SCIENCE APPLICATIONS INTE (SAIC) Stock Fundamental Analysis
USA - NASDAQ:SAIC - US8086251076 - Common Stock
93.21 USD
-0.88 (-0.94%)
93.21 USD
0 (0%)
SAIC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 industry peers in the Professional Services industry. While SAIC belongs to the best of the industry regarding profitability, there are concerns on its financial health. SAIC may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
SAIC had positive earnings in the past year.
In the past year SAIC had a positive cash flow from operations.
In the past 5 years SAIC has always been profitable.
SAIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SAIC's Return On Assets of 7.67% is fine compared to the rest of the industry. SAIC outperforms 77.91% of its industry peers.
Looking at the Return On Equity, with a value of 26.30%, SAIC belongs to the top of the industry, outperforming 80.23% of the companies in the same industry.
The Return On Invested Capital of SAIC (12.15%) is better than 75.58% of its industry peers.
SAIC had an Average Return On Invested Capital over the past 3 years of 10.64%. This is below the industry average of 13.31%.
The 3 year average ROIC (10.64%) for SAIC is below the current ROIC(12.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 26.3% | ||
| 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
Looking at the Profit Margin, with a value of 5.35%, SAIC is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
SAIC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.57%, SAIC is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
In the last couple of years the Operating Margin of SAIC has grown nicely.
Looking at the Gross Margin, with a value of 11.97%, SAIC is doing worse than 83.72% of the companies in the same industry.
SAIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.57% | ||
| PM (TTM) | 5.35% | ||
| GM | 11.97% |
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.
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 2.85 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 2.85. This is comparable to the rest of the industry: SAIC outperforms 50.00% of its industry peers.
The Debt to FCF ratio of SAIC is 5.20, which is a neutral value as it means it would take SAIC, 5.20 years of fcf income to pay off all of its debts.
SAIC has a Debt to FCF ratio of 5.20. This is comparable to the rest of the industry: SAIC outperforms 52.33% of its industry peers.
SAIC has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.22, SAIC is not doing good in the industry: 75.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.67
WACC7.29%
2.3 Liquidity
A Current Ratio of 0.83 indicates that SAIC may have some problems paying its short term obligations.
The Current ratio of SAIC (0.83) is worse than 81.40% of its industry peers.
SAIC has a Quick Ratio of 0.83. This is a bad value and indicates that SAIC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.83, SAIC is doing worse than 80.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
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.
SAIC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.23%.
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)2.23%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%-2.7%
3.2 Future
Based on estimates for the next years, SAIC will show a small growth in Earnings Per Share. The EPS will grow by 5.34% on average per year.
SAIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.86% yearly.
EPS Next Y6.39%
EPS Next 2Y1.67%
EPS Next 3Y5.34%
EPS Next 5YN/A
Revenue Next Year-1.6%
Revenue Next 2Y-0.13%
Revenue Next 3Y0.86%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
SAIC is valuated reasonably with a Price/Earnings ratio of 8.69.
Based on the Price/Earnings ratio, SAIC is valued cheaper than 89.53% of the companies in the same industry.
SAIC is valuated cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.85 indicates a reasonable valuation of SAIC.
Based on the Price/Forward Earnings ratio, SAIC is valued cheaply inside the industry as 82.56% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SAIC to the average of the S&P500 Index (23.09), we can say SAIC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAIC is valued a bit cheaper than 77.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SAIC is valued cheaply inside the industry as 84.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.73 | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SAIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.36
PEG (5Y)0.87
EPS Next 2Y1.67%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
SAIC has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.93, SAIC pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.30, SAIC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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
18.05% of the earnings are spent on dividend by SAIC. This is a low number and sustainable payout ratio.
