Maximus (MMS)
NYSE:MMS
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Maximus
(NYSE:MMS)
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Rating:72Outperform
Price Target:
$71.00
▼(-17.65% Downside)
Action:Upgraded
Date:05/09/26
The score is supported by improved profitability/cash generation, a de-risked balance sheet, and constructive earnings-call updates (raised guidance and sizable buybacks), alongside an attractive low P/E. Offsetting these positives, the technical setup is bearish (below key moving averages with negative MACD) and fundamentals show a near-term top-line headwind, with working-capital (DSO) and procurement timing adding execution risk.
Positive Factors
Improving Profitability & Margins
Sustained margin expansion reflects structural improvements in operations and pricing across government contracts. Higher gross and net margins increase resilience to contract mix shifts, support reinvestment and buybacks, and underpin durable earnings power despite near-term revenue cadence variability.
Negative Factors
Softer Top‑Line Momentum
Declining trailing revenue signals persistent headwinds in contract awards and service volumes. For a government contractor, slower procurement and weaker demand can compress backlog growth and limit operating leverage realization, making revenue recovery dependent on award timing and policy-driven spending.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability & Margins
Sustained margin expansion reflects structural improvements in operations and pricing across government contracts. Higher gross and net margins increase resilience to contract mix shifts, support reinvestment and buybacks, and underpin durable earnings power despite near-term revenue cadence variability.
Read all positive factors
Maximus (MMS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.12B
Dividend Yield1.38%
Average Volume (3M)775.01K
Price to Earnings (P/E)8.9
Beta (1Y)0.44
Revenue Growth-1.44%
EPS Growth33.09%
CountryUS
Employees41,100
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)6.73
Shares Outstanding52,540,363
10 Day Avg. Volume1,009,407
30 Day Avg. Volume775,007
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 Cap1.45
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit3.57
Enterprise Value/Ebitda6.31
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8.38
Revenue Forecast (FY)$5.30B
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 so...
How the Company Makes Money
Maximus makes money primarily by performing outsourced services for government clients under contractual arrangements. Its revenue is largely generated from government contracts (e.g., federal, state, local, and international government agencies) ...
Maximus Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call delivered more positive signals than negative: management reported sequential and year-over-year margin and EPS improvements, raised full-year EPS and margin guidance, reiterated strong free cash flow guidance, highlighted demonstrable tech/AI-driven operating leverage and an expanding H.R. 1 pipeline, and authorized additional share repurchases. Offsetting negatives include elevated DSO and receivable timing risk that could cause cash-flow lumpiness, a modest decline in U.S. Services revenue, an Outside U.S. operating loss, and a small non-cash asset impairment. On balance, the positives (profitability improvement, guidance raise, tech-driven efficiency, capital return, and healthy pipeline) outweigh the operational and timing challenges.Positive Updates
Quarterly Revenue On-Track
Reported Q2 revenue of $1.31 billion, consistent with company expectations and on track with full-year guidance of $5.20B–$5.35B.
Negative Updates
U.S. Services Revenue Decline
U.S. Services revenue declined to $416 million from $442 million year-over-year (down $26 million, ≈-5.9% YoY); management expects sequential recovery into Q4 but current near-term volume weakness remains.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue On-Track
Reported Q2 revenue of $1.31 billion, consistent with company expectations and on track with full-year guidance of $5.20B–$5.35B.
