Maximus, Inc.
Maximus, Inc. Fundamental Analysis
Maximus, Inc. (MMS) shows moderate financial fundamentals with a PE ratio of 10.72, profit margin of 6.92%, and ROE of 21.76%. The company generates $5.3B in annual revenue with weak year-over-year growth of 2.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MMS's fundamental strength across five key dimensions:
Efficiency Score
WeakMMS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMMS trades at attractive valuation levels.
Growth Score
ModerateMMS shows steady but slowing expansion.
Financial Health Score
ModerateMMS shows balanced financial health with some risks.
Profitability Score
ModerateMMS maintains healthy but balanced margins.
Key Financial Metrics
Is MMS Expensive or Cheap?
P/E Ratio
MMS trades at 10.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MMS's PEG of 0.59 indicates potential undervaluation.
Price to Book
The market values Maximus, Inc. at 2.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.27 times EBITDA. This is generally considered low.
How Well Does MMS Make Money?
Net Profit Margin
For every $100 in sales, Maximus, Inc. keeps $6.92 as profit after all expenses.
Operating Margin
Core operations generate 10.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.76 in profit for every $100 of shareholder equity.
ROA
Maximus, Inc. generates $8.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Maximus, Inc. generates limited operating cash flow of $263.55M, signaling weaker underlying cash strength.
Free Cash Flow
Maximus, Inc. produces free cash flow of $217.31M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.98 in free cash annually.
FCF Yield
MMS converts 5.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.009
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How MMS Stacks Against Its Sector Peers
| Metric | MMS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.72 | 26.49 | Better (Cheaper) |
| ROE | 21.76% | 1307.00% | Weak |
| Net Margin | 6.92% | -5131.00% (disorted) | Weak |
| Debt/Equity | 1.01 | 0.81 | Weak (High Leverage) |
| Current Ratio | 2.34 | 10.48 | Strong Liquidity |
| ROA | 8.83% | -1549793.00% (disorted) | Weak |
MMS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Maximus, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.34%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
63.36%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
92.82%
Industry Style: Cyclical, Value, Infrastructure
High Growth