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 87 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
- In the past year LDOS was profitable.
- In the past year LDOS had a positive cash flow from operations.
- LDOS had positive earnings in each of the past 5 years.
- LDOS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- LDOS has a better Return On Assets (10.38%) than 82.76% of its industry peers.
- LDOS has a Return On Equity of 28.62%. This is amongst the best in the industry. LDOS outperforms 86.21% of its industry peers.
- LDOS has a better Return On Invested Capital (12.37%) than 78.16% 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 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
- LDOS has a Profit Margin of 8.11%. This is in the better half of the industry: LDOS outperforms 74.71% of its industry peers.
- LDOS's Profit Margin has improved in the last couple of years.
- LDOS has a Operating Margin of 11.78%. This is in the better half of the industry: LDOS outperforms 74.71% of its industry peers.
- In the last couple of years the Operating Margin of LDOS has grown nicely.
- The Gross Margin of LDOS (17.61%) is worse than 74.71% of its industry peers.
- 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
- 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
- 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 4.09. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
- LDOS's Altman-Z score of 4.09 is fine compared to the rest of the industry. LDOS outperforms 77.01% 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.
- LDOS has a Debt to FCF ratio of 3.36. This is in the better half of the industry: LDOS outperforms 64.37% 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 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.09 |
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.
- 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.
- LDOS has a Quick ratio of 1.50. This is comparable to the rest of the industry: LDOS outperforms 54.02% of its industry peers.
| 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.
- The Revenue has been growing slightly by 6.48% in the past year.
- The Revenue has been growing by 8.47% on average over the past years. This is quite good.
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.
- The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y18%
EPS Next 2Y10.86%
EPS Next 3Y8.75%
EPS Next 5Y6.98%
Revenue Next Year5.12%
Revenue Next 2Y4.34%
Revenue Next 3Y3.96%
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.
- 70.11% 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 27.21.
- The Price/Forward Earnings ratio is 15.22, which indicates a correct valuation of LDOS.
- 70.11% of the companies in the same industry are more expensive than LDOS, based on the Price/Forward Earnings ratio.
- LDOS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 15.22 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than the industry average as 70.11% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, LDOS is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.64 | ||
| EV/EBITDA | 12.04 |
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)0.92
PEG (5Y)1.13
EPS Next 2Y10.86%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
- LDOS has a yearly dividend return of 0.89%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.44, LDOS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, LDOS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- 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)N/A
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
- 14.88% of the earnings are spent on dividend by LDOS. This is a low number and sustainable payout ratio.
DP14.88%
EPS Next 2Y10.86%
EPS Next 3Y8.75%
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.