Recent News
On September 30, 2025 Maximus announced a five-year, $62 million renewal to administer Pennsylvania’s Enrollment Assistance Program, expanding services to CHIP recipients and adding digital enhancements. On September 10, 2025 the Board authorized an expansion of the share-repurchase program to $400 million. On October 6, 2025 the Board declared a quarterly cash dividend of $0.30 per share payable December 1, 2025. On October 16, 2025 the company won a $31 million contract with the Massachusetts Health Connector to provide enrollment and premium billing services. On November 5, 2025 Maximus received a potential $86 million award to support Air Force cyber command-and-control modernization.
Technical Analysis
ADX at 25.01 indicates a strong directional environment; trend strength supports continuation of the current price bias and gives weight to follow-through on momentum-driven moves tied to news flow and buyback activity.
DI+ shows a peak-and-reversal; that pattern signals a shift away from prior bullish directional dominance and increases the risk of near-term weakness unless buyers reassert control.
DI- sits at 19.38 and is decreasing, a development that favors buyers relative to prior selling pressure and moderates the bearish implication coming from the DI+ reversal.
MACD currently reads 0.19 with the MACD line above its signal at -0.29, creating a recent bullish crossover. Simultaneously, the MACD trend shows a peak-and-reversal, which signals that bullish momentum may have crested and that any follow-through will require new momentum inputs such as contract news or further buybacks.
MRO at 13.92 registers positive, indicating the price sits above the WMDST target and therefore carries a higher probability of downward revision unless cash-flow or contract drivers extend strength.
RSI at 48.52 with a peak-and-reversal character points to neutral momentum that has recently rolled over; price lacks strong overbought or oversold extremes and remains sensitive to catalysts.
Price relationships place the close at $84.57 slightly above the 12-day and 26-day EMAs (~$84.78 and $84.44 respectively) while below the 50-day average ($85.53). The 200-day average rests near $76.51, anchoring longer-term support. Bollinger bands contain the price (upper ~$87.65, lower ~$79.70), and the super-trend lower support near $82.10 provides a defined short-term floor.
Volume runs below the 10-day average, implying limited participation on recent moves; low 42-day beta (~0.25) suggests muted volatility relative to the market, so pronounced directional moves will likely require material news or increased buyback activity to lift participation.
Fundamental Analysis
Revenue totaled $1,318,415,000 for the period ending 2025-09-30. Reported revenue shows mixed timing patterns: QoQ revenue growth stands at 126.25% while year-over-year revenue change reads -31.89%, reflecting large period-to-period variability in reported top-line comparisons.
Operating income measured at $122,862,000 and EBIT at $122,899,000 produce an operating/EBIT margin near 9.32%. That margin exceeds the industry peer mean of 5.45% and the industry peer median of 1.97%, indicating relative margin strength versus peers. QoQ EBIT margin contraction registered -24.11% while the YoY change in EBIT margin was +8.86%.
Net income from continuing operations totaled $75,288,000. Diluted EPS came in at $1.62 versus an estimate of $1.67, a miss of $0.05 representing an EPS surprise of roughly -2.99%.
Cash generation remains a key strength: operating cash flow reached $649,372,000 and free cash flow $641,845,000, yielding a free cash flow yield of approximately 14.01%, comfortably above the industry peer mean of 1.35%. Strong free cash flow funded $457 million of common-stock repurchases during the fiscal year and supports the dividend paid this quarter ($0.30 per share).
Leverage metrics show total debt of $1,444,167,000 and net debt near $1,111,922,000. Debt-to-assets registers about 35.49%, slightly above the industry peer mean of 32.50%; debt-to-EBITDA stands near 9.02x, indicating elevated leverage relative to operating cash generation and suggesting sensitivity to margin or EBITDA swings.
Other profitability and capital-efficiency measures: return on equity about 4.50%, return on assets about 1.77%, and asset turnover approximately 0.31. Asset growth contracted roughly -8.80% while cash conversion cycle sits near 33.9 days. Free-cash growth shows positive YoY movement at ~20.30%.
