LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
NYSE:LDOS - New York Stock Exchange, Inc. - US5253271028 - Common Stock - Currency: USD
Overall LDOS gets a fundamental rating of 6 out of 10. We evaluated LDOS against 82 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LDOS was profitable.
In the past year LDOS had a positive cash flow from operations.
Each year in the past 5 years LDOS has been profitable.
Each year in the past 5 years LDOS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LDOS (9.57%) is better than 79.75% of its industry peers.
LDOS has a Return On Equity of 28.42%. This is in the better half of the industry: LDOS outperforms 79.75% of its industry peers.
LDOS has a better Return On Invested Capital (12.29%) than 73.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LDOS is below the industry average of 13.65%.
The last Return On Invested Capital (12.29%) for LDOS is above the 3 year average (9.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.57% | ||
| ROE | 28.42% | ||
| ROIC | 12.29% |
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
With a decent Profit Margin value of 7.53%, LDOS is doing good in the industry, outperforming 78.48% of the companies in the same industry.
LDOS's Profit Margin has improved in the last couple of years.
LDOS has a Operating Margin of 10.89%. This is in the better half of the industry: LDOS outperforms 75.95% of its industry peers.
LDOS's Operating Margin has improved in the last couple of years.
LDOS's Gross Margin of 16.79% is on the low side compared to the rest of the industry. LDOS is outperformed by 82.28% of its industry peers.
In the last couple of years the Gross Margin of LDOS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 7.53% | ||
| GM | 16.79% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LDOS is still creating some value.
Compared to 1 year ago, LDOS has less shares outstanding
Compared to 5 years ago, LDOS has less shares outstanding
LDOS has a better debt/assets ratio than last year.
2.2 Solvency
LDOS has an Altman-Z score of 3.34. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
LDOS has a better Altman-Z score (3.34) than 60.76% of its industry peers.
LDOS has a debt to FCF ratio of 3.76. This is a good value and a sign of high solvency as LDOS would need 3.76 years to pay back of all of its debts.
The Debt to FCF ratio of LDOS (3.76) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.92 indicates that LDOS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, LDOS is doing worse than 72.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.76 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.45
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.21 indicates that LDOS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, LDOS perfoms like the industry average, outperforming 43.04% of the companies in the same industry.
LDOS has a Quick Ratio of 1.13. This is a normal value and indicates that LDOS is financially healthy and should not expect problems in meeting its short term obligations.
LDOS's Quick ratio of 1.13 is on the low side compared to the rest of the industry. LDOS is outperformed by 60.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.19% over the past year.
LDOS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.65% yearly.
LDOS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.93%.
Measured over the past years, LDOS shows a quite strong growth in Revenue. The Revenue has been growing by 8.47% on average per year.
EPS 1Y (TTM)40.19%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%19.1%
Revenue 1Y (TTM)7.93%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%9.67%
3.2 Future
LDOS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.34% yearly.
The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y7.24%
EPS Next 2Y8.19%
EPS Next 3Y7.34%
EPS Next 5YN/A
Revenue Next Year4.32%
Revenue Next 2Y4.2%
Revenue Next 3Y3.82%
Revenue Next 5YN/A
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
LDOS is valuated correctly with a Price/Earnings ratio of 12.41.
Based on the Price/Earnings ratio, LDOS is valued a bit cheaper than the industry average as 79.75% of the companies are valued more expensively.
LDOS is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
LDOS is valuated reasonably with a Price/Forward Earnings ratio of 11.57.
LDOS's Price/Forward Earnings ratio is rather cheap when compared to the industry. LDOS is cheaper than 81.01% of the companies in the same industry.
LDOS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
74.68% of the companies in the same industry are more expensive than LDOS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LDOS is valued a bit cheaper than 79.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.38 | ||
| EV/EBITDA | 9.87 |
4.3 Compensation for Growth
LDOS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LDOS may justify a higher PE ratio.
