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Maximus (MMS)

Since 1975, Maximus has operated under its founding mission of Helping Government Serve the People®, enabling citizens around the globe to successfully engage with their governments at all levels and across a variety of health and human services programs. Maximus delivers innovative business process management and technology solutions that contribute to improved outcomes for citizens and higher levels of productivity, accuracy, accountability, and efficiency of government-sponsored programs. With more than 30,000 employees worldwide, Maximus is a proud partner to government agencies in the United States, Australia, Canada, Italy, Saudi Arabia, Singapore, South Korea, Sweden, and the United Kingdom.

Company profile

Ticker
MMS
Exchange
Website
CEO
Bruce Caswell
Employees
Incorporated
Location
Fiscal year end
Former names
MAXIMUS INC
SEC CIK
Subsidiaries
2020 Company, LLC • Aged Care Assessments Australia Pty Ltd • Ascend Management Innovations LLC • Assymetrics Pty Ltd • Attain, LLC • Child Welfare Assessments Pty Ltd • Connect Assist Holdings Limited • Connect Assist Limited • Goldfields Employment and Training Services Pty Ltd • Health Management Ltd ...
IRS number
541000588

MMS stock data

Analyst ratings and price targets

Last 3 months

Calendar

5 May 22
26 Jun 22
30 Sep 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Sep 21 Sep 20 Sep 19 Sep 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 111.97M 111.97M 111.97M 111.97M 111.97M 111.97M
Cash burn (monthly) 30.21M 666.42K (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 86.89M 1.92M n/a n/a n/a n/a
Cash remaining 25.08M 110.05M n/a n/a n/a n/a
Runway (months of cash) 0.8 165.1 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 Jun 22 Haley John J Common Stock Buy Acquire P No No 60.32 18,000 1.09M 110,054.44
15 Jun 22 Bruce Caswell Common Stock Buy Acquire P No No 60.32 8,300 500.66K 181,017.243
14 Jun 22 Raymond B Ruddy Common Stock Buy Acquire P No No 57.7198 17,341 1M 109,030.04
31 May 22 Raymond B Ruddy Dividend Equivalent Rights Common Stock Grant Acquire A No No 0 823.54 0 191,678.46
31 May 22 David Francis Dividend Equivalent Rights Common Stock Grant Acquire A No No 0 144.42 0 33,614.36
95.4% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 310 340 -8.8%
Opened positions 27 60 -55.0%
Closed positions 57 38 +50.0%
Increased positions 121 117 +3.4%
Reduced positions 112 120 -6.7%
13F shares Current Prev Q Change
Total value 7B 4.65B +50.6%
Total shares 58.6M 58.29M +0.5%
Total puts 9.9K 10.6K -6.6%
Total calls 14.3K 5.9K +142.4%
Total put/call ratio 0.7 1.8 -61.5%
Largest owners Shares Value Change
BLK Blackrock 7.01M $525.7M +1.1%
Vanguard 6.42M $480.91M -5.7%
Victory Capital Management 5.26M $394.51M +14.3%
Alliancebernstein 3.04M $227.65M -9.1%
FMR 2.89M $216.36M +332.2%
MKFCF Mackenzie Financial 2.65M $198.54M -1.1%
STT State Street 2.53M $189.62M -1.9%
JHG Janus Henderson 1.42M $106.72M +11.5%
Pictet Asset Management 1.34M $100.7M -6.7%
Geode Capital Management 1.21M $90.9M +2.6%
Largest transactions Shares Bought/sold Change
FMR 2.89M +2.22M +332.2%
Fuller & Thaler Asset Management 1.11M +1.11M +777942.0%
Norges Bank 0 -833.69K EXIT
Victory Capital Management 5.26M +659.99K +14.3%
Copeland Capital Management 0 -583.26K EXIT
William Blair Investment Management 514.11K +514.11K NEW
Vanguard 6.42M -385.5K -5.7%
Millennium Management 58.38K -361.31K -86.1%
Alliancebernstein 3.04M -302.3K -9.1%
American Century Companies 201.9K -274.54K -57.6%

