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 16th 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:
Its compound free cash flow growth rate, as measured over the past 5.72 years, is -0.04% -- higher than merely 20.39% of stocks in our DCF forecasting set.
MMS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 42.53% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Maximus Inc has a reliance on debt greater than only 12.47% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DESP, CWST, RTX, DEWY, and MWA can be thought of as valuation peers to MMS, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
The US Department of Education plans to change several of the companies that work directly with borrowers on federal student loans in December. Borrowers assigned to servicers who will no longer be working with the DOE will have their student loans migrated to new servicers, including borrowers with loans serviced by Great Lakes and Nelnet. Five companies — Edfinancial, F.H. Cann & Associates, MAXIMUS, MOHELA, and Texas Guaranteed Student Loan Corporation — will be the new servicers for all student loans. Loans currently serviced by these companies will remain there. Learn more about getting or refinancing a student loan with CommonBond » Many federal student loan borrowers will find that their student loan servicers won't be the same in 2021 as they were in 2020. In June, the US Depart...