Maximus Intrinsic Value Calculation – Maximus Faces Challenges as Returns on Capital Decline
December 26, 2023
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MAXIMUS ($NYSE:MMS), a global health and human services provider, may be facing difficult times ahead. This is indicated by the recent decline in their returns on capital. MAXIMUS works to improve government health and human services programs around the world and its success depends heavily on its capital investments. The recent dip in returns on capital for MAXIMUS means the company must look for new ways to stay profitable and competitive. This may include reducing overhead costs, investing in different areas of their business, or redefining their goals and strategies. It is important for MAXIMUS to focus on its core operations while continuing to monitor returns on capital to ensure that their investments are still being maximized.
MAXIMUS must also explore alternative paths for growth. This could include expanding into new markets or introducing new products and services. The company must also stay alert for any new opportunities that may arise. With a strong commitment to improving the lives of their customers, MAXIMUS is sure to find new ways to remain successful in the long run.
Price History
MAXIMUS faced a significant challenge on Wednesday as the stock opened at $83.0 and closed at $82.1, down by 1.1% from the previous closing price of 83.0. This decline in stock value was reflective of a decline in returns on capital, which has been an ongoing issue for the company. The decline in returns on capital is likely to place further pressure on MAXIMUS’ ability to grow and remain competitive in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Maximus. More…
| Total Revenues | Net Income | Net Margin |
| 4.9k | 161.79 | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Maximus. More…
| Operations | Investing | Financing |
| 314.34 | -80.96 | -250.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Maximus. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.99k | 2.32k | 27.44 |
Key Ratios Snapshot
Some of the financial key ratios for Maximus are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.3% | 0.7% | 6.0% |
| FCF Margin | ROE | ROA |
| 4.6% | 11.2% | 4.6% |
Analysis – Maximus Intrinsic Value Calculation
GoodWhale is proud to announce the results of our analysis of MAXIMUS‘s wellbeing. After investigating the company’s performance, we have concluded that the fair value of MAXIMUS share is around $84.9, which is calculated using our proprietary Valuation Line. The current trading price of MAXIMUS stock is $82.1, making it a fair price that is slightly undervalued by 3.3%. We believe that MAXIMUS is an attractive stock for investors, as it offers potential upside despite its present undervaluation. More…
Peers
– Calian Group Ltd ($TSX:CGY)
Calian Group Ltd is a Canadian company that provides professional and technical services to businesses and governments. Its services include information technology, training, engineering, and healthcare. As of 2022, Calian Group Ltd had a market capitalization of 642.4 million and a return on equity of 4.41%. The company has over 3,000 employees and is headquartered in Ottawa, Canada.
– DLH Holdings Corp ($NASDAQ:DLHC)
DLH Holdings Corp is a provider of professional and technical services to the U.S. federal government. The Company operates in two segments: Government Services and Healthcare. The Government Services segment offers a range of services, including engineering, program management, logistics, and technical services to defense, aerospace, and other government customers. The Healthcare segment provides health information management and technology solutions to government and commercial customers.
– Hills Ltd ($ASX:HIL)
Hills Ltd is a company that is involved in the design, manufacture, and distribution of products and solutions for the infrastructure, communications, and security markets. The company has a market capitalization of 13.22 million as of 2022 and a return on equity of -28.57%. The company’s products and solutions are used in a variety of applications, including telecommunications, transportation, utilities, and government.
Summary
Investors should be cautious when considering investing in MAXIMUS. The capital signal suggests that the company may be facing difficult times ahead. Analysis of the company’s financials shows that its earnings and revenue have been declining in recent years, while debt levels have been rising. Its stock price has also seen volatility, with some significant drops in price over the past year.
Despite its recent troubles, the company remains a leader in providing government health and human services and is still highly focused on delivering quality services to its customers. Investors should carefully consider all these factors when deciding whether to invest in MAXIMUS.
