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MAXIMUS

NYSE:MMS
Snowflake Description

Excellent balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MMS
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Software
Company description

MAXIMUS, Inc. provides business process services (BPS) to government health and human services programs worldwide. The last earnings update was 74 days ago. More info.


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MMS Share Price and Events
7 Day Returns
-2.1%
NYSE:MMS
-0.1%
US IT
-1.2%
US Market
1 Year Returns
12.5%
NYSE:MMS
23%
US IT
3.4%
US Market
MMS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MAXIMUS (MMS) -2.1% -2.2% 1.9% 12.5% 22.7% 70.2%
US IT -0.1% 3.5% 11.1% 23% 94.3% 115.1%
US Market -1.2% 0.7% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • MMS underperformed the IT industry which returned 23% over the past year.
  • MMS outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
MMS
Industry
5yr Volatility vs Market

MMS Value

 Is MAXIMUS undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MAXIMUS to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MAXIMUS.

NYSE:MMS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MMS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.986 (1 + (1- 21%) (1.7%))
0.999
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.999 * 5.96%)
8.69%

Discounted Cash Flow Calculation for NYSE:MMS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MAXIMUS is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MMS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.69%)
2020 336.05 Analyst x1 309.20
2021 350.87 Est @ 4.41% 297.03
2022 364.57 Est @ 3.91% 283.96
2023 377.53 Est @ 3.55% 270.55
2024 390.01 Est @ 3.31% 257.15
2025 402.23 Est @ 3.13% 244.01
2026 414.34 Est @ 3.01% 231.28
2027 426.47 Est @ 2.93% 219.02
2028 438.71 Est @ 2.87% 207.30
2029 451.11 Est @ 2.83% 196.12
Present value of next 10 years cash flows $2,515.61
NYSE:MMS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $451.11 × (1 + 2.73%) ÷ (8.69% – 2.73%)
$7,780.02
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,780.02 ÷ (1 + 8.69%)10
$3,382.37
NYSE:MMS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,515.61 + $3,382.37
$5,897.98
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,897.98 / 63.81
$92.43
NYSE:MMS Discount to Share Price
Calculation Result
Value per share (USD) From above. $92.43
Current discount Discount to share price of $72.93
= -1 x ($72.93 - $92.43) / $92.43
21.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price MAXIMUS is available for.
Intrinsic value
21%
Share price is $72.93 vs Future cash flow value of $92.43
Current Discount Checks
For MAXIMUS to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • MAXIMUS's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • MAXIMUS's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MAXIMUS's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MAXIMUS's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MMS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.45
NYSE:MMS Share Price ** NYSE (2019-07-19) in USD $72.93
United States of America IT Industry PE Ratio Median Figure of 76 Publicly-Listed IT Companies 35.17x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MAXIMUS.

NYSE:MMS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MMS Share Price ÷ EPS (both in USD)

= 72.93 ÷ 3.45

21.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MAXIMUS is good value based on earnings compared to the US IT industry average.
  • MAXIMUS is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does MAXIMUS's expected growth come at a high price?
Raw Data
NYSE:MMS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
8.9%per year
United States of America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.56x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:MMS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.12x ÷ 8.9%

2.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MAXIMUS is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on MAXIMUS's assets?
Raw Data
NYSE:MMS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $18.26
NYSE:MMS Share Price * NYSE (2019-07-19) in USD $72.93
United States of America IT Industry PB Ratio Median Figure of 126 Publicly-Listed IT Companies 4.08x
United States of America Market PB Ratio Median Figure of 5,247 Publicly-Listed Companies 1.79x
NYSE:MMS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MMS Share Price ÷ Book Value per Share (both in USD)

= 72.93 ÷ 18.26

3.99x

* Primary Listing of MAXIMUS.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MAXIMUS is good value based on assets compared to the US IT industry average.
X
Value checks
We assess MAXIMUS's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. MAXIMUS has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MMS Future Performance

