NYSE:LDOS is an undervalued gem with solid fundamentals.

Consider LEIDOS HOLDINGS INC (NYSE:LDOS) as a top value stock, identified by our stock screening tool. NYSE:LDOS shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Analysis for NYSE:LDOS

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:LDOS has achieved a 7 out of 10:

• LDOS's Price/Earnings ratio is a bit cheaper when compared to the industry. LDOS is cheaper than 77.63% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 27.17. LDOS is valued slightly cheaper when compared to this.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of LDOS indicates a somewhat cheap valuation: LDOS is cheaper than 77.63% of the companies listed in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 23.59. LDOS is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, LDOS is valued cheaply inside the industry as 80.26% of the companies are valued more expensively.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of LDOS may justify a higher PE ratio.
• LDOS's earnings are expected to grow with 17.03% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of NYSE:LDOS

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:LDOS has earned a 6 out of 10:

• LDOS's Return On Assets of 8.99% is fine compared to the rest of the industry. LDOS outperforms 77.63% of its industry peers.
• The Return On Equity of LDOS (25.99%) is better than 77.63% of its industry peers.
• LDOS's Return On Invested Capital of 11.98% is fine compared to the rest of the industry. LDOS outperforms 72.37% of its industry peers.
• The 3 year average ROIC (8.10%) for LDOS is below the current ROIC(11.98%), indicating increased profibility in the last year.
• LDOS's Profit Margin of 7.37% is fine compared to the rest of the industry. LDOS outperforms 75.00% of its industry peers.
• Looking at the Operating Margin, with a value of 10.83%, LDOS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• In the last couple of years the Operating Margin of LDOS has grown nicely.

Looking at the Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:LDOS, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 3.39 indicates that LDOS is not in any danger for bankruptcy at the moment.
• The Debt to FCF ratio of LDOS is 3.72, which is a good value as it means it would take LDOS, 3.72 years of fcf income to pay off all of its debts.

Growth Analysis for NYSE:LDOS

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:LDOS has earned a 6 for growth:

• LDOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.01%, which is quite impressive.
• Measured over the past years, LDOS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.68% on average per year.
• LDOS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.65% yearly.
• The Earnings Per Share is expected to grow by 17.03% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.