MAXIMUS INC (MMS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MMS - US5779331041 - Common Stock
84.67 USD
+0.1 (+0.12%)
84.67 USD
0 (0%)
Overall MMS gets a fundamental rating of 6 out of 10. We evaluated MMS against 85 industry peers in the IT Services industry. While MMS has a great profitability rating, 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. This makes MMS very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
MMS had positive earnings in the past year.
In the past year MMS had a positive cash flow from operations.
In the past 5 years MMS has always been profitable.
Each year in the past 5 years MMS had a positive operating cash flow.
1.2 Ratios
MMS's Return On Assets of 7.84% is fine compared to the rest of the industry. MMS outperforms 77.65% of its industry peers.
With an excellent Return On Equity value of 19.06%, MMS belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.77%, MMS belongs to the best of the industry, outperforming 81.18% 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 29.59%.
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
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.
Looking at the Operating Margin, with a value of 9.73%, MMS is in the better half of the industry, outperforming 68.24% of the companies in the same industry.
In the last couple of years the Operating Margin of MMS has grown nicely.
With a Gross Margin value of 24.55%, MMS is not doing good in the industry: 72.94% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MMS has grown nicely.
| 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.
Compared to 1 year ago, MMS has less shares outstanding
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 3.43. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MMS (3.43) is comparable to the rest of the industry.
The Debt to FCF ratio of MMS is 3.64, which is a good value as it means it would take MMS, 3.64 years of fcf income to pay off all of its debts.
MMS has a Debt to FCF ratio (3.64) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.77 indicates that MMS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, MMS is not doing good in the industry: 63.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.26
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.64 indicates that MMS should not have too much problems paying its short term obligations.
MMS has a Current ratio (1.64) which is comparable to the rest of the industry.
A Quick Ratio of 1.64 indicates that MMS should not have too much problems paying its short term obligations.
MMS has a Quick ratio (1.64) which is in line with its industry peers.
| 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.
Measured over the past years, MMS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.77% on average per year.
MMS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.36%.
MMS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.43% yearly.
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
Based on estimates for the next years, MMS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.31% on average per year.
The Revenue is expected to grow by 2.61% on average over the next years.
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 13.07, MMS is valued correctly.
82.35% of the companies in the same industry are more expensive than MMS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.49, MMS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.26, the valuation of MMS can be described as reasonable.
Based on the Price/Forward Earnings ratio, MMS is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, MMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMS is valued cheaper than 82.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MMS is valued cheaper than 84.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.59 | ||
| EV/EBITDA | 8.65 |
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)0.48
PEG (5Y)0.95
EPS Next 2Y16.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.42%. 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 1.95. MMS pays more dividend than 84.71% of the companies in the same industry.
MMS's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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
MMS pays out 21.54% 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.
DP21.54%
EPS Next 2Y16.31%
EPS Next 3YN/A
84.67
+0.1 (+0.12%)
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 Cap4.61B
Revenue(TTM)5.43B
Net Income(TTM)319.03M
Analysts80
Price Target112.2 (32.51%)
Short Float %6.21%
Short Ratio5.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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 | 13.07 | ||
| Fwd PE | 10.26 | ||
| P/S | 0.85 | ||
| P/FCF | 12.59 | ||
| P/OCF | 10.74 | ||
| P/B | 2.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.65 |
EPS(TTM)6.48
EY7.65%
EPS(NY)8.25
Fwd EY9.75%
FCF(TTM)6.72
FCFY7.94%
OCF(TTM)7.88
OCFY9.31%
SpS99.73
BVpS30.74
TBVpS-15.8
PEG (NY)0.48
PEG (5Y)0.95
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 | 3.43 |
F-Score8
WACC9.36%
ROIC/WACC1.26
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 13.07 and the Price/Book (PB) ratio is 2.75.
How financially healthy is MAXIMUS INC?
The financial health rating of MAXIMUS INC (MMS) is 5 / 10.