LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
NYSE:LDOS - New York Stock Exchange, Inc. - US5253271028 - Common Stock - Currency: USD
Overall LDOS gets a fundamental rating of 6 out of 10. We evaluated LDOS against 81 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LDOS had positive earnings in the past year.
LDOS had a positive operating cash flow in the past year.
Each year in the past 5 years LDOS has been profitable.
LDOS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.10%, LDOS belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
LDOS has a Return On Equity of 31.31%. This is amongst the best in the industry. LDOS outperforms 81.48% of its industry peers.
With a decent Return On Invested Capital value of 12.06%, LDOS is doing good in the industry, outperforming 75.31% 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 12.53%.
The 3 year average ROIC (9.60%) for LDOS is below the current ROIC(12.06%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of LDOS (7.87%) is better than 76.54% of its industry peers.
LDOS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.40%, LDOS is in the better half of the industry, outperforming 79.01% of the companies in the same industry.
In the last couple of years the Operating Margin of LDOS has grown nicely.
LDOS has a worse Gross Margin (17.23%) than 76.54% of its industry peers.
In the last couple of years the Gross Margin of LDOS has grown nicely.
| Industry Rank | Sector 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%
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.
2.2 Solvency
An Altman-Z score of 3.71 indicates that LDOS is not in any danger for bankruptcy at the moment.
The Altman-Z score of LDOS (3.71) is better than 69.14% of its industry peers.
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 has a Debt to FCF ratio (4.16) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that LDOS has dependencies on debt financing.
LDOS has a worse Debt to Equity ratio (1.18) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | 3.71 |
ROIC/WACC1.51
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.54 indicates that LDOS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.54, LDOS perfoms like the industry average, outperforming 54.32% of the companies in the same industry.
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.
LDOS has a Quick ratio of 1.42. This is comparable to the rest of the industry: LDOS outperforms 53.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.42 |
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.
LDOS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.75%.
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
The Earnings Per Share is expected to grow by 7.45% on average over the next years.
Based on estimates for the next years, LDOS will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
EPS Next Y8.21%
EPS Next 2Y7.48%
EPS Next 3Y7.45%
EPS Next 5YN/A
Revenue Next Year4.43%
Revenue Next 2Y3.83%
Revenue Next 3Y3.6%
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.
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
A Price/Earnings ratio of 15.14 indicates a correct valuation of LDOS.
Based on the Price/Earnings ratio, LDOS is valued a bit cheaper than the industry average as 75.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.28. LDOS is valued slightly cheaper when compared to this.
LDOS is valuated correctly with a Price/Forward Earnings ratio of 13.98.
74.07% of the companies in the same industry are more expensive than LDOS, based on the Price/Forward Earnings ratio.
LDOS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LDOS indicates a somewhat cheap valuation: LDOS is cheaper than 67.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.23 | ||
| EV/EBITDA | 11.36 |
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)1.84
PEG (5Y)1.03
EPS Next 2Y7.48%
EPS Next 3Y7.45%
5. Dividend
5.1 Amount
LDOS has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.12, LDOS pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.03, LDOS pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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
15.60% 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.
DP15.6%
EPS Next 2Y7.48%
EPS Next 3Y7.45%
NYSE:LDOS (7/3/2025, 10:35:02 AM)
165.08
+2.46 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners80.44%
Inst Owner Change-0.33%
Ins Owners0.49%
Ins Owner Change6.3%
Market Cap21.25B
Analysts76.67
Price Target171.9 (4.13%)
Short Float %2.8%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend1.47
Dividend Growth(5Y)2.96%
DP15.6%
Div Incr Years6
Div Non Decr Years7
Ex-Date
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)1.99%
PT rev (3m)-1.05%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-0.87%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.14 | ||
| Fwd PE | 13.98 | ||
| P/S | 1.25 | ||
| P/FCF | 17.23 | ||
| P/OCF | 15.32 | ||
| P/B | 4.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.36 |
EPS(TTM)10.9
EY6.6%
EPS(NY)11.81
Fwd EY7.15%
FCF(TTM)9.58
FCFY5.8%
OCF(TTM)10.78
OCFY6.53%
SpS131.54
BVpS33.07
TBVpS-18.1
PEG (NY)1.84
PEG (5Y)1.03
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.71 |
F-Score8
WACC7.97%
ROIC/WACC1.51
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 Y8.21%
EPS Next 2Y7.48%
EPS Next 3Y7.45%
EPS Next 5YN/A
Revenue 1Y (TTM)7.75%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%6.79%
Revenue Next Year4.43%
Revenue Next 2Y3.83%
Revenue Next 3Y3.6%
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%