LEIDOS HOLDINGS INC (LDOS)
US5253271028 - Common Stock
LDOS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. LDOS has only an average score on both its financial health and profitability. LDOS has a correct valuation and a medium 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.
In the past 5 years LDOS has always been profitable.
In the past 5 years LDOS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.99%, LDOS is in the better half of the industry, outperforming 79.22% of the companies in the same industry.
The Return On Equity of LDOS (25.99%) is better than 79.22% of its industry peers.
The Return On Invested Capital of LDOS (11.98%) is better than 72.73% of its industry peers.
LDOS had an Average Return On Invested Capital over the past 3 years of 8.10%. This is below the industry average of 12.35%.
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
LDOS has a better Profit Margin (7.37%) than 79.22% of its industry peers.
In the last couple of years the Profit Margin of LDOS has declined.
With a decent Operating Margin value of 10.83%, LDOS is doing good in the industry, outperforming 79.22% of the companies in the same industry.
In the last couple of years the Operating Margin of LDOS has grown nicely.
Looking at the Gross Margin, with a value of 16.59%, LDOS is doing worse than 85.71% of the companies in the same industry.
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
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
Compared to 5 years ago, LDOS has less shares outstanding
LDOS has a better debt/assets ratio than last year.
2.2 Solvency
LDOS has an Altman-Z score of 3.56. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.56, LDOS is in the better half of the industry, outperforming 62.34% of the companies in the same industry.
LDOS has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as LDOS would need 3.72 years to pay back of 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.
Looking at the Debt to Equity ratio, with a value of 0.88, LDOS is doing worse than 68.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 3.56 |
ROIC/WACC1.49
WACC8.04%
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's Current ratio of 1.23 is in line compared to the rest of the industry. LDOS outperforms 40.26% of its industry peers.
LDOS has a Quick Ratio of 1.15. This is a normal value and indicates that LDOS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of LDOS (1.15) is worse than 64.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
LDOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.01%, which is quite impressive.
LDOS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.68% yearly.
LDOS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.40%.
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
Based on estimates for the next years, LDOS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.21% on average per year.
Based on estimates for the next years, LDOS will show a small growth in Revenue. The Revenue will grow by 5.06% on average per year.
EPS Next Y38.29%
EPS Next 2Y21.06%
EPS Next 3Y16.21%
EPS Next 5YN/A
Revenue Next Year7.4%
Revenue Next 2Y5.51%
Revenue Next 3Y5.06%
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.
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
The Price/Earnings ratio is 16.74, which indicates a correct valuation of LDOS.
Compared to the rest of the industry, the Price/Earnings ratio of LDOS indicates a somewhat cheap valuation: LDOS is cheaper than 72.73% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LDOS to the average of the S&P500 Index (28.96), we can say LDOS is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.41 indicates a correct valuation of LDOS.
Based on the Price/Forward Earnings ratio, LDOS is valued a bit cheaper than 70.13% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, LDOS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 15.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than 74.03% of the companies in the same industry.
76.62% 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 | 17.5 | ||
| EV/EBITDA | 12.21 |
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.
LDOS's earnings are expected to grow with 16.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)1.57
EPS Next 2Y21.06%
EPS Next 3Y16.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, LDOS is not a good candidate for dividend investing.
LDOS's Dividend Yield is a higher than the industry average which is at 1.81.
With a Dividend Yield of 0.95, LDOS pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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.
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 Years5
Div Non Decr Years6
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 2Y21.06%
EPS Next 3Y16.21%
LEIDOS HOLDINGS INC
NYSE:LDOS (11/21/2024, 5:27:29 PM)
After market: 164.69 0 (0%)164.69
+2.54 (+1.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 15.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.44
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 25.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.83% | ||
| PM (TTM) | 7.37% | ||
| GM | 16.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)38.01%
EPS 3Y7.67%
EPS 5Y
EPS Q2Q%
EPS Next Y38.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.4%
Revenue growth 3Y7.88%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y