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 only an average score on both its financial health and profitability. MMS may be a bit undervalued, certainly considering the very reasonable score on growth Finally MMS also has an excellent dividend rating. These ratings could make MMS a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
MMS had positive earnings in the past year.
MMS had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 7.14%, MMS is doing good in the industry, outperforming 73.17% of the companies in the same industry.
With an excellent Return On Equity value of 17.99%, MMS belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.81%, MMS is doing good in the industry, outperforming 71.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MMS is significantly below the industry average of 22.13%.
The 3 year average ROIC (8.80%) for MMS is below the current ROIC(10.81%), indicating increased profibility in the last year.
| 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
MMS has a better Profit Margin (5.56%) than 65.85% of its industry peers.
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.
MMS's Operating Margin has declined in the last couple of years.
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.
MMS's Gross Margin has been stable in the last couple of years.
| 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
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.
The number of shares outstanding for MMS has been reduced compared to 5 years ago.
The debt/assets ratio for MMS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.16 indicates that MMS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, MMS is in line with its industry, outperforming 58.54% of the companies in the same industry.
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.
MMS has a Debt to FCF ratio of 6.82. This is comparable to the rest of the industry: MMS outperforms 43.90% of its industry peers.
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 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.82 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.12
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.84 indicates that MMS should not have too much problems paying its short term obligations.
The Current ratio of MMS (1.84) is better than 62.20% of its industry peers.
A Quick Ratio of 1.84 indicates that MMS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.84, MMS is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
MMS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.42%, 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.
MMS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.29%.
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 1.93% on average over the next years.
EPS Next Y31.3%
EPS Next 2Y16.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.79%
Revenue Next 2Y1.93%
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.
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
MMS is valuated correctly with a Price/Earnings ratio of 13.55.
MMS's Price/Earnings ratio is rather cheap when compared to the industry. MMS is cheaper than 82.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. MMS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.75, the valuation of MMS can be described as very reasonable.
87.80% of the companies in the same industry are more expensive than MMS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, MMS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
MMS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MMS is cheaper than 87.80% of the companies in the same industry.
74.39% 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 | 18.65 | ||
| EV/EBITDA | 8.77 |
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)0.43
PEG (5Y)2.22
EPS Next 2Y16.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MMS has a Yearly Dividend Yield of 1.66%.
Compared to an average industry Dividend Yield of 2.34, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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 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 23.75% of its income as dividend. This is a 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
72.51
+0.41 (+0.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners103.55%
Inst Owner Change1.07%
Ins Owners0.75%
Ins Owner Change-1.33%
Market Cap4.09B
Analysts80
Price Target104.04 (43.48%)
Short Float %2.68%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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%
EPS NQ rev (1m)-9.29%
EPS NQ rev (3m)8.43%
EPS NY rev (1m)6.56%
EPS NY rev (3m)6.56%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 10.75 | ||
| P/S | 0.76 | ||
| P/FCF | 18.65 | ||
| P/OCF | 12.54 | ||
| P/B | 2.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.77 |
EPS(TTM)5.35
EY7.38%
EPS(NY)6.75
Fwd EY9.3%
FCF(TTM)3.89
FCFY5.36%
OCF(TTM)5.78
OCFY7.98%
SpS95.75
BVpS29.59
TBVpS-16.12
PEG (NY)0.43
PEG (5Y)2.22
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 | 3.16 |
F-Score7
WACC9.65%
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)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 Year0.79%
Revenue Next 2Y1.93%
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%