Financial report summary

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Competition
LeidosLeidosOracleAlj RegionalCapitaAccentureConduentClearwater Analytics
Risks
  • If we fail to satisfy our contractual obligations or meet performance standards, our contracts may be terminated, and we may incur significant costs or liabilities, including actual or liquidated damages and penalties, which could adversely impact our operating results, financial condition, cash flows, and our ability to compete for future contracts.
  • If we fail to accurately estimate the factors upon which we base our contract pricing, we may generate less profit than expected or incur losses on those contracts.
  • Our growth initiatives could adversely affect our profitability.
  • We may incur significant costs before receiving related contract payments, which could result in an increased use of cash and risk of impairment charges.
  • Our business could be materially and adversely impacted by the recent COVID-19 outbreak or other similar outbreaks.
  • A number of factors may cause our cash flows and results of operations to vary from quarter to quarter.
  • We face competition from a variety of organizations, many of which have substantially greater financial resources than we do; we may be unable to compete successfully with these organizations.
  • We may rely on subcontractors and partners to provide clients with a single-source solution.
  • We obtain most of our business through competitive bidding in response to government RFPs. We may not be awarded contracts through this process at the same level in the future as in the past, and contracts we are awarded may not be profitable.
  • Our business could be adversely affected by future legislative or government budgetary and spending changes.
  • Government entities have in the past terminated, and may in the future terminate their contracts with us earlier than we expect, which may result in revenue shortfalls and unrecovered costs.
  • If we fail to establish and maintain important relationships with government entities and agencies, our ability to successfully bid under RFPs may be adversely affected.
  • Our customers may limit or prohibit the outsourcing of certain programs or may refuse to grant consents and/or waivers necessary to permit contractors, such as us, to perform certain elements of government programs.
  • We rely on key contracts with state, local and federal governments for a significant portion of our revenue. A substantial reduction in those contracts would materially adversely affect our operating results.
  • Within our U.S. Federal business, our ability to participate in many competitive bids in response to government RFPs may be managed through Government-Wide Acquisition Contracts ("GWACs") or the process by which agencies of the federal government purchase goods and services. Eligibility to remain on a GWAC changes over time. We may not be invited to bid, and therefore be unable to be awarded contracts through this process at the same level in the future as in the past if we do not maintain full eligibility requirements over time.
  • Our indebtedness following the completion of the VES acquisition is significant and could adversely affect our business and our ability to meet our obligations.
  • We may experience difficulties in integrating our operations with those of Attain and VES and realizing the expected benefits of these acquisitions.
  • VES currently derives all its revenue from contracts with the VA. If one or more of these contracts with the VA are terminated or are not renewed on favorable terms or at all, if the VA reduces the number of medical examinations allocated to VES under the contracts, or if VES receives an adverse finding or review resulting from an audit or investigation, the benefits of the VES acquisition may be adversely affected.
  • In connection with the acquisitions, we may be required to take write-downs or write-offs, restructuring and impairment, or other charges that could negatively affect our business, assets, liabilities, prospects, outlook, financial condition, and results of operations.
  • We are subject to review and audit by governments at their sole discretion and, if any improprieties are found, we may be required to refund revenue we have received or forego anticipated revenue, which could have a material adverse impact on our revenue and our ability to bid in response to RFPs.
  • We may be subject to fines, penalties, and other sanctions if we fail to comply with laws governing our business.
  • Adverse judgments or settlements in legal disputes could harm our operating results, cash flows, and financial condition.
  • Our systems and networks may be subject to cybersecurity breaches.
  • Many of our projects handle protected health information or other forms of confidential personal information, the loss or disclosure of which could adversely affect our business, results of operations, and reputation.
  • We may be precluded from bidding and performing certain work due to other work we currently perform.
  • We may face liabilities arising from divested or discontinued businesses.
  • We may lose executive officers and senior managers on whom we rely to generate business and execute projects successfully.
  • We may be unable to attract and retain sufficient qualified personnel to sustain our business.
  • Government unions may oppose outsourcing of government programs to outside vendors such as us, which could limit our market opportunities and could impact us adversely. In addition, our unionized workers outside the United States could disrupt our operations and our non-unionized workers could attempt to unionize which could disrupt our operations and impose higher costs on us.
  • If we do not successfully integrate the businesses that we acquire, our results of operations could be adversely affected.
  • We are subject to the risks of doing business internationally.
  • Inaccurate, misleading, or negative media coverage could adversely affect our reputation and our ability to bid for government contracts.
  • Our Articles of Incorporation and bylaws include provisions that may have anti-takeover effects.
Management Discussion
  • Our business segments have different factors driving revenue fluctuations and profitability. The sections that follow cover these segments in greater detail. Our revenue reflects fees earned for services provided. Cost of revenue consists of direct costs related to labor and related overhead, subcontractor labor, outside vendors, rent, and other direct costs. The largest component of cost of revenue, approximately two-thirds, is labor, including subcontracted labor.
  • Selling, general, and administrative expenses ("SG&A") consists of indirect costs related to general management, marketing, and administration. It is primarily composed of labor costs. These costs may be incurred at a segment level, for dedicated resources that are not client-facing, or at a corporate level. Corporate costs are allocated to segments on a consistent and rational basis. Fluctuations in our SG&A are primarily driven by changes in our administrative cost base, which is not directly driven by changes in our revenue. As part of our work for the U.S. federal government and many states, we allocate these costs using a methodology driven by the U.S. Federal Cost Accounting Standards.
  • Our SG&A expense has increased year-over-year due primarily to the additional cost base from our acquisitions. Our amortization of intangible assets increased by $17.8 million and $33.7 million for the three and six months ended March 31, 2022, compared to same periods ended March 31, 2021. The increase is a result of acquisitions during fiscal years 2021 and 2022. This increase is partially offset by the intangible asset amortization related to the Census Questionnaire Assistance (CQA) contract, which was fully amortized through November 2020.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
8th grade Good
New words: BZB, CCO, deferral, depressed, expenditure, factor, highly, load, mandatory, mix, personal, single, voluntary, withholding, workload
Removed: activity, charge, contracting, diluted, excluded, February, matching, measuring, principally, recover, specifically, tempering, unvested, valuation