MAXIMUS INC (MMS) Stock Fundamental Analysis
NYSE:MMS - New York Stock Exchange, Inc. - US5779331041 - Common Stock - Currency: USD
Taking everything into account, MMS scores 6 out of 10 in our fundamental rating. MMS was compared to 82 industry peers in the IT Services industry. MMS has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on MMS. MMS also has an excellent dividend rating. With these ratings, MMS could be worth investigating further 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.
Each year in the past 5 years MMS has been profitable.
In the past 5 years MMS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MMS (7.14%) is better than 73.17% of its industry peers.
With a decent Return On Equity value of 17.99%, MMS is doing good in the industry, outperforming 79.27% of the companies in the same industry.
MMS's Return On Invested Capital of 10.81% is fine compared to the rest of the industry. MMS outperforms 74.39% of its industry peers.
MMS had an Average Return On Invested Capital over the past 3 years of 8.80%. This is significantly below the industry average of 21.60%.
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 64.63% of the companies in the same industry.
MMS's Profit Margin has declined in the last couple of years.
The Operating Margin of MMS (9.14%) is better than 64.63% of its industry peers.
In the last couple of years the Operating Margin of MMS has declined.
MMS's Gross Margin of 23.62% is on the low side compared to the rest of the industry. MMS is outperformed by 73.17% 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.
The number of shares outstanding for MMS has been reduced compared to 1 year ago.
The number of shares outstanding for MMS has been reduced compared to 5 years ago.
MMS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.17 indicates that MMS is not in any danger for bankruptcy at the moment.
MMS has a Altman-Z score of 3.17. This is comparable to the rest of the industry: MMS outperforms 51.22% of its industry peers.
MMS has a debt to FCF ratio of 6.82. This is a slightly negative value and a sign of low solvency as MMS would need 6.82 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.82, MMS perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that MMS is somewhat dependend on debt financing.
MMS's Debt to Equity ratio of 0.87 is on the low side compared to the rest of the industry. MMS is outperformed by 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.82 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.17
WACC9.22%
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.
MMS has a Current ratio (1.84) which is in line with its industry peers.
A Quick Ratio of 1.84 indicates that MMS should not have too much problems paying its short term obligations.
MMS has a Quick ratio of 1.84. This is in the better half of the industry: MMS outperforms 60.98% 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.
MMS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.09% yearly.
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
The Earnings Per Share is expected to grow by 16.16% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.32% on average over the next years.
EPS Next Y31.3%
EPS Next 2Y16.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.29%
Revenue Next 2Y2.32%
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 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
Based on the Price/Earnings ratio of 13.06, the valuation of MMS can be described as correct.
Based on the Price/Earnings ratio, MMS is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.51, MMS is valued rather cheaply.
MMS is valuated reasonably with a Price/Forward Earnings ratio of 10.36.
MMS's Price/Forward Earnings ratio is rather cheap when compared to the industry. MMS is cheaper than 87.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. MMS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MMS indicates a rather cheap valuation: MMS is cheaper than 85.37% of the companies listed in the same industry.
70.73% 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 | 17.98 | ||
| EV/EBITDA | 8.8 |
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.
MMS has a very decent profitability rating, which may justify a higher PE ratio.
MMS's earnings are expected to grow with 16.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)2.14
EPS Next 2Y16.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.65%. 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 2.45. MMS pays more dividend than 86.59% of the companies in the same industry.
MMS's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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
23.75% 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.
DP23.75%
EPS Next 2Y16.16%
EPS Next 3YN/A
69.89
-2.48 (-3.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.54%
Inst Owner Change0%
Ins Owners0.73%
Ins Owner Change-3.96%
Market Cap3.94B
Analysts80
Price Target105.06 (50.32%)
Short Float %4.68%
Short Ratio5.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)0.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.29%
EPS NY rev (1m)0%
EPS NY rev (3m)6.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 10.36 | ||
| P/S | 0.73 | ||
| P/FCF | 17.98 | ||
| P/OCF | 12.09 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.8 |
EPS(TTM)5.35
EY7.65%
EPS(NY)6.75
Fwd EY9.65%
FCF(TTM)3.89
FCFY5.56%
OCF(TTM)5.78
OCFY8.27%
SpS95.75
BVpS29.59
TBVpS-16.12
PEG (NY)0.42
PEG (5Y)2.14
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
WACC9.22%
ROIC/WACC1.17
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 Year1.29%
Revenue Next 2Y2.32%
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%