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Strategic Acquisitions Aid MAXIMUS (MMS), High Debt Ails
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We have recently updated a report on Maximus, Inc. (MMS - Free Report) .
The company recently reported better-than-expected second-quarter fiscal 2021 results. Earnings per share amounted to $1.29, which surpassed the Zacks Consensus Estimate by 57.3% and surged more than 100% year over year. Revenues of $959.3 million beat the consensus mark by 15.7% and increased 17.3% year over year.
Notably, the stock has gained 28.3% in the past year compared with 19.8% rally of the industry it belongs to.
MAXIMUS has been active on the acquisition front to expand its business processes, knowledge and client relationships, enhance technical capabilities as well as gain additional skill sets. Strategic acquisitions also complement the company’s long-term organic growth strategy. The recent acquisition of Federal division of Attain is expected to strengthen MAXIMUS’ long-term corporate strategy including accelerating digital transformation and the ongoing expansion into the U.S. federal market, which is a priority growth area.
MAXIMUS has a diversified portfolio with rising operating profit margin. The company’s financial flexibility enables it to pursue business investment and strategic acquisition opportunities as well as reward shareholders through dividends.
Meanwhile, the company’s total debt at the end of fiscal second quarter was $278 million, higher than $32 million at the end of the prior quarter. It's total debt to total capital ratio of 0.16 is higher than the industry’s 0.02. An increase in debt-to-capitalization ratio indicates higher risk of insolvency in challenging times.
Further, the company’s cash and cash equivalent of $102 million at the end of the quarter was below this debt level, underscoring that the company doesn’t have enough cash to meet this debt burden.
The long-term expected earnings per share (three to five years) growth rate for ExlService, Equifax and TransUnion is 10.8%, 14% and 20.9%, respectively.
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Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>
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Strategic Acquisitions Aid MAXIMUS (MMS), High Debt Ails
We have recently updated a report on Maximus, Inc. (MMS - Free Report) .
The company recently reported better-than-expected second-quarter fiscal 2021 results. Earnings per share amounted to $1.29, which surpassed the Zacks Consensus Estimate by 57.3% and surged more than 100% year over year. Revenues of $959.3 million beat the consensus mark by 15.7% and increased 17.3% year over year.
Notably, the stock has gained 28.3% in the past year compared with 19.8% rally of the industry it belongs to.
MAXIMUS has been active on the acquisition front to expand its business processes, knowledge and client relationships, enhance technical capabilities as well as gain additional skill sets. Strategic acquisitions also complement the company’s long-term organic growth strategy. The recent acquisition of Federal division of Attain is expected to strengthen MAXIMUS’ long-term corporate strategy including accelerating digital transformation and the ongoing expansion into the U.S. federal market, which is a priority growth area.
MAXIMUS has a diversified portfolio with rising operating profit margin. The company’s financial flexibility enables it to pursue business investment and strategic acquisition opportunities as well as reward shareholders through dividends.
Meanwhile, the company’s total debt at the end of fiscal second quarter was $278 million, higher than $32 million at the end of the prior quarter. It's total debt to total capital ratio of 0.16 is higher than the industry’s 0.02. An increase in debt-to-capitalization ratio indicates higher risk of insolvency in challenging times.
Further, the company’s cash and cash equivalent of $102 million at the end of the quarter was below this debt level, underscoring that the company doesn’t have enough cash to meet this debt burden.
Zacks Rank and Stocks to Consider
MAXIMUS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are ExlService (EXLS - Free Report) , Equifax (EFX - Free Report) and TransUnion (TRU - Free Report) , each carrying a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for ExlService, Equifax and TransUnion is 10.8%, 14% and 20.9%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>