MMS Stock Analysis — Maximus Inc.
Sector: Business Services
AI Verdict
MMS is cheap for the growth you're getting, but the market clearly doubts the sustainability of a 38% EPS jump given last year's revenue decline and contract concentration risk.
Competitive Moat
Maximus provides outsourced administrative and program management services for government health and human services, embedding itself in complex, long-term contracts that create high switching costs. Its deep regulatory expertise and integration with public sector workflows make it difficult for new entrants to displace.
Summary
MMS stands out for its low 6.9x forward P/E and a sharp 38% expected EPS jump, making it a rare value-growth combination in business services.
Where It Stands
MMS trades at 6.9x next year's earnings—far below the sector median of 20x—and analysts expect EPS to rise 38%, despite a -3.3% revenue dip last year.
Key Metrics
- Trailing P/E: 9.5x
- Forward P/E: 6.9x
- PEG Ratio: 0.25
- Earnings Growth: +0.4%
- Revenue Growth: -0.0%
- Dividend Yield: 0.01%
- 52-Week High: $100.00
- 52-Week Low: $52.73
Analyst Consensus
5 Buy · 1 Hold · 0 Sell (6 analysts)
Bull Case
With a forward P/E of just 6.9x and 38% EPS growth expected, investors are paying a bargain price for a major earnings rebound.
Bear Case
If the forward P/E reverts even halfway to the sector median (from 6.9x to 13x), the stock could see a sharp rerating if growth disappoints or contracts are lost.
Catalyst to Watch
Watch for new government contract wins or renewals—securing major deals would validate the earnings growth forecast.