SCIENCE APPLICATIONS INTE (SAIC) Stock Fundamental Analysis
USA - NASDAQ:SAIC - US8086251076 - Common Stock
97.2 USD
-2.81 (-2.81%)
99.14 USD
+1.94 (+2%)
Taking everything into account, SAIC scores 5 out of 10 in our fundamental rating. SAIC was compared to 81 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 valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years SAIC had a positive operating cash flow.
1.2 Ratios
SAIC's Return On Assets of 7.67% is fine compared to the rest of the industry. SAIC outperforms 76.54% of its industry peers.
SAIC has a Return On Equity of 26.30%. This is amongst the best in the industry. SAIC outperforms 80.25% of its industry peers.
SAIC has a Return On Invested Capital of 12.15%. This is in the better half of the industry: SAIC outperforms 74.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SAIC is below the industry average of 12.93%.
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
SAIC's Profit Margin of 5.35% is fine compared to the rest of the industry. SAIC outperforms 61.73% of its industry peers.
In the last couple of years the Profit Margin of SAIC has grown nicely.
With a decent Operating Margin value of 7.57%, SAIC is doing good in the industry, outperforming 61.73% of the companies in the same industry.
SAIC's Operating Margin has improved in the last couple of years.
SAIC has a Gross Margin of 11.97%. This is amonst the worse of the industry: SAIC underperforms 82.72% of its industry peers.
In the last couple of years the Gross Margin of SAIC has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAIC is still creating some value.
Compared to 1 year ago, SAIC has less shares outstanding
SAIC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SAIC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.87 indicates that SAIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.87, SAIC is in line with its industry, outperforming 50.62% of the companies in the same industry.
SAIC has a debt to FCF ratio of 5.20. This is a neutral value as SAIC would need 5.20 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.20, SAIC is in line with its industry, outperforming 53.09% of the companies in the same industry.
A Debt/Equity ratio of 1.22 is on the high side and indicates that SAIC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.22, SAIC is not doing good in the industry: 75.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.56
WACC7.8%
2.3 Liquidity
A Current Ratio of 0.83 indicates that SAIC may have some problems paying its short term obligations.
SAIC has a worse Current ratio (0.83) than 81.48% of its industry peers.
A Quick Ratio of 0.83 indicates that SAIC may have some problems paying its short term obligations.
The Quick ratio of SAIC (0.83) is worse than 80.25% of its industry peers.
| 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.
The Earnings Per Share has been growing by 10.01% on average over the past years. This is quite good.
SAIC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.23%.
Measured over the past years, SAIC shows a small growth in Revenue. The Revenue has been growing by 3.23% on average per year.
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
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 0.57% yearly.
EPS Next Y2.27%
EPS Next 2Y6.33%
EPS Next 3Y8.95%
EPS Next 5YN/A
Revenue Next Year-1.49%
Revenue Next 2Y-0.24%
Revenue Next 3Y0.57%
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.
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 9.06.
Based on the Price/Earnings ratio, SAIC is valued cheaper than 91.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. SAIC is valued rather cheaply when compared to this.
SAIC is valuated reasonably with a Price/Forward Earnings ratio of 9.40.
Based on the Price/Forward Earnings ratio, SAIC is valued cheaper than 86.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SAIC to the average of the S&P500 Index (22.64), we can say SAIC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAIC is valued a bit cheaper than the industry average as 79.01% of the companies are valued more expensively.
85.19% of the companies in the same industry are more expensive than SAIC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.14 | ||
| EV/EBITDA | 9.5 |
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)3.99
PEG (5Y)0.91
EPS Next 2Y6.33%
EPS Next 3Y8.95%
5. Dividend
5.1 Amount
SAIC has a Yearly Dividend Yield of 1.44%. 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 3.09.
SAIC's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.34%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
SAIC pays out 18.05% of its income as dividend. This is a sustainable payout ratio.
The dividend of SAIC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.05%
EPS Next 2Y6.33%
EPS Next 3Y8.95%
97.2
-2.81 (-2.81%)
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 Change7.67%
Market Cap4.47B
Analysts70
Price Target119.69 (23.14%)
Short Float %4.23%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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)-1.31%
PT rev (3m)0.19%
EPS NQ rev (1m)-15.06%
EPS NQ rev (3m)-13.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)-6.14%
Revenue NQ rev (3m)-6.73%
Revenue NY rev (1m)-3.74%
Revenue NY rev (3m)-3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 9.4 | ||
| P/S | 0.6 | ||
| P/FCF | 10.14 | ||
| P/OCF | 9.32 | ||
| P/B | 2.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.5 |
EPS(TTM)10.73
EY11.04%
EPS(NY)10.34
Fwd EY10.64%
FCF(TTM)9.58
FCFY9.86%
OCF(TTM)10.43
OCFY10.73%
SpS162.1
BVpS32.96
TBVpS-44.65
PEG (NY)3.99
PEG (5Y)0.91
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%
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-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 | 2.87 |
F-Score8
WACC7.8%
ROIC/WACC1.56
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)2.23%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%-2.7%
Revenue Next Year-1.49%
Revenue Next 2Y-0.24%
Revenue Next 3Y0.57%
Revenue Next 5YN/A
EBIT growth 1Y11.22%
EBIT growth 3Y3.17%
EBIT growth 5Y6.44%
EBIT Next Year24.61%
EBIT Next 3Y10.16%
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%