MAXIMUS INC (MMS)
US5779331041 - Common Stock
MMS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 correct valuation and a medium growth rate.
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.
MMS had positive earnings in each of the past 5 years.
In the past 5 years MMS always reported a positive cash flow from operatings.
1.2 Ratios
MMS has a better Return On Assets (4.63%) than 66.67% of its industry peers.
MMS has a better Return On Equity (10.82%) than 70.24% of its industry peers.
The Return On Invested Capital of MMS (7.34%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMS is significantly below the industry average of 13.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 10.82% | ||
| ROIC | 7.34% |
ROA(3y)5.41%
ROA(5y)8.12%
ROE(3y)14.18%
ROE(5y)15.82%
ROIC(3y)8.05%
ROIC(5y)11.25%
1.3 Margins
MMS has a better Profit Margin (3.73%) than 63.10% of its industry peers.
In the last couple of years the Profit Margin of MMS has declined.
With a decent Operating Margin value of 6.57%, MMS is doing good in the industry, outperforming 63.10% of the companies in the same industry.
MMS's Operating Margin has declined in the last couple of years.
MMS's Gross Margin of 21.75% is on the low side compared to the rest of the industry. MMS is outperformed by 76.19% of its industry peers.
MMS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.57% | ||
| PM (TTM) | 3.73% | ||
| GM | 21.75% |
OM growth 3Y-7.06%
OM growth 5Y-11.76%
PM growth 3Y-18.95%
PM growth 5Y-18.6%
GM growth 3Y0.7%
GM growth 5Y-3.33%
2. Health
2.1 Basic Checks
MMS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MMS has more shares outstanding than it did 1 year ago.
MMS has less shares outstanding than it did 5 years ago.
MMS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.39 indicates that MMS is not in any danger for bankruptcy at the moment.
MMS's Altman-Z score of 3.39 is fine compared to the rest of the industry. MMS outperforms 64.29% of its industry peers.
MMS has a debt to FCF ratio of 3.52. This is a good value and a sign of high solvency as MMS would need 3.52 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.52, MMS perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
MMS has a Debt/Equity ratio of 0.71. This is a neutral value indicating MMS is somewhat dependend on debt financing.
MMS has a Debt to Equity ratio (0.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 3.39 |
ROIC/WACC0.7
WACC10.41%
2.3 Liquidity
A Current Ratio of 1.69 indicates that MMS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.69, MMS perfoms like the industry average, outperforming 55.95% of the companies in the same industry.
A Quick Ratio of 1.69 indicates that MMS should not have too much problems paying its short term obligations.
MMS has a Quick ratio (1.69) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The earnings per share for MMS have decreased by -2.27% in the last year.
Measured over the past years, MMS shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.09% on average per year.
MMS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.36%.
The Revenue has been growing by 15.44% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.27%
EPS 3Y-8.2%
EPS 5Y-4.09%
EPS growth Q2Q60%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y12.32%
Revenue growth 5Y15.44%
Revenue growth Q2Q6.23%
3.2 Future
Based on estimates for the next years, MMS will show a very strong growth in Earnings Per Share. The EPS will grow by 39.54% on average per year.
MMS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y64.75%
EPS Next 2Y39.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.04%
Revenue Next 2Y4.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 27.71, which means the current valuation is very expensive for MMS.
Compared to the rest of the industry, the Price/Earnings ratio of MMS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.31, MMS is valued at the same level.
A Price/Forward Earnings ratio of 16.34 indicates a correct valuation of MMS.
Based on the Price/Forward Earnings ratio, MMS is valued a bit cheaper than the industry average as 77.38% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MMS to the average of the S&P500 Index (20.48), we can say MMS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.71 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMS is valued a bit cheaper than 63.10% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MMS is valued cheaper than 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 13.42 |
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's earnings are expected to grow with 39.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y39.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.43%.
Compared to an average industry Dividend Yield of 2.82, MMS pays a better dividend. On top of this MMS pays more dividend than 83.33% of the companies listed in the same industry.
With a Dividend Yield of 1.43, MMS pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of MMS is nicely growing with an annual growth rate of 43.98%!
MMS has been paying a dividend for at least 10 years, so it has a reliable track record.
MMS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)43.98%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
37.32% of the earnings are spent on dividend by MMS. This is a low number and sustainable payout ratio.
MMS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.32%
EPS Next 2Y39.54%
EPS Next 3YN/A
MAXIMUS INC
NYSE:MMS (5/9/2024, 7:06:07 PM)
After market: 83.67 0 (0%)83.67
-0.45 (-0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.71 | ||
| Fwd PE | 16.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 10.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.57% | ||
| PM (TTM) | 3.73% | ||
| GM | 21.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.27%
EPS 3Y-8.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y64.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.36%
Revenue growth 3Y12.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y