Why quality investors should have 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.

Exploring Why NYSE:LDOS Holds Appeal for Quality Investors.

• LEIDOS HOLDINGS INC has achieved substantial revenue growth over the past 5 years, with a 8.65% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of LEIDOS HOLDINGS INC stands at 54.9%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 3.42, LEIDOS HOLDINGS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• 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 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 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.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Overall LDOS gets a fundamental rating of 6 out of 10. We evaluated LDOS against 81 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.

For an up to date full fundamental analysis you can check the fundamental report of LDOS

More quality stocks can be found 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.