CACI International (CACI): Evaluating Valuation as Earnings Approach and New Air Force Contract Highlights Growth

CACI International is gearing up for its latest earnings release this week as investors look at both the company’s solid revenue growth history and its recent $73 million contract win from the US Department of the Air Force.

See our latest analysis for CACI International.

After landing a multi-year government contract, CACI’s momentum has been clearly reflected in its 28.2% year-to-date share price return. The total return over the past year has been more modest given several swings in the defense sector. Long-term holders, however, have enjoyed a remarkable 89% total shareholder return over three years. This suggests there has been significant value creation and the company’s growth narrative remains intact.

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But with CACI’s robust growth, government contract wins, and a share price still below analyst targets, investors may be wondering if there is an overlooked buying opportunity here or if the market is already pricing in years of future advance.

Most Popular Narrative: 8.5% Undervalued

Market watchers are sizing up CACI International, noting its narrative fair value sits meaningfully above last close. The gap hints at further upside, driven by powerful structural themes embedded in current projections.

Robust and growing government funding in national security, border protection, and defense technology, particularly from recent legislative acts (like the $150B+ for defense and $170B for border security), is providing a favorable backdrop and increasing CACI's addressable market. This supports sustained revenue growth and backlog expansion. Accelerated adoption of advanced technologies, such as software-defined platforms, cyber solutions, and enterprise software modernization, is driving a shift in federal procurement toward higher-value, tech-enabled contracts. In these areas, CACI's existing leadership, strong track record, and investments ahead of customer need enable higher win rates, contract stickiness, and margin expansion.

Read the complete narrative.

Want the full story on what’s fueling CACI’s valuation? The growth narrative highlights bold projections for revenue, profit margins, and future earnings power. Dig into the details that could reveal the next move for this defense leader.

Result: Fair Value of $576 (UNDERVALUED)

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

However, CACI's heavy reliance on U.S. government budgets and ongoing competition for high-value contracts could quickly alter the outlook if market conditions shift.

Find out about the key risks to this CACI International narrative.

Build Your Own CACI International Narrative

If you have your own interpretation or prefer digging deeper into the numbers, you can easily craft a personalized view in just a few minutes, so Do it your way.

A great starting point for your CACI 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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