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Maximus (MMS)
NYSE:MMS
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Maximus
(NYSE:MMS)
76Outperform
Maximus (MMS) vs. S&P 500 (SPY)
Market Cap
$4.23B
Dividend Yield1.6%
Average Volume (3M)466.81K
Price to Earnings (P/E)14.9
Beta (1Y)0.41
Revenue Growth5.29%
EPS Growth31.95%
CountryUS
Employees41,100
SectorIndustrials
Sector Strength91
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.01
Shares Outstanding56,349,400
10 Day Avg. Volume529,000
30 Day Avg. Volume466,805
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.73
Price to Sales (P/S)0.00
P/FCF Ratio15.19
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit4.63
Enterprise Value/Ebitda2.50
Forecast
1Y Price Target
$90.00Price Target Upside20.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Maximus Business Overview & Revenue Model
Company DescriptionMaximus, Inc. (MMS) is a leading provider of government services worldwide, primarily focused on health and human services programs. The company partners with government agencies to deliver administrative services, including business process management, consulting, and technology solutions. Maximus operates in sectors such as health, human services, and workforce services, aiming to improve the efficiency and effectiveness of government programs.
How the Company Makes MoneyMaximus generates revenue by offering a range of services to government clients. Its primary revenue streams include contracts for program administration, technology solutions, and consulting services. The company often secures long-term contracts with federal, state, and local government agencies, providing services like health benefit enrollment, child support services, and employment programs. Maximus's earnings are significantly influenced by its ability to win and maintain these contracts, often through competitive bidding processes. Additionally, the company may form partnerships or collaborations with other entities to enhance its service delivery and expand its market reach.
Maximus Financial Statement Overview
Summary
Maximus presents a solid financial profile with consistent revenue growth and improved leverage metrics. The company demonstrates strong operational efficiency and effective cash flow management. While net profitability margins show some pressure, the overall financial health remains robust, supported by strong returns on equity and stable cash flows.Income Statement
Maximus has shown a strong revenue growth with a TTM increase from $4.90 billion to $5.38 billion, translating to an approximate 9.75% growth rate. The gross profit margin remains healthy at 22.89% for the TTM, and the EBIT margin is at 8.70%. However, the net profit margin slightly decreased to 5.28% compared to the previous year, indicating some pressure on net profitability.78
Positive
Balance Sheet
The company's debt-to-equity ratio has improved significantly from previous years, now standing at a low 0.05, indicating reduced leverage. The return on equity is at 17.24%, reflecting strong returns for shareholders. However, the equity ratio is at 40.57%, suggesting moderate financial stability.72
Positive
Cash Flow
Operating cash flow remains robust at $413.65 million TTM, with a high operating cash flow to net income ratio of 1.46, indicating strong cash generation relative to earnings. Free cash flow growth is solid at 25.52% compared to the previous year. However, the free cash flow to net income ratio is slightly lower at 0.99, showing most of the earnings are converted into free cash.75
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.38B | 5.31B | 4.90B | 4.63B | 4.25B | 3.46B | Gross Profit |
| 1.23B | 1.25B | 1.03B | 939.81M | 946.98M | 711.00M | EBIT |
| 468.00M | 488.50M | 294.79M | 325.90M | 408.53M | 288.28M | EBITDA |
| 560.46M | 488.50M | 456.45M | 464.76M | 502.74M | 396.08M | Net Income Common Stockholders |
| 283.96M | 306.91M | 161.79M | 203.83M | 291.20M | 214.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 72.65M | 183.12M | 65.41M | 40.66M | 135.06M | 71.74M | Total Assets |
| 4.06B | 4.13B | 3.99B | 3.99B | 4.12B | 2.02B | Total Debt |
| 1.52B | 1.28B | 1.43B | 1.51B | 1.71B | 213.65M | Net Debt |
| 1.44B | 1.09B | 1.36B | 1.47B | 1.57B | 141.92M | Total Liabilities |
| 2.41B | 2.29B | 2.32B | 2.44B | 2.64B | 782.88M | Stockholders Equity |
| 1.65B | 1.84B | 1.67B | 1.55B | 1.48B | 1.24B |
| Cash Flow | Free Cash Flow | ||||
| 280.71M | 401.07M | 223.65M | 233.69M | 480.76M | 203.88M | Operating Cash Flow |
| 413.65M | 515.26M | 314.34M | 289.84M | 517.32M | 244.59M | Investing Cash Flow |
| -130.93M | -129.10M | -80.96M | -54.01M | -1.84B | -44.14M | Financing Cash Flow |
| -312.29M | -275.65M | -250.80M | -248.27M | 1.39B | -230.09M |
Maximus Technical Analysis
Positive
74.99
Price Trends
68.63
Positive
70.39
Positive
77.50
Negative
Market Momentum
2.05
Negative
66.52
Neutral
80.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMS, the sentiment is Positive. The current price of 74.99 is above the 20-day moving average (MA) of 69.92, above the 50-day MA of 68.63, and below the 200-day MA of 77.50, indicating a neutral trend. The MACD of 2.05 indicates Negative momentum. The RSI at 66.52 is Neutral, neither overbought nor oversold. The STOCH value of 80.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMS.
