LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LDOS - US5253271028 - Common Stock
189.73 USD
-0.8 (-0.42%)
189.73 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LDOS. LDOS was compared to 87 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.
1. Profitability
1.1 Basic Checks
LDOS had positive earnings in the past year.
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 (10.38%) is better than 82.76% of its industry peers.
LDOS has a Return On Equity of 28.62%. This is amongst the best in the industry. LDOS outperforms 83.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.37%, LDOS is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
LDOS had an Average Return On Invested Capital over the past 3 years of 9.60%. This is below the industry average of 12.13%.
The 3 year average ROIC (9.60%) for LDOS is below the current ROIC(12.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 28.62% | ||
| ROIC | 12.37% |
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
LDOS's Profit Margin of 8.11% is fine compared to the rest of the industry. LDOS outperforms 74.71% of its industry peers.
LDOS's Profit Margin has improved in the last couple of years.
LDOS has a Operating Margin of 11.78%. This is in the better half of the industry: LDOS outperforms 74.71% of its industry peers.
In the last couple of years the Operating Margin of LDOS has grown nicely.
LDOS has a worse Gross Margin (17.61%) than 78.16% of its industry peers.
In the last couple of years the Gross Margin of LDOS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.78% | ||
| PM (TTM) | 8.11% | ||
| GM | 17.61% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LDOS is still creating some value.
LDOS has less shares outstanding than it did 1 year ago.
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 4.09. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LDOS (4.09) is better than 77.01% of its industry peers.
The Debt to FCF ratio of LDOS is 3.36, which is a good value as it means it would take LDOS, 3.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LDOS (3.36) is better than 62.07% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that LDOS is somewhat dependend on debt financing.
The Debt to Equity ratio of LDOS (0.94) is worse than 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.57
WACC7.86%
2.3 Liquidity
LDOS has a Current Ratio of 1.62. This is a normal value and indicates that LDOS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.62, LDOS perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
LDOS has a Quick Ratio of 1.50. This is a normal value and indicates that LDOS is financially healthy and should not expect problems in meeting 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
The Earnings Per Share has grown by an nice 17.89% over the past year.
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 6.48%.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
EPS 1Y (TTM)17.89%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%4.1%
Revenue 1Y (TTM)6.48%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%6.66%
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 6.98% on average per year.
LDOS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
EPS Next Y17.64%
EPS Next 2Y10.73%
EPS Next 3Y8.49%
EPS Next 5Y6.98%
Revenue Next Year5.09%
Revenue Next 2Y4.36%
Revenue Next 3Y3.94%
Revenue Next 5Y3.39%
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
The Price/Earnings ratio is 16.36, which indicates a correct valuation of LDOS.
LDOS's Price/Earnings ratio is a bit cheaper when compared to the industry. LDOS is cheaper than 68.97% of the companies in the same industry.
LDOS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
With a Price/Forward Earnings ratio of 15.14, LDOS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LDOS indicates a somewhat cheap valuation: LDOS is cheaper than 65.52% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LDOS to the average of the S&P500 Index (23.78), we can say LDOS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 15.14 |
4.2 Price Multiples
70.11% of the companies in the same industry are more expensive than LDOS, based on the Enterprise Value to EBITDA ratio.
71.26% of the companies in the same industry are more expensive than LDOS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.5 | ||
| EV/EBITDA | 12 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LDOS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.93
PEG (5Y)1.12
EPS Next 2Y10.73%
EPS Next 3Y8.49%
5. Dividend
5.1 Amount
LDOS has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 3.77, LDOS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.89, LDOS pays less dividend than the S&P500 average, which is at 2.27.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
LDOS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.96%
Div Incr Years6
Div Non Decr Years7
5.3 Sustainability
14.88% of the earnings are spent on dividend by LDOS. This is a low number and sustainable payout ratio.
