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Why Quality Investors Should Delve into LEIDOS HOLDINGS INC (NYSE:LDOS) for Investment Opportunities.

By Mill Chart

Last update: Aug 22, 2024

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.


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Some of the quality metrics of NYSE:LDOS highlighted

  • LEIDOS HOLDINGS INC has demonstrated significant revenue growth over the past 5 years, with a 8.65% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a robust ROIC excluding cash and goodwill at 54.9%, 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.
  • LEIDOS HOLDINGS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.42, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • LEIDOS HOLDINGS INC exhibits impressive Profit Quality (5-year) with a 209.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • LEIDOS HOLDINGS INC has experienced impressive EBIT growth over the past 5 years, with 10.93% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • LEIDOS HOLDINGS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NYSE:LDOS?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to LDOS. LDOS was compared to 80 industry peers in the Professional Services industry. LDOS has only an average score on both its financial health and profitability. LDOS has a correct valuation and a medium growth rate.

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.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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