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Reasonable growth and debt and a high ROIC for LEIDOS HOLDINGS INC (NYSE:LDOS).

By Mill Chart

Last update: May 22, 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.

Key Considerations for Quality Investors.

  • 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.
  • The ROIC excluding cash and goodwill of LEIDOS HOLDINGS INC stands at 39.74%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a Debt/Free Cash Flow Ratio of 4.1, LEIDOS HOLDINGS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • The Profit Quality (5-year) of LEIDOS HOLDINGS INC stands at 209.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • 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.
  • LEIDOS HOLDINGS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

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

We assign a fundamental rating of 5 out of 10 to LDOS. LDOS was compared to 82 industry peers in the Professional Services industry. LDOS has only an average score on both its financial health and profitability. LDOS is quite expensive at the moment. It does show a decent growth rate.

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.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.