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MMS

Maximus NYSE:MMS Stock Report

Last Price

US$64.33

Market Cap

US$3.9b

7D

-3.8%

1Y

-23.4%

Updated

06 Aug, 2022

Data

Company Financials +
MMS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends5/6

MMS Stock Overview

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

Maximus Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Maximus
Historical stock prices
Current Share PriceUS$64.33
52 Week HighUS$88.51
52 Week LowUS$56.50
Beta0.70
1 Month Change2.49%
3 Month Change-4.64%
1 Year Change-23.41%
3 Year Change-15.12%
5 Year Change5.75%
Change since IPO1,329.56%

Recent News & Updates

Aug 04
Maximus (NYSE:MMS) Has Affirmed Its Dividend Of $0.28

Maximus (NYSE:MMS) Has Affirmed Its Dividend Of $0.28

The board of Maximus, Inc. ( NYSE:MMS ) has announced that it will pay a dividend on the 31st of August, with investors...

Jul 15
Maximus' (NYSE:MMS) Dividend Will Be $0.28

Maximus' (NYSE:MMS) Dividend Will Be $0.28

Maximus, Inc. ( NYSE:MMS ) will pay a dividend of $0.28 on the 31st of August. This means the annual payment is 1.8% of...

Shareholder Returns

MMSUS ITUS Market
7D-3.8%3.7%1.0%
1Y-23.4%-28.3%-12.9%

Return vs Industry: MMS exceeded the US IT industry which returned -28.3% over the past year.

Return vs Market: MMS underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is MMS's price volatile compared to industry and market?
MMS volatility
MMS Average Weekly Movement4.0%
IT Industry Average Movement10.0%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: MMS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MMS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197535,800Bruce Caswellhttps://www.maximus.com

Maximus, Inc. provides business process services (BPS) to government health and human services programs. 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$3.90b
Earnings (TTM)US$186.78m
Revenue (TTM)US$4.56b

20.9x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MMS income statement (TTM)
RevenueUS$4.56b
Cost of RevenueUS$3.67b
Gross ProfitUS$885.23m
Other ExpensesUS$698.46m
EarningsUS$186.78m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.08
Gross Margin19.41%
Net Profit Margin4.10%
Debt/Equity Ratio97.5%

How did MMS perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

37%

Payout Ratio

Does MMS pay a reliable dividends?

See MMS dividend history and benchmarks
When do you need to buy MMS by to receive an upcoming dividend?
Maximus dividend dates
Ex Dividend DateAug 12 2022
Dividend Pay DateAug 31 2022
Days until Ex dividend4 days
Days until Dividend pay date23 days

Does MMS pay a reliable dividends?

See MMS dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is MMS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MMS?

Other financial metrics that can be useful for relative valuation.

MMS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA13.3x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does MMS's PE Ratio compare to its peers?

MMS PE Ratio vs Peers
The above table shows the PE ratio for MMS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28.5x
TTEC TTEC Holdings
28.3x18.3%US$3.5b
WNS WNS (Holdings)
30x10.8%US$4.1b
PAGS PagSeguro Digital
20.1x24.0%US$4.8b
VRRM Verra Mobility
29.5x16.2%US$2.5b
MMS Maximus
20.9x18.5%US$3.9b

Price-To-Earnings vs Peers: MMS is good value based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (28.5x).


Price to Earnings Ratio vs Industry

How does MMS's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Earnings vs Industry: MMS is good value based on its Price-To-Earnings Ratio (20.9x) compared to the US IT industry average (29.5x)


Price to Earnings Ratio vs Fair Ratio

What is MMS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MMS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.9x
Fair PE Ratio31.7x

Price-To-Earnings vs Fair Ratio: MMS is good value based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.7x).


Share Price vs Fair Value

What is the Fair Price of MMS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MMS ($64.33) is trading above our estimate of fair value ($55.56)

Significantly Below Fair Value: MMS is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Maximus forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMS's forecast earnings growth (18.5% per year) is above the savings rate (1.9%).

Earnings vs Market: MMS's earnings (18.5% per year) are forecast to grow faster than the US market (12.8% per year).

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

Revenue vs Market: MMS's revenue (0.9% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: MMS's revenue (0.9% 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


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Past Performance

How has Maximus performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MMS has high quality earnings.

Growing Profit Margin: MMS's current net profit margins (4.1%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: MMS's earnings have grown by 3.8% per year over the past 5 years.

Accelerating Growth: MMS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MMS had negative earnings growth (-38.3%) over the past year, making it difficult to compare to the IT industry average (19.8%).


Return on Equity

High ROE: MMS's Return on Equity (12.3%) is considered low.


Discover strong past performing companies

Financial Health

How is Maximus's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MMS's short term assets ($1.1B) exceed its short term liabilities ($730.2M).

Long Term Liabilities: MMS's short term assets ($1.1B) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: MMS's net debt to equity ratio (89.9%) is considered high.

Reducing Debt: MMS's debt to equity ratio has increased from 1.7% to 97.5% over the past 5 years.

Debt Coverage: MMS's debt is well covered by operating cash flow (29.7%).

Interest Coverage: MMS's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.74%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 07 2022Ex Dividend DateAug 12 2022Dividend Pay DateAug 31 202219 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: MMS's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: MMS's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (4.09%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.2%), MMS's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17%), MMS's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.6yrs

Average management tenure


CEO

Bruce Caswell (55 yo)

7.83yrs

Tenure

US$7,906,006

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 ($USD7.91M) is about average for companies of similar size in the US market ($USD6.58M).

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


Leadership Team

Experienced Management: MMS's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: MMS's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MMS insiders have bought more shares than they have sold 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
  • Implied Market Cap: US$3.895b
  • Shares outstanding: 60.55m
  • Website: https://www.maximus.com

Number of Employees


Location

  • Maximus, Inc.
  • 1600 Tysons Boulevard
  • Tysons
  • Virginia
  • 22102
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/09/30


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.