LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LDOS - US5253271028 - Common Stock
198.34 USD
+3.12 (+1.6%)
198 USD
-0.34 (-0.17%)
Taking everything into account, LDOS scores 6 out of 10 in our fundamental rating. LDOS was compared to 87 industry peers in the Professional Services industry. LDOS scores excellent on profitability, but there are some minor concerns on its financial health. LDOS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LDOS had positive earnings in the past year.
In the past year LDOS had a positive cash flow from operations.
LDOS had positive earnings in each of the past 5 years.
Each year in the past 5 years LDOS had a positive operating cash flow.
1.2 Ratios
LDOS's Return On Assets of 10.38% is amongst the best of the industry. LDOS outperforms 82.56% of its industry peers.
With an excellent Return On Equity value of 28.62%, LDOS belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.37%, LDOS is doing good in the industry, outperforming 77.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LDOS is below the industry average of 11.80%.
The last Return On Invested Capital (12.37%) for LDOS is above the 3 year average (9.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 28.62% | ||
| ROIC | 12.37% |
ROA(3y)5.46%
ROA(5y)5.42%
ROE(3y)16.36%
ROE(5y)16.58%
ROIC(3y)9.6%
ROIC(5y)8.62%
1.3 Margins
LDOS has a better Profit Margin (8.11%) than 74.42% of its industry peers.
In the last couple of years the Profit Margin of LDOS has grown nicely.
LDOS's Operating Margin of 11.78% is fine compared to the rest of the industry. LDOS outperforms 74.42% of its industry peers.
LDOS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.61%, LDOS is not doing good in the industry: 76.74% of the companies in the same industry are doing better.
LDOS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.78% | ||
| PM (TTM) | 8.11% | ||
| GM | 17.61% |
OM growth 3Y8.76%
OM growth 5Y6.1%
PM growth 3Y11.14%
PM growth 5Y4.59%
GM growth 3Y4.63%
GM growth 5Y3.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LDOS is creating some value.
The number of shares outstanding for LDOS has been reduced compared to 1 year ago.
The number of shares outstanding for LDOS has been reduced compared to 5 years ago.
Compared to 1 year ago, LDOS has an improved debt to assets ratio.
2.2 Solvency
LDOS has an Altman-Z score of 4.16. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LDOS (4.16) is better than 75.58% of its industry peers.
The Debt to FCF ratio of LDOS is 3.36, which is a good value as it means it would take LDOS, 3.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LDOS (3.36) is better than 62.79% of its industry peers.
LDOS has a Debt/Equity ratio of 0.94. This is a neutral value indicating LDOS is somewhat dependend on debt financing.
LDOS's Debt to Equity ratio of 0.94 is on the low side compared to the rest of the industry. LDOS is outperformed by 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.16 |
ROIC/WACC1.56
WACC7.93%
2.3 Liquidity
A Current Ratio of 1.62 indicates that LDOS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.62, LDOS is in line with its industry, outperforming 58.14% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that LDOS should not have too much problems paying its short term obligations.
The Quick ratio of LDOS (1.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.89% over the past year.
The Earnings Per Share has been growing by 14.65% on average over the past years. This is quite good.
Looking at the last year, LDOS shows a small growth in Revenue. The Revenue has grown by 6.48% in the last year.
LDOS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
EPS 1Y (TTM)17.89%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%4.1%
Revenue 1Y (TTM)6.48%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%6.66%
3.2 Future
LDOS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.98% yearly.
The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y17.52%
EPS Next 2Y10.84%
EPS Next 3Y8.7%
EPS Next 5Y6.98%
Revenue Next Year5.06%
Revenue Next 2Y4.41%
Revenue Next 3Y4.06%
Revenue Next 5Y3.39%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.10 indicates a rather expensive valuation of LDOS.
69.77% of the companies in the same industry are more expensive than LDOS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.19. LDOS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.80, LDOS is valued correctly.
LDOS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LDOS is cheaper than 66.28% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. LDOS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 15.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than 69.77% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LDOS indicates a somewhat cheap valuation: LDOS is cheaper than 72.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.3 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LDOS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)1.17
EPS Next 2Y10.84%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, LDOS is not a good candidate for dividend investing.
LDOS's Dividend Yield is a higher than the industry average which is at 1.48.
With a Dividend Yield of 0.88, LDOS pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
LDOS has been paying a dividend for at least 10 years, so it has a reliable track record.
LDOS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)N/A
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
LDOS pays out 14.88% of its income as dividend. This is a sustainable payout ratio.
