SCIENCE APPLICATIONS INTE (SAIC) Stock Fundamental Analysis
NASDAQ:SAIC - Nasdaq - US8086251076 - Common Stock - Currency: USD
Overall SAIC gets a fundamental rating of 5 out of 10. We evaluated SAIC against 80 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.
Each year in the past 5 years SAIC has been profitable.
SAIC 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 6.77%, SAIC is in the better half of the industry, outperforming 71.25% of the companies in the same industry.
The Return On Equity of SAIC (23.46%) is better than 76.25% of its industry peers.
The Return On Invested Capital of SAIC (12.14%) is better than 72.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAIC is below the industry average of 12.73%.
The 3 year average ROIC (10.64%) for SAIC is below the current ROIC(12.14%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (4.70%) than 63.75% of its industry peers.
SAIC's Profit Margin has improved in the last couple of years.
SAIC has a Operating Margin (7.48%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SAIC has grown nicely.
SAIC's Gross Margin of 11.83% is on the low side compared to the rest of the industry. SAIC is outperformed by 86.25% 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
SAIC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SAIC has been reduced compared to 1 year ago.
The number of shares outstanding for SAIC has been reduced compared to 5 years ago.
SAIC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.04 indicates that SAIC is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.04, SAIC perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 4.98, SAIC perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
A Debt/Equity ratio of 1.25 is on the high side and indicates that SAIC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.25, SAIC is not doing good in the industry: 77.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 3.04 |
ROIC/WACC1.49
WACC8.15%
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 85.00% of its industry peers.
A Quick Ratio of 0.78 indicates that SAIC may have some problems paying its short term obligations.
SAIC's Quick ratio of 0.78 is on the low side compared to the rest of the industry. SAIC is outperformed by 85.00% of its industry peers.
| 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 19.30%, which is quite good.
Measured over the past years, SAIC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.01% on average per year.
SAIC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.39%.
SAIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.23% yearly.
EPS 1Y (TTM)19.3%
EPS 3Y8.02%
EPS 5Y10.01%
EPS Q2Q%0%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%1.62%
3.2 Future
SAIC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.89% yearly.
SAIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y2.42%
EPS Next 2Y6.12%
EPS Next 3Y7.89%
EPS Next 5YN/A
Revenue Next Year2.51%
Revenue Next 2Y2.44%
Revenue Next 3Y2.25%
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
The Price/Earnings ratio is 12.82, which indicates a correct valuation of SAIC.
81.25% of the companies in the same industry are more expensive than SAIC, based on the Price/Earnings ratio.
SAIC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.93.
The Price/Forward Earnings ratio is 11.38, which indicates a very decent valuation of SAIC.
Based on the Price/Forward Earnings ratio, SAIC is valued a bit cheaper than the industry average as 78.75% of the companies are valued more expensively.
SAIC is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 11.38 |
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 68.75% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SAIC is valued a bit cheaper than 77.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.01 | ||
| EV/EBITDA | 11.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SAIC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SAIC may justify a higher PE ratio.
PEG (NY)5.3
PEG (5Y)1.28
EPS Next 2Y6.12%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, SAIC has a reasonable but not impressive dividend return.
SAIC's Dividend Yield is a higher than the industry average which is at 2.28.
With a Dividend Yield of 1.27, SAIC pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of SAIC has a limited annual growth rate of 0.34%.
SAIC has been paying a dividend for at least 10 years, so it has 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
SAIC pays out 20.96% of its income as dividend. This is a sustainable payout ratio.
SAIC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.96%
EPS Next 2Y6.12%
EPS Next 3Y7.89%
117.31
-3.29 (-2.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners86.15%
Inst Owner Change-0.38%
Ins Owners0.47%
Ins Owner Change9.38%
Market Cap5.50B
Analysts71.58
Price Target121.28 (3.38%)
Short Float %4.65%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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)1.52%
PT rev (3m)-4.04%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.82 | ||
| Fwd PE | 11.38 | ||
| P/S | 0.73 | ||
| P/FCF | 12.01 | ||
| P/OCF | 11.09 | ||
| P/B | 3.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.22 |
EPS(TTM)9.15
EY7.8%
EPS(NY)10.3
Fwd EY8.78%
FCF(TTM)9.77
FCFY8.33%
OCF(TTM)10.58
OCFY9.02%
SpS160.21
BVpS32.11
TBVpS-44.72
PEG (NY)5.3
PEG (5Y)1.28
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 | 3.04 |
F-Score7
WACC8.15%
ROIC/WACC1.49
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)19.3%
EPS 3Y8.02%
EPS 5Y10.01%
EPS Q2Q%0%
EPS Next Y2.42%
EPS Next 2Y6.12%
EPS Next 3Y7.89%
EPS Next 5YN/A
Revenue 1Y (TTM)3.39%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%1.62%
Revenue Next Year2.51%
Revenue Next 2Y2.44%
Revenue Next 3Y2.25%
Revenue Next 5YN/A
EBIT growth 1Y-24.05%
EBIT growth 3Y3.17%
EBIT growth 5Y6.44%
EBIT Next Year24.61%
EBIT Next 3Y9.57%
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%