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SAIC

Science Applications International NYSE:SAIC Stock Report

Last Price

US$92.77

Market Cap

US$5.2b

7D

-3.8%

1Y

12.8%

Updated

08 Aug, 2022

Data

Company Financials +
SAIC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health2/6
Dividends3/6

SAIC Stock Overview

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

Science Applications International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Science Applications International
Historical stock prices
Current Share PriceUS$92.77
52 Week HighUS$97.82
52 Week LowUS$78.10
Beta0.67
1 Month Change-0.70%
3 Month Change13.26%
1 Year Change12.80%
3 Year Change11.92%
5 Year Change31.35%
Change since IPO195.16%

Recent News & Updates

Jul 12
Science Applications International (NYSE:SAIC) Is Paying Out A Dividend Of $0.37

Science Applications International (NYSE:SAIC) Is Paying Out A Dividend Of $0.37

Science Applications International Corporation ( NYSE:SAIC ) will pay a dividend of $0.37 on the 29th of July. Based on...

Shareholder Returns

SAICUS Professional ServicesUS Market
7D-3.8%0.5%1.1%
1Y12.8%-12.7%-13.0%

Return vs Industry: SAIC exceeded the US Professional Services industry which returned -13% over the past year.

Return vs Market: SAIC exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is SAIC's price volatile compared to industry and market?
SAIC volatility
SAIC Average Weekly Movement4.2%
Professional Services Industry Average Movement6.2%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: SAIC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SAIC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196926,000Nazzic Keenehttps://www.saic.com

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineering; technology integration; IT modernization; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers’ IT infrastructure, as well as cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; Department of Defense agencies; National Aeronautics and Space Administration; the U.S.

Science Applications International Fundamentals Summary

How do Science Applications International's earnings and revenue compare to its market cap?
SAIC fundamental statistics
Market CapUS$5.17b
Earnings (TTM)US$269.00m
Revenue (TTM)US$7.51b

19.2x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAIC income statement (TTM)
RevenueUS$7.51b
Cost of RevenueUS$6.64b
Gross ProfitUS$868.00m
Other ExpensesUS$599.00m
EarningsUS$269.00m

Last Reported Earnings

Apr 29, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.83
Gross Margin11.55%
Net Profit Margin3.58%
Debt/Equity Ratio149.4%

How did SAIC perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

31%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SAIC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SAIC?

Other financial metrics that can be useful for relative valuation.

SAIC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA12x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does SAIC's PE Ratio compare to its peers?

SAIC PE Ratio vs Peers
The above table shows the PE ratio for SAIC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average35.3x
FCN FTI Consulting
24.7x19.0%US$5.4b
EXPO Exponent
50.5x5.2%US$5.1b
KBR KBR
50x38.6%US$7.0b
CACI CACI International
16.1x8.0%US$6.6b
SAIC Science Applications International
19.2x9.6%US$5.2b

Price-To-Earnings vs Peers: SAIC is good value based on its Price-To-Earnings Ratio (19.2x) compared to the peer average (35.3x).


Price to Earnings Ratio vs Industry

How does SAIC's PE Ratio compare vs other companies in the US Professional Services Industry?

Price-To-Earnings vs Industry: SAIC is expensive based on its Price-To-Earnings Ratio (19.2x) compared to the US Professional Services industry average (19.1x)


Price to Earnings Ratio vs Fair Ratio

What is SAIC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SAIC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.2x
Fair PE Ratio23.3x

Price-To-Earnings vs Fair Ratio: SAIC is good value based on its Price-To-Earnings Ratio (19.2x) compared to the estimated Fair Price-To-Earnings Ratio (23.3x).


Share Price vs Fair Value

What is the Fair Price of SAIC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SAIC ($92.77) is trading below our estimate of fair value ($235.04)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAIC's forecast earnings growth (9.6% per year) is above the savings rate (1.9%).

Earnings vs Market: SAIC's earnings (9.6% per year) are forecast to grow slower than the US market (12.8% per year).

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

Revenue vs Market: SAIC's revenue (1.7% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: SAIC's revenue (1.7% 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 (24.4%)


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Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SAIC has high quality earnings.

Growing Profit Margin: SAIC's current net profit margins (3.6%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: SAIC's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: SAIC's earnings growth over the past year (6.1%) is below its 5-year average (12.8% per year).

Earnings vs Industry: SAIC earnings growth over the past year (6.1%) underperformed the Professional Services industry 21.1%.


Return on Equity

High ROE: SAIC's Return on Equity (16.4%) is considered low.


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Financial Health

How is Science Applications International's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SAIC's short term assets ($1.3B) do not cover its short term liabilities ($1.3B).

Long Term Liabilities: SAIC's short term assets ($1.3B) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: SAIC's net debt to equity ratio (146%) is considered high.

Reducing Debt: SAIC's debt to equity ratio has reduced from 309% to 149.4% over the past 5 years.

Debt Coverage: SAIC's debt is not well covered by operating cash flow (18.1%).

Interest Coverage: SAIC's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.60%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SAIC's dividend (1.6%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: SAIC's dividend (1.6%) is low compared to the top 25% of dividend payers in the US market (4.1%).


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 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.4%), SAIC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.8%), SAIC's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.2yrs

Average management tenure


CEO

Nazzic Keene (61 yo)

3.08yrs

Tenure

US$8,343,156

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 ($USD8.34M) is about average for companies of similar size in the US market ($USD8.35M).

Compensation vs Earnings: Nazzic's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SAIC's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: SAIC's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SAIC insiders have only sold shares 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 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
  • Implied Market Cap: US$5.166b
  • Shares outstanding: 55.68m
  • Website: https://www.saic.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2022/04/29
Annual Earnings2022/01/28


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.