NYSE:LDOS

Stock Analysis Report

Executive Summary

Leidos Holdings, Inc. provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally.

Snowflake

Fundamentals

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Leidos Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

LDOS

1.0%

US IT

1.0%

US Market


1 Year Return

27.8%

LDOS

24.7%

US IT

6.7%

US Market

Return vs Industry: LDOS exceeded the US IT industry which returned 24.7% over the past year.

Return vs Market: LDOS exceeded the US Market which returned 6.7% over the past year.


Share holder returns

LDOSIndustryMarket
7 Day-0.6%1.0%1.0%
30 Day-3.1%-0.3%-1.8%
90 Day1.0%-2.3%-1.8%
1 Year30.2%27.8%26.0%24.7%9.1%6.7%
3 Year111.2%98.6%97.6%89.3%46.1%36.6%
5 Year266.0%139.2%156.0%132.3%66.9%48.6%

Price Volatility Vs. Market

How volatile is Leidos Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Leidos Holdings undervalued based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: LDOS ($83.16) is trading below our estimate of fair value ($85.56)

Significantly Undervalued: LDOS is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: LDOS is good value based on its PE Ratio (18.5x) compared to the IT industry average (36x).

PE vs Market: LDOS is poor value based on its PE Ratio (18.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: LDOS is poor value based on its PEG Ratio (3.9x)


Price Based on Value of Assets

PB vs Industry: LDOS is good value based on its PB Ratio (3.6x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Leidos Holdings expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: LDOS's forecast earnings growth (4.8% per year) is above the savings rate (2.7%).

Earnings vs Market: LDOS's earnings (4.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: LDOS's revenue (4.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LDOS's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: LDOS's Return on Equity is forecast to be high in 3 years time (24.1%)


Next Steps

Past Performance

How has Leidos Holdings performed over the past 5 years?

48.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LDOS has become profitable over the past 5 years, growing earnings by 48.8% per year.

Accelerating Growth: LDOS's earnings growth over the past year (49.5%) exceeds its 5-year average (48.8% per year).

Earnings vs Industry: LDOS earnings growth over the past year (49.5%) exceeded the IT industry 8.4%.


Return on Equity

High ROE: LDOS's Return on Equity (19.7%) is considered low.


Return on Assets

ROA vs Industry: LDOS has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: LDOS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Leidos Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LDOS's short term assets ($2.9B) exceeds its short term liabilities ($2.2B)

Long Term Liabilities: LDOS's short term assets (2.9B) do not cover its long term liabilities (3.7B)


Debt to Equity History and Analysis

Debt Level: LDOS's debt to equity ratio (91.8%) is considered high

Reducing Debt: LDOS's debt to equity ratio has reduced from 119% to 91.8% over the past 5 years.

Debt Coverage: LDOS's debt is well covered by operating cash flow (30.8%).

Interest Coverage: LDOS's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

Inventory Level: LDOS has a low level of unsold assets or inventory.

Debt Coverage by Assets: LDOS's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Leidos Holdings's current dividend yield, its reliability and sustainability?

1.69%

Expected Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years1.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: LDOS's dividend (1.54%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: LDOS's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: LDOS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LDOS has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.5%), LDOS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LDOS's dividends in 3 years are forecast to be well covered by earnings (26.3% payout ratio).


Next Steps

Management

What is the CEO of Leidos Holdings's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Roger Krone (62yo)

5.3yrs

Tenure

US$9,834,974

Compensation

Mr. Roger A. Krone has been the Chief Executive Officer of Leidos, Inc. since July, 2014. Mr. Krone has been the Chief Executive Officer of Leidos Holdings, Inc. since July 14, 2014. He served as the Presi ...


CEO Compensation Analysis

Compensation vs. Market: Roger's total compensation ($USD9.83M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

3.2yrs

Average Tenure

58.5yo

Average Age

Experienced Management: LDOS's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: LDOS's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: LDOS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$42,28420 Aug 19
Gary May
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$84.57

Ownership Breakdown


Management Team

  • Jim Reagan (60yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$2.76m
  • Jerald Howe (63yo)

    Executive VP & General Counsel

    • Tenure: 2.3yrs
    • Compensation: US$2.01m
  • Roger Krone (62yo)

    Chairman & CEO

    • Tenure: 5.3yrs
    • Compensation: US$9.83m
  • Angie Heise (44yo)

    President of Civil Group

    • Tenure: 3.2yrs
    • Compensation: US$2.04m
  • Jon Scholl (57yo)

    President of Health Group

    • Tenure: 3.2yrs
    • Compensation: US$2.07m
  • Michele Brown

    Chief Ethics & Compliance Officer and Senior VP

    • Tenure: 3.4yrs
  • Kelly Hernandez

    Senior Vice President of Investor Relations

    • Tenure: 5.5yrs
  • Chris Cage (47yo)

    Corporate Controller & Chief Accounting Officer

    • Tenure: 0.3yrs
  • Steve Hull

    Senior VP & Chief Information Officer

    • Tenure: 0yrs
  • Jim Carlini

    Chief Technology Officer

    • Tenure: 0.8yrs

Board Members

  • Noel Williams (64yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$280.00k
  • Surya Mohapatra (69yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$265.00k
  • Bob Shapard (63yo)

    Lead Director

    • Tenure: 1.8yrs
    • Compensation: US$295.00k
  • Harry M. Kraemer (64yo)

    Director

    • Tenure: 22.5yrs
    • Compensation: US$277.50k
  • Lawrence Nussdorf (72yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: US$300.00k
  • Roger Krone (62yo)

    Chairman & CEO

    • Tenure: 5.3yrs
    • Compensation: US$9.83m
  • Mim John (70yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$280.00k
  • Greg Dahlberg (68yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$265.00k
  • David Fubini (65yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$265.00k
  • Gary May (54yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$280.00k

Company Information

Leidos Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leidos Holdings, Inc.
  • Ticker: LDOS
  • Exchange: NYSE
  • Founded: 1969
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$11.959b
  • Shares outstanding: 143.81m
  • Website: https://www.leidos.com

Number of Employees


Location

  • Leidos Holdings, Inc.
  • 11951 Freedom Drive
  • Reston
  • Virginia
  • 20190
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
S6IADB (Deutsche Boerse AG)YesCommon StockDEEUROct 2006
LDOSNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2006
LDOS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2006

Biography

Leidos Holdings, Inc. provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. It operates through three segments: Defense Solutions ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 00:54
End of Day Share Price2019/10/11 00:00
Earnings2019/06/28
Annual Earnings2018/12/28


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.

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