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 82 industry peers in the Professional Services industry. SAIC scores excellent on profitability, but there are 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.
SAIC had a positive operating cash flow in the past year.
Each year in the past 5 years SAIC has 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 6.77%, SAIC is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.46%, SAIC is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.14%, SAIC is doing good in the industry, outperforming 76.83% of the companies in the same industry.
SAIC had an Average Return On Invested Capital over the past 3 years of 10.64%. This is in line with the industry average of 12.61%.
The last Return On Invested Capital (12.14%) for SAIC is above the 3 year average (10.64%), which is a sign of increasing profitability.
| 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 Profit Margin of 4.70%. This is in the better half of the industry: SAIC outperforms 62.20% of its industry peers.
In the last couple of years the Profit Margin of SAIC has grown nicely.
SAIC has a Operating Margin of 7.48%. This is in the better half of the industry: SAIC outperforms 63.41% of its industry peers.
In the last couple of years the Operating Margin of SAIC has grown nicely.
The Gross Margin of SAIC (11.83%) is worse than 84.15% of its industry peers.
In the last couple of years the Gross Margin of SAIC has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SAIC is still creating some value.
SAIC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SAIC has been reduced compared to 5 years ago.
Compared to 1 year ago, SAIC has a worse debt to assets ratio.
2.2 Solvency
SAIC has an Altman-Z score of 2.90. 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.
SAIC's Altman-Z score of 2.90 is in line compared to the rest of the industry. SAIC outperforms 56.10% of its industry peers.
SAIC has a debt to FCF ratio of 4.98. This is a neutral value as SAIC would need 4.98 years to pay back of all of its debts.
SAIC has a Debt to FCF ratio of 4.98. This is comparable to the rest of the industry: SAIC outperforms 51.22% of its industry peers.
A Debt/Equity ratio of 1.25 is on the high side and indicates that SAIC has dependencies on debt financing.
SAIC's Debt to Equity ratio of 1.25 is on the low side compared to the rest of the industry. SAIC is outperformed by 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 2.9 |
ROIC/WACC1.59
WACC7.62%
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.
With a Current ratio value of 0.78, SAIC is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
A Quick Ratio of 0.78 indicates that SAIC may have some problems paying its short term obligations.
SAIC has a worse Quick ratio (0.78) than 84.15% 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.
The Earnings Per Share has been growing by 10.01% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.39% in the past year.
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)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
The Earnings Per Share is expected to grow by 8.64% on average over the next years. This is quite good.
Based on estimates for the next years, SAIC will show a small growth in Revenue. The Revenue will grow by 2.63% on average per year.
EPS Next Y2.59%
EPS Next 2Y6.31%
EPS Next 3Y8.64%
EPS Next 5YN/A
Revenue Next Year2.93%
Revenue Next 2Y2.96%
Revenue Next 3Y2.63%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.20, the valuation of SAIC can be described as very reasonable.
Based on the Price/Earnings ratio, SAIC is valued cheaply inside the industry as 84.15% of the companies are valued more expensively.
SAIC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.38.
A Price/Forward Earnings ratio of 9.91 indicates a reasonable valuation of SAIC.
Based on the Price/Forward Earnings ratio, SAIC is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
SAIC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SAIC is valued a bit cheaper than the industry average as 74.39% of the companies are valued more expensively.
SAIC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SAIC is cheaper than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.55 | ||
| EV/EBITDA | 10.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SAIC may justify a higher PE ratio.
PEG (NY)4.33
PEG (5Y)1.12
EPS Next 2Y6.31%
EPS Next 3Y8.64%
5. Dividend
5.1 Amount
SAIC has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.09, SAIC pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, SAIC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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 2Y6.31%
EPS Next 3Y8.64%
102.45
+0.18 (+0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners77.84%
Inst Owner Change4.13%
Ins Owners0.44%
Ins Owner Change4.45%
Market Cap4.83B
Analysts70.53
Price Target127.41 (24.36%)
Short Float %4.85%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)0%
PT rev (3m)-4.77%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.64 | ||
| P/FCF | 10.55 | ||
| P/OCF | 9.74 | ||
| P/B | 3.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.04 |
EPS(TTM)9.15
EY8.93%
EPS(NY)10.34
Fwd EY10.09%
FCF(TTM)9.71
FCFY9.48%
OCF(TTM)10.52
OCFY10.26%
SpS159.19
BVpS31.91
TBVpS-44.43
PEG (NY)4.33
PEG (5Y)1.12
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 | 2.9 |
F-Score7
WACC7.62%
ROIC/WACC1.59
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 Y2.59%
EPS Next 2Y6.31%
EPS Next 3Y8.64%
EPS Next 5YN/A
Revenue 1Y (TTM)3.39%
Revenue growth 3Y0.38%
Revenue growth 5Y3.23%
Sales Q2Q%1.62%
Revenue Next Year2.93%
Revenue Next 2Y2.96%
Revenue Next 3Y2.63%
Revenue Next 5YN/A
EBIT growth 1Y-24.05%
EBIT growth 3Y3.17%
EBIT growth 5Y6.44%
EBIT Next Year26.08%
EBIT Next 3Y10.52%
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%