MMS

MaximusNYSE:MMS Stock Report

Market Cap

US$5.1b

7D

0.8%

1Y

19.3%

Updated

19 Sep, 2021

Data

Company Financials +
MMS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends4/6

MMS Overview

Maximus, Inc. provides business process services (BPS) to government health and human services programs worldwide.

Maximus Competitors

Alliance Data Systems

NYSE:ADS

US$4.8b

Conduent

NasdaqGS:CNDT

US$1.4b

UnitedHealth Group

NYSE:UNH

US$396.2b

Oracle

NYSE:ORCL

US$236.6b

Price History & Performance

Summary of all time highs, changes and price drops for Maximus
Historical stock prices
Current Share PriceUS$83.71
52 Week HighUS$64.30
52 Week LowUS$96.05
Beta0.80
1 Month Change-1.94%
3 Month Change-8.83%
1 Year Change19.26%
3 Year Change28.49%
5 Year Change45.48%
Change since IPO1,760.22%

Recent News & Updates

Aug 26
Here's Why I Think Maximus (NYSE:MMS) Is An Interesting Stock

Here's Why I Think Maximus (NYSE:MMS) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Aug 03
Maximus (NYSE:MMS) Has Announced A Dividend Of US$0.28

Maximus (NYSE:MMS) Has Announced A Dividend Of US$0.28

Maximus, Inc.'s ( NYSE:MMS ) investors are due to receive a payment of US$0.28 per share on 31st of August. Based on...

Shareholder Returns

MMSUS ITUS Market
7D0.8%-0.9%-0.6%
1Y19.3%25.7%33.8%

Return vs Industry: MMS underperformed the US IT industry which returned 25.7% over the past year.

Return vs Market: MMS underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is MMS's price volatile compared to industry and market?
MMS volatility
MMS Beta0.80
Industry Beta1.18
Market Beta1

Stable Share Price: MMS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MMS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197534,000Bruce Caswellhttps://www.maximus.com

Maximus, Inc. provides business process services (BPS) to government health and human services programs worldwide. It operates through three segments: U.S. Services, U.S.

Maximus Fundamentals Summary

How do Maximus's earnings and revenue compare to its market cap?
MMS fundamental statistics
Market CapUS$5.15b
Earnings (TTM)US$302.85m
Revenue (TTM)US$4.07b

17.0x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MMS income statement (TTM)
RevenueUS$4.07b
Cost of RevenueUS$3.15b
Gross ProfitUS$925.42m
ExpensesUS$622.57m
EarningsUS$302.85m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.89
Gross Margin22.73%
Net Profit Margin7.44%
Debt/Equity Ratio116.6%

How did MMS perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

23%

Payout Ratio

Valuation

Is Maximus undervalued compared to its fair value and its price relative to the market?

5.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MMS ($83.71) is trading below our estimate of fair value ($88.42)

Significantly Below Fair Value: MMS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MMS is good value based on its PE Ratio (17x) compared to the US IT industry average (34.4x).

PE vs Market: MMS is good value based on its PE Ratio (17x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MMS is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: MMS is good value based on its PB Ratio (3.5x) compared to the US IT industry average (5.2x).


Future Growth

How is Maximus forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMS's forecast earnings growth (4.6% per year) is above the savings rate (2%).

Earnings vs Market: MMS's earnings (4.6% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: MMS's earnings are forecast to grow, but not significantly.

Revenue vs Market: MMS's revenue (0.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: MMS's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MMS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Maximus performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMS has high quality earnings.

Growing Profit Margin: MMS's current net profit margins (7.4%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: MMS's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: MMS's earnings growth over the past year (43.6%) exceeds its 5-year average (6.3% per year).

Earnings vs Industry: MMS earnings growth over the past year (43.6%) exceeded the IT industry 28%.


Return on Equity

High ROE: Whilst MMS's Return on Equity (20.84%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Maximus's financial position?


Financial Position Analysis

Short Term Liabilities: MMS's short term assets ($1.3B) exceed its short term liabilities ($860.6M).

Long Term Liabilities: MMS's short term assets ($1.3B) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: MMS's debt to equity ratio (116.6%) is considered high.

Reducing Debt: MMS's debt to equity ratio has increased from 29.8% to 116.6% over the past 5 years.

Debt Coverage: MMS's debt is well covered by operating cash flow (23.3%).

Interest Coverage: MMS's interest payments on its debt are well covered by EBIT (96.5x coverage).


Balance Sheet


Dividend

What is Maximus's current dividend yield, its reliability and sustainability?

1.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MMS's dividend (1.34%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: MMS's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: MMS's dividends per share have been stable in the past 10 years.

Growing Dividend: MMS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.9%), MMS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Bruce Caswell (54 yo)

3.42yrs

Tenure

US$6,144,331

Compensation

Mr. Bruce L. Caswell has been Chief Executive Officer and Director of MAXIMUS, Inc. since April 1, 2018. Mr. Caswell has been the President at MAXIMUS Inc. since October 1, 2014 and served as its General M...


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD6.14M) is about average for companies of similar size in the US market ($USD6.43M).

Compensation vs Earnings: Bruce's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MMS's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: MMS's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MMS insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Maximus, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Maximus, Inc.
  • Ticker: MMS
  • Exchange: NYSE
  • Founded: 1975
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$5.146b
  • Shares outstanding: 61.47m
  • Website: https://www.maximus.com

Number of Employees


Location

  • Maximus, Inc.
  • 1891 Metro Center Drive
  • Reston
  • Virginia
  • 20190
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.