Maximus (MMS) AI Stock Analysis

• Market Cap: $4.06B
• Dividend Yield: 1.67%
• Average Volume (3M): 406.69K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.43
• Revenue Growth: 5.29%
• EPS Growth: 31.95%
• Country: US
• Employees: 41,100
• Sector: Industrials
• Sector Strength: 86
• Industry: Specialty Business Services
• EPS (TTM): 2.01
• Shares Outstanding: 56,349,400
• 10 Day Avg. Volume: 430,484
• 30 Day Avg. Volume: 406,694
• PEG Ratio: -0.59
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.30
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 3.96
• Enterprise Value/Ebitda: 2.15
• 1Y Price Target: $90.00
• Price Target Upside: 24.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: $82.00 ▲(13.79%Upside)

Maximus demonstrates strong financial performance and a positive outlook from its earnings call, with raised guidance and innovative achievements. While technical analysis shows mixed signals, and valuation appears reasonable, the key strengths lie in operational efficiency and strategic growth initiatives.

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 by securing contracts with government agencies to deliver a wide range of services. The company's revenue model is primarily based on long-term contracts that involve managing and operating government health and human services programs. These contracts often include performance-based incentives, where Maximus earns additional revenue by meeting or exceeding certain service benchmarks. Significant revenue streams include providing administrative support for Medicaid and Medicare, as well as managing welfare-to-work programs and other social services. Key factors contributing to its earnings include the company's expertise in navigating complex government regulations, its ability to streamline and modernize service delivery, and its strategic partnerships with technology and consulting firms to enhance service offerings.

Maximus Financial Statement Overview

Summary

Maximus demonstrates strong revenue growth and maintains healthy profit margins, indicating robust operational performance. The balance sheet shows increased leverage, which could be a risk if not managed, but equity remains strong. Cash flow generation is positive but declining, indicating a need for careful cash management. Overall, the company is financially sound but should focus on managing leverage and enhancing cash flow.

Income Statement

Maximus shows strong revenue growth with a 16.9% increase from 2023 to TTM (Trailing-Twelve-Months), indicating robust business expansion. The gross profit margin remains solid at 23.6% for TTM, reflecting efficient cost management. However, net profit margin slightly decreased to 5.6%, suggesting some pressure on net earnings. EBIT and EBITDA margins are healthy at 9.1% and 10.9%, respectively, demonstrating good operational efficiency.

Balance Sheet

The company maintains a balanced financial structure with an equity ratio of 39.7% in TTM, indicating a stable asset base funded by equity. The debt-to-equity ratio increased to 0.97, reflecting higher leverage, which could pose risks if not managed properly. However, return on equity improved to 18.0%, showcasing effective use of shareholder funds.

Cash Flow

Operating cash flow to net income ratio is 1.09 for TTM, indicating good cash generation relative to net income. Free cash flow decreased by 45.4% in TTM, which is a concern, but remains positive at $219 million. The free cash flow to net income ratio is 0.73, suggesting adequate but declining free cash flow coverage.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	5.40B	5.31B	4.90B	4.63B	4.25B	3.46B
Gross Profit	1.27B	1.25B	1.03B	939.81M	946.98M	711.00M
EBITDA	589.26M	488.50M	456.45M	464.76M	502.74M	396.08M
Net Income	300.02M	306.91M	161.79M	203.83M	291.20M	214.51M
Balance Sheet
Total Assets	4.20B	4.13B	3.99B	3.99B	4.12B	2.02B
Cash, Cash Equivalents and Short-Term Investments	108.06M	183.12M	65.41M	40.66M	135.06M	71.74M
Total Debt	1.62B	1.28B	1.43B	1.51B	1.71B	213.65M
Total Liabilities	2.53B	2.29B	2.32B	2.44B	2.64B	782.88M
Stockholders Equity	1.67B	1.84B	1.67B	1.55B	1.48B	1.24B
Cash Flow
Free Cash Flow	219.04M	401.07M	223.65M	233.69M	480.76M	203.88M
Operating Cash Flow	325.88M	515.26M	314.34M	289.84M	517.32M	244.59M
Investing Cash Flow	-108.26M	-129.10M	-80.96M	-54.01M	-1.84B	-44.14M
Financing Cash Flow	-180.48M	-275.65M	-250.80M	-248.27M	1.39B	-230.09M

Maximus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 72.06 is above the 20-day moving average (MA) of 70.27, above the 50-day MA of 70.90, and below the 200-day MA of 74.82, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 89.41 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	79 Outperform	$4.06B	14.33	17.36%	1.67%	5.29%	31.95%
ARMK	71 Outperform	$11.21B	32.93	11.77%	0.98%	-3.47%	-45.03%
UNF	70 Outperform	$3.12B	21.49	7.15%	0.80%	4.17%	18.93%
Sector *	65 Neutral	$10.81B	15.65	5.50%	1.89%	3.10%	-27.09%
CBZ	62 Neutral	$4.01B	50.17	6.25%	―	32.27%	-40.50%
ABM	61 Neutral	$2.98B	38.37	4.30%	2.21%	3.52%	-67.27%
FA	55 Neutral	$2.98B	549.40	-13.59%	―	37.97%	-499.29%

Maximus Corporate Events

Maximus Updates By-laws for Shareholder Proposals

On June 10, 2025, Maximus, Inc. amended its By-laws to enhance disclosure requirements for shareholders proposing director nominations or business at meetings. These changes include detailed disclosure of stock ownership, performance-related fees, and material relationships, as well as compliance certifications with applicable laws. The amendments also limit the number of board nominees a shareholder can propose, prohibit substitute nominations without notice, and require updates to shareholder information. Additionally, the By-laws now align with Virginia Stock Corporation Act provisions and include technical updates.

The most recent analyst rating on (MMS) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Maximus stock, see the MMS Stock Forecast page.