Why LEIDOS HOLDINGS INC (NYSE:LDOS) qualifies as a quality stock.

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.

Looking into the quality metrics of LEIDOS HOLDINGS INC

• Over the past 5 years, LDOS has experienced impressive revenue growth, with 8.47% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• LDOS demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 60.92% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• LDOS demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.76, 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.
• LDOS exhibits impressive Profit Quality (5-year) with a 203.0% 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.
• The 5-year EBIT growth of LDOS has been remarkable, with 15.09% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, LDOS showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What is the full fundamental picture of LDOS telling us.

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.

LDOS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Professional Services industry. While LDOS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LDOS has a correct valuation and a medium growth rate.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.