SCIENCE APPLICATIONS INTE (SAIC) Stock Fundamental Analysis
NASDAQ:SAIC - US8086251076 - Common Stock
104.93 USD
-1.29 (-1.21%)
104.93 USD
0 (0%)
Taking everything into account, SAIC scores 5 out of 10 in our fundamental rating. SAIC was compared to 83 industry peers in the Professional Services industry. While SAIC has a great profitability rating, there are quite some concerns on its financial health. SAIC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SAIC was profitable.
SAIC had a positive operating cash flow in the past year.
In the past 5 years SAIC has always been profitable.
Each year in the past 5 years SAIC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.77%, SAIC is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
SAIC has a better Return On Equity (23.46%) than 77.11% of its industry peers.
With a decent Return On Invested Capital value of 12.14%, SAIC is doing good in the industry, outperforming 74.70% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SAIC is in line with the industry average of 12.57%.
The last Return On Invested Capital (12.14%) for SAIC is above the 3 year average (10.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 23.46% | ||
| ROIC | 12.15% |
ROA(3y)7.1%
ROA(5y)5.95%
ROE(3y)22.46%
ROE(5y)19.61%
ROIC(3y)10.64%
ROIC(5y)9.92%
1.3 Margins
SAIC's Profit Margin of 4.70% is fine compared to the rest of the industry. SAIC outperforms 62.65% of its industry peers.
SAIC's Profit Margin has improved in the last couple of years.
SAIC's Operating Margin of 7.48% is fine compared to the rest of the industry. SAIC outperforms 60.24% of its industry peers.
SAIC's Operating Margin has improved in the last couple of years.
The Gross Margin of SAIC (11.83%) is worse than 84.34% of its industry peers.
SAIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.48% | ||
| PM (TTM) | 4.7% | ||
| GM | 11.83% |
OM growth 3Y2.78%
OM growth 5Y3.1%
PM growth 3Y8.92%
PM growth 5Y6.44%
GM growth 3Y0.88%
GM growth 5Y1.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SAIC is creating some value.
Compared to 1 year ago, SAIC has less shares outstanding
Compared to 5 years ago, SAIC has less shares outstanding
Compared to 1 year ago, SAIC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.93 indicates that SAIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
SAIC has a Altman-Z score of 2.93. This is comparable to the rest of the industry: SAIC outperforms 50.60% of its industry peers.
The Debt to FCF ratio of SAIC is 4.98, which is a neutral value as it means it would take SAIC, 4.98 years of fcf income to pay off all of its debts.
SAIC has a Debt to FCF ratio (4.98) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.25 is on the high side and indicates that SAIC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.25, SAIC is doing worse than 77.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.53
WACC7.93%
2.3 Liquidity
SAIC has a Current Ratio of 0.78. This is a bad value and indicates that SAIC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SAIC (0.78) is worse than 84.34% of its industry peers.
SAIC has a Quick Ratio of 0.78. This is a bad value and indicates that SAIC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.78, SAIC is not doing good in the industry: 84.34% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
SAIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.90%, which is quite impressive.
SAIC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.01% yearly.
The Revenue has been growing slightly by 0.47% in the past year.
The Revenue has been growing slightly by 3.23% on average over the past years.
EPS 1Y (TTM)39.9%
EPS 3Y8.02%
EPS 5Y10.01%
EPS Q2Q%77.07%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%-2.7%
3.2 Future
The Earnings Per Share is expected to grow by 8.95% on average over the next years. This is quite good.
SAIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.43% yearly.
EPS Next Y2.27%
EPS Next 2Y6.33%
EPS Next 3Y8.95%
EPS Next 5YN/A
Revenue Next Year2.34%
Revenue Next 2Y2.28%
Revenue Next 3Y2.43%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 9.78, the valuation of SAIC can be described as very reasonable.
Based on the Price/Earnings ratio, SAIC is valued cheaply inside the industry as 86.75% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SAIC to the average of the S&P500 Index (27.06), we can say SAIC is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.14, the valuation of SAIC can be described as very reasonable.
SAIC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SAIC is cheaper than 81.93% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SAIC to the average of the S&P500 Index (22.69), we can say SAIC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SAIC indicates a somewhat cheap valuation: SAIC is cheaper than 73.49% of the companies listed in the same industry.
SAIC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SAIC is cheaper than 79.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.74 | ||
| EV/EBITDA | 10.26 |
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 SAIC may justify a higher PE ratio.
PEG (NY)4.31
PEG (5Y)0.98
EPS Next 2Y6.33%
EPS Next 3Y8.95%
5. Dividend
5.1 Amount
SAIC has a Yearly Dividend Yield of 1.30%. Purely for dividend investing, there may be better candidates out there.
