Maximus Beneish M Score

MMS -  USA Stock  

USD 83.87  0.16  0.19%

This module uses fundamental data of Maximus to approximate the value of its Beneish M Score. Maximus M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see Maximus Piotroski F Score and Maximus Altman Z Score analysis.

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Maximus Total Debt is relatively stable at the moment as compared to the past year. Maximus reported last year Total Debt of 245.7 Million. As of 09/19/2021, Debt Current is likely to grow to about 113.7 M, while Debt to Equity Ratio is likely to drop 0.55. Maximus Cash and Equivalents Turnover is relatively stable at the moment as compared to the past year. Maximus reported last year Cash and Equivalents Turnover of 35.05. As of 09/19/2021, Return on Investment is likely to grow to 32.77, while Cash Flow Per Share is likely to drop 3.25.
At this time, it appears that Maximus is an unlikely manipulator. The earnings manipulation may begin if Maximus' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Maximus executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Maximus' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.25
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.33
Asset Quality
0.85
Expense Coverage
1.03
Gross Margin Strengs
1.11
Accruals Factor
1.03
Depreciation Resistance
1.25
Net Sales Growth
0.81
Financial Leverage Condition
1.05

Maximus Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Maximus' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues3.2 BB
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense371.8 M445.2 M
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations270.5 M281.3 M
Sufficiently Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion92 M115.2 M
Significantly Down
Increasing
Slightly volatile
Total Assets1.9 B2.3 B
Significantly Down
Increasing
Slightly volatile
Investments18.1 M18.2 M
Slightly Down
Decreasing
Slightly volatile
Investments Current18.1 M18.2 M
Slightly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net302.6 M280.5 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables975.5 M904.1 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities716.5 M900.3 M
Significantly Down
Increasing
Slightly volatile
Current Assets910.9 M1.1 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current1.4 B1.3 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities511.1 M645.3 M
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current205.4 M255 M
Significantly Down
Increasing
Slightly volatile
Total Debt265.1 M245.7 M
Significantly Up
Increasing
Slightly volatile
Debt Current113.7 M105.4 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current151.4 M140.3 M
Significantly Up
Increasing
Slightly volatile
Operating Income307.2 M331.5 M
Significantly Down
Increasing
Slightly volatile
Gross Margin0.20.18
Moderately Up
Decreasing
Slightly volatile

Maximus Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Maximus' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Maximus in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Maximus' degree of accounting gimmicks and manipulations.

About Maximus Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

400.23 MillionShare
Maximus Operating Expenses is relatively stable at the moment as compared to the past year. Maximus reported last year Operating Expenses of 486.13 Million

Maximus Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Maximus. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201620172018201920202021 (projected)
Revenues2.45 B2.39 B2.89 B3.46 B3.98 B3.23 B
Total Assets1.35 B1.46 B1.75 B2.02 B2.33 B1.9 B
Current Assets657.24 M808.63 M789.42 M932.56 M1.07 B910.94 M
Assets Non Current693.42 M653.37 M956.31 M1.09 B1.26 B1.36 B
Total Liabilities404.89 M375.58 M497.53 M782.88 M900.32 M716.45 M
Current Liabilities316.27 M277.45 M364.24 M561.17 M645.34 M511.07 M
Debt Non Current210.62 M165.34 M231 K122.03 M140.33 M151.41 M
Operating Income312.86 M295.48 M317.11 M288.28 M331.52 M307.16 M
Gross Margin0.240.230.250.210.180.2

About Maximus Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Maximus's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Maximus using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Maximus based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Maximus, Inc. provides business process services to government health and human services programs worldwide. The company was founded in 1975 and is headquartered in Reston, Virginia. Maximus operates under Specialty Business Services classification in the United States and is traded on New York Stock Exchange. It employs 34000 people.

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Additionally, see Maximus Piotroski F Score and Maximus Altman Z Score analysis. Note that the Maximus information on this page should be used as a complementary analysis to other Maximus' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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When running Maximus price analysis, check to measure Maximus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Maximus is operating at the current time. Most of Maximus' value examination focuses on studying past and present price action to predict the probability of Maximus' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Maximus' price. Additionally, you may evaluate how the addition of Maximus to your portfolios can decrease your overall portfolio volatility.
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The market value of Maximus is measured differently than its book value, which is the value of Maximus that is recorded on the company's balance sheet. Investors also form their own opinion of Maximus' value that differs from its market value or its book value, called intrinsic value, which is Maximus' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Maximus' market value can be influenced by many factors that don't directly affect Maximus underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Maximus' value and its price as these two are different measures arrived at by different means. Investors typically determine Maximus value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Maximus' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.