LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LDOS - US5253271028 - Common Stock
191.23 USD
-2.22 (-1.15%)
191.23 USD
0 (0%)
Overall LDOS gets a fundamental rating of 6 out of 10. We evaluated LDOS against 88 industry peers in the Professional Services industry. While LDOS belongs to the best of the industry regarding profitability, 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.
- LDOS had a positive operating cash flow in the past year.
- 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
- The Return On Assets of LDOS (10.38%) is better than 82.95% of its industry peers.
- With an excellent Return On Equity value of 28.62%, LDOS belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- The Return On Invested Capital of LDOS (12.37%) is better than 78.41% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LDOS is below the industry average of 11.85%.
- 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
- The Profit Margin of LDOS (8.11%) is better than 75.00% of its industry peers.
- In the last couple of years the Profit Margin of LDOS has grown nicely.
- LDOS has a better Operating Margin (11.78%) than 75.00% of its industry peers.
- LDOS's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 17.61%, LDOS is doing worse than 75.00% 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.
- 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 4.11 indicates that LDOS is not in any danger for bankruptcy at the moment.
- The Altman-Z score of LDOS (4.11) is better than 77.27% of its industry peers.
- The Debt to FCF ratio of LDOS is 3.36, which is a good value as it means it would take LDOS, 3.36 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of LDOS (3.36) is better than 64.77% 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 65.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.11 |
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.
- Looking at the Current ratio, with a value of 1.62, LDOS is in line with its industry, outperforming 59.09% of the companies in the same 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.
- Looking at the last year, LDOS shows a small growth in Revenue. The Revenue has grown by 6.48% in the last 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)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
- LDOS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.98% yearly.
- 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 2Y4.4%
Revenue Next 3Y4.05%
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
- With a Price/Earnings ratio of 16.49, LDOS is valued correctly.
- Based on the Price/Earnings ratio, LDOS is valued a bit cheaper than 70.45% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, LDOS is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.23, LDOS is valued correctly.
- Based on the Price/Forward Earnings ratio, LDOS is valued a bit cheaper than the industry average as 69.32% of the companies are valued more expensively.
- LDOS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 15.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than 70.45% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LDOS is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.64 | ||
| EV/EBITDA | 12.16 |
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)0.94
PEG (5Y)1.13
EPS Next 2Y10.84%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.89%, LDOS is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.43, LDOS pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.89, LDOS pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- LDOS has paid a dividend for at least 10 years, which is 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 2Y10.84%
EPS Next 3Y8.7%
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 16.49 and the Price/Book (PB) ratio is 4.98.
What is the financial health of LEIDOS HOLDINGS INC (LDOS) stock?
The financial health rating of LEIDOS HOLDINGS INC (LDOS) is 6 / 10.