LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LDOS • US5253271028
188.28 USD
+1.09 (+0.58%)
At close: Jan 30, 2026
188.28 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, LDOS scores 6 out of 10 in our fundamental rating. LDOS was compared to 89 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
- 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.
- In the past 5 years LDOS always reported a positive cash flow from operatings.
1.2 Ratios
- LDOS has a Return On Assets of 10.38%. This is amongst the best in the industry. LDOS outperforms 83.15% of its industry peers.
- LDOS has a better Return On Equity (28.62%) than 86.52% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.37%, LDOS is in the better half of the industry, outperforming 78.65% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for LDOS is below the industry average of 12.02%.
- 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 Profit Margin of 8.11%. This is in the better half of the industry: LDOS outperforms 75.28% of its industry peers.
- LDOS's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 11.78%, LDOS is in the better half of the industry, outperforming 75.28% of the companies in the same industry.
- LDOS's Operating Margin has improved in the last couple of years.
- The Gross Margin of LDOS (17.61%) is worse than 75.28% of its industry peers.
- In the last couple of years the Gross Margin of LDOS has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LDOS is still creating some value.
- LDOS has less shares outstanding than it did 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
- LDOS has an Altman-Z score of 4.07. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of LDOS (4.07) is better than 77.53% of its industry peers.
- LDOS has a debt to FCF ratio of 3.36. This is a good value and a sign of high solvency as LDOS would need 3.36 years to pay back of all of its debts.
- The Debt to FCF ratio of LDOS (3.36) is better than 65.17% of its industry peers.
- A Debt/Equity ratio of 0.94 indicates that 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 67.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.56
WACC7.95%
2.3 Liquidity
- LDOS has a Current Ratio of 1.62. This is a normal value and indicates that LDOS is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of LDOS (1.62) is comparable to the rest of the industry.
- 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
- The Earnings Per Share has grown by an nice 17.89% 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 6.48%.
- 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)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
- Based on estimates for the next years, LDOS will show a small growth in Earnings Per Share. The EPS will grow by 6.98% on average per year.
- Based on estimates for the next years, LDOS will show a small growth in Revenue. The Revenue will grow by 3.39% on average per year.
EPS Next Y18%
EPS Next 2Y10.86%
EPS Next 3Y8.75%
EPS Next 5Y6.98%
Revenue Next Year5.12%
Revenue Next 2Y4.34%
Revenue Next 3Y3.96%
Revenue Next 5Y3.39%
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.
- 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
- Based on the Price/Earnings ratio of 16.23, the valuation of LDOS can be described as correct.
- Based on the Price/Earnings ratio, LDOS is valued a bit cheaper than 69.66% of the companies in the same industry.
- LDOS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
- The Price/Forward Earnings ratio is 14.99, which indicates a correct valuation of LDOS.
- Based on the Price/Forward Earnings ratio, LDOS is valued a bit cheaper than 68.54% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. LDOS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.23 | ||
| Fwd PE | 14.99 |
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 70.79% 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 73.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.37 | ||
| EV/EBITDA | 11.88 |
4.3 Compensation for Growth
- LDOS's 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.
PEG (NY)0.9
PEG (5Y)1.11
EPS Next 2Y10.86%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
- LDOS has a yearly dividend return of 0.92%, which is pretty low.
- LDOS's Dividend Yield is a higher than the industry average which is at 1.47.
- Compared to an average S&P500 Dividend Yield of 1.83, LDOS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 2Y10.86%
EPS Next 3Y8.75%
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 6 / 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 16.23 and the Price/Book (PB) ratio is 4.9.
What is the financial health of LEIDOS HOLDINGS INC (LDOS) stock?
The financial health rating of LEIDOS HOLDINGS INC (LDOS) is 6 / 10.