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 82 industry peers in the Professional Services industry. SAIC has a medium profitability rating, but doesn't score so well on its financial health evaluation. SAIC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SAIC was profitable.
SAIC had a positive operating cash flow in the past year.
In the past 5 years SAIC has always been profitable.
Each year in the past 5 years SAIC had a positive operating cash flow.
1.2 Ratios
SAIC's Return On Assets of 5.74% is fine compared to the rest of the industry. SAIC outperforms 63.29% of its industry peers.
Looking at the Return On Equity, with a value of 18.80%, SAIC is in the better half of the industry, outperforming 65.82% of the companies in the same industry.
SAIC has a Return On Invested Capital of 10.47%. This is in the better half of the industry: SAIC outperforms 65.82% of its industry peers.
SAIC had an Average Return On Invested Capital over the past 3 years of 9.60%. This is below the industry average of 13.46%.
The last Return On Invested Capital (10.47%) for SAIC is above the 3 year average (9.60%), which is a sign of increasing profitability.
| 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's Profit Margin of 4.11% is in line compared to the rest of the industry. SAIC outperforms 58.23% of its industry peers.
In the last couple of years the Profit Margin of SAIC has grown nicely.
SAIC has a Operating Margin (7.09%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SAIC has grown nicely.
SAIC has a worse Gross Margin (11.55%) than 91.14% of its industry peers.
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
The debt/assets ratio for SAIC has been reduced compared to a year ago.
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.
With a Altman-Z score value of 3.00, SAIC perfoms like the industry average, outperforming 49.37% of the companies in the same industry.
SAIC has a debt to FCF ratio of 5.27. This is a neutral value as SAIC would need 5.27 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.27, SAIC perfoms like the industry average, outperforming 51.90% of the companies in the same industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that SAIC has dependencies on debt financing.
SAIC has a worse Debt to Equity ratio (1.20) than 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 5.27 | ||
| Altman-Z | 3 |
ROIC/WACC1.16
WACC9.03%
2.3 Liquidity
A Current Ratio of 0.87 indicates that SAIC may have some problems paying its short term obligations.
SAIC's Current ratio of 0.87 is on the low side compared to the rest of the industry. SAIC is outperformed by 82.28% of its industry peers.
A Quick Ratio of 0.87 indicates that SAIC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, SAIC is doing worse than 82.28% of the companies in the same industry.
| 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%.
Measured over the past years, SAIC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.25% on average per year.
SAIC shows a decrease in Revenue. In the last year, the revenue decreased by -3.87%.
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)-3.87%
Revenue growth 3Y1.8%
Revenue growth 5Y9.83%
Sales Q2Q%4.27%
3.2 Future
SAIC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.16% yearly.
Based on estimates for the next years, SAIC will show a small growth in Revenue. The Revenue will grow by 2.22% on average per year.
EPS Next Y9.22%
EPS Next 2Y7.83%
EPS Next 3Y7.16%
EPS Next 5YN/A
Revenue Next Year1.67%
Revenue Next 2Y1.94%
Revenue Next 3Y2.22%
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
SAIC is valuated correctly with a Price/Earnings ratio of 13.22.
81.01% of the companies in the same industry are more expensive than SAIC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SAIC to the average of the S&P500 Index (28.42), we can say SAIC is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.54, the valuation of SAIC can be described as very reasonable.
82.28% of the companies in the same industry are more expensive than SAIC, based on the Price/Forward Earnings ratio.
SAIC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 11.54 |
4.2 Price Multiples
SAIC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAIC is cheaper than 74.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SAIC is valued cheaper than 88.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.62 | ||
| EV/EBITDA | 11.33 |
4.3 Compensation for Growth
The 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)1.43
PEG (5Y)1.18
EPS Next 2Y7.83%
EPS Next 3Y7.16%
5. Dividend
5.1 Amount
SAIC has a Yearly Dividend Yield of 1.34%.
In the last 3 months the price of SAIC has falen by -26.81%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.81, SAIC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, 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
25.08% of the earnings are spent on dividend by SAIC. This is a low number and sustainable payout ratio.
SAIC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.08%
EPS Next 2Y7.83%
EPS Next 3Y7.16%
SCIENCE APPLICATIONS INTE
NASDAQ:SAIC (1/28/2025, 8:02:42 PM)
After market: 105.89 0 (0%)105.89
-4.6 (-4.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners81.35%
Inst Owner Change-0.66%
Ins Owners0.6%
Ins Owner Change-1.99%
Market Cap5.18B
Analysts72.94
Price Target139.85 (32.07%)
Short Float %3.31%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)-7.98%
PT rev (3m)-9.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.62%
EPS NY rev (1m)0%
EPS NY rev (3m)4.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 11.54 | ||
| P/S | 0.7 | ||
| P/FCF | 12.62 | ||
| P/OCF | 11.71 | ||
| P/B | 3.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.33 |
EPS(TTM)8.01
EY7.56%
EPS(NY)9.17
Fwd EY8.66%
FCF(TTM)8.39
FCFY7.92%
OCF(TTM)9.04
OCFY8.54%
SpS150.94
BVpS32.98
TBVpS-41.86
PEG (NY)1.43
PEG (5Y)1.18
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
WACC9.03%
ROIC/WACC1.16
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 Y9.22%
EPS Next 2Y7.83%
EPS Next 3Y7.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.87%
Revenue growth 3Y1.8%
Revenue growth 5Y9.83%
Sales Q2Q%4.27%
Revenue Next Year1.67%
Revenue Next 2Y1.94%
Revenue Next 3Y2.22%
Revenue Next 5YN/A
EBIT growth 1Y-33.88%
EBIT growth 3Y5.35%
EBIT growth 5Y11.84%
EBIT Next Year15.53%
EBIT Next 3Y7.54%
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%