Maximus Inc. (MMS)
NYSEIndustrialsSpecialty Business ServicesSnapshot 2026-09-09
$56.11-0.39%
Close 2026-09-09 · 1-day change
NYSEIndustrialsSpecialty Business ServicesSnapshot 2026-09-09
Warn: Primary pillar under pressure — Operating income stable near $148.5M: Operating income not reported.
Maximus delivers stable operating income near $148.5M. Revenue is expected around $5.2B to $5.35B next quarter. EPS guidance was raised to about $8.4 per share. The company maintains strong free cash flow near $450M to $500M.
The recent selloff and soft guidance show risks. Revenue growth is modest at about 3.5%. Profit margins are thin near 14.2%. Elevated risk and fragile quality may pressure earnings.
The market expects about 3.5% revenue growth and values Maximus cheaply with a PE of 7.7 versus peers at 27. Our fair value is about $146, close to consensus. The price reflects modest growth but elevated risk.
Breaks if: Free cash flow falls below $450M next quarter
Breaks if: Operating income falls below $148.5M next quarter
Breaks if: Gross margin falls below 14.2% next quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a stable management team. The current thesis is intact, supported by strong recent financial performance, but there are risks due to sector challenges.
The market currently prices MMS as cheap compared to its peers, reflecting a low expectations gap. However, the fragility in earnings quality suggests that investors are cautious about the company's execution.
Fundamentals are likely to remain stable in the near term, with management focused on maintaining operating income and margins. However, there is a mixed outlook on cash flow generation due to recent downward revisions.
The thesis hinges on the performance of sector bellwethers like CTAS, CPRT, and ROL. If these companies continue to perform well, it could bolster MMS's prospects, but any negative guidance from them could pose risks.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read on MMS. However, the company cut its profit outlook, which threatens operating income stability.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Revenue falls below $5.2B next quarter
Over the next 1 to 3 years, MMS's performance will depend on its ability to navigate sector challenges while executing its management priorities. Not investment advice.