NYSE:MMS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has MAXIMUS's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MMS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.2%

MMS

4.3%

US IT

2.4%

US Market


1 Year Return

-16.3%

MMS

-1.2%

US IT

-10.0%

US Market

Return vs Industry: MMS underperformed the US IT industry which returned -1.2% over the past year.

Return vs Market: MMS underperformed the US Market which returned -10% over the past year.


Shareholder returns

MMSIndustryMarket
7 Day6.2%4.3%2.4%
30 Day-2.7%-10.0%-11.0%
90 Day-20.7%-15.6%-19.4%
1 Year-15.1%-16.3%-0.3%-1.2%-8.1%-10.0%
3 Year4.1%1.5%66.3%59.3%17.3%9.6%
5 Year-8.5%-11.4%94.7%77.7%36.1%21.1%

Price Volatility Vs. Market

How volatile is MAXIMUS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

39.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MMS ($59.17) is trading below our estimate of fair value ($97.31)

Significantly Below Fair Value: MMS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MMS is good value based on its PE Ratio (15.6x) compared to the IT industry average (24.8x).

PE vs Market: MMS is poor value based on its PE Ratio (15.6x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: MMS is poor value based on its PEG Ratio (8.4x)


Price to Book Ratio

PB vs Industry: MMS is overvalued based on its PB Ratio (2.9x) compared to the US IT industry average (2.9x).


Next Steps

Future Growth

How is MAXIMUS forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMS's forecast earnings growth (1.9% per year) is above the savings rate (1.7%).

Earnings vs Market: MMS's earnings (1.9% per year) are forecast to grow slower than the US market (13.3% per year).

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

Revenue vs Market: MMS's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: MMS's revenue is forecast to decline over the next 3 years (-1.4% 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


Next Steps

Past Performance

How has MAXIMUS performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMS has high quality earnings.

Growing Profit Margin: MMS's current net profit margins (8%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: MMS's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: MMS's earnings growth over the past year (12%) exceeds its 5-year average (10.5% per year).

Earnings vs Industry: MMS earnings growth over the past year (12%) underperformed the IT industry 13.7%.


Return on Equity

High ROE: MMS's Return on Equity (18.7%) is considered low.


Next Steps

Financial Health

How is MAXIMUS's financial position?


Financial Position Analysis

Short Term Liabilities: MMS's short term assets ($843.9M) exceed its short term liabilities ($432.7M).

Long Term Liabilities: MMS's short term assets ($843.9M) exceed its long term liabilities ($258.1M).


Debt to Equity History and Analysis

Debt Level: MMS's debt to equity ratio (0.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MMS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MMS's debt is well covered by operating cash flow (5488%).

Interest Coverage: MMS's interest payments on its debt are well covered by EBIT (114.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MMS's dividend (1.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: MMS's dividend (1.89%) is low compared to the top 25% of dividend payers in the US market (5.46%).


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 reasonably low payout ratio (27.2%), 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?

3.8yrs

Average management tenure


CEO

Bruce Caswell (52yo)

2s

Tenure

US$4,975,750

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 ($USD4.98M) is about average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bruce Caswell
President2yrsUS$4.98m0.14% $5.4m
Richard Nadeau
CFO & Treasurer5.83yrsUS$2.82m0.030% $1.1m
David Francis
General Counsel & Secretary21.67yrsUS$1.46m0.016% $592.9k
John Lambeth
Chief Information Officer1.67yrsno datano data
Lisa Miles
Senior Vice President of Investor Relations & Corporate Communicationsno datano datano data
Jericho Seguin
Senior Vice President of Corporate Development4.25yrsno datano data
Michelle Link
Chief Human Resources Officer0.083yrno datano data
David Casey
Senior Vice President of Government Relations & Business Developmentno datano datano data
Deborah Homewood
Managing Director of Human Services - Australiano datano datano data
Beth Carruthers
Managing Director of Human Services - U.K.3.83yrsno datano data

3.8yrs

Average Tenure

58yo

Average Age

Experienced Management: MMS's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bruce Caswell
President2yrsUS$4.98m0.14% $5.4m
Raymond Ruddy
Independent Director15.67yrsUS$355.01k0.22% $8.5m
Richard Montoni
Vice Chairman2yrsUS$1.01m0.42% $15.8m
John Haley
Director0.083yrUS$310.01k0.13% $5.1m
Peter Pond
Independent Non-Executive Chairman18.58yrsUS$464.98k0.038% $1.4m
Jan Madsen
Director0.083yrno datano data
Anne Altman
Independent Director3.33yrsUS$310.01k0.019% $714.0k
Gayathri Rajan
Independent Director3.33yrsUS$300.00k0.012% $461.6k
Michael Warren
Independent Director1.08yrsUS$299.97kno data

2.0yrs

Average Tenure

60yo

Average Age

Experienced Board: MMS's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 company bio, 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$3.784b
  • Shares outstanding: 63.94m
  • Website: https://www.maximus.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMSNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1997
MMYDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1997

Biography

MAXIMUS, Inc. provides business process services (BPS) to government health and human services programs worldwide. It operates through three segments: U.S. Health and Human Services, U.S. Federal Services, and Outside the U.S. The U.S. Health and Human Services segment offers various BPS, appeals, and assessments for state, provincial, and national government programs, including Medicaid, Children's Health Insurance Program, Affordable Care Act, Health Insurance British Columbia, Health Assessment Advisory Service contract, and Preadmission Screening and Resident Reviews. This segment offers program eligibility support and enrollment; application assistance and independent health plan enrollment counseling; and beneficiary outreach, education, eligibility, enrollment, and renewal. It also provides independent disability, long-term sick, and other health assessment; specialized consulting; and centralized multilingual customer contact centers and multichannel self-service options for enrollment. The U.S. Federal Services segment offers centralized citizen engagement centers and support services; document and record management; case management, citizen support, and consumer education; independent medical reviews and worker's compensation benefit appeals; and Medicare and Medicaid appeals, and program eligibility appeals. It also provides modernization of systems and information technology infrastructure; infrastructure operations and support services; software development, operations, and management services; and data analytics services. The Outside the U.S. segment offers BPS solutions for governments and commercial clients outside the United States, including health and disability assessments, program administration for welfare-to-work services, and other related services. The company was founded in 1975 and is headquartered in Reston, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 06:04
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.