SCIENCE APPLICATIONS INTE (SAIC)
US8086251076 - Common Stock
Overall SAIC gets a fundamental rating of 5 out of 10. We evaluated SAIC against 80 industry peers in the Professional Services industry. There are concerns on the financial health of SAIC while its profitability can be described as average. SAIC is not valued too expensively and it also shows a decent growth rate.
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 (5.52%) is comparable to the rest of the industry.
SAIC has a Return On Equity of 17.85%. This is in the better half of the industry: SAIC outperforms 64.94% of its industry peers.
SAIC's Return On Invested Capital of 10.12% is fine compared to the rest of the industry. SAIC outperforms 64.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAIC is significantly below the industry average of 18.16%.
The 3 year average ROIC (9.60%) for SAIC is below the current ROIC(10.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.52% | ||
| ROE | 17.85% | ||
| ROIC | 10.12% |
ROA(3y)6.4%
ROA(5y)5.53%
ROE(3y)20.51%
ROE(5y)18.21%
ROIC(3y)9.6%
ROIC(5y)9.19%
1.3 Margins
SAIC has a Profit Margin (3.97%) which is in line with its industry peers.
SAIC's Profit Margin has improved in the last couple of years.
SAIC has a Operating Margin of 6.96%. This is comparable to the rest of the industry: SAIC outperforms 53.25% of its industry peers.
In the last couple of years the Operating Margin of SAIC has grown nicely.
With a Gross Margin value of 11.57%, SAIC is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
SAIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.96% | ||
| PM (TTM) | 3.97% | ||
| GM | 11.57% |
OM growth 3Y3.49%
OM growth 5Y1.84%
PM growth 3Y29.33%
PM growth 5Y16.86%
GM growth 3Y1.43%
GM growth 5Y3.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAIC is still creating some value.
SAIC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SAIC has less shares outstanding
The debt/assets ratio for SAIC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.97 indicates that SAIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.97, SAIC perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
The Debt to FCF ratio of SAIC is 5.81, which is a neutral value as it means it would take SAIC, 5.81 years of fcf income to pay off all of its debts.
SAIC's Debt to FCF ratio of 5.81 is in line compared to the rest of the industry. SAIC outperforms 45.45% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that SAIC has dependencies on debt financing.
SAIC's Debt to Equity ratio of 1.21 is on the low side compared to the rest of the industry. SAIC is outperformed by 76.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 5.81 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.12
WACC9.01%
2.3 Liquidity
A Current Ratio of 0.85 indicates that SAIC may have some problems paying its short term obligations.
SAIC's Current ratio of 0.85 is on the low side compared to the rest of the industry. SAIC is outperformed by 83.12% of its industry peers.
A Quick Ratio of 0.85 indicates that SAIC may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, SAIC is not doing good in the industry: 83.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for SAIC have decreased by -5.76% in the last year.
SAIC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.25% yearly.
Looking at the last year, SAIC shows a decrease in Revenue. The Revenue has decreased by -3.37% in the last year.
Measured over the past years, SAIC shows a quite strong growth in Revenue. The Revenue has been growing by 9.83% on average per year.
EPS 1Y (TTM)-5.76%
EPS 3Y7.79%
EPS 5Y11.25%
EPS Q2Q%14.98%
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y1.8%
Revenue growth 5Y9.83%
Sales Q2Q%4.27%
3.2 Future
Based on estimates for the next years, SAIC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.38% on average per year.
Based on estimates for the next years, SAIC will show a small growth in Revenue. The Revenue will grow by 2.30% on average per year.
EPS Next Y5.96%
EPS Next 2Y7.92%
EPS Next 3Y8.38%
EPS Next 5YN/A
Revenue Next Year0.8%
Revenue Next 2Y1.92%
Revenue Next 3Y2.3%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.91, SAIC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SAIC indicates a rather cheap valuation: SAIC is cheaper than 81.82% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. SAIC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.12, which indicates a correct valuation of SAIC.
80.52% of the companies in the same industry are more expensive than SAIC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, SAIC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
74.03% of the companies in the same industry are more expensive than SAIC, based on the Enterprise Value to EBITDA ratio.
81.82% of the companies in the same industry are more expensive than SAIC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.6 | ||
| EV/EBITDA | 11.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAIC does not grow enough to justify the current Price/Earnings ratio.
SAIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)1.24
EPS Next 2Y7.92%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
SAIC has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.75, SAIC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, SAIC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of SAIC grows each year by 7.69%, which is quite nice.
