Maximus (MMS) AI Stock Analysis

• Market Cap: $4.95B
• Dividend Yield: 1.36%
• Average Volume (3M): 622.70K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.44
• Revenue Growth: 3.40%
• EPS Growth: 13.75%
• Country: US
• Employees: 41,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 2.16
• Shares Outstanding: 56,349,630
• 10 Day Avg. Volume: 686,064
• 30 Day Avg. Volume: 622,697
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: 8.76
• 1Y Price Target: $96.00
• Price Target Upside: 8.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $96.00 ▲(8.94% Upside)

Maximus receives a strong overall score driven by its robust earnings performance and positive technical indicators. The company's strategic positioning and contract wins further enhance its outlook. However, challenges in cash flow management and valuation concerns slightly temper the score.

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 combination of government contracts and service agreements, providing a range of solutions such as program management, consulting, and technology services. The company's key revenue streams include performance-based contracts, where compensation is linked to the successful delivery of services and outcomes, as well as fixed-price contracts for specific projects. Additionally, Maximus has established strategic partnerships with various government agencies and organizations, further solidifying its role as a trusted service provider in the public sector. The company also benefits from ongoing demand for its services due to increasing government focus on improving public service delivery and the adoption of technology in government operations.

Maximus Financial Statement Overview

Summary

Maximus shows strong revenue growth and profitability with efficient operational margins. However, increased leverage and negative cash flow growth present potential risks. The company must focus on improving cash flow management to sustain its growth trajectory and maintain financial stability.

Income Statement

Maximus has demonstrated strong revenue growth with a TTM increase of 2.3% from the previous year, supported by a solid gross profit margin of 23.98%. The net profit margin is stable at 5.83%, indicating consistent profitability. EBIT and EBITDA margins are healthy at 9.55% and 11.94%, respectively, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.00, indicating higher leverage, which could pose a risk if not managed properly. However, the return on equity is strong at 18.25%, showcasing effective use of equity to generate profits. The equity ratio stands at 39.74%, suggesting a balanced capital structure.

Cash Flow

Maximus faces challenges in cash flow management, with a negative free cash flow growth rate of -165.65% in the TTM. The operating cash flow to net income ratio is negative, indicating potential liquidity issues. However, the free cash flow to net income ratio is high at 2.56, suggesting that the company is generating significant cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.43B	5.31B	4.90B	4.63B	4.25B	3.46B
Gross Profit	1.30B	1.25B	1.03B	939.81M	946.98M	711.00M
EBITDA	648.10M	488.50M	456.45M	464.76M	502.74M	396.08M
Net Income	316.25M	306.91M	161.79M	203.83M	291.20M	214.51M
Balance Sheet
Total Assets	4.46B	4.13B	3.99B	3.99B	4.12B	2.02B
Cash, Cash Equivalents and Short-Term Investments	59.78M	183.12M	65.41M	40.66M	135.06M	71.74M
Total Debt	1.78B	1.28B	1.43B	1.51B	1.71B	213.65M
Total Liabilities	2.69B	2.29B	2.32B	2.44B	2.64B	782.88M
Stockholders Equity	1.77B	1.84B	1.67B	1.55B	1.48B	1.24B
Cash Flow
Free Cash Flow	-143.81M	401.07M	223.65M	233.69M	480.76M	203.88M
Operating Cash Flow	-56.17M	515.26M	314.34M	289.84M	517.32M	244.59M
Investing Cash Flow	-89.05M	-129.10M	-80.96M	-54.01M	-1.84B	-44.14M
Financing Cash Flow	100.97M	-275.65M	-250.80M	-248.27M	1.39B	-230.09M

Maximus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 88.12 is below the 20-day moving average (MA) of 88.40, above the 50-day MA of 82.81, and above the 200-day MA of 73.49, indicating a neutral trend. The MACD of 1.26 indicates Positive momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 36.62 is Neutral, 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	76 Outperform	$4.95B	16.18	17.61%	1.36%	3.40%	13.75%
UNF	74 Outperform	3.01B	20.30	6.98%	0.83%	4.18%	18.93%
ABM	70 Outperform	2.80B	24.48	6.33%	2.23%	4.27%	-24.06%
ARMK	68 Neutral	10.10B	27.86	11.73%	1.09%	-0.06%	3.83%
CBZ	65 Neutral	2.84B	30.33	5.77%	―	46.49%	-25.62%
FA	52 Neutral	2.67B	-16.80	-11.55%	―	65.34%	-633.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.