Maximus (MMS) AI Stock Analysis
Maximus
(BMV:MMS)
No summary available
Maximus (MMS) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- MXN 3.34B
- Dividend Yield
- 2.33%
- Average Volume (3M)
- ―
- Price to Earnings (P/E)
- 9.3
- Beta (1Y)
- 0.01
- Revenue Growth
- -11.99%
- EPS Growth
- 13.38%
- Country
- Mexico
- Employees
- 37,200
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Specialty Business Services
Maximus Business Overview & Revenue Model
Company Description
Maximus, Inc. specializes in delivering business process services (BPS) tailored for governmental health and human welfare initiatives. Its operations are structured into three main divisions: U.S. Services, U.S. Federal Services, and International S...
Maximus Earnings Call Summary
The call presents a generally constructive operational and strategic picture — Q3 revenue was in line with expectations, margins improved year-over-year, a large $50.4B pipeline and $1.25B of signed awards support medium/long-term growth, AI adoption is delivering measurable margin benefits, and collections momentum has begun to relieve working capital stress. However, notable near-term headwinds include a customer-directed pause of VA MDE incentives that reduced FY26 EPS guidance by ~$0.35, elevated DSO and a Q3 free cash flow outflow, a slowed procurement environment with a trailing book-to-bill of ~0.5x, and modest profitability in Outside the U.S. Taken together, the company appears to be navigating temporary timing and contract-driven challenges while maintaining margin progress, a sizable pipeline, disciplined capital allocation, and strategic investments that support growth into FY2027.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The company reiterated fiscal 2026 revenue guidance of $5.20–$5.35 billion (bias toward the low end) and issued revised adjusted diluted EPS guidance of $7.90–$8.20 (midpoint $8.05, down $0.35 from the prior $8.40), which corresponds to a full‑year adjusted EBITDA margin of ~13.7% and implies Q4 adjusted diluted EPS at the midpoint of $1.91 (Q4 adjusted EBITDA margin roughly ~13%); free cash flow is now expected to be $425–$475 million, interest expense ~ $88 million, and the full‑year tax rate 24–24.5%; segment assumptions include U.S. Federal Services operating margin 16.5–17.0% for the year (Q4 14.5–15.0%), U.S. Services 9.5–10.0% (includes a $6.9M noncash charge), and Outside the U.S. breakeven (implying a profitable Q4); liquidity and balance sheet metrics: Q3 total debt $1.65B (Term Loan B raised $325M), consolidated net leverage 2.0x (target 2x–3x), Q3 DSO was 98 days but expected to finish the year below 70 days ( ~$245M collected since June 30), Q3 cash used in operations was $(125)M and Q3 free cash flow $(137)M; share activity: repurchased ~0.75M shares for $50M in Q3, $400M authorization remains available, and ~8.3M shares (~14% of beginning outstanding) repurchased since FY2025.
Maximus Risk Analysis
Maximus disclosed 37 risk factors in its most recent earnings report. Maximus reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
0 New RisksMaximus Peers Comparison
Overall Rating
III77Outperform
CBZ70Outperform
FA66Neutral
ABM63Neutral
DLHC44Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| III | 77Outperform | $295.32M | 25.20 | 12.32% | 2.95% | 4.18% | 50.80% |
| CBZ | 70Outperform | $3.01B | 21.99 | 7.96% | ― | 3.74% | 48.86% |
| FA | 66Neutral | $3.71B | 146.47 | 1.93% | ― | 32.89% | ― |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| ABM | 63Neutral | $3.13B | 19.24 | 9.44% | 2.17% | 6.00% | 50.32% |
| DLHC | 44Neutral | $52.61M | -2.41 | -20.12% | ― | -29.52% | -564.69% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MX:MMS | Maximus | 1630.00 | 22.38 | 1.39% | |
| ABM | Abm Industries Incorporated | 53.48 | 11.41 | 27.12% | |
| CBZ | CBIZ Inc | 54.98 | -0.11 | -0.20% | |
| III | Information Services Group | 6.10 | 0.26 | 4.49% | |
| DLHC | DLH Holdings Corp. | 3.63 | -2.32 | -38.99% | |
| FA | First Advantage Corporation | 21.59 | 9.25 | 74.96% |
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.