LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
USA - NYSE:LDOS - US5253271028 - Common Stock
195.07 USD
-4.48 (-2.25%)
195.07 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LDOS. LDOS was compared to 87 industry peers in the Professional Services industry. LDOS scores excellent on profitability, 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
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.
In the past 5 years LDOS always reported a positive cash flow from operatings.
1.2 Ratios
LDOS's Return On Assets of 10.35% is amongst the best of the industry. LDOS outperforms 86.21% of its industry peers.
The Return On Equity of LDOS (30.07%) is better than 83.91% of its industry peers.
The Return On Invested Capital of LDOS (12.20%) is better than 77.01% of its industry peers.
LDOS had an Average Return On Invested Capital over the past 3 years of 9.60%. This is below the industry average of 13.25%.
The last Return On Invested Capital (12.20%) for LDOS is above the 3 year average (9.60%), which is a sign of increasing profitability.
| 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 79.31% 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 75.86% 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 17.56%, LDOS is doing worse than 77.01% 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 | 11.85% | ||
| 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
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
LDOS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LDOS has been reduced compared to a year ago.
2.2 Solvency
LDOS has an Altman-Z score of 4.06. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
LDOS has a better Altman-Z score (4.06) than 75.86% 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 better Debt to FCF ratio (3.81) than 62.07% 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.
LDOS has a worse Debt to Equity ratio (1.07) than 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.81 | ||
| Altman-Z | 4.06 |
ROIC/WACC1.55
WACC7.85%
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 has a better Current ratio (1.62) than 63.22% 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 has a Quick ratio of 1.50. This is comparable to the rest of the industry: LDOS outperforms 56.32% 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.
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 7.93% in the past year.
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)7.93%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%6.66%
3.2 Future
The Earnings Per Share is expected to grow by 7.64% on average over the next years.
LDOS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.11% yearly.
EPS Next Y15.37%
EPS Next 2Y9.37%
EPS Next 3Y7.88%
EPS Next 5Y7.64%
Revenue Next Year4.53%
Revenue Next 2Y4.06%
Revenue Next 3Y3.77%
Revenue Next 5Y4.11%
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
A Price/Earnings ratio of 16.82 indicates a correct valuation of LDOS.
Based on the Price/Earnings ratio, LDOS is valued a bit cheaper than 66.67% of the companies in the same industry.
LDOS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.96, the valuation of LDOS can be described as correct.
LDOS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LDOS is cheaper than 63.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, LDOS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than 67.82% 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 64.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.69 | ||
| EV/EBITDA | 12.88 |
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)1.09
PEG (5Y)1.15
EPS Next 2Y9.37%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, LDOS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.44, LDOS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.88, LDOS pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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
14.91% 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.
DP14.91%
EPS Next 2Y9.37%
EPS Next 3Y7.88%
195.07
-4.48 (-2.25%)
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 Cap25.03B
Revenue(TTM)16.66B
Net Income(TTM)1.40B
Analysts80
Price Target197.81 (1.4%)
Short Float %2.08%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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)3.4%
PT rev (3m)12.98%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)1.64%
EPS NY rev (1m)0.49%
EPS NY rev (3m)6.16%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 15.96 | ||
| P/S | 1.47 | ||
| P/FCF | 18.69 | ||
| P/OCF | 16.7 | ||
| P/B | 5.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.88 |
EPS(TTM)11.6
EY5.95%
EPS(NY)12.22
Fwd EY6.27%
FCF(TTM)10.44
FCFY5.35%
OCF(TTM)11.68
OCFY5.99%
SpS132.92
BVpS36.34
TBVpS-17.24
PEG (NY)1.09
PEG (5Y)1.15
Graham Number97.39
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%
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 Turnover1.26
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 | 4.06 |
F-Score8
WACC7.85%
ROIC/WACC1.55
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 Y15.37%
EPS Next 2Y9.37%
EPS Next 3Y7.88%
EPS Next 5Y7.64%
Revenue 1Y (TTM)7.93%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%6.66%
Revenue Next Year4.53%
Revenue Next 2Y4.06%
Revenue Next 3Y3.77%
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%
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 of LEIDOS HOLDINGS INC (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.
Can you provide the PE and PB ratios for LDOS stock?
The Price/Earnings (PE) ratio for LEIDOS HOLDINGS INC (LDOS) is 16.82 and the Price/Book (PB) ratio is 5.37.
How financially healthy is LEIDOS HOLDINGS INC?
The financial health rating of LEIDOS HOLDINGS INC (LDOS) is 6 / 10.