NYSE:SAIC

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Science Applications International

Market Cap

US$5.3b

Last Updated

2021/06/24 01:37 UTC

Data Sources

Company Financials +

Executive Summary

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Science Applications International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SAIC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SAIC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.7%

SAIC

0.4%

US Professional Services

0.5%

US Market


1 Year Return

22.9%

SAIC

37.0%

US Professional Services

42.6%

US Market

Return vs Industry: SAIC underperformed the US Professional Services industry which returned 33% over the past year.

Return vs Market: SAIC underperformed the US Market which returned 39% over the past year.


Shareholder returns

SAICIndustryMarket
7 Day-2.7%0.4%0.5%
30 Day1.6%-1.4%1.9%
90 Day-4.8%9.3%7.9%
1 Year25.1%22.9%38.0%37.0%44.9%42.6%
3 Year17.0%11.0%64.6%60.2%64.4%54.1%
5 Year76.9%62.1%145.1%128.5%128.3%102.7%

Long-Term Price Volatility Vs. Market

How volatile is Science Applications International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Science Applications International undervalued compared to its fair value and its price relative to the market?

40.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAIC ($92.51) is trading below our estimate of fair value ($153.81)

Significantly Below Fair Value: SAIC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SAIC is good value based on its PE Ratio (21.2x) compared to the US Professional Services industry average (28.4x).

PE vs Market: SAIC is poor value based on its PE Ratio (21.2x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: SAIC is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SAIC is overvalued based on its PB Ratio (3.4x) compared to the US Professional Services industry average (3.1x).


Future Growth

How is Science Applications International forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAIC's forecast earnings growth (13.5% per year) is above the savings rate (2%).

Earnings vs Market: SAIC's earnings (13.5% per year) are forecast to grow slower than the US market (15.7% per year).

High Growth Earnings: SAIC's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAIC's revenue (3.4% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: SAIC's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAIC's Return on Equity is forecast to be high in 3 years time (25.9%)


Past Performance

How has Science Applications International performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAIC has high quality earnings.

Growing Profit Margin: SAIC's current net profit margins (3.5%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: SAIC's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: SAIC's earnings growth over the past year (22.6%) exceeds its 5-year average (10.2% per year).

Earnings vs Industry: SAIC earnings growth over the past year (22.6%) exceeded the Professional Services industry 18.7%.


Return on Equity

High ROE: SAIC's Return on Equity (16.1%) is considered low.


Financial Health

How is Science Applications International's financial position?


Financial Position Analysis

Short Term Liabilities: SAIC's short term assets ($1.4B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: SAIC's short term assets ($1.4B) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: SAIC's debt to equity ratio (160.2%) is considered high.

Reducing Debt: SAIC's debt to equity ratio has reduced from 292.5% to 160.2% over the past 5 years.

Debt Coverage: SAIC's debt is well covered by operating cash flow (22.7%).

Interest Coverage: SAIC's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Dividend

What is Science Applications International current dividend yield, its reliability and sustainability?

1.62%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 24 2021Ex Dividend DateJul 15 2021Dividend Pay DateJul 30 202115 days from Ex DividendBuy in the next 21 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SAIC's dividend (1.6%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: SAIC's dividend (1.6%) is low compared to the top 25% of dividend payers in the US market (3.44%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SAIC has been paying a dividend for less than 10 years.

Growing Dividend: SAIC's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.9%), SAIC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAIC's dividends in 3 years are forecast to be well covered by earnings (22.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Nazzic Keene (59 yo)

1.92yrs

Tenure

US$6,936,702

Compensation

Ms. Nazzic S. Keene has been the Chief Executive Officer and Director of Science Applications International Corporation since July 31, 2019. She serves as an Independent Director of Automatic Data Processi...


CEO Compensation Analysis

Compensation vs Market: Nazzic's total compensation ($USD6.94M) is about average for companies of similar size in the US market ($USD6.67M).

Compensation vs Earnings: Nazzic's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SAIC's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: SAIC's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SAIC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Science Applications International Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Science Applications International Corporation
  • Ticker: SAIC
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$5.289b
  • Shares outstanding: 57.96m
  • Website: https://www.saic.com

Number of Employees


Location

  • Science Applications International Corporation
  • 12010 Sunset Hills Road
  • Reston
  • Virginia
  • 20190
  • United States

Listings


Biography

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineeri...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 01:37
End of Day Share Price2021/06/23 00:00
Earnings2021/04/30
Annual Earnings2021/01/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.