LEIDOS HOLDINGS INC (LDOS)
US5253271028 - Common Stock
LDOS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 80 industry peers in the Professional Services industry. LDOS has an average financial health and profitability rating. LDOS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make LDOS a good candidate for value investing.
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.
LDOS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.99%, LDOS is doing good in the industry, outperforming 77.92% of the companies in the same industry.
LDOS has a better Return On Equity (25.99%) than 77.92% of its industry peers.
LDOS's Return On Invested Capital of 11.98% is fine compared to the rest of the industry. LDOS outperforms 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LDOS is significantly below the industry average of 18.16%.
The last Return On Invested Capital (11.98%) for LDOS is above the 3 year average (8.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 25.99% | ||
| ROIC | 11.98% |
ROA(3y)4.16%
ROA(5y)4.93%
ROE(3y)12.74%
ROE(5y)14.8%
ROIC(3y)8.1%
ROIC(5y)7.92%
1.3 Margins
With a decent Profit Margin value of 7.37%, LDOS is doing good in the industry, outperforming 75.32% of the companies in the same industry.
LDOS's Profit Margin has declined in the last couple of years.
LDOS has a Operating Margin of 10.83%. This is in the better half of the industry: LDOS outperforms 75.32% of its industry peers.
LDOS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 16.59%, LDOS is not doing good in the industry: 83.12% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of LDOS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.83% | ||
| PM (TTM) | 7.37% | ||
| GM | 16.59% |
OM growth 3Y0.07%
OM growth 5Y2.1%
PM growth 3Y-36.8%
PM growth 5Y-25.72%
GM growth 3Y0.96%
GM growth 5Y-0.3%
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.
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.
Compared to 1 year ago, LDOS has an improved debt to assets ratio.
2.2 Solvency
LDOS has an Altman-Z score of 3.40. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
LDOS has a Altman-Z score (3.40) which is comparable to the rest of the industry.
The Debt to FCF ratio of LDOS is 3.72, which is a good value as it means it would take LDOS, 3.72 years of fcf income to pay off all of its debts.
LDOS has a Debt to FCF ratio (3.72) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.88 indicates that LDOS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.88, LDOS is not doing good in the industry: 67.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 3.4 |
ROIC/WACC1.38
WACC8.66%
2.3 Liquidity
LDOS has a Current Ratio of 1.23. 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 Current ratio (1.23) which is in line with its industry peers.
A Quick Ratio of 1.15 indicates that LDOS should not have too much problems paying its short term obligations.
The Quick ratio of LDOS (1.15) is worse than 62.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.01% over the past year.
Measured over the past years, LDOS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.68% on average per year.
The Revenue has been growing slightly by 7.40% in the past year.
Measured over the past years, LDOS shows a quite strong growth in Revenue. The Revenue has been growing by 8.65% on average per year.
EPS 1Y (TTM)38.01%
EPS 3Y7.67%
EPS 5Y10.68%
EPS Q2Q%44.33%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y7.88%
Revenue growth 5Y8.65%
Sales Q2Q%6.86%
3.2 Future
The Earnings Per Share is expected to grow by 17.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.90% on average over the next years.
EPS Next Y41.55%
EPS Next 2Y21.76%
EPS Next 3Y17.03%
EPS Next 5YN/A
Revenue Next Year7.59%
Revenue Next 2Y5.44%
Revenue Next 3Y4.9%
Revenue Next 5YN/A
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 accelerating.
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
Based on the Price/Earnings ratio of 14.72, the valuation of LDOS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of LDOS indicates a somewhat cheap valuation: LDOS is cheaper than 77.92% of the companies listed in the same industry.
LDOS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.40, LDOS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LDOS indicates a somewhat cheap valuation: LDOS is cheaper than 77.92% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LDOS to the average of the S&P500 Index (22.83), we can say LDOS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 13.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than 76.62% of the companies in the same industry.
80.52% 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 | 15.38 | ||
| EV/EBITDA | 11.09 |
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.
LDOS's earnings are expected to grow with 17.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)1.38
EPS Next 2Y21.76%
EPS Next 3Y17.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.12%, LDOS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.84, LDOS pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.12, LDOS pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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.
LDOS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.96%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
17.18% of the earnings are spent on dividend by LDOS. This is a low number and sustainable payout ratio.
