Maximus, Inc.
MMS
Services-Business Services, NEC
Mkt Cap
$5.188BPE
22.11Debt
$1.305BCash
$118.3MEV
$6.374BFCF
$186.9MP/E Ratio
22.11Debt
$1.305BCash
$118.3MEV
$6.374BFCF
$186.9MCharts data: {"Earnings":[{"time":"2014-09-29","value":145396000},{"time":"2015-09-29","value":157772000},{"time":"2016-09-29","value":178362000},{"time":"2017-09-29","value":209426000},{"time":"2018-09-29","value":220751000},{"time":"2019-09-29","value":240495000},{"time":"2020-09-29","value":214509000},{"time":"2021-09-29","value":291200000},{"time":"2022-09-29","value":203828000},{"time":"2023-09-29","value":161792000}],"Sales":[{"time":"2014-09-29","value":1700912000},{"time":"2015-09-29","value":2099821000},{"time":"2016-09-29","value":2403360000},{"time":"2017-09-29","value":2450961000},{"time":"2018-09-29","value":2392236000},{"time":"2019-09-29","value":2886815000},{"time":"2020-09-29","value":3461537000},{"time":"2021-09-29","value":4254485000},{"time":"2022-09-29","value":4631018000},{"time":"2023-09-29","value":4904728000}],"Net Margins":[{"time":"2014-09-29","value":0.08548120067352102},{"time":"2015-09-29","value":0.07513592825293204},{"time":"2016-09-29","value":0.07421360095865788},{"time":"2017-09-29","value":0.08544648405258183},{"time":"2018-09-29","value":0.0922781029965271},{"time":"2019-09-29","value":0.08330807481601696},{"time":"2020-09-29","value":0.06196929283147919},{"time":"2021-09-29","value":0.06844541701286995},{"time":"2022-09-29","value":0.044013648834878204},{"time":"2023-09-29","value":0.0329869464728727}],"Assets":[{"time":"2014-09-29","value":900996000},{"time":"2015-09-29","value":1280171000},{"time":"2016-09-29","value":1348819000},{"time":"2017-09-29","value":1350662000},{"time":"2018-09-29","value":1462000000},{"time":"2019-09-29","value":1745732000},{"time":"2020-09-29","value":2024702000},{"time":"2021-09-29","value":4118965000},{"time":"2022-09-29","value":3992714000},{"time":"2023-09-29","value":3985797000}],"Stockholders Equity":[{"time":"2014-09-29","value":556185000},{"time":"2015-09-29","value":615699000},{"time":"2016-09-29","value":753140000},{"time":"2017-09-29","value":945768000},{"time":"2018-09-29","value":1086419000},{"time":"2019-09-29","value":1248201000},{"time":"2020-09-29","value":1241819000},{"time":"2021-09-29","value":1480329000},{"time":"2022-09-29","value":1549371000},{"time":"2023-09-29","value":1667835000}],"ROE":[{"time":"2014-09-29","value":0.26141661497523305},{"time":"2015-09-29","value":0.2562485890020936},{"time":"2016-09-29","value":0.23682449478184667},{"time":"2017-09-29","value":0.2214348550595918},{"time":"2018-09-29","value":0.20319140221222198},{"time":"2019-09-29","value":0.1926732954067494},{"time":"2020-09-29","value":0.17273773392096595},{"time":"2021-09-29","value":0.19671302798229312},{"time":"2022-09-29","value":0.1315553214820724},{"time":"2023-09-29","value":0.09700719795423408}],"ROA":[{"time":"2014-09-29","value":0.2523529516224267},{"time":"2015-09-29","value":0.2040485216428118},{"time":"2016-09-29","value":0.21507852424973253},{"time":"2017-09-29","value":0.234253277281807},{"time":"2018-09-29","value":0.20534131326949384},{"time":"2019-09-29","value":0.18346286829822675},{"time":"2020-09-29","value":0.1427968165191717},{"time":"2021-09-29","value":0.09918268302838212},{"time":"2022-09-29","value":0.08162317661620642},{"time":"2023-09-29","value":0.07396111743774206}]}
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 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; and person-centered independent disability, long-term sick, and other health assessments. This segment also provides employment services, such as eligibility support, case management, job-readiness preparation, job search and employer outreach, job retention and career advancement, and educational and training services; technology solutions; system implementation project management services; and specialized consulting services. The U.S. Federal Services segment offers BPS, eligibility and enrollment, outreach, and other services for federal health and human services programs; clinical services; and technology solutions, including application development and modernization services, enterprise business solutions, advanced analytics and emerging technologies, cybersecurity services, and infrastructure and engineering solutions. The Outside the U.S. segment offers BPS solutions for international governments and commercial clients, including health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker-related services. The company was incorporated in 1975 and is based in Tysons, Virginia.
Sector
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DCF
Discounted Cash Flow Valuation of Maximus, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $186.9M | $210.1M | $234.4M | $259.6M | $285.4M | $311.4M | $337.2M | $362.4M | $386.5M | $409M | $429.5M | $4.295B |
| DCF | $182.7M | $177.2M | $170.7M | $163.2M | $154.8M | $145.8M | $136.2M | $126.3M | $116.3M | $106.2M | $1.062B | |
| Value | $2.541B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 2.4%
Earnings Stability 12%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 7.5% | 7.4% | 8.5% | 9.2% | 8.3% | 6.2% | 6.8% | 4.4% | 3.3% | 4.6% |
| ROA | 20% | 22% | 23% | 21% | 18% | 14% | 9.9% | 8.2% | 7.4% | 9.7% |
| ROE | 26% | 24% | 22% | 20% | 19% | 17% | 20% | 13% | 9.7% | 13% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +6.38%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -1.17%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +13.11%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -2.87%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +16.56%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -1.97%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 1.97 | - | - | - | 0.03 | 0.20 | 3.34 | 6.12 | 6.01 | 6.98 |
| Debt Equity | 0.34 | 0.22 | 0.00 | 0.00 | 0.01 | 0.03 | 1.08 | 0.92 | 0.81 | 0.73 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 96% | 100% | 82% | 68% | 68% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 6.98.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 1.79.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.68.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 09-2016 | 09-2018 | 09-2020 | 09-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 11% | 15% | 12% | 5.9% | -0.38% |
| Net Income | -1.4% | -6% | -9% | -21% | -3.8% |
| Stockholders Equity | 12% | 9% | 10% | 7.6% | -1.6% |
| FCF | - | -5.5% | 3.1% | -4.3% | 5.5% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +15.44%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.38%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -6.03%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -3.75%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +8.95%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -1.56%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -5.52%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +5.51%.