PEG (NY)1.71
PEG (5Y)0.85
EPS Next 2Y8.19%
EPS Next 3Y7.34%
5. Dividend
5.1 Amount
LDOS has a Yearly Dividend Yield of 1.22%.
The stock price of LDOS dropped by -23.38% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
LDOS's Dividend Yield is a higher than the industry average which is at 1.93.
Compared to an average S&P500 Dividend Yield of 2.29, LDOS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
The dividend of LDOS has a limited annual growth rate of 2.96%.
LDOS has been paying a dividend for at least 10 years, so it has a reliable track record.
As LDOS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.96%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
LDOS pays out 16.59% of its income as dividend. This is a sustainable payout ratio.
LDOS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.59%
EPS Next 2Y8.19%
EPS Next 3Y7.34%
126.82
-3.23 (-2.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners78.32%
Inst Owner Change-1.67%
Ins Owners0.49%
Ins Owner Change3.92%
Market Cap16.63B
Analysts80
Price Target174.19 (37.35%)
Short Float %2.54%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend1.47
Dividend Growth(5Y)2.96%
DP16.59%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.22%
Min EPS beat(2)2.22%
Max EPS beat(2)42.23%
EPS beat(4)4
Avg EPS beat(4)22.59%
Min EPS beat(4)2.22%
Max EPS beat(4)42.23%
EPS beat(8)7
Avg EPS beat(8)15.61%
EPS beat(12)9
Avg EPS beat(12)11.51%
EPS beat(16)11
Avg EPS beat(16)9.47%
Revenue beat(2)2
Avg Revenue beat(2)2.29%
Min Revenue beat(2)1.04%
Max Revenue beat(2)3.53%
Revenue beat(4)3
Avg Revenue beat(4)1.58%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)3.53%
Revenue beat(8)6
Avg Revenue beat(8)1.38%
Revenue beat(12)8
Avg Revenue beat(12)1%
Revenue beat(16)9
Avg Revenue beat(16)0.28%
PT rev (1m)-4.34%
PT rev (3m)4.62%
EPS NQ rev (1m)1.57%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 11.57 | ||
| P/S | 1 | ||
| P/FCF | 13.38 | ||
| P/OCF | 11.95 | ||
| P/B | 3.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.87 |
EPS(TTM)10.22
EY8.06%
EPS(NY)10.96
Fwd EY8.64%
FCF(TTM)9.48
FCFY7.47%
OCF(TTM)10.61
OCFY8.37%
SpS127.03
BVpS33.64
TBVpS-16.69
PEG (NY)1.71
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.57% | ||
| ROE | 28.42% | ||
| ROCE | 19.21% | ||
| ROIC | 12.29% | ||
| ROICexc | 13.65% | ||
| ROICexgc | 60.92% | ||
| OM | 10.89% | ||
| PM (TTM) | 7.53% | ||
| GM | 16.79% | ||
| FCFM | 7.46% |
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%
ROICexcg growth 3Y4.26%
ROICexcg 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 Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 3.76 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 51.38% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 8.03 | ||
| Cash Conversion | 66.13% | ||
| Profit Quality | 99.12% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.34 |
F-Score8
WACC8.47%
ROIC/WACC1.45
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)40.19%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%19.1%
EPS Next Y7.24%
EPS Next 2Y8.19%
EPS Next 3Y7.34%
EPS Next 5YN/A
Revenue 1Y (TTM)7.93%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%9.67%
Revenue Next Year4.32%
Revenue Next 2Y4.2%
Revenue Next 3Y3.82%
Revenue Next 5YN/A
EBIT growth 1Y39.4%
EBIT growth 3Y15.99%
EBIT growth 5Y15.09%
EBIT Next Year11.65%
EBIT Next 3Y6.27%
EBIT Next 5YN/A
FCF growth 1Y29.75%
FCF growth 3Y10.27%
FCF growth 5Y7.37%
OCF growth 1Y19.49%
OCF growth 3Y10.52%
OCF growth 5Y7.01%