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%)
We assign a fundamental rating of 6 out of 10 to LDOS. LDOS was compared to 86 industry peers in the Professional Services industry. LDOS has an excellent profitability rating, but 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.
Each year in the past 5 years LDOS has been profitable.
LDOS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LDOS has a better Return On Assets (10.38%) than 82.56% of its industry peers.
LDOS's Return On Equity of 28.62% is amongst the best of the industry. LDOS outperforms 86.05% of its industry peers.
LDOS has a Return On Invested Capital of 12.37%. This is in the better half of the industry: LDOS outperforms 77.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LDOS is below the industry average of 11.86%.
The 3 year average ROIC (9.60%) for LDOS is below the current ROIC(12.37%), indicating increased profibility in the last year.
| 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 has a Operating Margin of 11.78%. This is in the better half of the industry: LDOS outperforms 74.42% of its industry peers.
In the last couple of years the Operating Margin of LDOS has grown nicely.
Looking at the Gross Margin, with a value of 17.61%, LDOS is doing worse than 76.74% of the companies in the same industry.
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.
Compared to 1 year ago, LDOS has less shares outstanding
The number of shares outstanding for LDOS has been reduced compared to 5 years ago.
The debt/assets ratio for LDOS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.13 indicates that LDOS is not in any danger for bankruptcy at the moment.
LDOS has a Altman-Z score of 4.13. This is in the better half of the industry: LDOS outperforms 76.74% 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.
LDOS has a better Debt to FCF ratio (3.36) than 63.95% 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 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.13 |
ROIC/WACC1.56
WACC7.94%
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.
LDOS's Current ratio of 1.62 is in line compared to the rest of the industry. LDOS outperforms 58.14% of its industry peers.
A Quick Ratio of 1.50 indicates that LDOS should not have too much problems paying its short term obligations.
LDOS's Quick ratio of 1.50 is in line compared to the rest of the industry. LDOS outperforms 53.49% of its industry peers.
| 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 17.89%, which is quite good.
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%.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
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.
LDOS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
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.
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 rather expensively with a Price/Earnings ratio of 17.10.
Based on the Price/Earnings ratio, LDOS is valued a bit cheaper than the industry average as 70.93% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.19, LDOS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.80, the valuation of LDOS can be described as correct.
Based on the Price/Forward Earnings ratio, LDOS is valued a bit cheaper than the industry average as 67.44% of the companies are valued more expensively.
LDOS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 15.8 |
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 68.60% of the companies listed in the same industry.
72.09% of the companies in the same industry are more expensive than LDOS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.3 | ||
| EV/EBITDA | 12.26 |
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)0.98
PEG (5Y)1.17
EPS Next 2Y10.84%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, LDOS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.54, LDOS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, LDOS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
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)N/A
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
14.88% of the earnings are spent on dividend by LDOS. This is a low number and 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%
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 | 0.95% |
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)2.97%
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 | 12.26 |
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 | 4.13 |
F-Score8
WACC7.94%
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.