The dividend of LDOS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.88%
EPS Next 2Y10.73%
EPS Next 3Y8.49%
189.73
-0.8 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners80.74%
Inst Owner Change1%
Ins Owners0.49%
Ins Owner Change-0.77%
Market Cap24.26B
Revenue(TTM)17.33B
Net Income(TTM)1.41B
Analysts80
Price Target221.37 (16.68%)
Short Float %1.89%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend1.47
Dividend Growth(5Y)2.96%
DP14.88%
Div Incr Years6
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.38%
Min EPS beat(2)10.27%
Max EPS beat(2)18.49%
EPS beat(4)4
Avg EPS beat(4)11.87%
Min EPS beat(4)2.22%
Max EPS beat(4)18.49%
EPS beat(8)8
Avg EPS beat(8)18.44%
EPS beat(12)11
Avg EPS beat(12)15.14%
EPS beat(16)12
Avg EPS beat(16)11.19%
Revenue beat(2)1
Avg Revenue beat(2)0.39%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)1.44%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)3.53%
Revenue beat(8)6
Avg Revenue beat(8)1.39%
Revenue beat(12)8
Avg Revenue beat(12)1.11%
Revenue beat(16)10
Avg Revenue beat(16)0.74%
PT rev (1m)11.91%
PT rev (3m)17.89%
EPS NQ rev (1m)-1.51%
EPS NQ rev (3m)-3.84%
EPS NY rev (1m)1.97%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 15.14 | ||
| P/S | 1.4 | ||
| P/FCF | 17.5 | ||
| P/OCF | 15.61 | ||
| P/B | 4.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12 |
EPS(TTM)11.6
EY6.11%
EPS(NY)12.53
Fwd EY6.61%
FCF(TTM)10.84
FCFY5.71%
OCF(TTM)12.15
OCFY6.41%
SpS135.55
BVpS38.39
TBVpS-15.09
PEG (NY)0.93
PEG (5Y)1.12
Graham Number100.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.38% | ||
| ROE | 28.62% | ||
| ROCE | 19.34% | ||
| ROIC | 12.37% | ||
| ROICexc | 13.64% | ||
| ROICexgc | 47.71% | ||
| OM | 11.78% | ||
| PM (TTM) | 8.11% | ||
| GM | 17.61% | ||
| FCFM | 8% |
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%
ROICexgc growth 3Y4.26%
ROICexgc 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 Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 57.14% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 8.65 | ||
| Cash Conversion | 66.55% | ||
| Profit Quality | 98.65% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 4.09 |
F-Score8
WACC7.86%
ROIC/WACC1.57
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)17.89%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%4.1%
EPS Next Y17.64%
EPS Next 2Y10.73%
EPS Next 3Y8.49%
EPS Next 5Y6.98%
Revenue 1Y (TTM)6.48%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%6.66%
Revenue Next Year5.09%
Revenue Next 2Y4.36%
Revenue Next 3Y3.94%
Revenue Next 5Y3.39%
EBIT growth 1Y15.77%
EBIT growth 3Y15.99%
EBIT growth 5Y15.09%
EBIT Next Year23.96%
EBIT Next 3Y8.38%
EBIT Next 5Y6.89%
FCF growth 1Y73.68%
FCF growth 3Y10.27%
FCF growth 5Y7.37%
OCF growth 1Y58.57%
OCF growth 3Y10.52%
OCF growth 5Y7.01%
LEIDOS HOLDINGS INC / LDOS FAQ
What is the fundamental rating for LDOS stock?
ChartMill assigns a fundamental rating of 6 / 10 to LDOS.
What is the valuation status of LEIDOS HOLDINGS INC (LDOS) stock?
ChartMill assigns a valuation rating of 6 / 10 to LEIDOS HOLDINGS INC (LDOS). This can be considered as Fairly Valued.
Can you provide the profitability details for LEIDOS HOLDINGS INC?
LEIDOS HOLDINGS INC (LDOS) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for LDOS stock?
The Price/Earnings (PE) ratio for LEIDOS HOLDINGS INC (LDOS) is 16.36 and the Price/Book (PB) ratio is 4.94.
How financially healthy is LEIDOS HOLDINGS INC?
The financial health rating of LEIDOS HOLDINGS INC (LDOS) is 6 / 10.