There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

June 6, 2011 - MAXIMUS, Inc. (MMS-NYSE) provides operations program management and consulting services to state and local government agencies, federal agencies, and commercial customers primarily in the United States. The company's Operations Segment provides various program management and operations support services for state, federal, and county funded public programs, and focuses on the delivery of administrative services for government health and human services programs, including Medicare, Medicaid, SCHIP, TANF, related workforce services programs, and child support enforcement programs. It also provides assistance to employers in accessing tax credit benefits and advocacy services for youth and disabled persons.

This stock dodged all the bullets over the last 2 years, increased earnings, and continuously hit new highs. It recently touched $85.14 on May 11, a new all-time high. There's very little that looks like it can stop MMS.

Fiscal 2011 ends in September, and estimates are for MMS to finish with a flourish, showing full year's earnings at $4.24, up 17% from $3.62 for 2010. Two analysts expect 2012 to show $4.52. For the about to end June quarter, they see $1.03, up 14% from the 91 cents made in the third quarter of 2010.

Reasons for the continued improvement: health services and and human services had 16% and 8% gains in sales respectively in the second quarter and operating margins widened. But the human services group isn't expected to grow as much in the future. The U.K. is transitioning to a new welfare-to-work program. While the company already has 3 new signed contracts for this effort, don't expect full revenue potential (estimated at $80 million) until 2014. In the meantime, current programs are winding down that generate between $35 to $40 million a year. The gap in revenues will also hurt profits that are expected to be $10 million less from this program due to the transition time.

Lastly, the demand for MMS's services should only grow as governments look to lower costs, both in health and employment programs. Everyone knows the global slowdown as decreased tax revenues and that governments, like companies and people, have to get more efficient, more cost conscious when income is less than out flow. That suggests a bright future for MMS.

Essential numbers: Trailing P/E is 19 while Forward P/E is 17.55. Price to sales ratio is 1.60. Price to book is 3.62. Operating margin for the last 12 months was 12.98% and Profit margin was 8.64%. Return on equity was 20.93% and Return on assets was 13.41%. Total revenue was $865.28 million. Total cash is $183.15 million for $10.56 a share. Total debt is almost zero at $1.8 million. Current ratio is 2.46. Book value per share is $22.08. There are 17.35 million shares Outstanding with a Float of 17.04 million. Insiders own 1.64% of the stock and Institutions have 100% of the Float.

If you like what you see in MMS, you may want to watch it for a while. With the U.K. program in transition and profits expected to be lower from that division next year, there could be an opportunity to buy this stock at better prices if investors get tired of the waiting period to fully recover those profits. On the other hand, since that information is well known, investors with a mind to get out may already have done so. And with the stock split imminent, it could be that MMS continues on its upward trajectory unabated.

- Company Web site: www.maximus.com

- Ted Allrich