Read all positive updates
Company Guidance
Maximus raised its fiscal 2026 outlook while reaffirming revenue and FCF ranges: revenue $5.20–$5.35B, adjusted EBITDA margin ~14.2% (up 20 bps), adjusted EPS $8.05–$8.55 (midpoint ≈14% YoY), and free cash flow $450–$500M, with management expecting DSO to finish the year below 70 days (currently 78). Full‑year segment margins are guided to U.S. Federal 17.5%, U.S. Services ~10% (reflecting a $6.9M non‑cash charge), and Outside the U.S. roughly breakeven; other assumptions include interest expense ≈$84M, tax rate 24–25%, total debt $1.55B and consolidated net leverage 1.8x (below the 2–3x target). Capital deployment priorities include continued opportunistic buybacks (Q2 repurchases ~1.4M shares for $111M plus 600k/$40M post‑quarter, and a Board‑authorized $400M refresh effective May 11) while remaining disciplined on M&A, and management raised its near‑term adjusted EBITDA margin target range to 12%–15% (from 10%–13%).Maximus Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.32B | 5.43B | 5.31B | 4.90B | 4.63B | 4.25B |
| Gross Profit | 1.27B | 1.25B | 1.16B | 934.02M | 849.35M | 902.62M |
| EBITDA | 718.01M | 674.75M | 624.28M | 456.45M | 464.76M | 502.74M |
| Net Income | 373.27M | 319.03M | 306.91M | 161.79M | 203.83M | 291.20M |
Balance Sheet | ||||||
| Total Assets | 4.24B | 4.07B | 4.13B | 3.99B | 3.99B | 4.12B |
| Cash, Cash Equivalents and Short-Term Investments | 244.70M | 260.46M | 235.76M | 122.09M | 136.79M | 156.57M |
| Total Debt | 1.63B | 1.44B | 1.28B | 1.43B | 1.51B | 1.71B |
| Total Liabilities | 2.54B | 2.40B | 2.29B | 2.32B | 2.44B | 2.64B |
| Stockholders Equity | 1.70B | 1.67B | 1.84B | 1.67B | 1.55B | 1.48B |
Cash Flow | ||||||
| Free Cash Flow | 371.99M | 366.16M | 401.07M | 223.65M | 233.69M | 480.76M |
| Operating Cash Flow | 411.78M | 429.37M | 515.26M | 314.34M | 289.84M | 517.32M |
| Investing Cash Flow | -22.51M | -60.26M | -129.10M | -80.96M | -54.01M | -1.84B |
| Financing Cash Flow | -300.93M | -343.88M | -275.65M | -250.80M | -248.27M | 1.39B |
Maximus Technical Analysis
Negative
86.22
Price Trends
65.79
Negative
75.33
Negative
79.94
Negative
Market Momentum
-2.04
Positive
33.80
Neutral
18.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMS, the sentiment is Negative. The current price of 86.22 is above the 20-day moving average (MA) of 63.23, above the 50-day MA of 65.79, and above the 200-day MA of 79.94, indicating a bearish trend. The MACD of -2.04 indicates Positive momentum. The RSI at 33.80 is Neutral, neither overbought nor oversold. The STOCH value of 18.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MMS.
Maximus Risk Analysis
Maximus disclosed 37 risk factors in its most recent earnings report. Maximus reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Maximus Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.12B | 8.91 | 21.75% | 1.38% | -1.44% | 33.09% | |
69 Neutral | $4.54B | 49.97 | 6.24% | 0.71% | 0.76% | -8.22% | |
68 Neutral | $2.62B | 235.83 | 0.66% | ― | 53.53% | ― | |
67 Neutral | $1.66B | 2.56 | 8.32% | ― | 28.34% | 67.93% | |
65 Neutral | $2.31B | 17.89 | 8.80% | 2.20% | 5.59% | 100.00% | |
65 Neutral | $13.96B | 27.46 | 11.23% | 1.14% | 10.15% | 3.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
MMS
Maximus
59.90
-13.69
-18.60%
ABM
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38.88
-12.28
-24.00%
CBZ
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30.91
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-58.00%
UNF
UniFirst
264.20
77.72
41.68%
ARMK
ARAMARK Holdings
51.54
12.11
30.73%
FA
First Advantage
14.90
-3.27
-18.00%
Maximus Corporate Events
Executive/Board ChangesShareholder Meetings
Maximus Shareholders Back Board, Executive Pay and Auditor
Positive
Mar 12, 2026
At its Annual Meeting of Shareholders held on March 10, 2026, Maximus, Inc. reported that 93.2% of outstanding common stock was represented, and shareholders elected eight directors, including CEO Bruce L. Caswell, to one-year terms expiring at th...
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.