📊 MMS Key Takeaways
Is Maximus, Inc.. (MMS) a Good Investment?
MAXIMUS demonstrates profitable operations with growing earnings (+3.9% NI YoY, +10.4% EPS growth) and excellent liquidity metrics, but is overshadowed by a critical fundamental disconnect: negative operating cash flow (-54.9M) and negative free cash flow (-71.6M) contradict positive net income, suggesting potential working capital deterioration or earnings quality concerns. The company must resolve this cash flow crisis to validate earnings sustainability and support long-term shareholder value.
Modest revenue growth and double‑digit EPS growth with a healthy operating margin, strong liquidity, and excellent interest coverage indicate a stable, profitable operator. However, negative operating and free cash flow alongside low ROE/ROA temper conviction. Improved cash conversion and returns would be needed for a more constructive view.
Why Buy Maximus, Inc.. Stock? MMS Key Strengths
- EPS growing at 10.4% YoY, outpacing revenue growth of 2.4%, indicating operational leverage and/or effective capital allocation
- Exceptional liquidity with 2.21x current ratio and exceptional interest coverage of 72.8x, ensuring minimal near-term financial stress
- Consistent profitability with 7.2% net margin and moderate leverage (0.87x debt/equity), providing balance sheet stability
- Operating margin ~11% with YoY EPS growth
- Strong liquidity (current/quick 2.34x) and high interest coverage (36.1x)
- Moderate leverage (D/E 0.88x) supported by sizable equity base
MMS Stock Risks: Maximus, Inc.. Investment Risks
- Critical negative operating cash flow (-54.9M) and free cash flow (-71.6M) directly contradict positive earnings, indicating potential working capital issues, asset quality problems, or earnings quality concerns requiring immediate investigation
- Significant disconnect between GAAP earnings and cash generation raises questions about sustainability of reported profits and suggests potential future earnings restatements or write-downs
- Low gross margin (24.9%) and modest operating margin (11.1%) provide limited pricing power cushion and indicate high cost structure sensitivity to economic pressures
- Negative operating cash flow and FCF (FCF margin -18.6%)
- Low returns on capital (ROE 5.5%, ROA 2.2%)
- Slow top-line growth (+2.4% YoY) limiting operating leverage
Key Metrics to Watch
- Operating Cash Flow - must return to positive; negative OCF with positive earnings is unsustainable and signals core business viability concerns
- Free Cash Flow and FCF Margin - critical indicator of cash generation quality; explain gap between net income and cash flow
- Working Capital Changes - investigate accounts receivable, inventory, and payables trends driving cash drain
- Operating cash flow and FCF margin
- ROE and operating margin trend
Maximus, Inc.. (MMS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.21x current ratio provides a solid financial cushion.
MMS Profit Margin, ROE & Profitability Analysis
MMS vs Services Sector: How Maximus, Inc.. Compares
How Maximus, Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Maximus, Inc.. Stock Overvalued? MMS Valuation Analysis 2026
Based on fundamental analysis, Maximus, Inc.. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Maximus, Inc.. Balance Sheet: MMS Debt, Cash & Liquidity
MMS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Maximus, Inc..'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.63 reflects profitable operations.
MMS Revenue Growth, EPS Growth & YoY Performance
MMS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.3B | $41.2M | $1.69 |
| Q1 2026 | $1.3B | $41.2M | $0.69 |
| Q3 2025 | $1.3B | $41.2M | $1.46 |
| Q2 2025 | $1.3B | $41.2M | $1.31 |
| Q1 2025 | $1.3B | $41.2M | $0.69 |
| Q3 2024 | $1.2B | $30.9M | $0.50 |
| Q2 2024 | $1.2B | $31.8M | $0.52 |
| Q1 2024 | $1.2B | $40.0M | $0.65 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Maximus, Inc.. Dividends, Buybacks & Capital Allocation
MMS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Maximus, Inc.. (CIK: 0001032220)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MMS
What is the AI rating for MMS?
Maximus, Inc.. (MMS) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MMS's key strengths?
Claude: EPS growing at 10.4% YoY, outpacing revenue growth of 2.4%, indicating operational leverage and/or effective capital allocation. Exceptional liquidity with 2.21x current ratio and exceptional interest coverage of 72.8x, ensuring minimal near-term financial stress. ChatGPT: Operating margin ~11% with YoY EPS growth. Strong liquidity (current/quick 2.34x) and high interest coverage (36.1x).
What are the risks of investing in MMS?
Claude: Critical negative operating cash flow (-54.9M) and free cash flow (-71.6M) directly contradict positive earnings, indicating potential working capital issues, asset quality problems, or earnings quality concerns requiring immediate investigation. Significant disconnect between GAAP earnings and cash generation raises questions about sustainability of reported profits and suggests potential future earnings restatements or write-downs. ChatGPT: Negative operating cash flow and FCF (FCF margin -18.6%). Low returns on capital (ROE 5.5%, ROA 2.2%).
What is MMS's revenue and growth?
Maximus, Inc.. reported revenue of $2.7B.
Does MMS pay dividends?
Maximus, Inc.. pays dividends, with $5.9M distributed to shareholders in the trailing twelve months.
Where can I find MMS SEC filings?
Official SEC filings for Maximus, Inc.. (CIK: 0001032220) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MMS's EPS?
Maximus, Inc.. has a diluted EPS of $3.50.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MMS a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Maximus, Inc.. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MMS stock overvalued or undervalued?
Valuation metrics for MMS: ROE of 11.3% (sector avg: 16%), net margin of 7.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy MMS stock in 2026?
Our dual AI analysis gives Maximus, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MMS's free cash flow?
Maximus, Inc..'s operating cash flow is $-54.9M, with capital expenditures of $16.8M. FCF margin is -2.7%.
How does MMS compare to other Services stocks?
Vs Services sector averages: Net margin 7.2% (avg: 10%), ROE 11.3% (avg: 16%), current ratio 2.21 (avg: 1.5).