SAIC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.05%
EPS Next 2Y1.67%
EPS Next 3Y5.34%
93.21
-0.88 (-0.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners87.15%
Inst Owner Change-0.14%
Ins Owners0.48%
Ins Owner Change2.09%
Market Cap4.29B
Revenue(TTM)7.46B
Net Income(TTM)399.00M
Analysts55
Price Target121.27 (30.1%)
Short Float %3.93%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend1.5
Dividend Growth(5Y)0.34%
DP18.05%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.77%
Min EPS beat(2)-11.56%
Max EPS beat(2)59.1%
EPS beat(4)3
Avg EPS beat(4)21.66%
Min EPS beat(4)-11.56%
Max EPS beat(4)59.1%
EPS beat(8)5
Avg EPS beat(8)15.1%
EPS beat(12)9
Avg EPS beat(12)15.63%
EPS beat(16)13
Avg EPS beat(16)14.56%
Revenue beat(2)0
Avg Revenue beat(2)-4.13%
Min Revenue beat(2)-6.89%
Max Revenue beat(2)-1.37%
Revenue beat(4)1
Avg Revenue beat(4)-2.15%
Min Revenue beat(4)-6.89%
Max Revenue beat(4)0.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.37%
Revenue beat(12)6
Avg Revenue beat(12)0.46%
Revenue beat(16)7
Avg Revenue beat(16)0.2%
PT rev (1m)1.32%
PT rev (3m)-1.26%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-16.21%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)3.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.41%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 9.85 | ||
| P/S | 0.58 | ||
| P/FCF | 9.73 | ||
| P/OCF | 8.94 | ||
| P/B | 2.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.3 |
EPS(TTM)10.73
EY11.51%
EPS(NY)9.46
Fwd EY10.15%
FCF(TTM)9.58
FCFY10.28%
OCF(TTM)10.43
OCFY11.19%
SpS162.1
BVpS32.96
TBVpS-44.65
PEG (NY)1.36
PEG (5Y)0.87
Graham Number89.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.67% | ||
| ROE | 26.3% | ||
| ROCE | 15.05% | ||
| ROIC | 12.15% | ||
| ROICexc | 12.31% | ||
| ROICexgc | 340.51% | ||
| OM | 7.57% | ||
| PM (TTM) | 5.35% | ||
| GM | 11.97% | ||
| FCFM | 5.91% |
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%
ROICexgc growth 3Y17.62%
ROICexgc 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-Score8
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 5.2 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 27.46% | ||
| Cap/Sales | 0.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.89% | ||
| Profit Quality | 110.53% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.85 |
F-Score8
WACC7.29%
ROIC/WACC1.67
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 Y6.39%
EPS Next 2Y1.67%
EPS Next 3Y5.34%
EPS Next 5YN/A
Revenue 1Y (TTM)2.23%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%-2.7%
Revenue Next Year-1.6%
Revenue Next 2Y-0.13%
Revenue Next 3Y0.86%
Revenue Next 5YN/A
EBIT growth 1Y11.22%
EBIT growth 3Y3.17%
EBIT growth 5Y6.44%
EBIT Next Year20.23%
EBIT Next 3Y8.83%
EBIT Next 5YN/A
FCF growth 1Y-8.12%
FCF growth 3Y-1.69%
FCF growth 5Y0.94%
OCF growth 1Y-4.95%
OCF growth 3Y-1.57%
OCF growth 5Y1.52%
SCIENCE APPLICATIONS INTE / SAIC FAQ
What is the fundamental rating for SAIC stock?
ChartMill assigns a fundamental rating of 5 / 10 to SAIC.
What is the valuation status for SAIC stock?
ChartMill assigns a valuation rating of 8 / 10 to SCIENCE APPLICATIONS INTE (SAIC). This can be considered as Undervalued.
Can you provide the profitability details for SCIENCE APPLICATIONS INTE?
SCIENCE APPLICATIONS INTE (SAIC) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for SAIC stock?
The Price/Earnings (PE) ratio for SCIENCE APPLICATIONS INTE (SAIC) is 8.69 and the Price/Book (PB) ratio is 2.83.
Is the dividend of SCIENCE APPLICATIONS INTE sustainable?
The dividend rating of SCIENCE APPLICATIONS INTE (SAIC) is 6 / 10 and the dividend payout ratio is 18.05%.