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Why Quality Investors Should Delve into LEIDOS HOLDINGS INC (NYSE:LDOS) for Investment Opportunities.

By Mill Chart

Last update: Mar 15, 2024

In this article we will dive into LEIDOS HOLDINGS INC (NYSE:LDOS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LEIDOS HOLDINGS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Highlighting Notable Quality Metrics of NYSE:LDOS.

  • 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 demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 39.33% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • The Debt/Free Cash Flow Ratio of LEIDOS HOLDINGS INC stands at 4.89, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • LEIDOS HOLDINGS INC exhibits impressive Profit Quality (5-year) with a 209.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • LEIDOS HOLDINGS INC has experienced impressive EBIT growth over the past 5 years, with 10.93% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, LEIDOS HOLDINGS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What else is there to say on the fundamentals of NYSE:LDOS?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

LDOS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Professional Services industry. LDOS has only an average score on both its financial health and profitability. LDOS has a decent growth rate and is not valued too expensively.

Check the latest full fundamental report of LDOS for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.


This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.