 How is MAXIMUS expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MAXIMUS expected to grow at an attractive rate?
  • MAXIMUS's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • MAXIMUS's earnings growth is positive but not above the United States of America market average.
  • MAXIMUS's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MMS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MMS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 8.9%
NYSE:MMS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 8.5%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.8%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MMS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MMS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 3,245 281 1
2020-09-30 3,184 376 262 7
2019-09-30 2,925 281 239 7
NYSE:MMS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,557 334 224
2018-12-31 2,434 345 218
2018-09-30 2,392 324 221
2018-06-30 2,455 274 228
2018-03-31 2,457 317 225
2017-12-31 2,467 304 222
2017-09-30 2,451 337 209
2017-06-30 2,453 324 207
2017-03-31 2,470 295 202
2016-12-31 2,454 250 198
2016-09-30 2,403 180 178
2016-06-30 2,359 133 163

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MAXIMUS's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
  • MAXIMUS's revenue is expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MMS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from MAXIMUS Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MMS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 4.29 4.29 4.29 1.00
2020-09-30 4.08 4.29 3.95 7.00
2019-09-30 3.70 3.73 3.65 7.00
NYSE:MMS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.45
2018-12-31 3.33
2018-09-30 3.37
2018-06-30 3.46
2018-03-31 3.42
2017-12-31 3.38
2017-09-30 3.19
2017-06-30 3.15
2017-03-31 3.08
2016-12-31 3.02
2016-09-30 2.71
2016-06-30 2.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if MAXIMUS will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess MAXIMUS's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MAXIMUS has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MMS Past Performance

  How has MAXIMUS performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MAXIMUS's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MAXIMUS's year on year earnings growth rate has been positive over the past 5 years.
  • MAXIMUS's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MAXIMUS's 1-year earnings growth is negative, it can't be compared to the US IT industry average.
Earnings and Revenue History
MAXIMUS's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MAXIMUS Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MMS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,557.44 224.01 297.25
2018-12-31 2,433.71 217.57 291.72
2018-09-30 2,392.24 220.75 284.29
2018-06-30 2,454.69 227.77 293.91
2018-03-31 2,457.29 224.83 292.63
2017-12-31 2,466.55 221.85 288.67
2017-09-30 2,450.96 209.43 284.51
2017-06-30 2,453.15 206.84 271.22
2017-03-31 2,469.80 202.15 269.84
2016-12-31 2,454.20 198.42 267.22
2016-09-30 2,403.36 178.36 268.26
2016-06-30 2,358.95 163.06 257.58
2016-03-31 2,314.16 152.50 257.65
2015-12-31 2,189.50 142.52 251.06
2015-09-30 2,099.82 157.77 238.79
2015-06-30 1,956.54 158.57 238.55
2015-03-31 1,804.14 151.04 227.39
2014-12-31 1,761.36 153.44 220.27
2014-09-30 1,700.91 145.44 220.93
2014-06-30 1,649.85 144.40 221.34
2014-03-31 1,564.27 138.30 214.68
2013-12-31 1,451.61 128.81 209.11
2013-09-30 1,331.28 116.73 193.83
2013-06-30 1,247.68 105.29 180.91
2013-03-31 1,179.71 97.73 175.60
2012-12-31 1,096.81 80.22 166.87
2012-09-30 1,050.15 76.13 157.64

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MAXIMUS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MAXIMUS used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • MAXIMUS's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MAXIMUS's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MAXIMUS has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MMS Health

 How is MAXIMUS's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MAXIMUS's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MAXIMUS is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MAXIMUS's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of MAXIMUS's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 9.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MAXIMUS Company Filings, last reported 3 months ago.

