MAXIMUS INC (MMS) Stock Fundamental Analysis
USA - NYSE:MMS - US5779331041 - Common Stock
90.23 USD
-0.73 (-0.8%)
90.23 USD
0 (0%)
Overall MMS gets a fundamental rating of 6 out of 10. We evaluated MMS against 86 industry peers in the IT Services industry. Both the profitability and the financial health of MMS get a neutral evaluation. Nothing too spectacular is happening here. MMS has a decent growth rate and is not valued too expensively. MMS also has an excellent dividend rating. These ratings could make MMS a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year MMS was profitable.
In the past year MMS has reported a negative cash flow from operations.
In the past 5 years MMS has always been profitable.
MMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.09%, MMS is in the better half of the industry, outperforming 75.58% of the companies in the same industry.
MMS has a Return On Equity of 17.84%. This is amongst the best in the industry. MMS outperforms 80.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.49%, MMS is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MMS is significantly below the industry average of 21.42%.
The last Return On Invested Capital (10.49%) for MMS is above the 3 year average (8.80%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 5.83%, MMS is doing good in the industry, outperforming 67.44% of the companies in the same industry.
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: 75.58% of the companies in the same industry are doing better.
MMS's Gross Margin has been stable in the last couple of years.
| 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.
MMS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MMS has been reduced compared to 5 years ago.
Compared to 1 year ago, MMS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.35 indicates that MMS is not in any danger for bankruptcy at the moment.
MMS has a Altman-Z score (3.35) which 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 | 3.35 |
ROIC/WACC1.24
WACC8.45%
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.
Looking at the Quick ratio, with a value of 2.27, MMS is in the better half of the industry, outperforming 68.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
MMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.83%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.09% on average over the past years.
MMS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.40%.
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)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 15.44% yearly.
The Revenue is expected to grow by 3.98% on average over the next years.
EPS Next Y50.49%
EPS Next 2Y24.11%
EPS Next 3Y15.44%
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
The Price/Earnings ratio is 14.91, which indicates a correct valuation of MMS.
Based on the Price/Earnings ratio, MMS is valued a bit cheaper than 79.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.76. MMS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.72, the valuation of MMS can be described as very reasonable.
81.40% of the companies in the same industry are more expensive than MMS, based on the Price/Forward Earnings ratio.
MMS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMS is valued a bit cheaper than 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.4 |
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 15.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)2.45
EPS Next 2Y24.11%
EPS Next 3Y15.44%
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.32%. 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 2.48. MMS pays more dividend than 83.72% of the companies in the same industry.
With a Dividend Yield of 1.32, MMS pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 3Y15.44%
90.23
-0.73 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners104.14%
Inst Owner Change0%
Ins Owners0.73%
Ins Owner Change-1.65%
Market Cap5.08B
Analysts80
Price Target107.1 (18.7%)
Short Float %4.23%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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)0%
PT rev (3m)1.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.99%
EPS NY rev (1m)0%
EPS NY rev (3m)14.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 11.72 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.4 |
EPS(TTM)6.05
EY6.71%
EPS(NY)7.7
Fwd EY8.54%
FCF(TTM)-2.55
FCFYN/A
OCF(TTM)-1
OCFYN/A
SpS96.34
BVpS31.46
TBVpS-14
PEG (NY)0.3
PEG (5Y)2.45
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 | 3.35 |
F-Score4
WACC8.45%
ROIC/WACC1.24
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 3Y15.44%
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 Year43.11%
EBIT Next 3Y13.42%
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%