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. MMS is valued quite cheap, while showing a decent growth score. This is a good combination! 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
MMS had positive earnings in the past year.
In the past year MMS had a positive cash flow from operations.
Each year in the past 5 years MMS has been profitable.
Each year in the past 5 years MMS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.00%, MMS is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
MMS has a Return On Equity of 17.24%. This is in the better half of the industry: MMS outperforms 78.05% of its industry peers.
MMS has a Return On Invested Capital of 10.55%. This is in the better half of the industry: MMS outperforms 73.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMS is significantly below the industry average of 22.65%.
The 3 year average ROIC (8.80%) for MMS is below the current ROIC(10.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 17.24% | ||
| ROIC | 10.55% |
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
MMS has a Profit Margin of 5.28%. This is in the better half of the industry: MMS outperforms 64.63% of its industry peers.
MMS's Profit Margin has declined in the last couple of years.
MMS's Operating Margin of 8.69% is fine compared to the rest of the industry. MMS outperforms 64.63% of its industry peers.
MMS's Operating Margin has declined in the last couple of years.
The Gross Margin of MMS (23.28%) is worse than 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 | 8.69% | ||
| PM (TTM) | 5.28% | ||
| GM | 23.28% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MMS is still creating some value.
MMS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MMS has less shares outstanding
Compared to 1 year ago, MMS has an improved debt to assets ratio.
2.2 Solvency
MMS has an Altman-Z score of 3.16. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
MMS has a Altman-Z score (3.16) which is in line with its industry peers.
The Debt to FCF ratio of MMS is 4.95, which is a neutral value as it means it would take MMS, 4.95 years of fcf income to pay off all of its debts.
MMS has a Debt to FCF ratio of 4.95. This is comparable to the rest of the industry: MMS outperforms 54.88% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that MMS is somewhat dependend on debt financing.
MMS has a Debt to Equity ratio of 0.82. This is in the lower half of the industry: MMS underperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 4.95 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.18
WACC8.95%
2.3 Liquidity
MMS has a Current Ratio of 1.72. 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 1.72, MMS is in line with its industry, outperforming 56.10% of the companies in the same industry.
A Quick Ratio of 1.72 indicates that MMS should not have too much problems paying its short term obligations.
MMS has a Quick ratio (1.72) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
MMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.97%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.09% on average over the past years.
The Revenue has grown by 8.01% in the past year. This is quite good.
MMS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.95% yearly.
EPS 1Y (TTM)53.97%
EPS 3Y2.38%
EPS 5Y6.09%
EPS Q2Q%-33.65%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%5.7%
3.2 Future
The Earnings Per Share is expected to grow by 13.35% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.57% on average over the next years.
EPS Next Y23.22%
EPS Next 2Y13.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.07%
Revenue Next 2Y1.57%
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 14.38, the valuation of MMS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of MMS indicates a somewhat cheap valuation: MMS is cheaper than 76.83% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. MMS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 10.41, the valuation of MMS can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMS indicates a rather cheap valuation: MMS is cheaper than 87.80% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MMS to the average of the S&P500 Index (20.86), we can say MMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 10.41 |
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 84.15% of the companies listed in the same industry.
MMS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MMS is cheaper than 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.48 | ||
| EV/EBITDA | 8.6 |
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 13.35% in the coming years.
PEG (NY)0.62
PEG (5Y)2.36
EPS Next 2Y13.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, MMS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.43, MMS pays a better dividend. On top of this MMS pays more dividend than 87.80% of the companies listed in the same industry.
MMS's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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 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
25.59% of the earnings are spent on dividend by MMS. This is a low number and sustainable payout ratio.
MMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP25.59%
EPS Next 2Y13.35%
EPS Next 3YN/A
66.88
+0.55 (+0.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.55%
Inst Owner Change-0.11%
Ins Owners0.75%
Ins Owner Change-1.33%
Market Cap3.79B
Analysts80
Price Target104.04 (55.56%)
Short Float %3.28%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend1.2
Dividend Growth(5Y)3.84%
DP25.59%
Div Incr Years2
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.37%
Min EPS beat(2)-35.55%
Max EPS beat(2)-21.19%
EPS beat(4)2
Avg EPS beat(4)-5.53%
Min EPS beat(4)-35.55%
Max EPS beat(4)26.75%
EPS beat(8)3
Avg EPS beat(8)-9.35%
EPS beat(12)5
Avg EPS beat(12)-3.93%
EPS beat(16)8
Avg EPS beat(16)3.09%
Revenue beat(2)1
Avg Revenue beat(2)3.71%
Min Revenue beat(2)-0.31%
Max Revenue beat(2)7.73%
Revenue beat(4)3
Avg Revenue beat(4)3.25%
Min Revenue beat(4)-0.31%
Max Revenue beat(4)7.73%
Revenue beat(8)4
Avg Revenue beat(8)1.3%
Revenue beat(12)8
Avg Revenue beat(12)2.7%
Revenue beat(16)12
Avg Revenue beat(16)3.95%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.95%
EPS NY rev (1m)0%
EPS NY rev (3m)28.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 10.41 | ||
| P/S | 0.7 | ||
| P/FCF | 13.48 | ||
| P/OCF | 9.15 | ||
| P/B | 2.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.6 |
EPS(TTM)4.65
EY6.95%
EPS(NY)6.42
Fwd EY9.6%
FCF(TTM)4.96
FCFY7.42%
OCF(TTM)7.31
OCFY10.93%
SpS95.09
BVpS29.1
TBVpS-16.61
PEG (NY)0.62
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7% | ||
| ROE | 17.24% | ||
| ROCE | 13.84% | ||
| ROIC | 10.55% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 49.49% | ||
| OM | 8.69% | ||
| PM (TTM) | 5.28% | ||
| GM | 23.28% | ||
| FCFM | 5.22% |
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 Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 4.95 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 106.13% | ||
| Cap/Sales | 2.47% | ||
| Interest Coverage | 6.16 | ||
| Cash Conversion | 69.75% | ||
| Profit Quality | 98.86% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 3.16 |
F-Score7
WACC8.95%
ROIC/WACC1.18
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)53.97%
EPS 3Y2.38%
EPS 5Y6.09%
EPS Q2Q%-33.65%
EPS Next Y23.22%
EPS Next 2Y13.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.01%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%5.7%
Revenue Next Year0.07%
Revenue Next 2Y1.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y42.83%
EBIT growth 3Y6.43%
EBIT growth 5Y9.2%
EBIT Next Year20.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y203.48%
FCF growth 3Y-7.29%
FCF growth 5Y5.73%
OCF growth 1Y161.81%
OCF growth 3Y-0.13%
OCF growth 5Y7.63%