As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Leidos Holdings, Inc. (NYSE:LDOS), it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Leidos Holdings here.
Proven track record with adequate balance sheet
LDOS delivered a bottom-line expansion of 49% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, LDOS also outperformed its industry, which delivered a growth of 9.1%. This is an optimistic signal for the future. LDOS’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that LDOS has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. LDOS seems to have put its debt to good use, generating operating cash levels of 0.31x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Leidos Holdings, I’ve compiled three pertinent aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for LDOS’s future growth? Take a look at our free research report of analyst consensus for LDOS’s outlook.
- Valuation: What is LDOS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LDOS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LDOS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.