A Look at SAIC’s Valuation Following Major Balance Sheet Moves and Sector Uncertainty

Science Applications International (SAIC) has just overhauled its balance sheet by securing a new $1.1 billion term loan, a $1 billion revolving credit facility, and completing a $500 million senior notes offering.

See our latest analysis for Science Applications International.

With these major financing moves strengthening its balance sheet, Science Applications International has been in the headlines as sector discussions increase about its exposure to a possible government shutdown. The stock’s share price has largely traded sideways so far this year, but its one-year total shareholder return of -0.3% suggests performance has been steady, if not spectacular, while investors assess a possible rebound as macro uncertainty clears.

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With its balance sheet overhaul and sector headwinds at the forefront, the main question now is whether Science Applications International’s current share price reflects temporary pessimism or a genuine bargain. This raises the prospect of a potential buying opportunity if the market is overlooking future growth.

Most Popular Narrative: 13.2% Undervalued

The narrative’s fair value sits noticeably above the last close price, suggesting current pessimism may be overdone. This perspective draws its confidence from stability in key drivers despite muted business visibility.

The company's strategic focus on differentiated, high-growth capabilities in areas such as mission integration, digital transformation, and advanced IT modernization positions SAIC to benefit from the government's ongoing push to update legacy systems. This may accelerate top-line growth as procurement normalizes. A robust pipeline and strong book-to-bill ratios, along with sustained win rates in recompetes and pending award backlogs, provide significant building blocks for revenue recovery and long-term expansion once current government funding delays and efficiency initiatives subside.

Read the complete narrative.

Wondering what assumptions could justify a value above today’s price? The most popular narrative is betting big on future cash flow resilience, margin trends, and some striking portfolio performance benchmarks. Dive in to unlock the key data points that analysts believe will turn around this muted backdrop.

Result: Fair Value of $116 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing budget uncertainty and delays in government contract awards could continue to weigh on revenue growth and challenge the recovery narrative for Science Applications International.

Find out about the key risks to this Science Applications International narrative.

Build Your Own Science Applications International Narrative

If you think there’s another angle to the story or want to dig into the fundamentals yourself, you can shape your own perspective in just a few minutes, or Do it your way

A great starting point for your Science Applications International research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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