DP14.88%
EPS Next 2Y10.84%
EPS Next 3Y8.7%
198.34
+3.12 (+1.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners80.72%
Inst Owner Change0.11%
Ins Owners0.48%
Ins Owner Change-0.95%
Market Cap25.36B
Revenue(TTM)17.33B
Net Income(TTM)1.41B
Analysts80
Price Target223.56 (12.72%)
Short Float %2.07%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP14.88%
Div Incr Years6
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.38%
Min EPS beat(2)10.27%
Max EPS beat(2)18.49%
EPS beat(4)4
Avg EPS beat(4)11.87%
Min EPS beat(4)2.22%
Max EPS beat(4)18.49%
EPS beat(8)8
Avg EPS beat(8)18.44%
EPS beat(12)11
Avg EPS beat(12)15.14%
EPS beat(16)12
Avg EPS beat(16)11.19%
Revenue beat(2)1
Avg Revenue beat(2)0.39%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)1.44%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)3.53%
Revenue beat(8)6
Avg Revenue beat(8)1.39%
Revenue beat(12)8
Avg Revenue beat(12)1.11%
Revenue beat(16)10
Avg Revenue beat(16)0.74%
PT rev (1m)0.99%
PT rev (3m)15.96%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 15.8 | ||
| P/S | 1.46 | ||
| P/FCF | 18.3 | ||
| P/OCF | 16.32 | ||
| P/B | 5.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.43 |
EPS(TTM)11.6
EY5.85%
EPS(NY)12.56
Fwd EY6.33%
FCF(TTM)10.84
FCFY5.47%
OCF(TTM)12.15
OCFY6.13%
SpS135.55
BVpS38.39
TBVpS-15.09
PEG (NY)0.98
PEG (5Y)1.17
Graham Number100.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 28.62% | ||
| ROCE | 19.34% | ||
| ROIC | 12.37% | ||
| ROICexc | 13.64% | ||
| ROICexgc | 47.71% | ||
| OM | 11.78% | ||
| PM (TTM) | 8.11% | ||
| GM | 17.61% | ||
| FCFM | 8% |
ROA(3y)5.46%
ROA(5y)5.42%
ROE(3y)16.36%
ROE(5y)16.58%
ROIC(3y)9.6%
ROIC(5y)8.62%
ROICexc(3y)10.47%
ROICexc(5y)9.34%
ROICexgc(3y)58.39%
ROICexgc(5y)54.32%
ROCE(3y)15.01%
ROCE(5y)13.48%
ROICexgc growth 3Y4.26%
ROICexgc growth 5Y-0.43%
ROICexc growth 3Y19.51%
ROICexc growth 5Y8.6%
OM growth 3Y8.76%
OM growth 5Y6.1%
PM growth 3Y11.14%
PM growth 5Y4.59%
GM growth 3Y4.63%
GM growth 5Y3.77%
F-Score8
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 57.14% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 8.65 | ||
| Cash Conversion | 66.55% | ||
| Profit Quality | 98.65% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 4.16 |
F-Score8
WACC7.93%
ROIC/WACC1.56
Cap/Depr(3y)50.89%
Cap/Depr(5y)49.91%
Cap/Sales(3y)1.04%
Cap/Sales(5y)1.08%
Profit Quality(3y)235.51%
Profit Quality(5y)202.58%
High Growth Momentum
Growth
EPS 1Y (TTM)17.89%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%4.1%
EPS Next Y17.52%
EPS Next 2Y10.84%
EPS Next 3Y8.7%
EPS Next 5Y6.98%
Revenue 1Y (TTM)6.48%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%6.66%
Revenue Next Year5.06%
Revenue Next 2Y4.41%
Revenue Next 3Y4.06%
Revenue Next 5Y3.39%
EBIT growth 1Y15.77%
EBIT growth 3Y15.99%
EBIT growth 5Y15.09%
EBIT Next Year23.81%
EBIT Next 3Y8.51%
EBIT Next 5Y6.89%
FCF growth 1Y73.68%
FCF growth 3Y10.27%
FCF growth 5Y7.37%
OCF growth 1Y58.57%
OCF growth 3Y10.52%
OCF growth 5Y7.01%
LEIDOS HOLDINGS INC / LDOS FAQ
What is the fundamental rating for LDOS stock?
ChartMill assigns a fundamental rating of 6 / 10 to LDOS.
What is the valuation status for LDOS stock?
ChartMill assigns a valuation rating of 5 / 10 to LEIDOS HOLDINGS INC (LDOS). This can be considered as Fairly Valued.
Can you provide the profitability details for LEIDOS HOLDINGS INC?
LEIDOS HOLDINGS INC (LDOS) has a profitability rating of 7 / 10.
What are the PE and PB ratios of LEIDOS HOLDINGS INC (LDOS) stock?
The Price/Earnings (PE) ratio for LEIDOS HOLDINGS INC (LDOS) is 17.1 and the Price/Book (PB) ratio is 5.17.
What is the financial health of LEIDOS HOLDINGS INC (LDOS) stock?
The financial health rating of LEIDOS HOLDINGS INC (LDOS) is 6 / 10.