LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
NYSE:LDOS - New York Stock Exchange, Inc. - US5253271028 - Common Stock
Taking everything into account, LDOS scores 6 out of 10 in our fundamental rating. LDOS was compared to 82 industry peers in the Professional Services industry. LDOS has only an average score on both its financial health and profitability. 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.
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 8.99%, LDOS is in the better half of the industry, outperforming 78.48% of the companies in the same industry.
The Return On Equity of LDOS (25.99%) is better than 79.75% of its industry peers.
LDOS has a better Return On Invested Capital (11.98%) than 73.42% 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 13.48%.
The 3 year average ROIC (8.10%) for LDOS is below the current ROIC(11.98%), indicating increased profibility in the last year.
| 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 77.22% of the companies in the same industry.
In the last couple of years the Profit Margin of LDOS has declined.
LDOS has a better Operating Margin (10.83%) than 75.95% of its industry peers.
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 82.28% 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
LDOS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, LDOS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.49 indicates that LDOS is not in any danger for bankruptcy at the moment.
The Altman-Z score of LDOS (3.49) is better than 62.03% of its industry peers.
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 in line with its industry peers.
LDOS has a Debt/Equity ratio of 0.88. This is a neutral value indicating LDOS is somewhat dependend on debt financing.
LDOS has a worse Debt to Equity ratio (0.88) than 68.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 3.49 |
ROIC/WACC1.37
WACC8.71%
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 43.04% of its industry peers.
A Quick Ratio of 1.15 indicates that LDOS should not have too much problems paying its short term obligations.
LDOS has a Quick ratio of 1.15. This is in the lower half of the industry: LDOS underperforms 62.03% 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%.
LDOS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.65% yearly.
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
LDOS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.77% yearly.
Based on estimates for the next years, LDOS will show a small growth in Revenue. The Revenue will grow by 4.66% on average per year.
EPS Next Y41.55%
EPS Next 2Y21.76%
EPS Next 3Y17.03%
EPS Next 5Y14.77%
Revenue Next Year7.59%
Revenue Next 2Y5.44%
Revenue Next 3Y4.9%
Revenue Next 5Y4.66%
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 16.32, which indicates a correct valuation of LDOS.
73.42% of the companies in the same industry are more expensive than LDOS, based on the Price/Earnings ratio.
LDOS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
LDOS is valuated correctly with a Price/Forward Earnings ratio of 14.86.
74.68% of the companies in the same industry are more expensive than LDOS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LDOS to the average of the S&P500 Index (24.44), we can say LDOS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than 73.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LDOS is valued a bit cheaper than 79.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.06 | ||
| EV/EBITDA | 11.76 |
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.
LDOS has a very decent profitability rating, which 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)0.39
PEG (5Y)1.53
EPS Next 2Y21.76%
EPS Next 3Y17.03%
5. Dividend
5.1 Amount
LDOS has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
LDOS's Dividend Yield is a higher than the industry average which is at 1.82.
Compared to an average S&P500 Dividend Yield of 2.28, LDOS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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 (1/21/2025, 8:11:28 PM)
After market: 160.58 0 (0%)160.58
+5.4 (+3.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners78.32%
Inst Owner Change-0.27%
Ins Owners0.49%
Ins Owner Change-0.23%
Market Cap21.43B
Analysts80.87
Price Target196.89 (22.61%)
Short Float %2.32%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend1.47
Dividend Growth(5Y)2.96%
DP17.18%
Div Incr Years6
Div Non Decr Years7
Ex-DateN/A
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)-6.04%
PT rev (3m)13.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.04%
EPS NY rev (1m)0%
EPS NY rev (3m)11.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 14.86 | ||
| P/S | 1.32 | ||
| P/FCF | 17.06 | ||
| P/OCF | 15.34 | ||
| P/B | 4.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.76 |
EPS(TTM)9.84
EY6.13%
EPS(NY)10.81
Fwd EY6.73%
FCF(TTM)9.41
FCFY5.86%
OCF(TTM)10.47
OCFY6.52%
SpS121.99
BVpS34.58
TBVpS-15.49
PEG (NY)0.39
PEG (5Y)1.53
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 | 3.49 |
F-Score8
WACC8.71%
ROIC/WACC1.37
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 5Y14.77%
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 5Y4.66%
EBIT growth 1Y42.18%
EBIT growth 3Y7.95%
EBIT growth 5Y10.93%
EBIT Next Year42.72%
EBIT Next 3Y14.82%
EBIT Next 5Y11.66%
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%