Maximus, Inc.

Consumer Discretionary
Business Services
www.maximus.com

Earnings Score
Moat Score
Safety Score

Market Cap $4.39B
PE 14
Debt $1.19B
Cash $235.76M
EV $5.34B
FCF $401.07M

Earnings

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Sales & Net Margins

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Earnings	$306.91M
EBIT	$488.50M
ROE	17%
ROA	12%
FCF	$401.07M
Equity	$1.84B
Growth Stability	68%
PE	14.3
PEG	-9.62
PB	2.38
P/FCF	10.94
P/S	0.83
Price/Cash	0.05
Debt/Equity	0.64
Debt/FCF	2.96
Net Margins	6%
Gross Margins	24%
Op. Margins	9%
Earnings CAGR	3%
Sales Growth YoY	4%
Sales Growth QoQ	0%
Sales CAGR	12%
FCF CAGR	5%
Equity CAGR	13%
Earnings Stability	0.13
Earnings Growth YoY	23%
Earnings Growth QoQ	-19%
Earnings CAGR 5Y	-1%

Sales CAGR 5Y	12%
FCF CAGR 5Y	5%
Equity CAGR 5Y	10%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	2%
Equity CAGR 3Y	8%
Market Cap	$4.39B
Revenue	$5.31B
Dividend Yield	2%
Payout Ratio	24%
Assets	$4.13B
Total Debt	$1.19B
Cash	$235.76M
Shares Outstanding	60.35M
EV	5.34B
Earnings Score	7%
Moat Score	90%
Safety Score	86%
Final Score	61%
Working Capital	393.02M
Current Ratio	1.49
Gross Profit	$1.25B
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	10%

Assets & ROA

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Stockholders Equity & ROE

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Maximus Inc is an operator of government health and human services programs in the United States, United Kingdom, Canada, Australia, and Saudi Arabia. The company offers business solutions to improve the cost-effectiveness, efficiency, and quality of government-sponsored benefit programs, such as Medicaid, Medicare, Health Insurance BC, and child support programmes. Most of its revenue is derived from long-term contractual arrangements with governments around the world. The largest segment by revenue, health services, provides customer center operations and support services, health insurance enrollment services, and health plan oversight services.

SEC Filings

Direct access to Maximus, Inc. (MMS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-K Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Maximus, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Maximus, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 3%

Stability 13%

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Maximus, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Maximus, Inc..

Years

Calculation mode

= $5.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$401M	$420M	$440M	$462M	$484M	$507M	$531M	$557M	$583M	$611M	$641M	$6.4B
DCF		$382M	$364M	$347M	$330M	$315M	$300M	$286M	$272M	$259M	$247M	$2.5B
Value	$5.6B

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	09/2024	TTM
Net Margins	8%	7%	9%	9%	8%	6%	7%	4%	3%	6%	6%
ROA	-	22%	23%	21%	18%	14%	10%	8%	7%	12%	12%
ROE	-	24%	22%	20%	19%	17%	20%	13%	10%	17%	17%

Bad Net Margins (5.78%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

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	09/2024	TTM
Debt over FCF	-	-	-	-	0.03	0.2	3.34	6.12	6.01	2.96	2.96
Debt over Equity	0.34	0.22	0	0	0.01	0.03	1.08	0.92	0.81	0.64	0.64
Growth Stability	-	-	-	100%	100%	96%	100%	82%	68%	100%	68%

Neutral Debt/FCF ratio (2.96)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.64)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (68%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	09/2015	09/2016	09/2017	09/2018	09/2019	09/2020	09/2021	09/2022	09/2023	09/2024	CAGR 5Y
Revenue YoY growth	-	14%	2%	-2%	21%	20%	23%	9%	6%	8%	12%
Earnings YoY growth	-	13%	17%	5%	9%	-11%	36%	-30%	-21%	90%	-1%
Equity YoY growth	-	22%	26%	15%	15%	-1%	19%	5%	8%	10%	10%
FCF YoY growth	-	-	-	-	-2%	-30%	136%	-51%	-4%	79%	5%