SCIENCE APPLICATIONS INTE (SAIC)
US8086251076 - Common Stock
Taking everything into account, SAIC scores 5 out of 10 in our fundamental rating. SAIC was compared to 80 industry peers in the Professional Services industry. SAIC scores excellent on profitability, but there are some minor 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.
Each year in the past 5 years SAIC has been profitable.
SAIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SAIC has a Return On Assets of 8.69%. This is in the better half of the industry: SAIC outperforms 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 25.92%, SAIC belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
SAIC's Return On Invested Capital of 14.25% is fine compared to the rest of the industry. SAIC outperforms 76.25% 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 12.74%.
The last Return On Invested Capital (14.25%) for SAIC is above the 3 year average (9.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 25.92% | ||
| ROIC | 14.25% |
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
Looking at the Profit Margin, with a value of 6.28%, SAIC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SAIC has grown nicely.
With a decent Operating Margin value of 10.19%, SAIC is doing good in the industry, outperforming 78.75% of the companies in the same industry.
In the last couple of years the Operating Margin of SAIC has grown nicely.
Looking at the Gross Margin, with a value of 11.70%, SAIC is doing worse than 91.25% of the companies in the same industry.
SAIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.19% | ||
| PM (TTM) | 6.28% | ||
| GM | 11.7% |
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 well above the Cost of Capital (WACC), so SAIC is creating value.
The number of shares outstanding for SAIC has been reduced compared to 1 year ago.
The number of shares outstanding for SAIC has been reduced compared to 5 years ago.
The debt/assets ratio for SAIC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.42 indicates that SAIC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.42, SAIC is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Debt to FCF ratio of SAIC is 5.41, which is a neutral value as it means it would take SAIC, 5.41 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SAIC (5.41) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that SAIC has dependencies on debt financing.
SAIC's Debt to Equity ratio of 1.13 is on the low side compared to the rest of the industry. SAIC is outperformed by 76.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.86
WACC7.66%
2.3 Liquidity
SAIC has a Current Ratio of 0.95. This is a bad value and indicates that SAIC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SAIC (0.95) is worse than 76.25% of its industry peers.
A Quick Ratio of 0.95 indicates that SAIC may have some problems paying its short term obligations.
SAIC has a worse Quick ratio (0.95) than 76.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for SAIC have decreased by -5.66% in the last year.
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.
The Revenue has decreased by -3.37% 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)-5.66%
EPS 3Y7.79%
EPS 5Y11.25%
EPS Q2Q%0%
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y1.8%
Revenue growth 5Y9.83%
Sales Q2Q%1.91%
3.2 Future
The Earnings Per Share is expected to grow by 8.38% on average over the next years. This is quite good.
SAIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.52% yearly.
EPS Next Y4.34%
EPS Next 2Y7.35%
EPS Next 3Y8.38%
EPS Next 5YN/A
Revenue Next Year1.21%
Revenue Next 2Y2.09%
Revenue Next 3Y2.52%
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 17.36, which indicates a rather expensive current valuation of SAIC.
Based on the Price/Earnings ratio, SAIC is valued a bit cheaper than 71.25% of the companies in the same industry.
SAIC is valuated rather cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.64, the valuation of SAIC can be described as correct.
72.50% of the companies in the same industry are more expensive than SAIC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.22. SAIC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAIC indicates a somewhat cheap valuation: SAIC is cheaper than 77.50% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SAIC is valued a bit cheaper than the industry average as 73.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.72 | ||
| EV/EBITDA | 10.18 |
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
PEG (5Y)1.54
EPS Next 2Y7.35%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
SAIC has a Yearly Dividend Yield of 1.09%. 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 1.68.
With a Dividend Yield of 1.09, SAIC pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of SAIC is nicely growing with an annual growth rate of 7.69%!
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 Years10
5.3 Sustainability
17.11% 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.
DP17.11%
EPS Next 2Y7.35%
EPS Next 3Y8.38%
SCIENCE APPLICATIONS INTE
NASDAQ:SAIC (9/6/2024, 8:00:02 PM)
After market: 133.15 0 (0%)133.15
-2.13 (-1.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 14.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 25.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.19% | ||
| PM (TTM) | 6.28% | ||
| GM | 11.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.66%
EPS 3Y7.79%
EPS 5Y
EPS Q2Q%
EPS Next Y4.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y1.8%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y