Maximus (MMS) AI Stock Analysis

• Market Cap: $5.36B
• Dividend Yield: 1.38%
• Average Volume (3M): 581.31K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.34
• Revenue Growth: 2.36%
• EPS Growth: 11.30%
• Country: US
• Employees: 41,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 1.62
• Shares Outstanding: 54,461,506
• 10 Day Avg. Volume: 520,617
• 30 Day Avg. Volume: 581,310
• PEG Ratio: 1.56
• Price to Book (P/B): 3.13
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 14.33
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 5.15
• Enterprise Value/Ebitda: 9.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 7.63
• Revenue Forecast (FY): $5.57B

• Rating: 74 Outperform
• Price Target: $110.00 ▲(27.58% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Strategic Investments

Investments in AI and automation enhance operational efficiency and service delivery, positioning Maximus for future growth in tech-driven markets.

Expansion in Defense Sector

Expanding services in the defense sector diversifies revenue streams and strengthens Maximus's position in a stable, high-demand industry.

Negative Factors

Revenue Decline in U.S. Services

Declining revenue in key segments could indicate challenges in maintaining market share and may impact overall growth if not addressed.

Severance Charges Impacting Margins

Severance charges reduce operating margins, potentially affecting profitability and indicating restructuring challenges within the company.

Potential Revenue Headwinds

Expected revenue headwinds in FY 2026 could limit growth prospects, necessitating strategic adjustments to sustain financial performance.

Maximus Business Overview & Revenue Model

Company Description

Maximus, Inc. provides business process services (BPS) to government health and human services programs. It operates through three segments: U.S. Services, U.S. Federal Services, and Outside the U.S. The U.S. Services segment offers various BPS solutions, such as program administration, appeals and assessments, and related consulting works for U.S. state and local government programs, including the Affordable Care Act, Medicaid, the Children's Health Insurance Program, Temporary Assistance to Needy Families, child support programs, Preadmission Screening and Resident Reviews, and Independent Developmental Disability assessments. This segment also provides program eligibility support and enrollment; centralized multilingual customer contact centers, multichannel, and digital self-service options for enrollment; application assistance and independent health plan choice counseling; beneficiary outreach, education, eligibility, enrollment, and redeterminations; person-centered independent disability, long-term sick, and other health assessments; and specialized consulting services. The U.S. Federal Services segment offers centralized citizen engagement centers and support services; document and record management; case management, citizen support, and consumer education; independent medical reviews and worker's compensation benefit appeals; Medicare and Medicaid appeals; and federal marketplace eligibility appeals. This segment also provides modernization of systems and information technology infrastructure; infrastructure operations and support services; software development, operations, and management services; and data analytics services. The Outside the U.S. segment offers BPS solutions for governments and commercial clients outside the United States, including health and disability assessments, program administration for employment services, and other job seeker-related services. The company was incorporated in 1975 and is headquartered in Tysons, Virginia.

How the Company Makes Money

Maximus 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 Financial Statement Overview

Summary

Maximus shows strong financial health with consistent revenue growth and improved profitability margins. The balance sheet is solid with low leverage, enhancing financial stability. However, the decline in free cash flow growth is a concern that needs addressing to ensure long-term cash sustainability.

Income Statement

Maximus has demonstrated consistent revenue growth with a 4.7% increase in the latest year, supported by a stable gross profit margin of 24.6%. The net profit margin improved slightly to 5.9%, indicating effective cost management. However, the EBIT margin has seen a decline, which may suggest rising operational costs or other inefficiencies.

Balance Sheet

The company has significantly reduced its debt, leading to a low debt-to-equity ratio of 0.04, which enhances financial stability. Return on equity is strong at 19.1%, reflecting efficient use of equity to generate profits. The equity ratio is healthy, indicating a solid capital structure.

Cash Flow

Operating cash flow remains robust, but free cash flow has decreased significantly, impacting the free cash flow growth rate negatively. The operating cash flow to net income ratio is moderate, suggesting a reasonable conversion of income into cash. The free cash flow to net income ratio is high, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.43B	5.43B	5.31B	4.90B	4.63B	4.25B
Gross Profit	1.24B	1.25B	1.16B	934.02M	849.35M	902.62M
EBITDA	662.64M	674.75M	624.28M	456.45M	464.76M	502.74M
Net Income	319.03M	319.03M	306.91M	161.79M	203.83M	291.20M
Balance Sheet
Total Assets	4.07B	4.07B	4.13B	3.99B	3.99B	4.12B
Cash, Cash Equivalents and Short-Term Investments	260.46M	260.46M	235.76M	122.09M	136.79M	156.57M
Total Debt	1.44B	1.44B	1.28B	1.43B	1.51B	1.71B
Total Liabilities	2.40B	2.40B	2.29B	2.32B	2.44B	2.64B
Stockholders Equity	1.67B	1.67B	1.84B	1.67B	1.55B	1.48B
Cash Flow
Free Cash Flow	366.16M	366.16M	401.07M	223.65M	233.69M	480.76M
Operating Cash Flow	429.37M	429.37M	515.26M	314.34M	289.84M	517.32M
Investing Cash Flow	-60.26M	-60.26M	-129.10M	-80.96M	-54.01M	-1.84B
Financing Cash Flow	-343.88M	-343.88M	-275.65M	-250.80M	-248.27M	1.39B

Maximus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 below the 20-day moving average (MA) of 90.97, below the 50-day MA of 86.65, and above the 200-day MA of 79.50, indicating a bullish trend. The MACD of 3.22 indicates Negative momentum. The RSI at 75.96 is Negative, neither overbought nor oversold. The STOCH value of 93.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMS.

Maximus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMS	74 Outperform	$5.36B	17.87	18.14%	1.38%	2.36%	11.30%
UNF	70 Outperform	$3.69B	28.10	6.93%	0.71%	0.20%	2.72%
ABM	69 Neutral	$2.71B	17.39	9.10%	2.20%	4.62%	102.72%
ARMK	68 Neutral	$10.25B	31.95	10.55%	1.14%	6.35%	24.07%
CBZ	66 Neutral	$2.80B	33.44	7.44%	―	59.19%	-35.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FA	51 Neutral	$2.60B	-17.98	-12.48%	―	93.41%	-2515.85%

Maximus Corporate Events

Maximus Announces Upcoming Chief Legal Officer Transition

On December 15, 2025, Maximus, Inc. announced that its Chief Legal Officer and Corporate Secretary, John T. Martinez, has notified the company of his intention to resign effective February 15, 2026, to pursue a new opportunity more closely aligned with his industry background and experience. The company stated that the decision was not the result of any disagreement over operations, policies, or practices, and Martinez will remain in his current role until his departure while Maximus conducts a search for his replacement, signaling an orderly legal and governance leadership transition.

The most recent analyst rating on (MMS) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Maximus stock, see the MMS Stock Forecast page.