SCIENCE APPLICATIONS INTE (SAIC) Stock Fundamental Analysis
USA - NASDAQ:SAIC - US8086251076 - Common Stock
91.68 USD
+0.18 (+0.2%)
We assign a fundamental rating of 5 out of 10 to SAIC. SAIC was compared to 86 industry peers in the Professional Services industry. While SAIC has a great profitability rating, there are quite some 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.
SAIC had a positive operating cash flow in the past year.
SAIC had positive earnings in each of the past 5 years.
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 7.67%, SAIC is in the better half of the industry, outperforming 77.91% of the companies in the same industry.
SAIC has a Return On Equity of 26.30%. This is amongst the best in the industry. SAIC outperforms 80.23% of its industry peers.
SAIC has a better Return On Invested Capital (12.15%) 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 13.22%.
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 has a better Profit Margin (5.35%) than 62.79% of its industry peers.
In the last couple of years the Profit Margin of SAIC has grown nicely.
SAIC's Operating Margin of 7.57% is fine compared to the rest of the industry. SAIC outperforms 62.79% of its industry peers.
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 83.72% of its industry peers.
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
The debt/assets ratio for SAIC is higher compared to a year ago.
2.2 Solvency
SAIC has an Altman-Z score of 2.83. This is not the best score and indicates that SAIC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of SAIC (2.83) is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 5.20, SAIC is in line with its industry, outperforming 52.33% of the companies in the same industry.
SAIC has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
SAIC has a worse Debt to Equity ratio (1.22) than 75.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.67
WACC7.3%
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.
SAIC has a Current ratio of 0.83. This is amonst the worse of the industry: SAIC underperforms 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.
The Quick ratio of SAIC (0.83) is worse than 80.23% 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%.
SAIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.23% yearly.
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
SAIC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.34% yearly.
The Revenue is expected to grow by 0.86% on average over the next years.
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
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 8.54, which indicates a very decent valuation of SAIC.
Based on the Price/Earnings ratio, SAIC is valued cheaply inside the industry as 90.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.19, SAIC is valued rather cheaply.
A Price/Forward Earnings ratio of 9.69 indicates a reasonable valuation of SAIC.
82.56% of the companies in the same industry are more expensive than SAIC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.50. SAIC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
SAIC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SAIC is cheaper than 80.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SAIC is valued cheaply inside the industry as 83.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.57 | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
SAIC's 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)1.34
PEG (5Y)0.85
EPS Next 2Y1.67%
EPS Next 3Y5.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.47%, SAIC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.94, SAIC pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.33, 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 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 18.05% 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.
DP18.05%
EPS Next 2Y1.67%
EPS Next 3Y5.34%
NASDAQ:SAIC (10/31/2025, 12:25:03 PM)
91.68
+0.18 (+0.2%)
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 Cap4.22B
Revenue(TTM)7.46B
Net Income(TTM)399.00M
Analysts55
Price Target121.27 (32.28%)
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 | 8.54 | ||
| Fwd PE | 9.69 | ||
| P/S | 0.57 | ||
| P/FCF | 9.57 | ||
| P/OCF | 8.79 | ||
| P/B | 2.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.13 |
EPS(TTM)10.73
EY11.7%
EPS(NY)9.46
Fwd EY10.32%
FCF(TTM)9.58
FCFY10.45%
OCF(TTM)10.43
OCFY11.38%
SpS162.1
BVpS32.96
TBVpS-44.65
PEG (NY)1.34
PEG (5Y)0.85
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 | 2.83 |
F-Score8
WACC7.3%
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 8.54 and the Price/Book (PB) ratio is 2.78.
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%.