SAIC has been paying a dividend for at least 10 years, so it has a reliable track record.
SAIC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.69%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
26.55% of the earnings are spent on dividend by SAIC. This is a low number and sustainable payout ratio.
SAIC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP26.55%
EPS Next 2Y7.92%
EPS Next 3Y8.38%
SCIENCE APPLICATIONS INTE
NASDAQ:SAIC (12/20/2024, 8:00:01 PM)
After market: 111.42 0 (0%)111.42
+1.31 (+1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners81.35%
Inst Owner Change-3.98%
Ins Owners0.6%
Ins Owner Change1.05%
Market Cap5.45B
Analysts72.5
Price Target151.98 (36.4%)
Short Float %2.72%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Dividend Growth(5Y)7.69%
DP26.55%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.14%
Min EPS beat(2)-2.04%
Max EPS beat(2)8.32%
EPS beat(4)2
Avg EPS beat(4)8.54%
Min EPS beat(4)-3.98%
Max EPS beat(4)31.86%
EPS beat(8)6
Avg EPS beat(8)12.61%
EPS beat(12)10
Avg EPS beat(12)12.19%
EPS beat(16)14
Avg EPS beat(16)13.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.81%
Max Revenue beat(2)-0.27%
Revenue beat(4)2
Avg Revenue beat(4)1.41%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)3.89%
Revenue beat(8)5
Avg Revenue beat(8)1.77%
Revenue beat(12)6
Avg Revenue beat(12)0.99%
Revenue beat(16)8
Avg Revenue beat(16)0.33%
PT rev (1m)-1.89%
PT rev (3m)12.45%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)0%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 12.12 | ||
| P/S | 0.75 | ||
| P/FCF | 14.6 | ||
| P/OCF | 13.62 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.59 |
EPS(TTM)8.01
EY7.19%
EPS(NY)9.19
Fwd EY8.25%
FCF(TTM)7.63
FCFY6.85%
OCF(TTM)8.18
OCFY7.34%
SpS149.28
BVpS33.24
TBVpS-42.18
PEG (NY)2.33
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.52% | ||
| ROE | 17.85% | ||
| ROCE | 12.83% | ||
| ROIC | 10.12% | ||
| ROICexc | 10.25% | ||
| ROICexgc | 179.66% | ||
| OM | 6.96% | ||
| PM (TTM) | 3.97% | ||
| GM | 11.57% | ||
| FCFM | 5.11% |
ROA(3y)6.4%
ROA(5y)5.53%
ROE(3y)20.51%
ROE(5y)18.21%
ROIC(3y)9.6%
ROIC(5y)9.19%
ROICexc(3y)9.83%
ROICexc(5y)9.5%
ROICexgc(3y)135.84%
ROICexgc(5y)113.72%
ROCE(3y)12.17%
ROCE(5y)11.65%
ROICexcg growth 3Y9.09%
ROICexcg growth 5Y22.81%
ROICexc growth 3Y7.18%
ROICexc growth 5Y8.12%
OM growth 3Y3.49%
OM growth 5Y1.84%
PM growth 3Y29.33%
PM growth 5Y16.86%
GM growth 3Y1.43%
GM growth 5Y3.3%
F-Score6
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 5.81 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 19.42% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.82% | ||
| Profit Quality | 128.62% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.97 |
F-Score6
WACC9.01%
ROIC/WACC1.12
Cap/Depr(3y)18.92%
Cap/Depr(5y)19.53%
Cap/Sales(3y)0.39%
Cap/Sales(5y)0.43%
Profit Quality(3y)140.12%
Profit Quality(5y)190.59%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.76%
EPS 3Y7.79%
EPS 5Y11.25%
EPS Q2Q%14.98%
EPS Next Y5.96%
EPS Next 2Y7.92%
EPS Next 3Y8.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y1.8%
Revenue growth 5Y9.83%
Sales Q2Q%4.27%
Revenue Next Year0.8%
Revenue Next 2Y1.92%
Revenue Next 3Y2.3%
Revenue Next 5YN/A
EBIT growth 1Y-35.29%
EBIT growth 3Y5.35%
EBIT growth 5Y11.84%
EBIT Next Year15.35%
EBIT Next 3Y8.16%
EBIT Next 5YN/A
FCF growth 1Y-19.78%
FCF growth 3Y-19.56%
FCF growth 5Y18.79%
OCF growth 1Y-19.35%
OCF growth 3Y-19.35%
OCF growth 5Y16.57%