | ||
| FCFM | N/A |
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-Score4
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 67.73% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 6.43 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 3.31 |
F-Score4
WACC9.08%
ROIC/WACC1.16
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)26.83%
EPS 3Y2.38%
EPS 5Y6.09%
EPS Q2Q%47.95%
EPS Next Y50.49%
EPS Next 2Y24.11%
EPS Next 3Y12.93%
EPS Next 5YN/A
Revenue 1Y (TTM)3.4%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%2.55%
Revenue Next Year2.17%
Revenue Next 2Y2.72%
Revenue Next 3Y3.98%
Revenue Next 5YN/A
EBIT growth 1Y8.69%
EBIT growth 3Y6.43%
EBIT growth 5Y9.2%
EBIT Next Year27.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-168.25%
FCF growth 3Y-7.29%
FCF growth 5Y5.73%
OCF growth 1Y-119.38%
OCF growth 3Y-0.13%
OCF growth 5Y7.63%