MAXIMUS INC (MMS) Stock Fundamental Analysis
NYSE:MMS - US5779331041 - Common Stock
86 USD
-1 (-1.15%)
86 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to MMS. MMS was compared to 83 industry peers in the IT Services industry. MMS has an average financial health and profitability rating. MMS has a correct valuation and a medium growth rate. Finally MMS also has an excellent dividend rating. With these ratings, MMS could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
MMS had positive earnings in the past year.
In the past year MMS has reported a negative 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
With a decent Return On Assets value of 7.09%, MMS is doing good in the industry, outperforming 75.90% of the companies in the same industry.
The Return On Equity of MMS (17.84%) is better than 80.72% of its industry peers.
With a decent Return On Invested Capital value of 10.49%, MMS is doing good in the industry, outperforming 74.70% of the companies in the same industry.
MMS had an Average Return On Invested Capital over the past 3 years of 8.80%. This is significantly below the industry average of 22.12%.
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
Looking at the Profit Margin, with a value of 5.83%, MMS is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
MMS's Profit Margin has declined in the last couple of years.
MMS has a better Operating Margin (9.53%) than 67.47% of its industry peers.
In the last couple of years the Operating Margin of MMS has declined.
With a Gross Margin value of 23.98%, MMS is not doing good in the industry: 74.70% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MMS is 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 3.29. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.29, MMS is in line with its industry, outperforming 54.22% of the companies in the same industry.
MMS has a Debt/Equity ratio of 0.91. This is a neutral value indicating MMS is somewhat dependend on debt financing.
MMS has a worse Debt to Equity ratio (0.91) than 62.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.29 |
ROIC/WACC1.12
WACC9.34%
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.
MMS has a better Current ratio (2.27) than 68.67% of its industry peers.
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 has a Quick ratio of 2.27. This is in the better half of the industry: MMS outperforms 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
MMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.83%, which is quite impressive.
Measured over the past 5 years, MMS shows a small growth in Earnings Per Share. The EPS has been growing by 6.09% on average per year.
The Revenue has been growing slightly by 3.40% in the past year.
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
The Earnings Per Share is expected to grow by 12.93% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.98% on average over the next years.
EPS Next Y50.49%
EPS Next 2Y24.11%
EPS Next 3Y12.93%
EPS Next 5YN/A
Revenue Next Year2.17%
Revenue Next 2Y2.72%
Revenue Next 3Y3.98%
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
With a Price/Earnings ratio of 14.21, MMS is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of MMS indicates a somewhat cheap valuation: MMS is cheaper than 79.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, MMS is valued a bit cheaper.
A Price/Forward Earnings ratio of 11.17 indicates a reasonable valuation of MMS.
MMS's Price/Forward Earnings ratio is rather cheap when compared to the industry. MMS is cheaper than 85.54% of the companies in the same industry.
MMS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MMS is valued a bit cheaper than 78.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.97 |
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 12.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)2.33
EPS Next 2Y24.11%
EPS Next 3Y12.93%
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.40%. 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 2.44. MMS pays more dividend than 84.34% of the companies in the same industry.
MMS's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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 3Y12.93%
86
-1 (-1.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.05%
Inst Owner Change-0.74%
Ins Owners0.73%
Ins Owner Change0.88%
Market Cap4.85B
Analysts80
Price Target107.1 (24.53%)
Short Float %4.55%
Short Ratio5.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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)1.94%
PT rev (3m)2.94%
EPS NQ rev (1m)7.17%
EPS NQ rev (3m)1.29%
EPS NY rev (1m)14.62%
EPS NY rev (3m)14.62%
Revenue NQ rev (1m)1.28%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 11.17 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.97 |
EPS(TTM)6.05
EY7.03%
EPS(NY)7.7
Fwd EY8.95%
FCF(TTM)-2.55
FCFYN/A
OCF(TTM)-1
OCFYN/A
SpS96.34
BVpS31.46
TBVpS-14
PEG (NY)0.28
PEG (5Y)2.33
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%
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-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 | 3.29 |
F-Score4
WACC9.34%
ROIC/WACC1.12
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 3Y12.93%
EPS Next 5YN/A
Revenue 1Y (TTM)3.4%
Revenue growth 3Y7.64%
Revenue growth 5Y12.95%
Sales Q2Q%2.55%
Revenue Next Year2.17%
Revenue Next 2Y2.72%
Revenue Next 3Y3.98%
Revenue Next 5YN/A
EBIT growth 1Y8.69%
EBIT growth 3Y6.43%
EBIT growth 5Y9.2%
EBIT Next Year27.35%
EBIT Next 3YN/A
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%