Maximus Inc. Common Stock (MMS)

FairStock Score: 75/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for decent businesses selling below intrinsic value, and Maximus is a mixed but interesting case. It provides government services across U.S. federal, U.S. state and local, and international markets. At the close on 2026-10-13, the stock was $58.08. FairStock's Graham Number is $71.10, leaving an 18.31% margin of safety, and the calculated P/E is 8.59 while EV/EBITDA is 6.59. Trailing free cash flow is $433.2M, a 14.2% FCF yield, which is attractive. ROE is 21.11%, though ROCE is 8.20% and D/E is 1.00. Filed results show fiscal FY2025 revenue of $5.4B and net income of $319.0M, up from fiscal FY2024 revenue of $5.3B and net income of $306.9M. In fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $1.3B, net income $103.6M, and diluted EPS $1.95. That net income was slightly below fiscal Q3 2025's $106.0M, though EPS was above the prior-year $1.86. Sequential net income rose from $93.9M in fiscal Q1 2026 to $98.1M in fiscal Q2 2026 to $103.6M in fiscal Q3 2026. FairStock classifies it as a stalwart, citing five-year profit growth of 8.3% and revenue growth of 9.4%, but current growth appears muted. The government-services niche can be sticky through contracts and program knowledge, yet budgets and renewals are outside management's control. With Piotroski 5/9 and Altman Z 1.73, the balance sheet demands watching. The low multiple and high cash yield already price in many worries; the key is whether cash flow persists.

In plain English: Maximus runs government services, mostly in health and human services programs in the U.S. and abroad. The business earns solid profits and throws off a lot of cash, but growth has been slow and its balance sheet has some warning signs. At the recent price, the stock looks cheap against its earnings and cash flow, though investors are clearly worried about government contracts and future growth.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer