SCIENCE APPLICATIONS INTE (SAIC) Stock Fundamental Analysis
NASDAQ:SAIC - Nasdaq - US8086251076 - Common Stock - Currency: USD
SAIC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Professional Services industry. SAIC has an excellent profitability rating, but there are concerns on its financial health. SAIC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SAIC had positive earnings in the past year.
SAIC had a positive operating cash flow in the past year.
In the past 5 years SAIC has always been profitable.
SAIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SAIC (6.90%) is better than 68.67% of its industry peers.
SAIC has a better Return On Equity (22.95%) than 72.29% of its industry peers.
The Return On Invested Capital of SAIC (11.98%) is better than 72.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAIC is below the industry average of 13.57%.
The last Return On Invested Capital (11.98%) for SAIC is above the 3 year average (10.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 22.95% | ||
| ROIC | 11.98% |
ROA(3y)7.1%
ROA(5y)5.95%
ROE(3y)22.46%
ROE(5y)19.61%
ROIC(3y)10.64%
ROIC(5y)9.92%
1.3 Margins
SAIC has a better Profit Margin (4.84%) than 61.45% of its industry peers.
In the last couple of years the Profit Margin of SAIC has grown nicely.
Looking at the Operating Margin, with a value of 7.63%, SAIC is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
SAIC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 11.93%, SAIC is doing worse than 84.34% of the companies in the same industry.
In the last couple of years the Gross Margin of SAIC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.63% | ||
| PM (TTM) | 4.84% | ||
| GM | 11.93% |
OM growth 3Y2.78%
OM growth 5Y3.1%
PM growth 3Y8.92%
PM growth 5Y6.44%
GM growth 3Y0.88%
GM growth 5Y1.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SAIC is creating some value.
SAIC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SAIC has less shares outstanding
SAIC has a worse debt/assets ratio than last year.
2.2 Solvency
SAIC has an Altman-Z score of 3.06. This indicates that SAIC is financially healthy and has little risk of bankruptcy at the moment.
SAIC has a better Altman-Z score (3.06) than 61.45% of its industry peers.
SAIC has a debt to FCF ratio of 4.85. This is a neutral value as SAIC would need 4.85 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.85, SAIC perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
A Debt/Equity ratio of 1.21 is on the high side and indicates that SAIC has dependencies on debt financing.
SAIC has a worse Debt to Equity ratio (1.21) than 78.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 3.06 |
ROIC/WACC1.42
WACC8.44%
2.3 Liquidity
A Current Ratio of 0.83 indicates that SAIC may have some problems paying its short term obligations.
SAIC's Current ratio of 0.83 is on the low side compared to the rest of the industry. SAIC is outperformed by 81.93% of its industry peers.
A Quick Ratio of 0.83 indicates that SAIC may have some problems paying its short term obligations.
SAIC has a Quick ratio of 0.83. This is amonst the worse of the industry: SAIC underperforms 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.97% over the past year.
Measured over the past years, SAIC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.01% on average per year.
SAIC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.47%.
SAIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.23% yearly.
EPS 1Y (TTM)15.97%
EPS 3Y8.02%
EPS 5Y10.01%
EPS Q2Q%79.72%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%5.81%
3.2 Future
SAIC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.54% yearly.
SAIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.37% yearly.
EPS Next Y3.15%
EPS Next 2Y6.39%
EPS Next 3Y7.54%
EPS Next 5YN/A
Revenue Next Year2.89%
Revenue Next 2Y2.97%
Revenue Next 3Y2.37%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 12.76, which indicates a correct valuation of SAIC.
Compared to the rest of the industry, the Price/Earnings ratio of SAIC indicates a somewhat cheap valuation: SAIC is cheaper than 72.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SAIC to the average of the S&P500 Index (28.29), we can say SAIC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.37, the valuation of SAIC can be described as correct.
SAIC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SAIC is cheaper than 74.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SAIC to the average of the S&P500 Index (21.08), we can say SAIC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
SAIC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAIC is cheaper than 71.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAIC indicates a rather cheap valuation: SAIC is cheaper than 81.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.17 | ||
| EV/EBITDA | 10.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SAIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.05
PEG (5Y)1.27
EPS Next 2Y6.39%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
SAIC has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
SAIC's Dividend Yield is a higher than the industry average which is at 2.24.