NYSE:MMS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,167.58 78.98 46.80
2018-12-31 1,117.38 125.45 54.74
2018-09-30 1,086.42 0.00 369.51
2018-06-30 1,055.75 0.00 249.19
2018-03-31 1,066.33 0.00 253.23
2017-12-31 1,007.65 12.05 196.91
2017-09-30 945.77 0.00 166.25
2017-06-30 890.09 15.72 104.38
2017-03-31 823.41 115.78 94.86
2016-12-31 762.37 150.53 69.77
2016-09-30 753.14 165.62 66.20
2016-06-30 705.52 211.01 50.61
2016-03-31 663.44 286.35 60.78
2015-12-31 612.74 245.30 50.96
2015-09-30 615.70 210.97 74.67
2015-06-30 640.40 166.84 81.88
2015-03-31 588.23 0.00 114.54
2014-12-31 558.44 0.00 149.20
2014-09-30 556.19 1.22 158.11
2014-06-30 588.50 1.31 182.94
2014-03-31 571.64 1.31 131.32
2013-12-31 539.11 1.39 120.58
2013-09-30 529.78 0.00 125.62
2013-06-30 490.97 1.50 187.91
2013-03-31 493.19 1.59 187.34
2012-12-31 461.71 1.67 167.14
2012-09-30 451.11 1.74 189.31
  • MAXIMUS's level of debt (6.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.2% vs 6.8% today).
  • Debt is well covered by operating cash flow (422.9%, greater than 20% of total debt).
  • MAXIMUS earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess MAXIMUS's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MAXIMUS has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MMS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.37%
Current annual income from MAXIMUS dividends. Estimated to be 1.37% next year.
If you bought $2,000 of MAXIMUS shares you are expected to receive $27 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MAXIMUS's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • MAXIMUS's dividend is below the markets top 25% of dividend payers in United States of America (3.78%).
Upcoming dividend payment

Purchase MAXIMUS before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MMS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MMS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30
2020-09-30 1.00 2.00
2019-09-30 1.00 2.00
NYSE:MMS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-07-10 1.000 1.352
2019-04-10 1.000 1.374
2019-01-10 1.000 1.417
2018-10-16 1.000 1.505
2018-07-12 0.180 0.278
2018-04-11 0.180 0.279
2018-01-11 0.180 0.267
2017-10-12 0.180 0.265
2017-07-11 0.180 0.291
2017-04-11 0.180 0.290
2017-01-11 0.180 0.305
2016-10-19 0.180 0.331
2016-07-12 0.180 0.312
2016-04-19 0.180 0.328
2016-01-12 0.180 0.356
2015-10-08 0.180 0.304
2015-07-06 0.180 0.285
2015-04-07 0.180 0.275
2015-01-13 0.180 0.298
2014-10-08 0.180 0.364
2014-07-08 0.180 0.438
2014-04-08 0.180 0.420
2014-01-14 0.180 0.398
2013-10-08 0.180 0.395
2013-07-10 0.180 0.457
2013-04-18 0.180 0.478
2013-01-09 0.180 0.490
2012-10-10 0.180 0.599
2012-07-10 0.180 0.664
2012-04-10 0.180 0.792
2012-01-10 0.180 0.840
2011-10-12 0.180 0.891
2011-05-09 0.180 0.942
2011-04-12 0.150 0.759
2011-01-11 0.150 0.826
2010-10-13 0.120 0.759
2010-07-13 0.120 0.820
2010-04-14 0.120 0.790
2010-01-20 0.120 0.843
2009-10-13 0.120 1.002
2009-07-16 0.120 1.107
2009-04-07 0.120 1.194
2008-12-17 0.120 1.318
2008-10-15 0.100 1.302
2008-07-24 0.100 1.112

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of MAXIMUS's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess MAXIMUS's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MAXIMUS afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MAXIMUS has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MMS Management

 What is the CEO of MAXIMUS's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bruce Caswell
COMPENSATION $3,174,375
AGE 52
TENURE AS CEO 1.3 years
CEO Bio

Mr. Bruce L. Caswell has been CEO 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 Manager of the Health Services until April 1, 2018. Mr. Caswell served as President of Health Services at MAXIMUS Inc. from March 2007 to 2014. Mr. Caswell served as Group President of the Human Services Group and General Manager of The Health Services Segment at MAXIMUS Inc. from October 2004 to October 2005 and served as its General Manager. He served as President of Operations at MAXIMUS since October 2005 until 2007. Previously, he was employed by the IBM Corporation for nine years as Vice President of State and Local Government & Education Industries for IBM Business Consulting Services (BCS) in Bethesda, MD. During his tenure at IBM, Mr. Caswell also served as Director of Federal Sales (BCS) and led sales and business development teams in IBM's marketing and software organizations nationally and globally. Prior to IBM, he served five years with Price Waterhouse LLP, Office of Government Services, in Washington, DC, culminating as a Manager in the firm's Policy Research and Analysis practice unit. He has over 15 years of experience providing consulting, systems integration and program operations services primarily to public sector clients at the state and Federal levels. Mr. Caswell holds a Master of Public Policy (MPP) from the John F. Kennedy School of Government, Harvard University (1990) and a B.A. in Economics from Haverford College (1988).

