SCIENCE APPLICATIONS INTE (SAIC) Stock Fundamental Analysis
NASDAQ:SAIC - Nasdaq - US8086251076 - Common Stock - Currency: USD
Overall SAIC gets a fundamental rating of 5 out of 10. We evaluated SAIC against 80 industry peers in the Professional Services industry. SAIC scores excellent on profitability, but there are concerns on its financial health. SAIC has a correct valuation and a medium growth rate. SAIC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SAIC was profitable.
In the past year SAIC had a positive cash flow from operations.
Each year in the past 5 years SAIC has been profitable.
In the past 5 years SAIC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.74%, SAIC is doing good in the industry, outperforming 63.75% of the companies in the same industry.
SAIC has a Return On Equity of 18.80%. This is in the better half of the industry: SAIC outperforms 65.00% of its industry peers.
The Return On Invested Capital of SAIC (10.47%) is better than 66.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAIC is below the industry average of 13.70%.
The 3 year average ROIC (9.60%) for SAIC is below the current ROIC(10.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 18.8% | ||
| ROIC | 10.47% |
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 (4.11%) which is comparable to the rest of the industry.
SAIC's Profit Margin has improved in the last couple of years.
The Operating Margin of SAIC (7.09%) is better than 62.50% of its industry peers.
SAIC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 11.55%, SAIC is not doing good in the industry: 87.50% 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 | 7.09% | ||
| PM (TTM) | 4.11% | ||
| GM | 11.55% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SAIC is creating some value.
Compared to 1 year ago, SAIC has less shares outstanding
Compared to 5 years ago, SAIC has less shares outstanding
SAIC has a better debt/assets ratio than last year.
2.2 Solvency
SAIC has an Altman-Z score of 3.00. This indicates that SAIC is financially healthy and has little risk of bankruptcy at the moment.
SAIC has a Altman-Z score of 3.00. This is comparable to the rest of the industry: SAIC outperforms 58.75% of its industry peers.
The Debt to FCF ratio of SAIC is 5.27, which is a neutral value as it means it would take SAIC, 5.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.27, SAIC is in line with its industry, outperforming 53.75% of the companies in the same industry.
SAIC has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.20, SAIC is doing worse than 78.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 5.27 | ||
| Altman-Z | 3 |
ROIC/WACC1.22
WACC8.56%
2.3 Liquidity
A Current Ratio of 0.87 indicates that SAIC may have some problems paying its short term obligations.
The Current ratio of SAIC (0.87) is worse than 81.25% of its industry peers.
SAIC has a Quick Ratio of 0.87. This is a bad value and indicates that SAIC is not financially healthy enough and could expect problems in meeting its short term obligations.
SAIC has a Quick ratio of 0.87. This is amonst the worse of the industry: SAIC underperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
SAIC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.76%.
The Earnings Per Share has been growing by 11.25% on average over the past years. This is quite good.
The Revenue has decreased by -3.87% in the past year.
The Revenue has been growing by 9.83% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.76%
EPS 3Y7.79%
EPS 5Y11.25%
EPS Q2Q%14.98%
Revenue 1Y (TTM)-3.87%
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 8.75% on average per year.
Based on estimates for the next years, SAIC will show a small growth in Revenue. The Revenue will grow by 2.13% on average per year.
EPS Next Y11.49%
EPS Next 2Y8.22%
EPS Next 3Y8.75%
EPS Next 5YN/A
Revenue Next Year1.45%
Revenue Next 2Y1.94%
Revenue Next 3Y2.13%
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
A Price/Earnings ratio of 13.89 indicates a correct valuation of SAIC.
Based on the Price/Earnings ratio, SAIC is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
SAIC is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.04, the valuation of SAIC can be described as correct.
Based on the Price/Forward Earnings ratio, SAIC is valued cheaper than 81.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, SAIC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.89 | ||
| Fwd PE | 12.04 |
4.2 Price Multiples
71.25% of the companies in the same industry are more expensive than SAIC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SAIC indicates a rather cheap valuation: SAIC is cheaper than 83.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.26 | ||
| EV/EBITDA | 11.39 |
4.3 Compensation for Growth
SAIC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SAIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.21
PEG (5Y)1.23
EPS Next 2Y8.22%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, SAIC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.97, SAIC pays a better dividend. On top of this SAIC pays more dividend than 81.25% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.33, SAIC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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
SAIC pays out 25.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of SAIC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP25.08%
EPS Next 2Y8.22%
EPS Next 3Y8.75%
111.25
+9.09 (+8.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners77.84%
Inst Owner Change-1.43%
Ins Owners0.44%
Ins Owner Change-0.36%
Market Cap5.44B
Analysts70.59
Price Target132.71 (19.29%)
Short Float %5.45%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend1.49
Dividend Growth(5Y)7.69%
DP25.08%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.25%
Min EPS beat(2)8.32%
Max EPS beat(2)18.18%
EPS beat(4)2
Avg EPS beat(4)5.12%
Min EPS beat(4)-3.98%
Max EPS beat(4)18.18%
EPS beat(8)6
Avg EPS beat(8)14%
EPS beat(12)10
Avg EPS beat(12)11.98%
EPS beat(16)14
Avg EPS beat(16)14.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-0.27%
Max Revenue beat(2)0.2%
Revenue beat(4)2
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)3.89%
Revenue beat(8)6
Avg Revenue beat(8)1.8%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)9
Avg Revenue beat(16)0.51%
PT rev (1m)0%
PT rev (3m)-12.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0%
EPS NY rev (3m)5.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.89 | ||
| Fwd PE | 12.04 | ||
| P/S | 0.74 | ||
| P/FCF | 13.26 | ||
| P/OCF | 12.3 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.39 |
EPS(TTM)8.01
EY7.2%
EPS(NY)9.24
Fwd EY8.31%
FCF(TTM)8.39
FCFY7.54%
OCF(TTM)9.04
OCFY8.13%
SpS150.94
BVpS32.98
TBVpS-41.86
PEG (NY)1.21
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 18.8% | ||
| ROCE | 13.28% | ||
| ROIC | 10.47% | ||
| ROICexc | 10.6% | ||
| ROICexgc | 176.27% | ||
| OM | 7.09% | ||
| PM (TTM) | 4.11% | ||
| GM | 11.55% | ||
| FCFM | 5.56% |
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 Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 5.27 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 22.86% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.67% | ||
| Profit Quality | 135.31% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 3 |
F-Score6
WACC8.56%
ROIC/WACC1.22
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 Y11.49%
EPS Next 2Y8.22%
EPS Next 3Y8.75%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.87%
Revenue growth 3Y1.8%
Revenue growth 5Y9.83%
Sales Q2Q%4.27%
Revenue Next Year1.45%
Revenue Next 2Y1.94%
Revenue Next 3Y2.13%
Revenue Next 5YN/A
EBIT growth 1Y-33.88%
EBIT growth 3Y5.35%
EBIT growth 5Y11.84%
EBIT Next Year15.6%
EBIT Next 3Y7.59%
EBIT Next 5YN/A
FCF growth 1Y-11.45%
FCF growth 3Y-19.56%
FCF growth 5Y18.79%
OCF growth 1Y-9.8%
OCF growth 3Y-19.35%
OCF growth 5Y16.57%