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Maximus (MMS)
NYSE:MMS
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Maximus
(NYSE:MMS)
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Rating:74Outperform
Price Target:
$93.00
▲(7.86% Upside)
Maximus's strong financial performance and positive earnings call guidance are the most significant factors driving the score. The company's strategic investments in AI and technology, along with a solid balance sheet, enhance its growth potential. However, technical indicators suggest a neutral market sentiment, and challenges in certain segments could impact future performance.
Maximus (MMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.78B
Dividend Yield1.36%
Average Volume (3M)660.67K
Price to Earnings (P/E)15.9
Beta (1Y)0.34
Revenue Growth2.36%
EPS Growth11.30%
CountryUS
Employees41,100
SectorN/A
Sector StrengthN/A
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.62
Shares Outstanding54,461,506
10 Day Avg. Volume743,234
30 Day Avg. Volume660,675
Financial Highlights & Ratios
PEG Ratio1.56
Price to Book (P/B)3.13
Price to Sales (P/S)0.97
P/FCF Ratio14.33
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue1.18
Enterprise Value/Gross Profit5.15
Enterprise Value/Ebitda9.64
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.63
Revenue Forecast (FY)$5.57B
Maximus Business Overview & Revenue Model
Company DescriptionMaximus (MMS) is a leading provider of government services that specializes in delivering innovative solutions and comprehensive support to public sector clients. Operating primarily in the health and human services sectors, the company offers a range of services including program administration, technology solutions, and consulting designed to improve outcomes for individuals and communities. Maximus serves various government agencies at the federal, state, and local levels, focusing on areas such as Medicaid, Medicare, and workforce development.
How the Company Makes MoneyMaximus generates revenue through a diverse range of business models, primarily based on contracts with government agencies. The company earns money by providing program management services, which often include the administration of health care benefits and social services. A significant portion of revenue comes from performance-based contracts, where earnings are linked to specific outcomes or efficiencies achieved. Additionally, Maximus generates income from technology solutions, including software and data analytics services that enhance the operational capabilities of government clients. Strategic partnerships with other technology firms and consultancy groups help expand their service offerings and enhance their competitive edge, contributing further to their revenue streams.
Maximus Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
Maximus demonstrated strong financial performance in FY 2025 with significant revenue and margin growth, especially within the U.S. Federal Services segment. Strategic investments in AI and technology, as well as expansion in defense and national security, highlight future growth potential. However, challenges remain in the U.S. Services segment and Outside The U.S. segment, with severance charges impacting margins and expected revenue headwinds for FY 2026.Q4-2025 Updates
Positive Updates
Strong Financial Performance in FY 2025
Revenue totaled $5.43 billion, with an organic growth rate of 3.9%. Adjusted EBITDA margin improved to 12.9% from 11.6% the previous year. Adjusted EPS increased by 20% to $7.36.
Growth in U.S. Federal Services
Revenue in the U.S. Federal Services segment increased by 12.1% to $3.07 billion, driven by high demand in clinical and natural disaster support programs.
Strong Cash Flow and Debt Reduction
Free cash flow for FY 2025 was $366 million, with a significant reduction in net leverage to 1.5 times.
Strategic Investments in AI and Technology
Maximus is investing in AI and automation, with 30 AI-related deployments planned or in progress, enhancing service delivery and operational efficiency.
Expansion in Defense and National Security
Awarded a new $86 million contract with the United States Air Force, expanding technology services within the defense sector.
Negative Updates
Revenue Decline in U.S. Services Segment
Revenue in the U.S. Services segment decreased to $1.76 billion from $1.91 billion, impacted by the completion of Medicaid unwinding engagements.
Outside The U.S. Segment Challenges
Revenue decreased due to divestitures, though partially offset by 4.1% organic growth, with operating income margin at a lower range of 3.7%.
Severance Charges Impacting Margins
Fourth quarter included $16 million in severance charges, affecting operating margins in domestic segments.
Potential Revenue Headwinds for FY 2026
Guidance for FY 2026 suggests a mild contraction in revenue due to non-recurring high-volume work in FY 2025, with expected headwinds of approximately 3% year-over-year.
Company Guidance
During the fiscal year 2025 fourth quarter and year-end earnings call, Maximus provided robust guidance on their financial performance and strategic initiatives. The company reported a 3.9% organic growth rate for the consolidated business, with the U.S. Federal Services segment achieving a notable 12.1% organic growth. Despite challenges, the company maintained stable contracts with cancellations affecting just 1.5% of revenue. For fiscal year 2026, Maximus projects revenue between $5.225 billion and $5.425 billion, with an adjusted EBITDA margin expected to reach 13.7%, indicating a strong focus on cost management and technology integration. The company is also planning significant investments in AI and technology-enabled automation to drive future growth, particularly in the U.S. Federal and defense sectors. Additionally, Maximus has set a free cash flow guidance between $450 million and $500 million, aiming to capitalize on opportunities arising from policy changes like the One Big Beautiful Bill Act and expanding their footprint in the defense and national security markets.Maximus Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
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Maximus Technical Analysis
Positive
86.22
Price Trends
84.46
Positive
84.78
Positive
77.12
Positive
Market Momentum
0.73
Negative
62.39
Neutral
92.33
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 86.22 is above the 20-day moving average (MA) of 85.02, above the 50-day MA of 84.46, and above the 200-day MA of 77.12, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 92.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMS.
Maximus Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
74 Outperform | $4.78B | 15.93 | 18.14% | 1.36% | 2.36% | 11.30% | |
68 Neutral | $3.03B | 21.83 | 6.93% | 0.81% | 0.20% | 2.72% | |
68 Neutral | $9.90B | 30.84 | 10.55% | 1.15% | 6.35% | 24.07% | |
66 Neutral | $2.80B | 24.85 | 6.32% | 2.20% | 4.27% | -24.06% | |
66 Neutral | $2.91B | 34.67 | 7.44% | ― | 59.19% | -35.47% | |
51 Neutral | $2.56B | -17.64 | -12.48% | ― | 93.41% | -2515.85% |
* Sector Average
MMS
Maximus
88.54
17.47
24.58%
ABM
ABM Industries
48.25
-1.79
-3.58%
CBZ
CBIZ
52.66
-27.77
-34.53%
UNF
UniFirst
176.81
0.87
0.49%
ARMK
ARAMARK Holdings
37.75
0.76
2.05%
FA
First Advantage
14.79
-3.79
-20.40%
Maximus Corporate Events
Stock BuybackBusiness Operations and Strategy
Maximus Expands Stock Purchase Program by $400 Million
Positive
Sep 10, 2025
On September 8, 2025, Maximus, Inc. announced that its Board of Directors approved an expansion of the company’s stock purchase program, authorizing up to $400 million in common stock purchases. This decision reflects Maximus’s commitment to capital allocation and returning value to shareholders while maintaining flexibility for strategic investments. Since June 30, 2025, the company has already purchased 375,898 shares for approximately $31.6 million, demonstrating its proactive approach in leveraging market conditions to enhance shareholder value.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.