WMDST values the stock as under-valued based on current cash-flow strength, above-mean EBIT margins, and active capital returns, offset by elevated leverage metrics and volatile top-line comparisons across reporting periods.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-20 |
| NEXT REPORT DATE: | 2026-02-19 |
| CASH FLOW | Begin Period Cash Flow | $ 105.4 M |
| Operating Cash Flow | $ 649.4 M | |
| Capital Expenditures | $ -7.53 M | |
| Change In Working Capital | $ 536.0 M | |
| Dividends Paid | $ -16.84 M | |
| Cash Flow Delta | $ 155.1 M | |
| End Period Cash Flow | $ 260.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.3 B | |
| Forward Revenue | $ 326.3 M | |
| COSTS | ||
| Cost Of Revenue | $ 984.9 M | |
| Depreciation | $ 14.2 M | |
| Depreciation and Amortization | $ 37.2 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 333.6 M | |
| EBITDA | $ 160.1 M | |
| EBIT | $ 122.9 M | |
| Operating Income | $ 122.9 M | |
| Interest Income | — | |
| Interest Expense | $ 22.4 M | |
| Net Interest Income | $ -22.43 M | |
| Income Before Tax | $ 100.5 M | |
| Tax Provision | $ 25.2 M | |
| Tax Rate | 25.062 % | |
| Net Income | $ 75.3 M | |
| Net Income From Continuing Operations | $ 75.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.67 | |
| EPS Actual | $ 1.62 | |
| EPS Difference | $ -0.05 | |
| EPS Surprise | -2.994 % | |
| Forward EPS | $ 1.36 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.1 B | |
| Intangible Assets | $ 2.5 B | |
| Net Tangible Assets | $ -860.59 M | |
| Total Current Assets | $ 1.3 B | |
| Cash and Short-Term Investments | $ 222.4 M | |
| Cash | $ 222.4 M | |
| Net Receivables | $ 720.5 M | |
| Inventory | — | |
| Long-Term Investments | $ 12.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 296.9 M | |
| Short-Term Debt | $ 52.7 M | |
| Total Current Liabilities | $ 765.2 M | |
| Net Debt | $ 1.1 B | |
| Total Debt | $ 1.4 B | |
| Total Liabilities | $ 2.4 B | |
| EQUITY | ||
| Total Equity | $ 1.7 B | |
| Retained Earnings | $ 1.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 30.55 | |
| Shares Outstanding | 54.805 M | |
| Revenue Per-Share | $ 24.06 | |
| VALUATION | Market Capitalization | $ 4.6 B |
| Enterprise Value | $ 5.8 B | |
| Enterprise Multiple | 36.261 | |
| Enterprise Multiple QoQ | 18.049 % | |
| Enterprise Multiple YoY | 2.948 % | |
| Enterprise Multiple IPRWA | high: 190.244 median: 48.181 MMS: 36.261 mean: -0.767 low: -219.035 |
|
| EV/R | 4.403 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.431 | |
| Asset To Liability | 1.699 | |
| Debt To Capital | 0.463 | |
| Debt To Assets | 0.355 | |
| Debt To Assets QoQ | -11.065 % | |
| Debt To Assets YoY | 3550.823 % | |
| Debt To Assets IPRWA | high: 0.956 MMS: 0.355 mean: 0.325 median: 0.32 low: 0.004 |
|
| Debt To Equity | 0.863 | |
| Debt To Equity QoQ | -14.094 % | |
| Debt To Equity YoY | 3860.927 % | |
| Debt To Equity IPRWA | high: 2.466 median: 1.121 mean: 1.057 MMS: 0.863 low: -1.645 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.737 | |
| Price To Book QoQ | 11.101 % | |
| Price To Book YoY | -4.258 % | |
| Price To Book IPRWA | high: 27.592 mean: 3.575 MMS: 2.737 median: 1.785 low: -9.335 |
|
| Price To Earnings (P/E) | 63.346 | |
| Price To Earnings QoQ | 90.904 % | |
| Price To Earnings YoY | -13.656 % | |
| Price To Earnings IPRWA | high: 517.132 mean: 79.237 median: 64.535 MMS: 63.346 low: -80.57 |
|
| PE/G Ratio | -1.629 | |
| Price To Sales (P/S) | 3.476 | |
| Price To Sales QoQ | 7.283 % | |
| Price To Sales YoY | -13.195 % | |
| Price To Sales IPRWA | high: 28.774 mean: 6.144 median: 4.136 MMS: 3.476 low: 0.079 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 60.635 | |
| Forward PE/G | -1.559 | |
| Forward P/S | 14.044 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 11.6 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.309 | |
| Asset Turnover Ratio QoQ | -0.732 % | |
| Asset Turnover Ratio YoY | -4.514 % | |
| Asset Turnover Ratio IPRWA | high: 0.945 median: 0.397 mean: 0.334 MMS: 0.309 low: 0.001 |
|
| Receivables Turnover | 1.506 | |
