NYSE:MMS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


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


Market Performance


7 Day Return

1.1%

MMS

-4.6%

US IT

0.07%

US Market


1 Year Return

16.8%

MMS

19.0%

US IT

8.9%

US Market

Return vs Industry: MMS underperformed the US IT industry which returned 19% over the past year.

Return vs Market: MMS exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

MMSIndustryMarket
7 Day1.1%-4.6%0.07%
30 Day-2.5%-3.7%-0.3%
90 Day3.0%-7.8%-1.6%
1 Year18.4%16.8%20.2%19.0%11.3%8.9%
3 Year41.9%39.1%88.3%80.6%46.3%36.8%
5 Year68.4%64.0%136.9%115.2%62.1%44.3%

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?

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MMS ($76.05) is trading below our estimate of fair value ($79.93)

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 (21.6x) compared to the IT industry average (36.1x).

PE vs Market: MMS is poor value based on its PE Ratio (21.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MMS is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: MMS is good value based on its PB Ratio (4x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

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

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMS's forecast earnings growth (7.3% per year) is above the savings rate (2.7%).

Earnings vs Market: MMS's earnings (7.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: MMS's revenue (4.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MMS's revenue (4.8% 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


Next Steps

Past Performance

How has MAXIMUS performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MMS's earnings have grown by 10.8% 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 (-0.3%) over the past year, making it difficult to compare to the IT industry average (9.8%).


Return on Equity

High ROE: MMS's Return on Equity (18.6%) is considered low.


Return on Assets

ROA vs Industry: MMS has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: MMS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is MAXIMUS's financial position?


Financial Position Analysis

Short Term Liabilities: MMS's short term assets ($739.4M) exceeds its short term liabilities ($356.7M)

Long Term Liabilities: MMS's short term assets (739.4M) exceeds its long term liabilities (119.3M)


Debt to Equity History and Analysis

Debt Level: MMS's debt to equity ratio (0.3%) is considered satisfactory

Reducing Debt: MMS's debt to equity ratio has increased from 0.2% to 0.3% over the past 5 years.

Debt Coverage: MMS's debt is well covered by operating cash flow (10186.9%).

Interest Coverage: MMS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MMS has a low level of unsold assets or inventory.

Debt Coverage by Assets: MMS's debt is covered by short term assets (assets are 188.809490x debt).


Next Steps

Dividend

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

1.47%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MMS's dividend (1.47%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MMS's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (22.6%), 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

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

1.5yrs

Average management tenure


CEO

Bruce Caswell (52yo)

1.5yrs

Tenure

US$3,174,375

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Bruce's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.5yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MMS's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

69yo

Average Age

Experienced Board: MMS's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: MMS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,997,35517 Sep 19
Raymond Ruddy
EntityIndividual
Role
Vice Chairman
Independent Vice Chairman
Shares25,000
Max PriceUS$79.89
SellUS$470,29014 Feb 19
Paul Lederer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,715
Max PriceUS$70.27
SellUS$2,160,90007 Dec 18
Richard Montoni
EntityIndividual
Role
Vice Chairman
Vice Chairman & Senior Advisor to the CEO
Shares30,000
Max PriceUS$72.03
SellUS$548,92403 Dec 18
Mark Andrekovich
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares7,795
Max PriceUS$70.42
SellUS$1,987,71728 Nov 18
Richard Montoni
EntityIndividual
Role
Vice Chairman
Vice Chairman & Senior Advisor to the CEO
Shares29,107
Max PriceUS$68.29

Ownership Breakdown


Management Team

  • David Francis (58yo)

    General Counsel & Secretary

    • Tenure: 21.2yrs
    • Compensation: US$1.15m
  • David Casey (59yo)

    Senior Vice President of Government Relations & Business Development

    • Tenure: 0yrs
  • Rich Montoni (67yo)

    Vice Chairman & Senior Advisor to the CEO

    • Tenure: 1.5yrs
    • Compensation: US$894.38k
  • Mark Andrekovich (57yo)

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: US$1.17m
  • Bruce Caswell (52yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$3.17m
  • Rick Nadeau (64yo)

    CFO & Treasurer

    • Tenure: 5.3yrs
    • Compensation: US$1.88m
  • Deborah Homewood

    Managing Director of Human Services - Australia

    • Tenure: 0yrs
  • Lisa Miles

    Senior Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • John Lambeth

    Chief Information Officer

    • Tenure: 1.2yrs
  • Jericho Seguin

    Senior Vice President of Corporate Development

    • Tenure: 3.8yrs

Board Members

  • Raymond Ruddy (76yo)

    Independent Vice Chairman

    • Tenure: 14.1yrs
    • Compensation: US$335.02k
  • Russell Beliveau (71yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$300.00k
  • Rich Montoni (67yo)

    Vice Chairman & Senior Advisor to the CEO

    • Tenure: 1.5yrs
    • Compensation: US$894.38k
  • Paul Lederer (80yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$300.00k
  • Peter Pond (74yo)

    Independent Non-Executive Chairman

    • Tenure: 18.1yrs
    • Compensation: US$485.00k
  • Bruce Caswell (52yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$3.17m
  • Anne Altman (60yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$300.02k
  • Gayathri Rajan (51yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$299.99k
  • Michael Warren

    Director

    • Tenure: 0.6yrs

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$4.853b
  • Shares outstanding: 63.81m
  • 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. The company’s Health Services segment offers various BPS, appeals, and assessments for sta ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:38
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.