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LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis

NYSE:LDOS - New York Stock Exchange, Inc. - US5253271028 - Common Stock - Currency: USD

172.94  +11.99 (+7.45%)

After market: 173 +0.06 (+0.03%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to LDOS. LDOS was compared to 82 industry peers in the Professional Services industry. LDOS scores excellent on profitability, but there are some minor concerns on its financial health. LDOS has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year LDOS was profitable.
LDOS had a positive operating cash flow in the past year.
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.
LDOS Yearly Net Income VS EBIT VS OCF VS FCFLDOS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

With an excellent Return On Assets value of 10.10%, LDOS belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
LDOS's Return On Equity of 31.31% is amongst the best of the industry. LDOS outperforms 82.93% of its industry peers.
With a decent Return On Invested Capital value of 12.06%, LDOS is doing good in the industry, outperforming 74.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LDOS is below the industry average of 12.16%.
The 3 year average ROIC (9.60%) for LDOS is below the current ROIC(12.06%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.1%
ROE 31.31%
ROIC 12.06%
ROA(3y)5.46%
ROA(5y)5.42%
ROE(3y)16.36%
ROE(5y)16.58%
ROIC(3y)9.6%
ROIC(5y)8.62%
LDOS Yearly ROA, ROE, ROICLDOS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

LDOS has a better Profit Margin (7.87%) than 78.05% of its industry peers.
LDOS's Profit Margin has improved in the last couple of years.
LDOS has a Operating Margin of 11.40%. This is in the better half of the industry: LDOS outperforms 78.05% of its industry peers.
LDOS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.23%, LDOS is not doing good in the industry: 79.27% of the companies in the same industry are doing better.
LDOS's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 11.4%
PM (TTM) 7.87%
GM 17.23%
OM growth 3Y8.76%
OM growth 5Y6.1%
PM growth 3Y11.14%
PM growth 5Y4.59%
GM growth 3Y4.63%
GM growth 5Y3.77%
LDOS Yearly Profit, Operating, Gross MarginsLDOS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

5

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
LDOS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LDOS has been reduced compared to a year ago.
LDOS Yearly Shares OutstandingLDOS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
LDOS Yearly Total Debt VS Total AssetsLDOS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 3.70 indicates that LDOS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.70, LDOS is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
The Debt to FCF ratio of LDOS is 4.16, which is a neutral value as it means it would take LDOS, 4.16 years of fcf income to pay off all of its debts.
LDOS's Debt to FCF ratio of 4.16 is in line compared to the rest of the industry. LDOS outperforms 56.10% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that LDOS has dependencies on debt financing.
The Debt to Equity ratio of LDOS (1.18) is worse than 76.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 4.16
Altman-Z 3.7
ROIC/WACC1.53
WACC7.86%
LDOS Yearly LT Debt VS Equity VS FCFLDOS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.3 Liquidity

LDOS has a Current Ratio of 1.54. 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 Current ratio of 1.54. This is comparable to the rest of the industry: LDOS outperforms 53.66% of its industry peers.
LDOS has a Quick Ratio of 1.42. This is a normal value and indicates that LDOS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of LDOS (1.42) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.54
Quick Ratio 1.42
LDOS Yearly Current Assets VS Current LiabilitesLDOS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 34.40% over the past year.
Measured over the past years, LDOS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.65% on average per year.
The Revenue has been growing slightly by 7.75% in the past year.
Measured over the past years, LDOS shows a quite strong growth in Revenue. The Revenue has been growing by 8.47% on average per year.
EPS 1Y (TTM)34.4%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%29.69%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%6.79%

3.2 Future

LDOS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.36% yearly.
The Revenue is expected to grow by 3.63% on average over the next years.
EPS Next Y8.68%
EPS Next 2Y7.5%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue Next Year4.46%
Revenue Next 2Y3.89%
Revenue Next 3Y3.63%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LDOS Yearly Revenue VS EstimatesLDOS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B
LDOS Yearly EPS VS EstimatesLDOS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.87, LDOS is valued correctly.
Based on the Price/Earnings ratio, LDOS is valued a bit cheaper than the industry average as 69.51% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.03. LDOS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.64, which indicates a correct valuation of LDOS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LDOS indicates a somewhat cheap valuation: LDOS is cheaper than 65.85% 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 (36.28), we can say LDOS is valued rather cheaply.
Industry RankSector Rank
PE 15.87
Fwd PE 14.64
LDOS Price Earnings VS Forward Price EarningsLDOS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

