Why the quality investor may take a look at NYSE:LDOS.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LEIDOS HOLDINGS INC (NYSE:LDOS) is suited for quality investing. Investors should of course do their own research, but we spotted LEIDOS HOLDINGS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:LDOS highlighted

• LEIDOS HOLDINGS INC has shown strong performance in revenue growth over the past 5 years, with a 8.65% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• LEIDOS HOLDINGS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 39.33% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• LEIDOS HOLDINGS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.89, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 209.0%, LEIDOS HOLDINGS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 10.93%, LEIDOS HOLDINGS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• LEIDOS HOLDINGS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Overall LDOS gets a fundamental rating of 5 out of 10. We evaluated LDOS against 80 industry peers in the Professional Services industry. LDOS has an average financial health and profitability rating. LDOS has a correct valuation and a medium growth rate.

Our latest full fundamental report of LDOS contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.