Maximus, Inc.

Maximus, Inc.

MMSยทNYSE

$60.14

+0.86%
IndustrialsSpecialty Business Services

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.

At a Glance

Live Snapshot
Market Cap$3.16B
EPS5.5600
P/E Ratio10.82
Earnings Date08/06/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 10.8).

Valuation inputs: P/E 10.8, earnings yield +9.2%, momentum +0.9%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +19.1%, ROIC +12.2%).

Profitability stack: net margin +5.9%, ROE +19.1%, ROIC +12.2%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +58.9%, momentum +0.9%, net margin +5.9%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

mms

Maximus, Inc. Market vs Earnings Trajectory

MMS ยท NYSE

Loading price and EPS data...

Maximus, Inc.

Maximus, Inc. Fair Value Envelope

MMS ยท NYSE

Our analysis suggests that MMS has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $60.14, this represents a potential HIDDEN relative to our calculated worth for Maximus, Inc..

Intrinsic Value
Current Price: $60.14
3Y+68.0%
5Y+64.0%
10Y+105.0%
3Y+17.0%
5Y+57.0%
10Y+126.0%
3Y+57.0%
5Y+49.0%
10Y+79.0%
3Y+48.0%
5Y+76.0%
10Y+139.0%
3Y+57.0%
5Y+80.0%
10Y+174.0%
3Y+2.0%
5Y+101.0%
10Y+202.0%
Maximus, Inc.

Maximus, Inc. Profit Bridge

MMS ยท NYSE
Revenue5.43B
Cost of Goods Sold (4.19B)
Gross Profit1.25B
Operating Expenses (673.13M)
Operating Income576.75M
Interest Expense (84.08M)
Other Income/Expense-131.90M
Pretax Income444.85M
Income Tax (125.81M)
Net Income319.03M
Net Income
319.03M

Profitability Analysis

Gross Margin

23.0%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

10.6%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

5.9%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

28.3%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

23.01%
Gross Profit Margin
5%
3Y+25.0%
5Y+12.0%
10Y-2.0%
10.62%
Operating Profit Margin
15%
3Y+58.0%
5Y+28.0%
10Y-11.0%
5.87%
Net Profit Margin
2%
3Y+33.0%
5Y-5.0%
10Y-21.0%
19.06%
Return on Equity
14%
3Y+45.0%
5Y+10.0%
10Y-20.0%
7.84%
Return on Assets
6%
3Y+54.0%
5Y-26.0%
10Y-41.0%
12.18%
Return on Invested Capital
12%
3Y+78.0%
5Y-12.0%
10Y-31.0%
MMS

Maximus, Inc. Cash Conversion Engine

MMS ยท NYSE
Net Income319.03M
Depreciation & Amortization133.72M
Stock-Based Compensation41.18M
Change in Working Capital-90.17M
Others42.33M
Capital Expenditures-63.21M
Free Cash Flow366.16M

Cash Flow Quality Analysis

FCF Conversion Rate

114.8%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

14.7%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-8.7%

Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.

Working Capital Impact

-$90.17M

Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

mms

Maximus, Inc. Funding & Solvency Profile

MMS ยท NYSE
Cash & Cash Equivalents157.45M
Net Receivables1.11B
Inventory0.00
Other Current Assets236.44M
Total Current Assets2 B
Property, Plant & Equipment146.68M
Goodwill & Intangible Assets2.28B
Long-Term Investments0.00
Other Non-Current Assets298.21M
Total Non-Current Assets445 M
Total Assets
4.24B

Financial Health Analysis

Current Ratio

2.21x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

1.50x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

827 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

36% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

mms

Maximus, Inc. Street Expectations Map

MMS ยท NYSE

Wall Street analysts project that MMS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 110.00, with estimates ranging from a low of 110.00 to a high of 110.00.

Lowest Target
110.00
82.91%
Consensus Target
110.00
82.91%
Highest Target
110.00
82.91%

The consensus 1-year price target stands at 110.00, with estimates ranging from a low of 110.00 to a high of 110.00.

Analyst Consensus Analysis

Upside Potential

+82.9%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

mms

Maximus, Inc. Insider Positioning

MMS ยท NYSE

During the last 12 months, insiders have purchased $318K and sold $551K worth of MMS shares, resulting in $232K of net selling activity.

3 Months

Bought

0

0.00

Sold

742

53.61K

Net Activity

-54K

-$54K

3-6 Months

Bought

2.7K

208.82K

Sold

0

0.00

Net Activity

+209K

+$209K

6-9 Months

Bought

56

4.82K

Sold

5.6K

497.03K

Net Activity

-492K

-$492K

9-12 Months

Bought

1.5K

104.78K

Sold

0

0.00

Net Activity

+105K

+$105K

Top Buyers

1
CB

Caswell Bruce

Director, Officer: Ceo & President

1.7K sharesโ€ข1 transactions

$133K

2
RRB

Ruddy Raymond B

Director

1.4K sharesโ€ข1 transactions

$100K

3
MD

Mutryn David

Officer: Chief Financial Officer

1.0K sharesโ€ข1 transactions

$76K

4
RG

Rajan Gayathri

Director

83 sharesโ€ข2 transactions

$7K

5
WMJ

Warren Michael J.

Director

28 sharesโ€ข2 transactions

$2K

Top Sellers

1
LMF

Link Michelle F.

Officer: Chief Of Human Resources

5.6K sharesโ€ข2 transactions

$497K

2
MJ

Madsen Jan

Director

742 sharesโ€ข1 transactions

$54K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Slightly bearish with $232K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.

Buy/Sell Ratio

0.58:1

Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.

Recent Trend (3 Months)

$54K

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Buying

5 insider buyers vs. 2 sellers. Broad-based buying across management team suggests widespread confidence.

0.51%
Dividend Yield
48%
3Y+44.0%
5Y+64.0%
10Y+536.0%
ย 

mms Dividend History

MMS
10Y CAGR +22%
Latest $0.33
Annual $1.56
5 year growth trend
Last Period: +0%