Maximus, Inc.MMS · NYSE

Why the market may be pricing it low

• Repeated divestitures of businesses in Australia and Korea show a retreat from international expansion, narrowing growth almost entirely to U.S. government work.

  During the first quarter of fiscal year 2025, we sold our businesses in Australia and Korea. This sale resulted in a loss and increased our full-year tax rate.Business

• The overseas sale involved settling two decades of accumulated foreign-currency losses and indemnifications to the buyer, hinting the international business had long been a burden.

  These charges included accumulated foreign currency losses incurred over two decades of operations, as well as indemnifications provided to the buyer.Risk factors

What could close the gap

• Management states that strong operating cash flow and relatively low leverage give room to keep buying back significant amounts of its own stock.

  Our operating cash flows remain strong and our overall leverage is relatively low, allowing us to make significant purchases of our own common stock.Business

• An executive change disclosed via an Item 5.02 8-K in December 2025 could signal a shift in leadership that changes capital policy or operations.

  2025-12-18 Item 5.028-K filings

How a buyer could still lose (value trap)

• With only $57M cash against $1.64B of debt, most of enterprise value is debt, leaving the company exposed to rising rates or tougher refinancing conditions.

  Based on the figures below

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✗Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• –Gross margin up on last yearno data
• –Asset turnover up on last yearno data

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

$2.4bn

Operating profit

$579m

Net profit

$371m

Operating cash flow

$470m

Cash

$57m

Debt

$1.6bn

Equity

$1.7bn

Latest twelve months to 2026-06-30; F-score for the fiscal year to 2025-09-30