MAXIMUS Inc. provides business process services to government health and human services agencies in the United States, Australia, Canada, the United Kingdom, and Saudi Arabia. The company operates through two segments, Health Services and Human Services. The company was founded in 1975 and is based in Reston, Virginia.
MMS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Maximus Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Maximus Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for MMS, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 140.42 -- which is good for besting 97.52% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately only 15.54% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
MMS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 44.25% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MMS, try HCCI, THR, TXT, UNP, and AVY.
Maximus ([[MMS]] +0.1%) promoted David Mutryn as Chief Financial Officer effective December 1, 2021 to succeed Richard J. Nadeau, who will retire effective November 30, 2021.Mr. David, most recently served as Senior Vice President of Finance.Mr. Richard will remain as Chief Financial Officer through the transition....