📊 MMS Key Takeaways
Is MMS a Good Investment? Thesis Analysis
MAXIMUS demonstrates adequate profitability with 7.0% net margins and strong interest coverage (36.1x), but is severely hampered by deeply negative free cash flow (-$250.7M, -18.6% of revenue) that raises sustainability concerns. The deteriorating cash generation despite modest revenue growth (+2.4%) and low ROA (2.2%) suggest operational inefficiencies that contradict reported net income gains, warranting caution on business quality.
Why Buy MMS? Key Strengths
- Strong liquidity position with 2.34x current and quick ratios providing operational flexibility
- Excellent interest coverage ratio of 36.1x indicating minimal debt servicing risk
- Consistent profitability with positive net income and modest YoY growth (+3.9%)
MMS Investment Risks to Consider
- Severe negative free cash flow of -$250.7M indicates inability to fund operations and growth from earnings, relying on external financing
- Low returns on assets (2.2%) and equity (5.5%) suggest poor capital efficiency and asset utilization despite $4.2B balance sheet
- Deteriorating cash conversion with operating cash flow negative while reporting positive net income signals potential accounting quality issues or working capital deterioration
Key Metrics to Watch
- Operating cash flow trend and return to positive territory
- Free cash flow sustainability and path to positive conversion
- Return on assets (ROA) improvement above current 2.2% baseline
MMS Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.34x current ratio provides a solid financial cushion.
MMS Profitability Ratios
MMS vs Default Sector
How MAXIMUS, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MMS Overvalued or Undervalued?
Based on fundamental analysis, MAXIMUS, INC. shows some fundamental concerns relative to the Default 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.
MMS Balance Sheet & Liquidity
MMS 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
MMS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q3 2023 | $1.1B | $30.9M | $0.50 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MMS Capital Allocation
MMS SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MMS's key strengths?
Claude: Strong liquidity position with 2.34x current and quick ratios providing operational flexibility. Excellent interest coverage ratio of 36.1x indicating minimal debt servicing risk.
What are the risks of investing in MMS?
Claude: Severe negative free cash flow of -$250.7M indicates inability to fund operations and growth from earnings, relying on external financing. Low returns on assets (2.2%) and equity (5.5%) suggest poor capital efficiency and asset utilization despite $4.2B balance sheet.
What is MMS's revenue and growth?
MAXIMUS, INC. reported revenue of $1.3B.
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 $1.70.
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 April 2026, MAXIMUS, INC. has a SELL rating with 78% 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 5.5% (sector avg: 15%), net margin of 7.0% (sector avg: 12%). 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 SELL 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 $-244.4M, with capital expenditures of $6.3M. FCF margin is -18.6%.
How does MMS compare to other Default stocks?
Vs Default sector averages: Net margin 7.0% (avg: 12%), ROE 5.5% (avg: 15%), current ratio 2.34 (avg: 1.8).