LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
NYSE:LDOS - US5253271028 - Common Stock
181.61 USD
-0.13 (-0.07%)
181.61 USD
0 (0%)
Taking everything into account, LDOS scores 6 out of 10 in our fundamental rating. LDOS was compared to 81 industry peers in the Professional Services industry. LDOS has an excellent profitability rating, but there are some minor concerns on its financial health. LDOS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LDOS was profitable.
In the past year LDOS had a positive cash flow from operations.
Each year in the past 5 years LDOS has been profitable.
In the past 5 years LDOS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LDOS (10.35%) is better than 83.95% of its industry peers.
LDOS's Return On Equity of 30.07% is amongst the best of the industry. LDOS outperforms 83.95% of its industry peers.
LDOS's Return On Invested Capital of 12.20% is fine compared to the rest of the industry. LDOS outperforms 75.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LDOS is below the industry average of 12.68%.
The last Return On Invested Capital (12.20%) for LDOS is above the 3 year average (9.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 30.07% | ||
| ROIC | 12.2% |
ROA(3y)5.46%
ROA(5y)5.42%
ROE(3y)16.36%
ROE(5y)16.58%
ROIC(3y)9.6%
ROIC(5y)8.62%
1.3 Margins
With an excellent Profit Margin value of 8.22%, LDOS belongs to the best of the industry, outperforming 80.25% of the companies in the same industry.
LDOS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.85%, LDOS is in the better half of the industry, outperforming 76.54% of the companies in the same industry.
In the last couple of years the Operating Margin of LDOS has grown nicely.
Looking at the Gross Margin, with a value of 17.56%, LDOS is doing worse than 79.01% of the companies in the same industry.
LDOS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.85% | ||
| PM (TTM) | 8.22% | ||
| GM | 17.56% |
OM growth 3Y8.76%
OM growth 5Y6.1%
PM growth 3Y11.14%
PM growth 5Y4.59%
GM growth 3Y4.63%
GM growth 5Y3.77%
2. Health
2.1 Basic Checks
LDOS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, LDOS has less shares outstanding
The number of shares outstanding for LDOS has been reduced compared to 5 years ago.
LDOS has a better debt/assets ratio than last year.
2.2 Solvency
LDOS has an Altman-Z score of 3.91. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.91, LDOS is in the better half of the industry, outperforming 67.90% of the companies in the same industry.
LDOS has a debt to FCF ratio of 3.81. This is a good value and a sign of high solvency as LDOS would need 3.81 years to pay back of all of its debts.
LDOS's Debt to FCF ratio of 3.81 is fine compared to the rest of the industry. LDOS outperforms 60.49% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that LDOS has dependencies on debt financing.
The Debt to Equity ratio of LDOS (1.07) is worse than 71.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.81 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.54
WACC7.93%
2.3 Liquidity
A Current Ratio of 1.62 indicates that LDOS should not have too much problems paying its short term obligations.
The Current ratio of LDOS (1.62) is better than 62.96% of its industry peers.
A Quick Ratio of 1.50 indicates that LDOS should not have too much problems paying its short term obligations.
LDOS has a Quick ratio (1.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
LDOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.41%, which is quite impressive.
The Earnings Per Share has been growing by 14.65% on average over the past years. This is quite good.
LDOS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.53%.
LDOS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
EPS 1Y (TTM)28.41%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%22.05%
Revenue 1Y (TTM)6.53%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%2.93%
3.2 Future
Based on estimates for the next years, LDOS will show a small growth in Earnings Per Share. The EPS will grow by 7.90% on average per year.
The Revenue is expected to grow by 3.82% on average over the next years.
EPS Next Y14.73%
EPS Next 2Y8.53%
EPS Next 3Y7.9%
EPS Next 5YN/A
Revenue Next Year4.47%
Revenue Next 2Y3.96%
Revenue Next 3Y3.82%
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
LDOS is valuated correctly with a Price/Earnings ratio of 15.82.
69.14% of the companies in the same industry are more expensive than LDOS, based on the Price/Earnings ratio.
LDOS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
Based on the Price/Forward Earnings ratio of 15.09, the valuation of LDOS can be described as correct.
LDOS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LDOS is cheaper than 67.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LDOS to the average of the S&P500 Index (22.63), we can say LDOS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 15.09 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than LDOS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LDOS is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.4 | ||
| EV/EBITDA | 11.88 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of LDOS may justify a higher PE ratio.
PEG (NY)1.07
PEG (5Y)1.08
EPS Next 2Y8.53%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, LDOS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.25, LDOS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, LDOS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
The dividend of LDOS has a limited annual growth rate of 2.96%.