Maximus Risk Analysis
Maximus disclosed 34 risk factors in its most recent earnings report. Maximus reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Maximus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.34B | 23.29 | 7.17% | 0.73% | 5.04% | 31.69% | |
76 Outperform | $4.23B | 14.91 | 17.36% | 1.60% | 5.29% | 31.95% | |
74 Outperform | $3.15B | 549.40 | -13.59% | ― | 37.97% | -499.29% | |
74 Outperform | $3.28B | 41.52 | 4.46% | 1.86% | 2.81% | -67.57% | |
73 Outperform | $4.03B | 50.43 | 6.25% | ― | 32.27% | -40.50% | |
71 Outperform | $10.29B | 30.21 | 11.77% | 1.02% | -3.47% | -45.03% | |
64 Neutral | $4.43B | 12.01 | 5.16% | 249.23% | 4.03% | -11.73% |
* Industrials Sector Average
Performance Comparison
MMS
Maximus
74.99
-10.19
-11.96%
ABM
ABM Industries
52.64
6.28
13.55%
CBZ
CBIZ
74.13
-4.59
-5.83%
UNF
UniFirst
187.32
24.38
14.96%
ARMK
ARAMARK Holdings
39.25
6.79
20.92%
FA
First Advantage
18.15
1.83
11.21%
Maximus Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q2-2025)
| % Change Since: 12.11%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong quarter with solid revenue growth and innovative achievements, particularly in AI technology implementations that improved process efficiencies. The company was recognized for its innovation, and there was strong performance in the U.S. Federal Services segment. However, there were some challenges, including impacts from government efficiency decisions and delays in federal procurement processes. Overall, the highlights outweighed the lowlights, indicating a positive outlook.Q2-2025 Updates
Positive Updates
Solid Revenue and Growth
Reported revenue of $1.36 billion for Q2, representing 3% organic growth year over year. Adjusted EBITDA margin was 13.7%, which is at the upper end of the near-term guidance range.
Innovative Technology Implementations
Implemented AI solutions for federal contracts such as the No Surprises Act and the Department of Veterans Affairs, enhancing process efficiency and reducing manual effort.
Recognition for Innovation
Maximus was recognized by Fortune as one of America's most innovative companies, highlighting its use of AI and advanced analytics to improve government services.
Strong Segment Performance
U.S. Federal Services segment revenue increased by 10.9%, driven by strong performance in clinical assessments.
Guidance Raised
Fiscal year 2025 guidance increased to a range of $5.25 billion to $5.4 billion in revenue and an adjusted EPS range of $6.30 to $6.60 per share.
Positive Developments in Outside The U.S. Segment
Achieved mid-single-digit organic growth in the Outside The U.S. segment, driven by the UK business and the new functional assessment services contract.
Negative Updates
Impact of Government Efficiency Decisions
DOGE's decisions affected a handful of small contracts with an estimated impact of $4 million in FY 2025 revenue, though considered de minimis.
Potential Delays in Federal Procurement
Delays in federal procurement processes, particularly in civilian agencies, could impact new awards.
Higher Days Sales Outstanding (DSO)
Temporary increase in DSO to seventy-three days due to delayed collections, anticipated to normalize in the fourth quarter.
Company Guidance
During the Maximus, Inc. Fiscal 2025 Second Quarter Conference Call held on May 8, 2025, the company reported strong financial results with a revenue of $1.36 billion, indicating a 3% organic growth year-over-year. The adjusted EBITDA margin was 13.7%, which is at the upper end of their guidance range. In terms of segment performance, the U.S. Federal Services segment drove a 10.9% increase in revenue to $778 million, entirely organic, with an operating income margin of 15.3%. The U.S. Services segment experienced a revenue decrease to $442 million, reflecting the prior year's Medicaid unwinding effort, while its operating income margin was 12.2%. The Outside The U.S. segment posted a 4.6% organic growth, with a revenue of $142 million and an operating income margin of 3.4%. The company also achieved a book-to-bill ratio of approximately 0.8 times, with a total pipeline of sales opportunities valued at $41.2 billion. Despite the dynamic macro environment, Maximus raised its fiscal 2025 revenue guidance to a range of $5.25 billion to $5.4 billion and adjusted EPS guidance to between $6.30 and $6.60 per share, maintaining a cautious outlook for the second half of the fiscal year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.