LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
USA - NYSE:LDOS - US5253271028 - Common Stock
186.57 USD
-0.7 (-0.37%)
186.57 USD
0 (0%)
LDOS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. While LDOS has a great profitability rating, there are some minor concerns on its financial health. LDOS is not valued too expensively and it also shows a decent 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.
In the past 5 years LDOS has always been profitable.
LDOS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LDOS's Return On Assets of 10.35% is amongst the best of the industry. LDOS outperforms 84.15% of its industry peers.
LDOS has a Return On Equity of 30.07%. This is amongst the best in the industry. LDOS outperforms 82.93% of its industry peers.
LDOS's Return On Invested Capital of 12.20% is fine compared to the rest of the industry. LDOS outperforms 74.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LDOS is below the industry average of 13.40%.
The 3 year average ROIC (9.60%) for LDOS is below the current ROIC(12.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 30.07% | ||
| ROIC | 12.2% |
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 8.22%, LDOS is doing good in the industry, outperforming 78.05% of the companies in the same industry.
In the last couple of years the Profit Margin of LDOS has grown nicely.
LDOS's Operating Margin of 11.85% is fine compared to the rest of the industry. LDOS outperforms 74.39% of its industry peers.
In the last couple of years the Operating Margin of LDOS has grown nicely.
With a Gross Margin value of 17.56%, LDOS is not doing good in the industry: 79.27% 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 | 11.85% | ||
| PM (TTM) | 8.22% | ||
| GM | 17.56% |
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
LDOS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LDOS has been reduced compared to 1 year ago.
Compared to 5 years ago, LDOS has less shares outstanding
LDOS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.95 indicates that LDOS is not in any danger for bankruptcy at the moment.
LDOS's Altman-Z score of 3.95 is fine compared to the rest of the industry. LDOS outperforms 70.73% of its industry peers.
The Debt to FCF ratio of LDOS is 3.81, which is a good value as it means it would take LDOS, 3.81 years of fcf income to pay off all of its debts.
LDOS has a Debt to FCF ratio of 3.81. This is in the better half of the industry: LDOS outperforms 60.98% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that LDOS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.07, LDOS is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.81 | ||
| Altman-Z | 3.95 |
ROIC/WACC1.57
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.62 indicates that LDOS should not have too much problems paying its short term obligations.
LDOS has a Current ratio of 1.62. This is in the better half of the industry: LDOS outperforms 62.20% of its industry peers.
LDOS has a Quick Ratio of 1.50. This is a normal value and indicates that LDOS is financially healthy and should not expect problems in meeting its short term obligations.
LDOS has a Quick ratio (1.50) which 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
LDOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.41%, 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 14.65% on average per year.
The Revenue has been growing slightly by 6.53% in the past 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)28.41%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%22.05%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%2.93%
3.2 Future
Based on estimates for the next years, LDOS will show a small growth in Earnings Per Share. The EPS will grow by 7.64% on average per year.
The Revenue is expected to grow by 4.11% on average over the next years.
EPS Next Y14.81%
EPS Next 2Y8.68%
EPS Next 3Y7.94%
EPS Next 5Y7.64%
Revenue Next Year4.51%
Revenue Next 2Y4.03%
Revenue Next 3Y3.73%
Revenue Next 5Y4.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LDOS is valuated correctly with a Price/Earnings ratio of 16.25.
68.29% of the companies in the same industry are more expensive than LDOS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LDOS to the average of the S&P500 Index (27.55), we can say LDOS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.46, LDOS is valued correctly.
Based on the Price/Forward Earnings ratio, LDOS is valued a bit cheaper than the industry average as 67.07% of the companies are valued more expensively.
LDOS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LDOS indicates a somewhat cheap valuation: LDOS is cheaper than 69.51% of the companies listed in the same industry.
LDOS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LDOS is cheaper than 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.88 | ||
| EV/EBITDA | 12.2 |
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)1.1
PEG (5Y)1.11
EPS Next 2Y8.68%
EPS Next 3Y7.94%
5. Dividend
5.1 Amount
LDOS has a yearly dividend return of 0.82%, which is pretty low.
LDOS's Dividend Yield is a higher than the industry average which is at 3.90.
Compared to an average S&P500 Dividend Yield of 2.43, LDOS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
The dividend of LDOS has a limited annual growth rate of 2.96%.
LDOS has paid a dividend for at least 10 years, which is 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 14.91% 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.
DP14.91%
EPS Next 2Y8.68%
EPS Next 3Y7.94%
186.57
-0.7 (-0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners80.04%
Inst Owner Change0.03%
Ins Owners0.48%
Ins Owner Change-0.02%
Market Cap23.94B
Analysts80
Price Target192.79 (3.33%)
Short Float %2.69%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend1.47
Dividend Growth(5Y)2.96%
DP14.91%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.5%
Min EPS beat(2)16.5%
Max EPS beat(2)18.49%
EPS beat(4)4
Avg EPS beat(4)19.86%
Min EPS beat(4)2.22%
Max EPS beat(4)42.23%
EPS beat(8)8
Avg EPS beat(8)19.59%
EPS beat(12)10
Avg EPS beat(12)14.19%
EPS beat(16)12
Avg EPS beat(16)11.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)1.46%
Revenue beat(4)3
Avg Revenue beat(4)1.11%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)3.53%
Revenue beat(8)6
Avg Revenue beat(8)1.33%
Revenue beat(12)7
Avg Revenue beat(12)0.87%
Revenue beat(16)9
Avg Revenue beat(16)0.26%
PT rev (1m)2.67%
PT rev (3m)12.15%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)1.09%
EPS NY rev (1m)0.08%
EPS NY rev (3m)5.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 15.46 | ||
| P/S | 1.4 | ||
| P/FCF | 17.88 | ||
| P/OCF | 15.97 | ||
| P/B | 5.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.2 |
EPS(TTM)11.48
EY6.15%
EPS(NY)12.07
Fwd EY6.47%
FCF(TTM)10.44
FCFY5.59%
OCF(TTM)11.68
OCFY6.26%
SpS132.92
BVpS36.34
TBVpS-17.24
PEG (NY)1.1
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 30.07% | ||
| ROCE | 19.06% | ||
| ROIC | 12.2% | ||
| ROICexc | 13.37% | ||
| ROICexgc | 46.22% | ||
| OM | 11.85% | ||
| PM (TTM) | 8.22% | ||
| GM | 17.56% | ||
| FCFM | 7.85% |
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 Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.81 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 54.98% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 9.23 | ||
| Cash Conversion | 64.84% | ||
| Profit Quality | 95.51% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.95 |
F-Score8
WACC7.76%
ROIC/WACC1.57
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)28.41%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%22.05%
EPS Next Y14.81%
EPS Next 2Y8.68%
EPS Next 3Y7.94%
EPS Next 5Y7.64%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%2.93%
Revenue Next Year4.51%
Revenue Next 2Y4.03%
Revenue Next 3Y3.73%
Revenue Next 5Y4.11%
EBIT growth 1Y26.63%
EBIT growth 3Y15.99%
EBIT growth 5Y15.09%
EBIT Next Year21.18%
EBIT Next 3Y7.77%
EBIT Next 5Y6.85%
FCF growth 1Y76.18%
FCF growth 3Y10.27%
FCF growth 5Y7.37%
OCF growth 1Y63.11%
OCF growth 3Y10.52%
OCF growth 5Y7.01%