LDOS has been paying a dividend for at least 10 years, so it has a reliable track record.
As LDOS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.96%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
LDOS pays out 14.91% of its income as dividend. This is a sustainable payout ratio.
The dividend of LDOS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.91%
EPS Next 2Y8.53%
EPS Next 3Y7.9%
181.61
-0.13 (-0.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners80.76%
Inst Owner Change-1.72%
Ins Owners0.49%
Ins Owner Change1.4%
Market Cap23.30B
Analysts77.5
Price Target187.77 (3.39%)
Short Float %2.15%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend1.47
Dividend Growth(5Y)2.96%
DP14.91%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.5%
Min EPS beat(2)16.5%
Max EPS beat(2)18.49%
EPS beat(4)4
Avg EPS beat(4)19.86%
Min EPS beat(4)2.22%
Max EPS beat(4)42.23%
EPS beat(8)8
Avg EPS beat(8)19.59%
EPS beat(12)10
Avg EPS beat(12)14.19%
EPS beat(16)12
Avg EPS beat(16)11.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)1.46%
Revenue beat(4)3
Avg Revenue beat(4)1.11%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)3.53%
Revenue beat(8)6
Avg Revenue beat(8)1.33%
Revenue beat(12)7
Avg Revenue beat(12)0.87%
Revenue beat(16)9
Avg Revenue beat(16)0.26%
PT rev (1m)7.25%
PT rev (3m)11.41%
EPS NQ rev (1m)0.7%
EPS NQ rev (3m)-2.37%
EPS NY rev (1m)5.57%
EPS NY rev (3m)6.25%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 15.09 | ||
| P/S | 1.37 | ||
| P/FCF | 17.4 | ||
| P/OCF | 15.54 | ||
| P/B | 5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.88 |
EPS(TTM)11.48
EY6.32%
EPS(NY)12.04
Fwd EY6.63%
FCF(TTM)10.44
FCFY5.75%
OCF(TTM)11.68
OCFY6.43%
SpS132.92
BVpS36.34
TBVpS-17.24
PEG (NY)1.07
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 30.07% | ||
| ROCE | 19.06% | ||
| ROIC | 12.2% | ||
| ROICexc | 13.37% | ||
| ROICexgc | 46.22% | ||
| OM | 11.85% | ||
| PM (TTM) | 8.22% | ||
| GM | 17.56% | ||
| FCFM | 7.85% |
ROA(3y)5.46%
ROA(5y)5.42%
ROE(3y)16.36%
ROE(5y)16.58%
ROIC(3y)9.6%
ROIC(5y)8.62%
ROICexc(3y)10.47%
ROICexc(5y)9.34%
ROICexgc(3y)58.39%
ROICexgc(5y)54.32%
ROCE(3y)15.01%
ROCE(5y)13.48%
ROICexcg growth 3Y4.26%
ROICexcg growth 5Y-0.43%
ROICexc growth 3Y19.51%
ROICexc growth 5Y8.6%
OM growth 3Y8.76%
OM growth 5Y6.1%
PM growth 3Y11.14%
PM growth 5Y4.59%
GM growth 3Y4.63%
GM growth 5Y3.77%
F-Score8
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.81 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 54.98% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 9.23 | ||
| Cash Conversion | 64.84% | ||
| Profit Quality | 95.51% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.91 |
F-Score8
WACC7.93%
ROIC/WACC1.54
Cap/Depr(3y)50.89%
Cap/Depr(5y)49.91%
Cap/Sales(3y)1.04%
Cap/Sales(5y)1.08%
Profit Quality(3y)235.51%
Profit Quality(5y)202.58%
High Growth Momentum
Growth
EPS 1Y (TTM)28.41%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%22.05%
EPS Next Y14.73%
EPS Next 2Y8.53%
EPS Next 3Y7.9%
EPS Next 5YN/A
Revenue 1Y (TTM)6.53%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%2.93%
Revenue Next Year4.47%
Revenue Next 2Y3.96%
Revenue Next 3Y3.82%
Revenue Next 5YN/A
EBIT growth 1Y26.63%
EBIT growth 3Y15.99%
EBIT growth 5Y15.09%
EBIT Next Year15.15%
EBIT Next 3Y6.46%
EBIT Next 5YN/A
FCF growth 1Y76.18%
FCF growth 3Y10.27%
FCF growth 5Y7.37%
OCF growth 1Y63.11%
OCF growth 3Y10.52%
OCF growth 5Y7.01%