LEIDOS HOLDINGS INC (NYSE:LDOS) can be considered a quality stock. Here's why.

In this article we will dive into LEIDOS HOLDINGS INC (NYSE:LDOS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LEIDOS HOLDINGS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Highlighting Notable Quality Metrics of NYSE:LDOS.

• 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 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.
• With a favorable Debt/Free Cash Flow Ratio of 3.42, LEIDOS HOLDINGS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• 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 impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

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.

LDOS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Professional Services industry. LDOS has only an average score on both its financial health and profitability. LDOS is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of LDOS contains the most current fundamental analsysis.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.