64.63% 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 67.07% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.05
EV/EBITDA 11.27
LDOS Per share dataLDOS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of LDOS may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)1.08
EPS Next 2Y7.5%
EPS Next 3Y7.36%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.00%, LDOS has a reasonable but not impressive dividend return.
LDOS's Dividend Yield is a higher than the industry average which is at 2.23.
With a Dividend Yield of 1.00, LDOS pays less dividend than the S&P500 average, which is at 2.40.
Industry RankSector Rank
Dividend Yield 1%

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.
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
LDOS Yearly Dividends per shareLDOS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10

5.3 Sustainability

15.60% of the earnings are spent on dividend by LDOS. This is a low number and sustainable payout ratio.
LDOS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.6%
EPS Next 2Y7.5%
EPS Next 3Y7.36%
LDOS Yearly Income VS Free CF VS DividendLDOS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
LDOS Dividend Payout.LDOS Dividend Payout, showing the Payout Ratio.LDOS Dividend Payout.PayoutRetained Earnings

LEIDOS HOLDINGS INC

NYSE:LDOS (8/5/2025, 8:04:00 PM)

After market: 173 +0.06 (+0.03%)

172.94

+11.99 (+7.45%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)05-06 2025-05-06/bmo
Earnings (Next)08-05 2025-08-05/bmo
Inst Owners80.44%
Inst Owner Change-0.17%
Ins Owners0.49%
Ins Owner Change6.3%
Market Cap22.26B
Analysts76.52
Price Target175.07 (1.23%)
Short Float %2.41%
Short Ratio2.78
Dividend
Industry RankSector Rank
Dividend Yield 1%
Yearly Dividend1.47
Dividend Growth(5Y)2.96%
DP15.6%
Div Incr Years6
Div Non Decr Years7
Ex-Date06-16 2025-06-16 (0.4)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.36%
Min EPS beat(2)2.22%
Max EPS beat(2)16.5%
EPS beat(4)4
Avg EPS beat(4)18.63%
Min EPS beat(4)2.22%
Max EPS beat(4)42.23%
EPS beat(8)8
Avg EPS beat(8)18.81%
EPS beat(12)9
Avg EPS beat(12)12.63%
EPS beat(16)11
Avg EPS beat(16)9.6%
Revenue beat(2)2
Avg Revenue beat(2)2.5%
Min Revenue beat(2)1.46%
Max Revenue beat(2)3.53%
Revenue beat(4)3
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)3.53%
Revenue beat(8)7
Avg Revenue beat(8)1.65%
Revenue beat(12)8
Avg Revenue beat(12)1.02%
Revenue beat(16)10
Avg Revenue beat(16)0.37%
PT rev (1m)1.85%
PT rev (3m)3.87%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0.43%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.21%
Valuation
Industry RankSector Rank
PE 15.87
Fwd PE 14.64
P/S 1.31
P/FCF 18.05
P/OCF 16.05
P/B 5.23
P/tB N/A
EV/EBITDA 11.27
EPS(TTM)10.9
EY6.3%
EPS(NY)11.81
Fwd EY6.83%
FCF(TTM)9.58
FCFY5.54%
OCF(TTM)10.78
OCFY6.23%
SpS131.54
BVpS33.07
TBVpS-18.1
PEG (NY)1.83
PEG (5Y)1.08
Profitability
Industry RankSector Rank
ROA 10.1%
ROE 31.31%
ROCE 18.86%
ROIC 12.06%
ROICexc 13.14%
ROICexgc 43.98%
OM 11.4%
PM (TTM) 7.87%
GM 17.23%
FCFM 7.28%
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 Turnover1.28
Health
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 4.16
Debt/EBITDA 2.26
Cap/Depr 53.1%
Cap/Sales 0.91%
Interest Coverage 8.94
Cash Conversion 62.48%
Profit Quality 92.5%
Current Ratio 1.54
Quick Ratio 1.42
Altman-Z 3.7
F-Score8
WACC7.86%
ROIC/WACC1.53
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)34.4%
EPS 3Y15.63%
EPS 5Y14.65%
EPS Q2Q%29.69%
EPS Next Y8.68%
EPS Next 2Y7.5%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue 1Y (TTM)7.75%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%6.79%
Revenue Next Year4.46%
Revenue Next 2Y3.89%
Revenue Next 3Y3.63%
Revenue Next 5YN/A
EBIT growth 1Y32.92%
EBIT growth 3Y15.99%
EBIT growth 5Y15.09%
EBIT Next Year14.29%
EBIT Next 3Y7.22%
EBIT Next 5YN/A
FCF growth 1Y88.24%
FCF growth 3Y10.27%
FCF growth 5Y7.37%
OCF growth 1Y74.47%
OCF growth 3Y10.52%
OCF growth 5Y7.01%