TYSONS, Va. – Maximus (NYSE: NYSE:), a provider of government services globally, has been awarded a five-year contract valued at $263 million by the Pennsylvania Department of Human Services (DHS). The contract, which extends the company’s previous engagement since 2016, aims to improve the application and enrollment process for Pennsylvania residents seeking home and community-based services.
The new contract will see Maximus continue its role as an independent enrollment broker, assisting seniors and individuals with disabilities in navigating the Medicaid waiver application process. The company’s efforts have previously reduced the application and enrollment duration from 90 days to an average of 26 days, reflecting a significant improvement in service delivery times.
Maximus will enhance its case management and beneficiary support, emphasizing a person-centered approach. This includes offering choice counseling to help individuals select the most suitable plans and providers. The company is also tasked with aiding applicants through the appeals and grievances processes.
In addition to these services, Maximus will introduce digital solutions to streamline the application process further. A dedicated website will be developed to provide residents and their authorized caregivers with more accessible information, aiming to reduce wait times and simplify the process.
The company’s impact on the community is highlighted by a high customer satisfaction score, with 98% of waiver applicants expressing contentment with the services provided and willingness to recommend the process to others.
This contract aligns with Pennsylvania’s commitment to aging-in-place initiatives and the support of independent living for individuals with disabilities. The collaboration between Maximus and the Pennsylvania DHS is part of a broader effort to enhance Medicaid Managed Care enrollment and choice counseling services in the state.
Maximus, recognized for its strategic partnership with governments worldwide, focuses on improving the delivery of public services through innovative business process management, consulting services, and technology solutions. The information reported is based on a press release statement.
In other recent news, Maximus has reported substantial financial growth, with a 10.6% year-over-year revenue increase to $1.31 billion in Q3 of the fiscal year 2024. This growth was primarily driven by a 17.0% revenue increase in the U.S. Federal Services segment. The company also reported an adjusted operating income margin of 12.6% and an adjusted EPS of $1.74. Full-year guidance for FY2024 was raised, with revenue expected to reach between $5.25 billion and $5.35 billion, adjusted operating income between $570 million and $590 million, and adjusted EPS between $6 and $6.20 per share.
Looking forward to FY2025, Maximus anticipates similar revenue levels and targets at least a 10% adjusted operating income margin. In other recent developments, Maximus secured a $20 million contract with the Office of Personnel Management (OPM) to operate as the Contact Center Services Provider for the new Postal Service Health Benefits Program. Maximus plans to utilize its Total Experience Management (TXM) solution for this contract, aiming to deliver top-tier customer service.
Furthermore, Maximus has recently won contracts with the IRS, TSA, FEMA, and the state of Pennsylvania, totaling over $596 million. Despite a potential impact on the award date due to a protest filed against the CMS contract, Maximus remains confident in its growth prospects and its ability to navigate policy changes and administration shifts post-election.
InvestingPro Insights
Maximus (NYSE: MMS), the government services provider, has recently secured a substantial contract that reinforces its already strong financial position. According to InvestingPro, the company boasts a perfect Piotroski Score of 9, indicating high financial health and stability. This score is particularly relevant for investors as it reflects the company’s solid profitability, liquidity, and operating efficiency—all factors that are crucial for sustaining long-term contracts like the one with the Pennsylvania Department of Human Services.
InvestingPro data further underscores the company’s robust financial metrics, with a market capitalization of $5.57 billion and a healthy P/E ratio of 19.24. The adjusted P/E ratio for the last twelve months as of Q3 2024 stands at 18.93, suggesting that the company is trading at a reasonable valuation relative to its earnings. Moreover, the PEG ratio during the same period is an attractive 0.27, indicating that the stock could be undervalued when considering its earnings growth rate.
From a growth perspective, Maximus has demonstrated solid performance, with an 8.89% revenue growth over the last twelve months leading up to Q3 2024. This growth is a testament to the company’s ability to expand its services and secure new contracts, such as the recent agreement with Pennsylvania’s DHS. Additionally, with three analysts having revised their earnings upwards for the upcoming period, there is an optimistic outlook for the company’s future profitability. For investors seeking further insights, InvestingPro offers additional tips, including the company’s capacity to maintain dividend payments for 20 consecutive years and its moderate level of debt, indicating prudent financial management.
Maximus’s consistent performance and strategic government partnerships make it a notable player in the public service sector. With additional InvestingPro Tips available, investors can delve deeper into the company’s financial health and prospects.
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