MAXIMUS INC (MMS) Stock Fundamental Analysis
USA - NYSE:MMS - US5779331041 - Common Stock
83.04 USD
-1.02 (-1.21%)
83.04 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. MMS has only an average score on both its financial health and profitability. MMS has a correct valuation and a medium growth rate. MMS also has an excellent dividend rating. These ratings would make MMS suitable 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.
MMS had positive earnings in each of the past 5 years.
Each year in the past 5 years MMS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.09%, MMS is doing good in the industry, outperforming 76.47% 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 82.35% of its industry peers.
The Return On Invested Capital of MMS (10.49%) is better than 74.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MMS is significantly below the industry average of 27.96%.
The 3 year average ROIC (8.80%) for MMS is below the current ROIC(10.49%), indicating increased profibility in the last year.
| 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
MMS has a Profit Margin of 5.83%. This is in the better half of the industry: MMS outperforms 68.24% of its industry peers.
In the last couple of years the Profit Margin of MMS has declined.
MMS has a better Operating Margin (9.53%) than 68.24% of its industry peers.
MMS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.98%, MMS is doing worse than 75.29% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MMS is still creating some value.
Compared to 1 year ago, MMS has less shares outstanding
Compared to 5 years ago, MMS has less shares outstanding
MMS has a better debt/assets ratio than last year.
2.2 Solvency
MMS has an Altman-Z score of 3.26. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
MMS has a Altman-Z score of 3.26. This is comparable to the rest of the industry: MMS outperforms 56.47% of its industry peers.
MMS has a Debt/Equity ratio of 0.91. This is a neutral value indicating 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 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.26 |
ROIC/WACC1.19
WACC8.81%
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.
With a decent Current ratio value of 2.27, MMS is doing good in the industry, outperforming 68.24% of the companies in the same industry.
MMS has a Quick Ratio of 2.27. This indicates that MMS is financially healthy and has no problem in meeting its short term obligations.
MMS's Quick ratio of 2.27 is fine compared to the rest of the industry. MMS outperforms 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.83% over the past year.
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%.
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)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 3.44% on average over the next years.
EPS Next Y50.49%
EPS Next 2Y24.11%
EPS Next 3Y15.44%
EPS Next 5YN/A
Revenue Next Year2.95%
Revenue Next 2Y2.57%
Revenue Next 3Y3.44%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.73, the valuation of MMS can be described as correct.
80.00% of the companies in the same industry are more expensive than MMS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MMS to the average of the S&P500 Index (25.67), we can say MMS is valued slightly cheaper.
MMS is valuated reasonably with a Price/Forward Earnings ratio of 10.78.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMS indicates a rather cheap valuation: MMS is cheaper than 83.53% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, MMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
MMS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MMS is cheaper than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.8 |
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 15.44% in the coming years.
PEG (NY)0.27
PEG (5Y)2.25
EPS Next 2Y24.11%
EPS Next 3Y15.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.44%, MMS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.57, MMS pays a better dividend. On top of this MMS pays more dividend than 83.53% of the companies listed in the same industry.
With a Dividend Yield of 1.44, MMS pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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
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%
83.04
-1.02 (-1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners104.14%
Inst Owner Change1.04%
Ins Owners0.73%
Ins Owner Change-1.65%
Market Cap4.68B
Revenue(TTM)5.43B
Net Income(TTM)316.25M
Analysts80
Price Target107.1 (28.97%)
Short Float %4.49%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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)0.97%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 10.78 | ||
| P/S | 0.86 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.8 |
EPS(TTM)6.05
EY7.29%
EPS(NY)7.7
Fwd EY9.27%
FCF(TTM)-2.55
FCFYN/A
OCF(TTM)-1
OCFYN/A
SpS96.34
BVpS31.46
TBVpS-14
PEG (NY)0.27
PEG (5Y)2.25
Graham Number65.45
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%
ROICexgc growth 3Y3.62%
ROICexgc 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 | 3.26 |
F-Score4
WACC8.81%
ROIC/WACC1.19
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 Year2.95%
Revenue Next 2Y2.57%
Revenue Next 3Y3.44%
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%
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 6 / 10 to MAXIMUS INC (MMS). This can be considered as Fairly Valued.
What is the profitability of MMS stock?
MAXIMUS INC (MMS) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for MMS stock?
The Price/Earnings (PE) ratio for MAXIMUS INC (MMS) is 13.73 and the Price/Book (PB) ratio is 2.64.
How financially healthy is MAXIMUS INC?
The financial health rating of MAXIMUS INC (MMS) is 6 / 10.