Maximus Inc (MMS) Stock Analysis
Verdict: BUY
Valuation discount (P/E 9.4x vs peers 19x) offers asymmetric upside as $660M Agile Defense deal drives expansion despite contract friction.
Investment score: 68/100
Analysis as of
Is Maximus Inc stock worth reviewing? The TradeMates thesis
TradeMates rates Maximus Inc (MMS) a BUY at $63.95. The company's low valuation (9.37x P/E, 7.01x EV/EBITDA) and robust free cash flow generation ($366.2M in FY25) offer significant downside protection. The acquisition of Agile Defense accelerates entry into high-margin government cybersecurity and IT programs, positioning MMS for earnings recovery toward consensus estimates of $8.36 EPS by FY27.
7-factor investment score
- Valuation: 85/100 (weight 20%)
- Financial Health: 65/100 (weight 15%)
- Technical Momentum: 60/100 (weight 15%)
- Earnings Quality: 55/100 (weight 15%)
- Insider Sentiment: 45/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 75/100 (weight 15%)
Maximus Inc opportunities and risks
What speaks for MMS
- Deep Valuation Discount vs Sector Peers
What speaks against MMS
- Customer Concentration and Federal Contract Modification Friction
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| MMS | 9.4x | 0.6x | 7.0x | 24.4% | 7.1% | 13.0% |
| BR | 19.1x | 2.8x | 12.1x | 31.8% | 15.0% | 6.3% |
| SSNC | 24.9x | 3.2x | 12.7x | 48.1% | 13.2% | 8.4% |
| EXLS | 26.8x | 2.9x | 15.5x | 38.5% | 11.2% | 4.3% |
| CNXC | n/a | 0.2x | n/a | 32.4% | -24.0% | 28.2% |
| TASK | 7.3x | 0.6x | 4.9x | 34.0% | 8.8% | 15.2% |
| Peer median | 19.1x | 2.8x | 12.1x | 34.0% | 11.2% | 8.4% |
Frequently asked questions about Maximus Inc (MMS)
Is MMS stock a good investment?
The TradeMates model rates Maximus Inc as BUY with an investment score of 68/100. TradeMates rates Maximus Inc (MMS) a BUY at $63.95. The company's low valuation (9.37x P/E, 7.01x EV/EBITDA) and robust free cash flow generation ($366.2M in FY25) offer significant downside protection. The acquisition of Agile Defense accelerates entry into high-margin government cybersecurity and IT programs, positioning MMS for earnings recovery toward consensus estimates of $8.36 EPS by FY27. This is algorithmic model output, not personal investment advice.
Is MMS stock a buy?
The TradeMates model verdict for MMS is BUY with an investment score of 68/100. Treat this as a model signal to review, not a personal buy recommendation.