MAXIMUS INC (MMS) Stock Fundamental Analysis
NYSE:MMS - New York Stock Exchange, Inc. - US5779331041 - Common Stock - Currency: USD
MMS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. MMS has an average financial health and profitability rating. MMS is valued quite cheap, while showing a decent growth score. This is a good combination! Finally MMS also has an excellent dividend rating. These ratings would make MMS suitable for value and dividend investing!
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.
MMS had positive earnings in each of the past 5 years.
Each year in the past 5 years MMS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.14%, MMS is doing good in the industry, outperforming 73.17% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.99%, MMS belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
MMS has a Return On Invested Capital of 10.81%. This is in the better half of the industry: MMS outperforms 73.17% 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 22.83%.
The last Return On Invested Capital (10.81%) for MMS is above the 3 year average (8.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 17.99% | ||
| ROIC | 10.81% |
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
Looking at the Profit Margin, with a value of 5.56%, MMS is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
In the last couple of years the Profit Margin of MMS has declined.
MMS's Operating Margin of 9.14% is fine compared to the rest of the industry. MMS outperforms 65.85% of its industry peers.
In the last couple of years the Operating Margin of MMS has declined.
MMS has a Gross Margin of 23.62%. This is in the lower half of the industry: MMS underperforms 71.95% of its industry peers.
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 | 9.14% | ||
| PM (TTM) | 5.56% | ||
| GM | 23.62% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MMS is creating some value.
Compared to 1 year ago, MMS has less shares outstanding
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 3.17. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
MMS has a Altman-Z score (3.17) which is in line with its industry peers.
The Debt to FCF ratio of MMS is 6.82, which is on the high side as it means it would take MMS, 6.82 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MMS (6.82) is comparable to the rest of the industry.
MMS has a Debt/Equity ratio of 0.87. This is a neutral value indicating MMS is somewhat dependend on debt financing.
MMS has a Debt to Equity ratio of 0.87. This is in the lower half of the industry: MMS underperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.82 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.11
WACC9.7%
2.3 Liquidity
MMS has a Current Ratio of 1.84. 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 1.84, MMS is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
MMS has a Quick Ratio of 1.84. 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 better Quick ratio (1.84) than 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.42% 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.
Looking at the last year, MMS shows a small growth in Revenue. The Revenue has grown by 5.29% in the last year.
Measured over the past years, MMS shows a quite strong growth in Revenue. The Revenue has been growing by 12.95% on average per year.
EPS 1Y (TTM)40.42%
EPS 3Y2.38%
EPS 5Y6.09%
EPS Q2Q%53.44%
Revenue 1Y (TTM)5.29%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%1%
3.2 Future
Based on estimates for the next years, MMS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.16% on average per year.
Based on estimates for the next years, MMS will show a small growth in Revenue. The Revenue will grow by 1.93% on average per year.
EPS Next Y31.3%
EPS Next 2Y16.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.79%
Revenue Next 2Y1.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
MMS is valuated correctly with a Price/Earnings ratio of 13.92.
80.49% of the companies in the same industry are more expensive than MMS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MMS to the average of the S&P500 Index (25.91), we can say MMS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.04, the valuation of MMS can be described as reasonable.
87.80% of the companies in the same industry are more expensive than MMS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.77. MMS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 11.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMS is valued cheaper than 87.80% of the companies in the same industry.
71.95% of the companies in the same industry are more expensive than MMS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.16 | ||
| EV/EBITDA | 8.8 |
4.3 Compensation for Growth
The 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 16.16% in the coming years.
PEG (NY)0.44
PEG (5Y)2.29
EPS Next 2Y16.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.63%, 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 2.35. MMS pays more dividend than 87.80% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, MMS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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
MMS pays out 23.75% 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.
DP23.75%
EPS Next 2Y16.16%
EPS Next 3YN/A
NYSE:MMS (5/27/2025, 11:44:24 AM)
74.49
+2.09 (+2.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.55%
Inst Owner Change1.07%
Ins Owners0.75%
Ins Owner Change-1.33%
Market Cap4.20B
Analysts80
Price Target104.04 (39.67%)
Short Float %2.68%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend1.2
Dividend Growth(5Y)3.84%
DP23.75%
Div Incr Years2
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.33%
Min EPS beat(2)-35.55%
Max EPS beat(2)44.21%
EPS beat(4)2
Avg EPS beat(4)-1.16%
Min EPS beat(4)-35.55%
Max EPS beat(4)44.21%
EPS beat(8)4
Avg EPS beat(8)-0.71%
EPS beat(12)5
Avg EPS beat(12)-1.15%
EPS beat(16)8
Avg EPS beat(16)2.36%
Revenue beat(2)2
Avg Revenue beat(2)5.96%
Min Revenue beat(2)4.19%
Max Revenue beat(2)7.73%
Revenue beat(4)3
Avg Revenue beat(4)3.23%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)7.73%
Revenue beat(8)5
Avg Revenue beat(8)1.92%
Revenue beat(12)8
Avg Revenue beat(12)2.28%
Revenue beat(16)12
Avg Revenue beat(16)3.48%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-9.29%
EPS NQ rev (3m)8.43%
EPS NY rev (1m)6.56%
EPS NY rev (3m)6.56%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 11.04 | ||
| P/S | 0.78 | ||
| P/FCF | 19.16 | ||
| P/OCF | 12.88 | ||
| P/B | 2.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.8 |
EPS(TTM)5.35
EY7.18%
EPS(NY)6.75
Fwd EY9.06%
FCF(TTM)3.89
FCFY5.22%
OCF(TTM)5.78
OCFY7.76%
SpS95.75
BVpS29.59
TBVpS-16.12
PEG (NY)0.44
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.14% | ||
| ROE | 17.99% | ||
| ROCE | 14.18% | ||
| ROIC | 10.81% | ||
| ROICexc | 11.15% | ||
| ROICexgc | 47.32% | ||
| OM | 9.14% | ||
| PM (TTM) | 5.56% | ||
| GM | 23.62% | ||
| FCFM | 4.06% |
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-Score7
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.82 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | 83.56% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 6.34 | ||
| Cash Conversion | 52.47% | ||
| Profit Quality | 73.01% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 3.17 |
F-Score7
WACC9.7%
ROIC/WACC1.11
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)40.42%
EPS 3Y2.38%
EPS 5Y6.09%
EPS Q2Q%53.44%
EPS Next Y31.3%
EPS Next 2Y16.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.29%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%1%
Revenue Next Year0.79%
Revenue Next 2Y1.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y25.67%
EBIT growth 3Y6.43%
EBIT growth 5Y9.2%
EBIT Next Year27.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-23.38%
FCF growth 3Y-7.29%
FCF growth 5Y5.73%
OCF growth 1Y-7.66%
OCF growth 3Y-0.13%
OCF growth 5Y7.63%