MAXIMUS INC (MMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMS - US5779331041 - Common Stock
88.09 USD
+0.83 (+0.95%)
88.09 USD
0 (0%)
Taking everything into account, MMS scores 6 out of 10 in our fundamental rating. MMS was compared to 85 industry peers in the IT Services industry. While MMS belongs to the best of the industry regarding profitability, 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. These ratings would make MMS suitable 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.
MMS had positive earnings in each of the past 5 years.
MMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MMS (7.84%) is better than 77.65% of its industry peers.
MMS's Return On Equity of 19.06% is amongst the best of the industry. MMS outperforms 82.35% of its industry peers.
The Return On Invested Capital of MMS (11.77%) is better than 81.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMS is significantly below the industry average of 29.59%.
The last Return On Invested Capital (11.77%) for MMS is above the 3 year average (10.34%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 5.87%, MMS is in the better half of the industry, outperforming 63.53% 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 has a better Operating Margin (9.73%) than 68.24% of its industry peers.
MMS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.55%, MMS is doing worse than 72.94% of the companies in the same industry.
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
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.
Compared to 5 years ago, MMS has less shares outstanding
Compared to 1 year ago, MMS has a worse debt to assets ratio.
2.2 Solvency
MMS has an Altman-Z score of 3.46. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.46, MMS perfoms like the industry average, outperforming 57.65% 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.
MMS's Debt to FCF ratio of 3.64 is in line compared to the rest of the industry. MMS outperforms 57.65% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that MMS is somewhat dependend on debt financing.
The Debt to Equity ratio of MMS (0.77) is worse than 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | 3.46 |
ROIC/WACC1.25
WACC9.43%
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.
MMS has a Current ratio (1.64) which is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.64, MMS is in line with its industry, outperforming 50.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
MMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.60%, which is quite impressive.
The Earnings Per Share has been growing by 13.77% on average over the past years. This is quite good.
MMS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.36%.
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
The Earnings Per Share is expected to grow by 16.31% on average over the next years. This is quite good.
MMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.61% yearly.
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.
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
With a Price/Earnings ratio of 13.59, MMS is valued correctly.
MMS's Price/Earnings ratio is rather cheap when compared to the industry. MMS is cheaper than 82.35% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.38. MMS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.68, which indicates a very decent valuation of MMS.
Based on the Price/Forward Earnings ratio, MMS is valued cheaper than 89.41% of the companies in the same industry.
MMS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
82.35% of the companies in the same industry are more expensive than MMS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMS indicates a somewhat cheap valuation: MMS is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.1 | ||
| EV/EBITDA | 8.86 |
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.
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)0.5
PEG (5Y)0.99
EPS Next 2Y16.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.45, MMS pays a better dividend. On top of this MMS pays more dividend than 84.71% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.87, MMS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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
21.54% of the earnings are spent on dividend by MMS. This is a low number and 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
88.09
+0.83 (+0.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners106.73%
Inst Owner Change-1.38%
Ins Owners0.78%
Ins Owner Change0.33%
Market Cap4.80B
Revenue(TTM)5.43B
Net Income(TTM)319.03M
Analysts80
Price Target112.2 (27.37%)
Short Float %5.82%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend1.19
Dividend Growth(5Y)1.3%
DP21.54%
Div Incr Years2
Div Non Decr Years19
Ex-Date
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)4%
EPS NQ rev (3m)4%
EPS NY rev (1m)7.15%
EPS NY rev (3m)7.15%
Revenue NQ rev (1m)-4.47%
Revenue NQ rev (3m)-4.47%
Revenue NY rev (1m)-1.87%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 10.68 | ||
| P/S | 0.88 | ||
| P/FCF | 13.1 | ||
| P/OCF | 11.17 | ||
| P/B | 2.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.86 |
EPS(TTM)6.48
EY7.36%
EPS(NY)8.25
Fwd EY9.37%
FCF(TTM)6.72
FCFY7.63%
OCF(TTM)7.88
OCFY8.95%
SpS99.73
BVpS30.74
TBVpS-15.8
PEG (NY)0.5
PEG (5Y)0.99
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 | 3.46 |
F-Score8
WACC9.43%
ROIC/WACC1.25
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 for MMS stock?
ChartMill assigns a valuation rating of 8 / 10 to MAXIMUS INC (MMS). This can be considered as Undervalued.
What is the profitability of MMS stock?
MAXIMUS INC (MMS) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for MMS stock?
The Price/Earnings (PE) ratio for MAXIMUS INC (MMS) is 13.59 and the Price/Book (PB) ratio is 2.87.
How financially healthy is MAXIMUS INC?
The financial health rating of MAXIMUS INC (MMS) is 5 / 10.