LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LDOS - US5253271028 - Common Stock
183.47 USD
+3.07 (+1.7%)
183.47 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LDOS. LDOS was compared to 86 industry peers in the Professional Services industry. While LDOS has a great profitability rating, there are some minor concerns on its financial health. LDOS has a decent growth rate and is not valued too expensively.
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.
In the past 5 years LDOS has always been profitable.
LDOS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.38%, LDOS belongs to the top of the industry, outperforming 82.56% of the companies in the same industry.
LDOS has a better Return On Equity (28.62%) than 83.72% of its industry peers.
The Return On Invested Capital of LDOS (12.37%) is better than 76.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LDOS is below the industry average of 12.04%.
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 74.42% of its industry peers.
In the last couple of years the Profit Margin of LDOS has grown nicely.
The Operating Margin of LDOS (11.78%) is better than 74.42% of its industry peers.
LDOS's Operating Margin has improved in the last couple of years.
The Gross Margin of LDOS (17.61%) is worse than 76.74% of its industry peers.
LDOS's Gross Margin has improved in the last couple of years.
| 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.
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 4.00. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LDOS (4.00) is better than 77.91% 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's Debt to FCF ratio of 3.36 is fine compared to the rest of the industry. LDOS outperforms 63.95% of its industry peers.
LDOS has a Debt/Equity ratio of 0.94. This is a neutral value indicating LDOS is somewhat dependend on debt financing.
The Debt to Equity ratio of LDOS (0.94) is worse than 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4 |
ROIC/WACC1.57
WACC7.88%
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 Current ratio (1.62) which is in line with its industry peers.
A Quick Ratio of 1.50 indicates that LDOS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, LDOS is in line with its industry, outperforming 53.49% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 14.65% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.48% in the past 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 2Y4.41%
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.
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 15.82, the valuation of LDOS can be described as correct.
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.
LDOS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
With a Price/Forward Earnings ratio of 14.61, LDOS is valued correctly.
Based on the Price/Forward Earnings ratio, LDOS is valued a bit cheaper than the industry average as 69.77% 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 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 14.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
74.42% 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 | 16.93 | ||
| EV/EBITDA | 11.45 |
4.3 Compensation for Growth
The 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)1.08
EPS Next 2Y10.84%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
LDOS has a yearly dividend return of 0.92%, which is pretty low.
Compared to an average industry Dividend Yield of 1.59, LDOS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.92, LDOS pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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
LDOS pays out 14.88% of its income as dividend. This is a sustainable payout ratio.
The dividend of LDOS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.88%
EPS Next 2Y10.84%
EPS Next 3Y8.7%
183.47
+3.07 (+1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners80.74%
Inst Owner Change1%
Ins Owners0.49%
Ins Owner Change-0.95%
Market Cap23.46B
Revenue(TTM)17.33B
Net Income(TTM)1.41B
Analysts80
Price Target223.56 (21.85%)
Short Float %2.07%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend1.47
Dividend Growth(5Y)2.96%
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)16.87%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-4.23%
EPS NY rev (1m)1.86%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 14.61 | ||
| P/S | 1.35 | ||
| P/FCF | 16.93 | ||
| P/OCF | 15.1 | ||
| P/B | 4.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.45 |
EPS(TTM)11.6
EY6.32%
EPS(NY)12.56
Fwd EY6.84%
FCF(TTM)10.84
FCFY5.91%
OCF(TTM)12.15
OCFY6.62%
SpS135.55
BVpS38.39
TBVpS-15.09
PEG (NY)0.9
PEG (5Y)1.08
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 |
F-Score8
WACC7.88%
ROIC/WACC1.57
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 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 15.82 and the Price/Book (PB) ratio is 4.78.
What is the financial health of LEIDOS HOLDINGS INC (LDOS) stock?
The financial health rating of LEIDOS HOLDINGS INC (LDOS) is 6 / 10.