With a Dividend Yield of 1.31, SAIC pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of SAIC has a limited annual growth rate of 0.34%.
SAIC has paid a dividend for at least 10 years, which is a reliable track record.
SAIC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.34%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
20.72% of the earnings are spent on dividend by SAIC. This is a low number and sustainable payout ratio.
SAIC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.72%
EPS Next 2Y6.39%
EPS Next 3Y7.54%
116.71
+0.36 (+0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners77.84%
Inst Owner Change0.01%
Ins Owners0.44%
Ins Owner Change-0.61%
Market Cap5.57B
Analysts70
Price Target129.64 (11.08%)
Short Float %6.16%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.5
Dividend Growth(5Y)0.34%
DP20.72%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.55%
Min EPS beat(2)18.18%
Max EPS beat(2)20.91%
EPS beat(4)3
Avg EPS beat(4)11.34%
Min EPS beat(4)-2.04%
Max EPS beat(4)20.91%
EPS beat(8)6
Avg EPS beat(8)14.04%
EPS beat(12)10
Avg EPS beat(12)12.12%
EPS beat(16)14
Avg EPS beat(16)15.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)0.2%
Revenue beat(8)5
Avg Revenue beat(8)1.28%
Revenue beat(12)7
Avg Revenue beat(12)1.15%
Revenue beat(16)9
Avg Revenue beat(16)0.83%
PT rev (1m)-2.31%
PT rev (3m)-7.3%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)2.14%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 12.37 | ||
| P/S | 0.74 | ||
| P/FCF | 12.17 | ||
| P/OCF | 11.28 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.88 |
EPS(TTM)9.15
EY7.84%
EPS(NY)9.44
Fwd EY8.09%
FCF(TTM)9.59
FCFY8.22%
OCF(TTM)10.35
OCFY8.87%
SpS156.66
BVpS33.03
TBVpS-43
PEG (NY)4.05
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 22.95% | ||
| ROCE | 14.83% | ||
| ROIC | 11.98% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 281.17% | ||
| OM | 7.63% | ||
| PM (TTM) | 4.84% | ||
| GM | 11.93% | ||
| FCFM | 6.12% |
ROA(3y)7.1%
ROA(5y)5.95%
ROE(3y)22.46%
ROE(5y)19.61%
ROIC(3y)10.64%
ROIC(5y)9.92%
ROICexc(3y)10.85%
ROICexc(5y)10.17%
ROICexgc(3y)175.22%
ROICexgc(5y)160.29%
ROCE(3y)13.17%
ROCE(5y)12.29%
ROICexcg growth 3Y17.62%
ROICexcg growth 5Y35.33%
ROICexc growth 3Y7.46%
ROICexc growth 5Y4.1%
OM growth 3Y2.78%
OM growth 5Y3.1%
PM growth 3Y8.92%
PM growth 5Y6.44%
GM growth 3Y0.88%
GM growth 5Y1.51%
F-Score7
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.85 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 25.71% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 4.72 | ||
| Cash Conversion | 69.48% | ||
| Profit Quality | 126.52% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.06 |
F-Score7
WACC8.44%
ROIC/WACC1.42
Cap/Depr(3y)20.22%
Cap/Depr(5y)21.63%
Cap/Sales(3y)0.39%
Cap/Sales(5y)0.46%
Profit Quality(3y)124.29%
Profit Quality(5y)177.22%
High Growth Momentum
Growth
EPS 1Y (TTM)15.97%
EPS 3Y8.02%
EPS 5Y10.01%
EPS Q2Q%79.72%
EPS Next Y3.15%
EPS Next 2Y6.39%
EPS Next 3Y7.54%
EPS Next 5YN/A
Revenue 1Y (TTM)0.47%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%5.81%
Revenue Next Year2.89%
Revenue Next 2Y2.97%
Revenue Next 3Y2.37%
Revenue Next 5YN/A
EBIT growth 1Y-24.67%
EBIT growth 3Y3.17%
EBIT growth 5Y6.44%
EBIT Next Year25.92%
EBIT Next 3Y9.55%
EBIT Next 5YN/A
FCF growth 1Y24.12%
FCF growth 3Y-1.69%
FCF growth 5Y0.94%
OCF growth 1Y24.75%
OCF growth 3Y-1.57%
OCF growth 5Y1.52%