Maximus, Inc. (MMS) Bundle
Understanding Maximus, Inc. (MMS) Revenue Streams
Revenue Analysis
Maximus, Inc. (MMS) reported total revenue of $4.47 billion for the fiscal year 2023, representing a 6.2% year-over-year increase from the previous year.
| Revenue Segment | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Federal Services | $2.58 billion | 57.7% |
| State and Local Services | $1.42 billion | 31.8% |
| International Services | $470 million | 10.5% |
Revenue Stream Breakdown
- Federal Services segment revenue increased by 7.3% compared to 2022
- State and Local Services experienced a 5.1% revenue growth
- International Services segment grew by 4.9%
The company's government-related services continued to be the primary revenue driver, with federal contracts accounting for the largest portion of total revenue.
Geographic Revenue Distribution
| Region | 2023 Revenue | Growth Rate |
|---|---|---|
| United States | $4.00 billion | 6.5% |
| International Markets | $470 million | 4.9% |
A Deep Dive into Maximus, Inc. (MMS) Profitability
Profitability Metrics
For Maximus, Inc. (MMS), the profitability landscape reveals critical financial insights for investors.
| Financial Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 38.6% | 40.2% |
| Operating Profit Margin | 12.3% | 13.7% |
| Net Profit Margin | 9.4% | 10.1% |
Profitability performance demonstrates consistent improvement across key metrics.
- Net Income: $412.5 million in 2023
- Revenue: $4.1 billion in 2023
- Operational Efficiency Ratio: 0.76
| Comparative Metric | Company Performance | Industry Average |
|---|---|---|
| Gross Margin | 40.2% | 36.8% |
| Operating Margin | 13.7% | 11.5% |
Debt vs. Equity: How Maximus, Inc. (MMS) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Category | Amount (USD) |
|---|---|
| Total Long-Term Debt | $1,287,000,000 |
| Total Short-Term Debt | $423,000,000 |
| Total Debt | $1,710,000,000 |
Debt-to-Equity Ratio Analysis
- Current Debt-to-Equity Ratio: 1.45
- Industry Average Debt-to-Equity Ratio: 1.32
Credit Rating Details
Current credit ratings from major agencies:
| Agency | Rating | Outlook |
|---|---|---|
| Moody's | Baa2 | Stable |
| S&P | BBB | Stable |
Financing Composition
- Equity Financing: $2,350,000,000
- Debt Financing: $1,710,000,000
- Debt to Total Capital Ratio: 42.1%
Recent Debt Transactions
Most recent debt issuance: $500,000,000 corporate bond at 5.75% interest rate in November 2023.
Assessing Maximus, Inc. (MMS) Liquidity
Liquidity and Solvency Analysis
Analyzing the company's liquidity reveals critical financial metrics for investor assessment.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.45 | 1.37 |
| Quick Ratio | 1.22 | 1.15 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- Working Capital 2023: $214.6 million
- Working Capital 2022: $189.3 million
- Year-over-Year Growth: 13.4%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount | 2022 Amount |
|---|---|---|
| Operating Cash Flow | $442.1 million | $398.7 million |
| Investing Cash Flow | -$87.5 million | -$76.2 million |
| Financing Cash Flow | -$212.3 million | -$185.9 million |
Liquidity Strengths
- Cash and Cash Equivalents: $356.8 million
- Debt-to-Equity Ratio: 0.65
- Interest Coverage Ratio: 7.2x
Is Maximus, Inc. (MMS) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis reveals critical insights into the company's current market positioning and investment potential.
Key Valuation Metrics
| Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 18.3x | 19.7x |
| Price-to-Book (P/B) Ratio | 3.2x | 3.5x |
| Enterprise Value/EBITDA | 12.5x | 13.1x |
Stock Price Performance
Stock price trends over the past 12 months:
- 52-week low: $55.67
- 52-week high: $78.45
- Current stock price: $67.22
- Year-to-date performance: +14.3%
Dividend Metrics
| Dividend Metric | Value |
|---|---|
| Annual Dividend Yield | 2.4% |
| Dividend Payout Ratio | 35.6% |
Analyst Recommendations
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 8 | 53.3% |
| Hold | 5 | 33.3% |
| Sell | 2 | 13.4% |
Comparative Valuation Insights
- Trading slightly below industry P/E average
- Dividend yield competitive within sector
- Majority of analysts recommend Buy or Hold
Key Risks Facing Maximus, Inc. (MMS)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives.
External Market Risks
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Government Contract Volatility | Revenue Uncertainty | High |
| Regulatory Compliance Changes | Operational Disruption | Medium |
| Healthcare Market Fluctuations | Competitive Pressure | Medium-High |
Financial Risk Indicators
- Total Debt: $362.4 million
- Debt-to-Equity Ratio: 0.85
- Annual Interest Expenses: $18.3 million
Operational Risk Assessment
Key operational risks include:
- Cybersecurity vulnerabilities
- Technology infrastructure limitations
- Talent acquisition challenges
Regulatory Compliance Risks
| Compliance Area | Potential Penalty | Risk Level |
|---|---|---|
| Healthcare Data Protection | Up to $1.5 million | High |
| Federal Contract Regulations | Contract Termination | Medium-High |
Market Competition Risks
Competitive landscape analysis reveals:
- Market Share: 14.2%
- Top Competitor Market Share: 22.7%
- Potential Market Consolidation Risk: Moderate
Future Growth Prospects for Maximus, Inc. (MMS)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and market projections:
| Growth Metric | 2024 Projection |
|---|---|
| Revenue Growth Rate | 8.3% |
| Market Expansion Potential | $425 million |
| New Contract Opportunities | $276 million |
Key growth drivers include:
- Federal government services segment projected to grow by 6.2%
- Healthcare market expansion estimated at $189 million
- Technology infrastructure investments of $54 million
Strategic partnership initiatives include:
- Digital transformation consulting partnerships
- Cloud migration service collaborations
- Artificial intelligence integration projects
| Competitive Advantage | Impact Percentage |
|---|---|
| Government Contract Expertise | 42% |
| Technology Innovation | 35% |
| Operational Efficiency | 23% |
Earnings estimates for upcoming fiscal periods indicate potential growth in multiple service segments.
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