LDOS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.18%
EPS Next 2Y21.76%
EPS Next 3Y17.03%
LEIDOS HOLDINGS INC
NYSE:LDOS (12/20/2024, 8:21:58 PM)
After market: 142.351 -2.46 (-1.7%)144.81
+1.61 (+1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners78.32%
Inst Owner Change-0.34%
Ins Owners0.49%
Ins Owner Change-0.23%
Market Cap19.32B
Analysts82.73
Price Target209.55 (44.71%)
Short Float %1.97%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Dividend Growth(5Y)2.96%
DP17.18%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.9%
Min EPS beat(2)13.57%
Max EPS beat(2)42.23%
EPS beat(4)4
Avg EPS beat(4)25.01%
Min EPS beat(4)11.9%
Max EPS beat(4)42.23%
EPS beat(8)7
Avg EPS beat(8)16.78%
EPS beat(12)8
Avg EPS beat(12)10.97%
EPS beat(16)10
Avg EPS beat(16)9.27%
Revenue beat(2)1
Avg Revenue beat(2)0.37%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)1.04%
Revenue beat(4)3
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)2.58%
Revenue beat(8)5
Avg Revenue beat(8)0.94%
Revenue beat(12)7
Avg Revenue beat(12)0.5%
Revenue beat(16)8
Avg Revenue beat(16)-0.31%
PT rev (1m)16.4%
PT rev (3m)22.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.04%
EPS NY rev (1m)2.36%
EPS NY rev (3m)11.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 13.4 | ||
| P/S | 1.19 | ||
| P/FCF | 15.38 | ||
| P/OCF | 13.83 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.09 |
EPS(TTM)9.84
EY6.8%
EPS(NY)10.81
Fwd EY7.46%
FCF(TTM)9.41
FCFY6.5%
OCF(TTM)10.47
OCFY7.23%
SpS121.99
BVpS34.58
TBVpS-15.49
PEG (NY)0.35
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 25.99% | ||
| ROCE | 18.45% | ||
| ROIC | 11.98% | ||
| ROICexc | 13.67% | ||
| ROICexgc | 67.72% | ||
| OM | 10.83% | ||
| PM (TTM) | 7.37% | ||
| GM | 16.59% | ||
| FCFM | 7.72% |
ROA(3y)4.16%
ROA(5y)4.93%
ROE(3y)12.74%
ROE(5y)14.8%
ROIC(3y)8.1%
ROIC(5y)7.92%
ROICexc(3y)8.71%
ROICexc(5y)8.54%
ROICexgc(3y)56.83%
ROICexgc(5y)55.39%
ROCE(3y)12.48%
ROCE(5y)12.2%
ROICexcg growth 3Y-3.17%
ROICexcg growth 5Y-7.38%
ROICexc growth 3Y8.56%
ROICexc growth 5Y3.74%
OM growth 3Y0.07%
OM growth 5Y2.1%
PM growth 3Y-36.8%
PM growth 5Y-25.72%
GM growth 3Y0.96%
GM growth 5Y-0.3%
F-Score8
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 3.72 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 47.96% | ||
| Cap/Sales | 0.87% | ||
| Interest Coverage | 8.24 | ||
| Cash Conversion | 67.91% | ||
| Profit Quality | 104.75% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 3.4 |
F-Score8
WACC8.66%
ROIC/WACC1.38
Cap/Depr(3y)44.43%
Cap/Depr(5y)49.98%
Cap/Sales(3y)1%
Cap/Sales(5y)1.11%
Profit Quality(3y)243.21%
Profit Quality(5y)208.7%
High Growth Momentum
Growth
EPS 1Y (TTM)38.01%
EPS 3Y7.67%
EPS 5Y10.68%
EPS Q2Q%44.33%
EPS Next Y41.55%
EPS Next 2Y21.76%
EPS Next 3Y17.03%
EPS Next 5YN/A
Revenue 1Y (TTM)7.4%
Revenue growth 3Y7.88%
Revenue growth 5Y8.65%
Sales Q2Q%6.86%
Revenue Next Year7.59%
Revenue Next 2Y5.44%
Revenue Next 3Y4.9%
Revenue Next 5YN/A
EBIT growth 1Y42.18%
EBIT growth 3Y7.95%
EBIT growth 5Y10.93%
EBIT Next Year41.4%
EBIT Next 3Y14.39%
EBIT Next 5YN/A
FCF growth 1Y29.75%
FCF growth 3Y-5.93%
FCF growth 5Y6.63%
OCF growth 1Y29.71%
OCF growth 3Y-4.41%
OCF growth 5Y8.69%