SCIENCE APPLICATIONS INTE (SAIC) Stock Fundamental Analysis
NASDAQ:SAIC - Nasdaq - US8086251076 - Common Stock - Currency: USD
SAIC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 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 has a correct valuation and a medium growth rate.
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
Looking at the Return On Assets, with a value of 6.90%, SAIC is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
SAIC has a Return On Equity of 22.95%. This is in the better half of the industry: SAIC outperforms 71.95% of its industry peers.
The Return On Invested Capital of SAIC (11.98%) is better than 71.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SAIC is below the industry average of 13.37%.
The 3 year average ROIC (10.64%) for SAIC is below the current ROIC(11.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 22.95% | ||
| ROIC | 11.98% |
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 (4.84%) than 60.98% of its industry peers.
SAIC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.63%, SAIC is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
SAIC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 11.93%, SAIC is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SAIC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.63% | ||
| PM (TTM) | 4.84% | ||
| GM | 11.93% |
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
SAIC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.05 indicates that SAIC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.05, SAIC is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
SAIC has a debt to FCF ratio of 4.85. This is a neutral value as SAIC would need 4.85 years to pay back of all of its debts.
SAIC's Debt to FCF ratio of 4.85 is in line compared to the rest of the industry. SAIC outperforms 58.54% of its industry peers.
SAIC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.21, SAIC is not doing good in the industry: 79.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.42
WACC8.46%
2.3 Liquidity
SAIC has a Current 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.
With a Current ratio value of 0.83, SAIC is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
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.
The Quick ratio of SAIC (0.83) is worse than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.97% over the past year.
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 0.47%.
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)15.97%
EPS 3Y8.02%
EPS 5Y10.01%
EPS Q2Q%79.72%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%5.81%
3.2 Future
The Earnings Per Share is expected to grow by 7.54% on average over the next years.
The Revenue is expected to grow by 2.31% on average over the next years.
EPS Next Y3.15%
EPS Next 2Y6.54%
EPS Next 3Y7.54%
EPS Next 5YN/A
Revenue Next Year2.95%
Revenue Next 2Y3.1%
Revenue Next 3Y2.31%
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
Based on the Price/Earnings ratio of 12.92, the valuation of SAIC can be described as correct.
SAIC's Price/Earnings ratio is a bit cheaper when compared to the industry. SAIC is cheaper than 74.39% of the companies in the same industry.
SAIC is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
SAIC is valuated correctly with a Price/Forward Earnings ratio of 12.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SAIC indicates a somewhat cheap valuation: SAIC is cheaper than 74.39% of the companies listed in the same industry.
SAIC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
SAIC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SAIC is cheaper than 65.85% of the companies in the same industry.
84.15% 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 | 12.17 | ||
| EV/EBITDA | 10.84 |
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)4.1
PEG (5Y)1.29
EPS Next 2Y6.54%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
SAIC has a Yearly Dividend Yield of 1.24%. 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 2.38.
Compared to an average S&P500 Dividend Yield of 2.43, SAIC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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 20.72% 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.
DP20.72%
EPS Next 2Y6.54%
EPS Next 3Y7.54%
NASDAQ:SAIC (5/6/2025, 10:17:50 AM)
118.19
+0.6 (+0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners77.84%
Inst Owner Change-0.15%
Ins Owners0.44%
Ins Owner Change4.45%
Market Cap5.58B
Analysts70.53
Price Target126.39 (6.94%)
Short Float %4.8%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend1.5
Dividend Growth(5Y)0.34%
DP20.72%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.55%
Min EPS beat(2)18.18%
Max EPS beat(2)20.91%
EPS beat(4)3
Avg EPS beat(4)11.34%
Min EPS beat(4)-2.04%
Max EPS beat(4)20.91%
EPS beat(8)6
Avg EPS beat(8)14.04%
EPS beat(12)10
Avg EPS beat(12)12.12%
EPS beat(16)14
Avg EPS beat(16)15.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)0.2%
Revenue beat(8)5
Avg Revenue beat(8)1.28%
Revenue beat(12)7
Avg Revenue beat(12)1.15%
Revenue beat(16)9
Avg Revenue beat(16)0.83%
PT rev (1m)-2.86%
PT rev (3m)-4.77%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-0.1%
EPS NY rev (1m)0%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 12.52 | ||
| P/S | 0.75 | ||
| P/FCF | 12.17 | ||
| P/OCF | 11.29 | ||
| P/B | 3.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.84 |
EPS(TTM)9.15
EY7.74%
EPS(NY)9.44
Fwd EY7.99%
FCF(TTM)9.71
FCFY8.22%
OCF(TTM)10.47
OCFY8.86%
SpS158.55
BVpS33.43
TBVpS-43.52
PEG (NY)4.1
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 22.95% | ||
| ROCE | 14.83% | ||
| ROIC | 11.98% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 281.17% | ||
| OM | 7.63% | ||
| PM (TTM) | 4.84% | ||
| GM | 11.93% | ||
| FCFM | 6.12% |
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 Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.85 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 25.71% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 4.72 | ||
| Cash Conversion | 69.48% | ||
| Profit Quality | 126.52% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.05 |
F-Score7
WACC8.46%
ROIC/WACC1.42
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)15.97%
EPS 3Y8.02%
EPS 5Y10.01%
EPS Q2Q%79.72%
EPS Next Y3.15%
EPS Next 2Y6.54%
EPS Next 3Y7.54%
EPS Next 5YN/A
Revenue 1Y (TTM)0.47%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%5.81%
Revenue Next Year2.95%
Revenue Next 2Y3.1%
Revenue Next 3Y2.31%
Revenue Next 5YN/A
EBIT growth 1Y-24.67%
EBIT growth 3Y3.17%
EBIT growth 5Y6.44%
EBIT Next Year25.92%
EBIT Next 3Y9.55%
EBIT Next 5YN/A
FCF growth 1Y24.12%
FCF growth 3Y-1.69%
FCF growth 5Y0.94%
OCF growth 1Y24.75%
OCF growth 3Y-1.57%
OCF growth 5Y1.52%