Maximus Inc (NYSE: MMS)

Maximus Inc (NYSE: MMS) is an operator of government health and human services programs in the United States, United Kingdom, Canada, Australia, and Saudi Arabia.

Recommendation Rationale – Sell at USD 84.73

• The business of MMS can be adversely impacted by the future legislative or government budgetary and spending changes. Notably, the market for its services depends mainly on the domestic as well as international legislative programs and the budgetary ability to support programs, which include the continuance of existing programs.
• Since MMS is dependent on the key contracts with state, local as well as federal governments for a significant portion of the revenue, a substantial reduction in such contracts can significantly impact its operating results.
• As at June 30, 2025, the unrestricted cash and cash equivalents stood at $59.8 Mn, and gross debt was $1.67 Bn. The ratio of debt, net of allowed cash, to consolidated EBITDA for the quarter ended June 30, 2025 stood at 2.1x.

MMS’ Daily Price Chart

Fundamental Valuation

Considering the increasing volatility over global equity market, inflationary pressures, geopolitical tensions, etc. the company’s stock might trade at slight discount. For the valuation, peers such as General Dynamics Corp, FTI Consulting Inc, etc. were considered.

Given its current trading levels, and risks associated, it is prudent to book profit at the current levels.

Hence, a ‘Sell’ rating has been provided on the stock at the current market price of USD 84.73 per share, up by 2.26% as on 13 August 2025 (7:30 am PDT).  

Maximus Inc (NYSE: MMS) is part of Kalkine’s Global Big Money Report. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 13 August 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.  

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest. 

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.