Maximus Inc. Common Stock (MMS)

FairStock Score: 75/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $159 million in annual free cash flow (4.4% yield on market cap)
• High return on equity of 22.1% demonstrating efficient capital deployment
• FairStock composite score of 75/100 places it in the top tier across value, quality, and momentum factors
• Established organization with 37,200 employees providing operational scale

Concerns

• Revenue declining at 4.1% year-over-year signals potential demand weakness or market share loss

AI Analysis

Maximus Inc. Common Stock is a small-cap industrials company valued at $3.6 billion. The business generates $5.4 billion in annual revenue with a 1.7% net margin and $159 million in free cash flow. From a quality standpoint, Maximus shows Altman Z-Score of 1.9 in the grey zone and strong 22% ROE. On valuation, the stock is attractively valued at 10.1x earnings, with a modest 3% margin of safety vs Graham Number. Growth dynamics show revenue growing at -4.1% and profit growth of 128.0%. The 2.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 75/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Maximus's consistent 22% ROE at just 10x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $159 million in annual free cash flow (4.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer