Is Maximus (NYSE:MMS) A Risky Investment?
Is Maximus (NYSE:MMS) A Risky Investment?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We note that Maximus, Inc. (NYSE:MMS) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
傳奇基金經理李錄(得到了查理·芒格的支持)曾經說過:'最大的投資風險不是價格的波動性,而是你是否會遭受到資本的永久損失。'當你評估一家公司的風險時,考慮其資產負債表是很自然的,因爲在企業倒閉時通常涉及債務。我們注意到Maximus, Inc.(紐交所:MMS)的資產負債表上確實有債務。但股東們是否應該擔心其使用債務編號?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. If things get really bad, the lenders can take control of the business. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we think about a company's use of debt, we first look at cash and debt together.
一般而言,只有當公司無法輕鬆償還債務時,無論是通過籌集資本還是通過自己的現金流,債務才會成爲實際問題。如果情況變得非常糟糕,債權人就會控制企業。儘管這不是太常見的情況,但我們經常看到,因爲債權人強迫它們以破產價格籌集資本,許多負債累累的公司會永久稀釋股東權益。話雖如此,最常見的情況是公司合理地管理其債務,從而爲自己帶來利益。當我們考慮一家公司的債務使用時,我們首先關注現金和債務。
What Is Maximus's Net Debt?
馬克西姆斯的淨債務是多少?
The image below, which you can click on for greater detail, shows that Maximus had debt of US$1.14b at the end of June 2024, a reduction from US$1.31b over a year. However, it also had US$102.8m in cash, and so its net debt is US$1.04b.
下圖顯示了馬克西姆斯在2024年6月底有11.4億美元的債務,較去年減少了13.1億美元。然而,它也有1.028億美元的現金,因此其淨債務是1.04億美元。
![1724668900128](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240826/42870710-0-ec05c14a63f7c34e43c6a6fea27c8307.webp/bigjpg)
How Healthy Is Maximus' Balance Sheet?
馬克西姆斯的資產負債表健康嗎?
Zooming in on the latest balance sheet data, we can see that Maximus had liabilities of US$680.0m due within 12 months and liabilities of US$1.50b due beyond that. On the other hand, it had cash of US$102.8m and US$859.9m worth of receivables due within a year. So its liabilities total US$1.22b more than the combination of its cash and short-term receivables.
通過最新的資產負債表數據,我們可以看到馬克西姆斯在12個月內有6.8億美元的負債,並且有超過15億美元的負債。另一方面,它有1.02億美元的現金和0.8599億美元的應收賬款。因此,它的負債總額比現金和短期應收賬款的總和多了12.2億美元。
Maximus has a market capitalization of US$5.52b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. However, it is still worthwhile taking a close look at its ability to pay off debt.
馬克西姆斯的市值爲55.2億美元,因此如果需要,它很有可能籌集現金來改善資產負債表。然而,仔細觀察其償債能力仍然是值得的。
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
Service Corporation International的債務是其EBITDA的3.5倍,而其EBIT可覆蓋其利息開支的3.7倍。綜合考慮,雖然我們不希望看到債務水平上升,但我們認爲它可以應對當前的槓桿。好消息是,Service Corporation International在過去12個月中將其EBIT提高了2.9%,從而逐漸降低了其相對於收益的債務水平。毫無疑問,我們從資產負債表中獲得了有關債務的大部分內容。但是,相對於資產負債表,更重要的是未來收益,這將決定Service Corporation International維持健康資產負債表的能力。如果您關注未來,您可以查看此免費報告,其中有分析師的利潤預測。
Maximus's net debt is sitting at a very reasonable 1.8 times its EBITDA, while its EBIT covered its interest expense just 5.7 times last year. While these numbers do not alarm us, it's worth noting that the cost of the company's debt is having a real impact. It is well worth noting that Maximus's EBIT shot up like bamboo after rain, gaining 59% in the last twelve months. That'll make it easier to manage its debt. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Maximus's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
馬克西姆斯的淨債務爲其EBITDA的1.8倍,而其EBIT去年僅覆蓋了其利息費用的5.7倍。雖然這些數字並不讓人擔憂,但值得注意的是,公司債務成本正在產生真正的影響。 值得注意的是,馬克西姆斯的EBIT在過去十二個月中增長了59%。這將使其更容易管理債務。 在分析債務水平時,資產負債表是顯而易見的起點。但最關鍵的還是未來的盈利,它將決定馬克西姆斯是否能夠保持健康的資產負債表。所以,如果你關注未來,可以查看這份顯示分析師利潤預測的免費報告。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we always check how much of that EBIT is translated into free cash flow. Over the last three years, Maximus recorded free cash flow worth a fulsome 92% of its EBIT, which is stronger than we'd usually expect. That puts it in a very strong position to pay down debt.
最後,雖然稅務部門可能喜歡會計利潤,但借款人只接受冰冷的現金。因此,我們始終要檢查有多少EBIT轉化爲自由現金流。在過去三年中,馬克西姆斯的自由現金流價值達到了其EBIT的92%,這比我們通常預期的更強。這使其處於非常有力的償債地位。
Our View
我們的觀點
Happily, Maximus's impressive conversion of EBIT to free cash flow implies it has the upper hand on its debt. And that's just the beginning of the good news since its EBIT growth rate is also very heartening. Zooming out, Maximus seems to use debt quite reasonably; and that gets the nod from us. While debt does bring risk, when used wisely it can also bring a higher return on equity. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. For instance, we've identified 1 warning sign for Maximus that you should be aware of.
馬克西姆斯服務令人愉快地將EBIT轉換爲自由現金流,這意味着它在債務方面佔據了上風。這只是好消息的開始,因爲它的EBIT增長率也非常令人鼓舞。總體而言,馬克西姆斯似乎合理地使用債務,而這也得到了我們的認可。債務確實帶來風險,但明智地使用時也可以帶來更高的股本回報率。毫無疑問,我們從資產負債表中了解最多的是債務情況。但最終,每個公司都可能包含超出資產負債表之外的風險。例如,我們已經發現馬克西姆斯有1個警告信號,您應該注意。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果在所有這些之後,您更感興趣的是具有堅實資產負債表的快速增長公司,那麼不要拖延,查看我們的淨現金增長股票列表。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。