CEO Compensation
  • Bruce's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Bruce's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the MAXIMUS management team in years:

3.5
Average Tenure
58.5
Average Age
  • The tenure for the MAXIMUS management team is about average.
Management Team

Bruce Caswell

TITLE
President
COMPENSATION
$3M
AGE
52
TENURE
1.3 yrs

Rich Montoni

TITLE
Vice Chairman & Senior Advisor to the CEO
COMPENSATION
$894K
AGE
67
TENURE
1.3 yrs

Rick Nadeau

TITLE
CFO & Treasurer
COMPENSATION
$2M
AGE
64
TENURE
5.1 yrs

David Francis

TITLE
General Counsel & Secretary
COMPENSATION
$1M
AGE
58
TENURE
20.9 yrs

Mark Andrekovich

TITLE
Chief of Human Capital and Former President of Tax & Employer Services
COMPENSATION
$1M
AGE
57
TENURE
13.8 yrs

John Lambeth

TITLE
Chief Information Officer
TENURE
0.9 yrs

Lisa Miles

TITLE
Senior Vice President of Investor Relations & Corporate Communications

Jericho Seguin

TITLE
Senior Vice President of Corporate Development
TENURE
3.5 yrs

David Casey

TITLE
Senior Vice President of Government Relations & Business Development
AGE
59

Deborah Homewood

TITLE
Managing Director of Human Services - Australia
Board of Directors Tenure

Average tenure and age of the MAXIMUS board of directors in years:

2.6
Average Tenure
69
Average Age
  • The average tenure for the MAXIMUS board of directors is less than 3 years, this suggests a new board.
Board of Directors

Peter Pond

TITLE
Independent Non-Executive Chairman
COMPENSATION
$485K
AGE
74
TENURE
17.8 yrs

Bruce Caswell

TITLE
President
COMPENSATION
$3M
AGE
52
TENURE
1.3 yrs

Raymond Ruddy

TITLE
Vice Chairman
COMPENSATION
$335K
AGE
76
TENURE
13.8 yrs

Rich Montoni

TITLE
Vice Chairman & Senior Advisor to the CEO
COMPENSATION
$894K
AGE
67
TENURE
1.3 yrs

Anne Altman

TITLE
Director
COMPENSATION
$300K
AGE
60
TENURE
2.6 yrs

Russell Beliveau

TITLE
Director
COMPENSATION
$300K
AGE
71
TENURE
24.5 yrs

Paul Lederer

TITLE
Director
COMPENSATION
$300K
AGE
80
TENURE
16.3 yrs

Gayathri Rajan

TITLE
Director
COMPENSATION
$300K
AGE
51
TENURE
2.6 yrs

Michael Warren

TITLE
Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Feb 19 Sell Paul Lederer Individual 12. Feb 19 13. Feb 19 -6,715 $70.27 $-470,290
07. Dec 18 Sell Richard Montoni Individual 04. Dec 18 04. Dec 18 -30,000 $72.03 $-2,160,900
03. Dec 18 Sell Mark Andrekovich Individual 30. Nov 18 30. Nov 18 -7,795 $70.42 $-548,924
28. Nov 18 Sell Richard Montoni Individual 27. Nov 18 27. Nov 18 -29,107 $68.29 $-1,987,717
14. Aug 18 Sell Paul Lederer Individual 14. Aug 18 14. Aug 18 -7,500 $64.05 $-480,375
X
Management checks
We assess MAXIMUS's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MAXIMUS has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MMS News

Simply Wall St News

If You Had Bought MAXIMUS (NYSE:MMS) Shares Five Years Ago You'd Have Made 81%

(NYSE:MMS) share price is up 81% in the last 5 years, clearly besting than the market return of around 44% (ignoring dividends). … See our latest analysis for MAXIMUS While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … As well as measuring the share price return, investors should also consider the total shareholder return (TSR).

Simply Wall St -

Do You Know What MAXIMUS, Inc.'s (NYSE:MMS) P/E Ratio Means?

A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings. … And as that P/E ratio drops, the company will look cheap, unless its share price increases. … Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.

