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 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.
LDOS had a positive operating cash flow in the past year.
LDOS had positive earnings in each of the past 5 years.
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 80.49% of the companies in the same industry.
LDOS's Return On Equity of 31.31% is amongst the best of the industry. LDOS outperforms 81.71% of its industry peers.
The Return On Invested Capital of LDOS (12.06%) is better than 75.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LDOS is below the industry average of 12.61%.
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
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 Operating Margin of 11.40%. This is in the better half of the industry: LDOS outperforms 79.27% of its industry peers.
In the last couple of years the Operating Margin of LDOS has grown nicely.
LDOS's Gross Margin of 17.23% is on the low side compared to the rest of the industry. LDOS is outperformed by 76.83% of its industry peers.
LDOS's Gross Margin has improved in the last couple of years.
| 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.
LDOS has a better debt/assets ratio than last year.
2.2 Solvency
LDOS has an Altman-Z score of 3.56. This indicates that LDOS is financially healthy and has little risk of bankruptcy at the moment.
LDOS has a Altman-Z score of 3.56. This is in the better half of the industry: LDOS outperforms 69.51% 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.
With a Debt to FCF ratio value of 4.16, LDOS perfoms like the industry average, outperforming 56.10% of the companies in the same 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 Debt to Equity ratio of 1.18. This is in the lower half of the industry: LDOS underperforms 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 4.16 | ||
| Altman-Z | 3.56 |
ROIC/WACC1.5
WACC8.03%
2.3 Liquidity
A Current Ratio of 1.54 indicates that LDOS should not have too much problems paying its short term obligations.
LDOS has a Current ratio (1.54) which is in line with 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 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%.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
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 7.68% yearly.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y7.98%
EPS Next 2Y7.9%
EPS Next 3Y7.68%
EPS Next 5YN/A
Revenue Next Year4.3%
Revenue Next 2Y3.71%
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.
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
LDOS is valuated correctly with a Price/Earnings ratio of 13.39.
LDOS's Price/Earnings ratio is a bit cheaper when compared to the industry. LDOS is cheaper than 78.05% of the companies in the same industry.
LDOS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
LDOS is valuated correctly with a Price/Forward Earnings ratio of 12.26.
Based on the Price/Forward Earnings ratio, LDOS is valued a bit cheaper than 76.83% of the companies in the same industry.
LDOS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LDOS indicates a somewhat cheap valuation: LDOS is cheaper than 74.39% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LDOS is valued a bit cheaper than 69.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.23 | ||
| EV/EBITDA | 10.37 |
4.3 Compensation for Growth
LDOS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LDOS may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)0.91
EPS Next 2Y7.9%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
LDOS has a Yearly Dividend Yield of 1.10%. 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.
Compared to an average S&P500 Dividend Yield of 2.39, LDOS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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.
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
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%
145.92
+0.33 (+0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners78.45%
Inst Owner Change-0.33%
Ins Owners0.49%
Ins Owner Change6.3%
Market Cap18.78B
Analysts76.67
Price Target175.78 (20.46%)
Short Float %2.39%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)4.29%
PT rev (3m)0.91%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-0.78%
EPS NY rev (1m)1.3%
EPS NY rev (3m)0.69%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.26 | ||
| P/S | 1.11 | ||
| P/FCF | 15.23 | ||
| P/OCF | 13.54 | ||
| P/B | 4.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.37 |
EPS(TTM)10.9
EY7.47%
EPS(NY)11.9
Fwd EY8.15%
FCF(TTM)9.58
FCFY6.56%
OCF(TTM)10.78
OCFY7.38%
SpS131.54
BVpS33.07
TBVpS-18.1
PEG (NY)1.68
PEG (5Y)0.91
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 | 3.56 |
F-Score8
WACC8.03%
ROIC/WACC1.5
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 Year4.3%
Revenue Next 2Y3.71%
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%