SAIC's Dividend Yield is a higher than the industry average which is at 2.17.
With a Dividend Yield of 1.30, SAIC pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of SAIC has a limited annual growth rate of 0.34%.
SAIC has paid a dividend for at least 10 years, which is a reliable track record.
SAIC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.34%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
20.96% of the earnings are spent on dividend by SAIC. This is a low number and sustainable payout ratio.
The dividend of SAIC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.96%
EPS Next 2Y6.33%
EPS Next 3Y8.95%
104.93
-1.29 (-1.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners86.15%
Inst Owner Change0.2%
Ins Owners0.47%
Ins Owner Change9.38%
Market Cap4.92B
Analysts70
Price Target123.21 (17.42%)
Short Float %4.21%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend1.5
Dividend Growth(5Y)0.34%
DP20.96%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.68%
Min EPS beat(2)-11.56%
Max EPS beat(2)20.91%
EPS beat(4)3
Avg EPS beat(4)8.96%
Min EPS beat(4)-11.56%
Max EPS beat(4)20.91%
EPS beat(8)5
Avg EPS beat(8)10.69%
EPS beat(12)9
Avg EPS beat(12)10.82%
EPS beat(16)13
Avg EPS beat(16)12.84%
Revenue beat(2)0
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-0.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)0.2%
Revenue beat(8)4
Avg Revenue beat(8)0.9%
Revenue beat(12)6
Avg Revenue beat(12)0.9%
Revenue beat(16)8
Avg Revenue beat(16)0.65%
PT rev (1m)0.31%
PT rev (3m)-2.52%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 10.14 | ||
| P/S | 0.65 | ||
| P/FCF | 10.74 | ||
| P/OCF | 9.92 | ||
| P/B | 3.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.26 |
EPS(TTM)10.73
EY10.23%
EPS(NY)10.34
Fwd EY9.86%
FCF(TTM)9.77
FCFY9.31%
OCF(TTM)10.58
OCFY10.09%
SpS160.21
BVpS32.11
TBVpS-44.72
PEG (NY)4.31
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 23.46% | ||
| ROCE | 15.04% | ||
| ROIC | 12.15% | ||
| ROICexc | 12.3% | ||
| ROICexgc | 509.95% | ||
| OM | 7.48% | ||
| PM (TTM) | 4.7% | ||
| GM | 11.83% | ||
| FCFM | 6.1% |
ROA(3y)7.1%
ROA(5y)5.95%
ROE(3y)22.46%
ROE(5y)19.61%
ROIC(3y)10.64%
ROIC(5y)9.92%
ROICexc(3y)10.85%
ROICexc(5y)10.17%
ROICexgc(3y)175.22%
ROICexgc(5y)160.29%
ROCE(3y)13.17%
ROCE(5y)12.29%
ROICexcg growth 3Y17.62%
ROICexcg growth 5Y35.33%
ROICexc growth 3Y7.46%
ROICexc growth 5Y4.1%
OM growth 3Y2.78%
OM growth 5Y3.1%
PM growth 3Y8.92%
PM growth 5Y6.44%
GM growth 3Y0.88%
GM growth 5Y1.51%
F-Score7
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.98 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 26.95% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.55% | ||
| Profit Quality | 129.75% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.93 |
F-Score7
WACC7.93%
ROIC/WACC1.53
Cap/Depr(3y)20.22%
Cap/Depr(5y)21.63%
Cap/Sales(3y)0.39%
Cap/Sales(5y)0.46%
Profit Quality(3y)124.29%
Profit Quality(5y)177.22%
High Growth Momentum
Growth
EPS 1Y (TTM)39.9%
EPS 3Y8.02%
EPS 5Y10.01%
EPS Q2Q%77.07%
EPS Next Y2.27%
EPS Next 2Y6.33%
EPS Next 3Y8.95%
EPS Next 5YN/A
Revenue 1Y (TTM)0.47%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%-2.7%
Revenue Next Year2.34%
Revenue Next 2Y2.28%
Revenue Next 3Y2.43%
Revenue Next 5YN/A
EBIT growth 1Y-24.05%
EBIT growth 3Y3.17%
EBIT growth 5Y6.44%
EBIT Next Year24.61%
EBIT Next 3Y10.16%
EBIT Next 5YN/A
FCF growth 1Y-2.55%
FCF growth 3Y-1.69%
FCF growth 5Y0.94%
OCF growth 1Y0%
OCF growth 3Y-1.57%
OCF growth 5Y1.52%