Simply Wall St -

MAXIMUS, Inc. (NYSE:MMS) Is Employing Capital Very Effectively

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for MAXIMUS: 0.22 = US$305m ÷ (US$1.7b - US$321m) (Based on the trailing twelve months to March 2019.) So, MAXIMUS has an ROCE of 22%. … Do MAXIMUS's Current Liabilities Skew Its ROCE? … What We Can Learn From MAXIMUS's ROCE Low current liabilities and high ROCE is a good combination, making MAXIMUS look quite interesting.

Simply Wall St -

Have Insiders Been Selling MAXIMUS, Inc. (NYSE:MMS) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for MAXIMUS MAXIMUS Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Vice Chairman &amp; Senior Advisor to the CEO, Richard Montoni, for US$2.2m worth of shares, at about US$72.03 per share. … Insider Ownership of MAXIMUS For a common shareholder, it is worth checking how many shares are held by company insiders. … But it's good to see that insiders own shares in the company.

Simply Wall St -

Estimating The Intrinsic Value Of MAXIMUS, Inc. (NYSE:MMS)

Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $244.00 $336.05 $350.87 $364.57 $377.53 $390.01 $402.23 $414.34 $426.47 $438.71 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 4.41% Est @ 3.91% Est @ 3.55% Est @ 3.31% Est @ 3.13% Est @ 3.01% Est @ 2.93% Est @ 2.87% Present Value ($, Millions) Discounted @ 8.96% $223.94 $283.08 $271.26 $258.69 $245.86 $233.11 $220.65 $208.61 $197.07 $186.06 Present Value of 10-year Cash Flow (PVCF)= $2.33b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$439m × (1 + 2.7%) ÷ (9% – 2.7%) = US$7.2b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$7.2b ÷ ( 1 + 9%)10 = $3.07b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $5.40b.

Simply Wall St -

Does MAXIMUS, Inc. (NYSE:MMS) Have A Place In Your Dividend Portfolio?

It's positive to see that MAXIMUS's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. … Rapid earnings growth and a low payout ratio suggests this company has been effectively reinvesting in its business.

Simply Wall St -

Does MAXIMUS, Inc. (NYSE:MMS) Have A High Beta?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

MAXIMUS, Inc. (NYSE:MMS): Did It Outperform The Industry?

Assessing MAXIMUS, Inc.'s (NYSE:MMS) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how MAXIMUS is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its it industry peers. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 12%, indicating the rate at which MMS is growing has slowed down

Simply Wall St -

Is MAXIMUS, Inc. (NYSE:MMS) Potentially Underrated?

Looking at the company as a whole, as a potential stock investment, I believe MMS has a lot to offer. … that has been able to sustain great financial health over the past … In the following section, I expand a bit more on these key aspects

Simply Wall St -

Should We Be Delighted With MAXIMUS, Inc.'s (NYSE:MMS) ROE Of 19%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.19. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

MMS Company Info

Description

MAXIMUS, Inc. provides business process services (BPS) to government health and human services programs worldwide. The company’s Health 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; beneficiary outreach, education, eligibility, enrollment, and renewal; document and record management; payment processing and administration; and digital eHealth and wellbeing solutions. It also provides independent disability, long-term sick, and other health assessment; occupational health clinical assessment; specialized consulting; and centralized multilingual customer contact centers and multichannel self-service options for enrollment. The company’s U.S. Federal Services segment offers centralized citizen engagement centers and support services; document and record management; case management, citizen engagement, 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 company’s Human Services segment offers national, state, provincial, and local human services agencies, as well as various BPS and related consulting services. It also provides management tools and professional consulting, program consulting, and tax credit and employer services. The company was founded in 1975 and is headquartered in Reston, Virginia.

Details
Name: MAXIMUS, Inc.
MMS
Exchange: NYSE
Founded: 1975
$4,653,724,925
63,810,845
Website: http://www.maximus.com
Address: MAXIMUS, Inc.
1891 Metro Center Drive,
Reston,
Virginia, 20190,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MMS Common Stock New York Stock Exchange US USD 13. Jun 1997
DB MMY Common Stock Deutsche Boerse AG DE EUR 13. Jun 1997
Number of employees
Current staff
Staff numbers
18,600
MAXIMUS employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 01:55
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/06/11
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.