Why the quality investor may take a look at LEIDOS HOLDINGS INC (NYSE:LDOS).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LEIDOS HOLDINGS INC (NYSE:LDOS) is suited for quality investing. Investors should of course do their own research, but we spotted LEIDOS HOLDINGS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• Over the past 5 years, LEIDOS HOLDINGS INC has experienced impressive revenue growth, with 8.65% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 39.33%, LEIDOS HOLDINGS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of LEIDOS HOLDINGS INC stands at 4.89, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• LEIDOS HOLDINGS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 209.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• LEIDOS HOLDINGS INC has consistently achieved strong EBIT growth over the past 5 years, with a 10.93% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• LEIDOS HOLDINGS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NYSE:LDOS

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, LDOS scores 5 out of 10 in our fundamental rating. LDOS was compared to 80 industry peers in the Professional Services industry. LDOS has an average financial health and profitability rating. LDOS has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of LDOS for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.