A Look at Science Applications International’s (SAIC) Valuation Following Debt Refinancing and Insider Share Purchases

Science Applications International (SAIC) just completed a $500 million senior notes offering and secured a new $1.1 billion term loan that matures in 2030. This round of refinancing, together with recent insider share purchases, has caught the eye of investors looking for signals around the company’s capital position and outlook.

See our latest analysis for Science Applications International.

SAIC’s recent refinancing and insider buying come on the heels of notable contract wins and shifting investor sentiment. While momentum has faded this year, as the share price slipped over 13% year-to-date and the 1-year total shareholder return is down 33%, the company still posted a positive 5-year total return. This suggests longer-term investors have fared better.

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With shares trading at a notable discount to analyst targets and insiders continuing to buy, the key question facing investors now is whether SAIC is an overlooked value or if the market already reflects its growth prospects.

Most Popular Narrative: 16.5% Undervalued

Compared to the last close price, the current narrative points to a fair value notably above the market, putting Science Applications International in a favorable spotlight. Let’s see why this perspective stands apart and what could be powering this consensus.

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 is likely to accelerate top-line growth as procurement normalizes.

Read the complete narrative.

Crack the code behind this valuation. The answer isn’t just in broad government trends. It’s about whether select financial catalysts can justify such a premium. Want to know what underpins the market’s optimism? Peek inside for the quantitative secrets everyone’s debating.

Result: Fair Value of $116 (UNDERVALUED)

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

However, continued budget uncertainty and increased competition for government IT contracts could undermine expectations for stable growth at SAIC.

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

Build Your Own Science Applications International Narrative

If you see things differently or want a closer look at the numbers, take matters into your own hands and build a narrative in just a few minutes. 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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