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

1.0%

NYSE:LDOS

1.2%

US IT

0.9%

US Market


1 Year Return

18.2%

NYSE:LDOS

22.4%

US IT

0.3%

US Market

LDOS underperformed the IT industry which returned 21.2% over the past year.

LDOS outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

LDOSIndustryMarket
7 Day1.0%1.2%0.9%
30 Day6.9%-1.0%-1.9%
90 Day10.5%7.0%1.6%
1 Year20.5%18.2%23.8%22.4%2.6%0.3%
3 Year126.7%112.3%99.8%91.3%41.0%31.8%
5 Year244.4%124.0%141.6%117.2%55.2%38.0%

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?

18.95x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Leidos Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Leidos Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Leidos Holdings is good value based on earnings compared to the US IT industry average.

Leidos Holdings is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Leidos Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Leidos Holdings is good value based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Leidos Holdings expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Leidos Holdings's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Leidos Holdings's earnings are expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Leidos Holdings's revenue growth is positive but not above the United States of America market average.

Leidos Holdings's earnings growth is positive but not above the United States of America market average.

Leidos Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Leidos Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Leidos Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Leidos Holdings's 1-year earnings growth exceeds its 5-year average (49.5% vs 48.8%)

Leidos Holdings's earnings growth has exceeded the US IT industry average in the past year (49.5% vs 9.8%).


Return on Equity

Leidos Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Leidos Holdings used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Leidos Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Leidos Holdings's financial position?


Financial Position Analysis

Leidos Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Leidos Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Leidos Holdings's level of debt (91.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (119% vs 91.8% today).

Debt is well covered by operating cash flow (30.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).


Balance Sheet

Low level of unsold assets.

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?

1.64%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Leidos Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Leidos Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Leidos Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Leidos Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Leidos Holdings has only been paying a dividend for 7 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Roger Krone (62yo)

5.1yrs

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

Roger's remuneration is about average for companies of similar size in United States of America.

Roger's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

58.5yo

Average Age

The tenure for the Leidos Holdings management team is about average.


Board Age and Tenure

5.2yrs

Average Tenure

64.5yo

Average Age

The tenure for the Leidos Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jim Reagan (60yo)

    Executive VP & CFO

    • Tenure: 4.1yrs
    • Compensation: US$2.76m
  • Jerald Howe (63yo)

    Executive VP & General Counsel

    • Tenure: 2.1yrs
    • Compensation: US$2.01m
  • Roger Krone (62yo)

    Chairman & CEO

    • Tenure: 5.1yrs
    • Compensation: US$9.83m
  • Angie Heise (44yo)

    President of Civil Group

    • Tenure: 3.0yrs
    • Compensation: US$2.04m
  • Jon Scholl (57yo)

    President of Health Group

    • Tenure: 3.0yrs
    • Compensation: US$2.07m
  • Michele Brown

    Chief Ethics & Compliance Officer and Senior VP

    • Tenure: 3.3yrs
  • Kelly Hernandez

    Senior Vice President of Investor Relations

    • Tenure: 5.3yrs
  • Chris Cage (47yo)

    Corporate Controller & Chief Accounting Officer

    • Tenure: 0.2yrs
  • Steve Hull

    Senior VP & Chief Information Officer

    • Tenure: 0.0yrs
  • Jim Carlini

    Chief Technology Officer

    • Tenure: 0.6yrs

Board Members

  • Noel Williams (64yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$280.00k
  • Surya Mohapatra (69yo)

    Director

    • Tenure: 3.0yrs
    • Compensation: US$265.00k
  • Bob Shapard (63yo)

    Lead Director

    • Tenure: 1.6yrs
    • Compensation: US$295.00k
  • Harry M. Kraemer (64yo)

    Director

    • Tenure: 22.3yrs
    • Compensation: US$277.50k
  • Lawrence Nussdorf (72yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: US$300.00k
  • Roger Krone (62yo)

    Chairman & CEO

    • Tenure: 5.1yrs
    • Compensation: US$9.83m
  • Mim John (70yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$280.00k
  • Greg Dahlberg (68yo)

    Director

    • Tenure: 3.0yrs
    • Compensation: US$265.00k
  • David Fubini (65yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$265.00k
  • Gary May (54yo)

    Director

    • Tenure: 4.5yrs
    • 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$12.235b
  • 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 Analysis2019/08/20 00:01
End of Day Share Price2019/08/19 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.