LEIDOS HOLDINGS INC (LDOS) Stock Fundamental Analysis
NYSE:LDOS - New York Stock Exchange, Inc. - US5253271028 - Common Stock - Currency: USD
LDOS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. While LDOS has a great profitability rating, 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
In the past year LDOS was profitable.
LDOS had a positive operating cash flow in the past year.
LDOS had positive earnings in each of the past 5 years.
In the past 5 years LDOS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.10%, LDOS belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
LDOS has a better Return On Equity (31.31%) than 81.71% of its industry peers.
LDOS has a better Return On Invested Capital (12.06%) than 74.39% of its industry peers.
LDOS had an Average Return On Invested Capital over the past 3 years of 9.60%. This is below the industry average of 12.98%.
The last Return On Invested Capital (12.06%) for LDOS is above the 3 year average (9.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 31.31% | ||
| ROIC | 12.06% |
ROA(3y)5.48%
ROA(5y)5.43%
ROE(3y)16.36%
ROE(5y)16.58%
ROIC(3y)9.6%
ROIC(5y)8.62%
1.3 Margins
Looking at the Profit Margin, with a value of 7.87%, LDOS is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
In the last couple of years the Profit Margin of LDOS has grown nicely.
LDOS has a better Operating Margin (11.40%) than 79.27% of its industry peers.
In the last couple of years the Operating Margin of LDOS has grown nicely.
LDOS has a worse Gross Margin (17.23%) than 78.05% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LDOS is 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.
Compared to 1 year ago, LDOS has an improved debt to assets ratio.
2.2 Solvency
LDOS has an Altman-Z score of 3.68. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
LDOS has a Altman-Z score of 3.68. This is in the better half of the industry: LDOS outperforms 68.29% of its industry peers.
LDOS has a debt to FCF ratio of 4.16. This is a neutral value as LDOS would need 4.16 years to pay back of all of its debts.
The Debt to FCF ratio of LDOS (4.16) is comparable to the rest of the industry.
LDOS has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.18, LDOS is not doing good in the industry: 76.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.46
WACC8.28%
2.3 Liquidity
A Current Ratio of 1.54 indicates that LDOS should not have too much problems paying its short term obligations.
The Current ratio of LDOS (1.54) is comparable to the rest of the 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.
With a Quick ratio value of 1.42, LDOS perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
LDOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.40%, which is quite impressive.
LDOS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.65% yearly.
The Revenue has been growing slightly by 7.75% in the past year.
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)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 7.68% on average over the next years.
The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y7.98%
EPS Next 2Y7.9%
EPS Next 3Y7.68%
EPS Next 5YN/A
Revenue Next Year4.34%
Revenue Next 2Y3.91%
Revenue Next 3Y4%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.71, LDOS is valued correctly.
69.51% of the companies in the same industry are more expensive than LDOS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.60, LDOS is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.47, which indicates a correct valuation of LDOS.
LDOS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LDOS is cheaper than 73.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. LDOS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LDOS is valued a bit cheaper than the industry average as 67.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LDOS is valued a bit cheaper than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.67 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LDOS does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LDOS may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)1
EPS Next 2Y7.9%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
LDOS has a Yearly Dividend Yield of 1.02%.
LDOS's Dividend Yield is a higher than the industry average which is at 1.98.
With a Dividend Yield of 1.02, LDOS pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
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 2Y7.9%
EPS Next 3Y7.68%
160.3
+0.77 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners78.45%
Inst Owner Change0.28%
Ins Owners0.49%
Ins Owner Change6.51%
Market Cap20.55B
Analysts78.33
Price Target168.55 (5.15%)
Short Float %2.84%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)-2.98%
PT rev (3m)-10.51%
EPS NQ rev (1m)-1.13%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)1.3%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.47 | ||
| P/S | 1.21 | ||
| P/FCF | 16.67 | ||
| P/OCF | 14.82 | ||
| P/B | 4.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.15 |
EPS(TTM)10.9
EY6.8%
EPS(NY)11.9
Fwd EY7.42%
FCF(TTM)9.62
FCFY6%
OCF(TTM)10.82
OCFY6.75%
SpS132.06
BVpS33.2
TBVpS-18.17
PEG (NY)1.84
PEG (5Y)1
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)5.48%
ROA(5y)5.43%
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 | 250 | ||
| Cash Conversion | 62.48% | ||
| Profit Quality | 92.5% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 3.68 |
F-Score8
WACC8.28%
ROIC/WACC1.46
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 Y7.98%
EPS Next 2Y7.9%
EPS Next 3Y7.68%
EPS Next 5YN/A
Revenue 1Y (TTM)7.75%
Revenue growth 3Y6.65%
Revenue growth 5Y8.47%
Sales Q2Q%6.79%
Revenue Next Year4.34%
Revenue Next 2Y3.91%
Revenue Next 3Y4%
Revenue Next 5YN/A
EBIT growth 1Y32.92%
EBIT growth 3Y15.99%
EBIT growth 5Y15.09%
EBIT Next Year13.83%
EBIT Next 3Y6.91%
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%