| Receivables Turnover Ratio QoQ | -1.194 % | |
| Receivables Turnover Ratio YoY | -22.845 % | |
| Receivables Turnover Ratio IPRWA | high: 9.084 mean: 4.39 median: 2.904 MMS: 1.506 low: 0.147 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 60.589 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 33.881 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | 18.871 % | |
| Cash Conversion Cycle Days IPRWA | high: 132.972 MMS: 33.881 median: 15.133 mean: 11.156 low: -85.326 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.703 | |
| CapEx To Revenue | -0.006 | |
| CapEx To Depreciation | -0.531 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.0 B | |
| Net Invested Capital | $ 3.0 B | |
| Invested Capital | $ 3.0 B | |
| Net Tangible Assets | $ -860.59 M | |
| Net Working Capital | $ 487.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.291 | |
| Current Ratio | 1.637 | |
| Current Ratio QoQ | -27.958 % | |
| Current Ratio YoY | 10.141 % | |
| Current Ratio IPRWA | high: 6.656 MMS: 1.637 mean: 1.246 median: 0.832 low: 0.014 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.022 | |
| Cost Of Debt | 1.043 % | |
| Interest Coverage Ratio | 5.479 | |
| Interest Coverage Ratio QoQ | -25.052 % | |
| Interest Coverage Ratio YoY | -2.698 % | |
| Interest Coverage Ratio IPRWA | high: 30.491 MMS: 5.479 mean: 1.932 median: 1.798 low: -59.14 |
|
| Operating Cash Flow Ratio | 0.571 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 26.708 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.469 | |
| Dividend Payout Ratio | 0.224 | |
| Dividend Rate | $ 0.31 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -8.799 % | |
| Revenue Growth | -2.224 % | |
| Revenue Growth QoQ | 126.246 % | |
| Revenue Growth YoY | -3188.889 % | |
| Revenue Growth IPRWA | high: 14.194 % mean: 2.959 % median: 2.066 % MMS: -2.224 % low: -22.095 % |
|
| Earnings Growth | -38.889 % | |
| Earnings Growth QoQ | -621.091 % | |
| Earnings Growth YoY | 110.29 % | |
| Earnings Growth IPRWA | high: 131.373 % mean: -6.129 % median: -11.602 % MMS: -38.889 % low: -234.091 % |
|
| MARGINS | ||
| Gross Margin | 25.299 % | |
| Gross Margin QoQ | -5.112 % | |
| Gross Margin YoY | 10.346 % | |
| Gross Margin IPRWA | high: 87.689 % mean: 28.098 % median: 27.141 % MMS: 25.299 % low: -9.25 % |
|
| EBIT Margin | 9.322 % | |
| EBIT Margin QoQ | -24.106 % | |
| EBIT Margin YoY | 8.864 % | |
| EBIT Margin IPRWA | high: 32.526 % MMS: 9.322 % mean: 5.454 % median: 1.971 % low: -105.324 % |
|
| Return On Sales (ROS) | 9.319 % | |
| Return On Sales QoQ | -24.156 % | |
| Return On Sales YoY | 8.829 % | |
| Return On Sales IPRWA | high: 29.872 % MMS: 9.319 % mean: 8.024 % median: 5.889 % low: -43.781 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 641.8 M | |
| Free Cash Flow Yield | 14.006 % | |
| Free Cash Flow Yield QoQ | -408.706 % | |
| Free Cash Flow Yield YoY | 459.569 % | |
| Free Cash Flow Yield IPRWA | MMS: 14.006 % high: 13.452 % mean: 1.348 % median: 1.231 % low: -18.788 % |
|
| Free Cash Growth | -423.827 % | |
| Free Cash Growth QoQ | -51.675 % | |
| Free Cash Growth YoY | 2030.212 % | |
| Free Cash Growth IPRWA | high: 558.205 % mean: -0.297 % median: -32.54 % low: -345.24 % MMS: -423.827 % |
|
| Free Cash To Net Income | 8.525 | |
| Cash Flow Margin | 33.161 % | |
| Cash Flow To Earnings | 5.807 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.765 % | |
| Return On Assets QoQ | -27.871 % | |
| Return On Assets YoY | -1.01 % | |
| Return On Assets IPRWA | high: 7.577 % MMS: 1.765 % median: 0.39 % mean: 0.304 % low: -22.496 % |
|
| Return On Capital Employed (ROCE) | 3.719 % | |
| Return On Equity (ROE) | 0.045 | |
| Return On Equity QoQ | -24.762 % | |
| Return On Equity YoY | 14.311 % | |
| Return On Equity IPRWA | high: 0.378 MMS: 0.045 mean: 0.014 median: 0.011 low: -0.391 |
|
| DuPont ROE | 4.368 % | |
| Return On Invested Capital (ROIC) | 3.061 % | |
| Return On Invested Capital QoQ | -14.473 % | |
| Return On Invested Capital YoY | -104.964 % | |
| Return On Invested Capital IPRWA | high: 8.725 % MMS: 3.061 % median: 0.766 % mean: 0.574 % low: -22.633 % |
|