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 Analysis

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

Stable Share Price: LDOS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.4%

LDOS

3.5%

US IT

5.3%

US Market


1 Year Return

43.9%

LDOS

-3.6%

US IT

-10.7%

US Market

Return vs Industry: LDOS exceeded the US IT industry which returned -2.8% over the past year.

Return vs Market: LDOS exceeded the US Market which returned -10.4% over the past year.


Shareholder returns

LDOSIndustryMarket
7 Day6.4%3.5%5.3%
30 Day-16.7%-14.7%-13.6%
90 Day-7.1%-16.4%-19.8%
1 Year46.2%43.9%-2.6%-3.6%-8.9%-10.7%
3 Year94.3%83.5%61.7%54.8%15.5%8.0%
5 Year230.3%115.9%89.5%72.8%35.2%20.4%

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 compared to its fair value and its price relative to the market?

41.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LDOS ($93.43) is trading below our estimate of fair value ($156.55)

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


Price To Earnings Ratio

PE vs Industry: LDOS is good value based on its PE Ratio (20x) compared to the IT industry average (24.2x).

PE vs Market: LDOS is poor value based on its PE Ratio (20x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: LDOS is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: LDOS is overvalued based on its PB Ratio (3.9x) compared to the US IT industry average (2.8x).


Next Steps

Future Growth

How is Leidos Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LDOS's forecast earnings growth (11.9% per year) is above the savings rate (1.7%).

Earnings vs Market: LDOS's earnings (11.9% per year) are forecast to grow slower than the US market (12.2% per year).

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

Revenue vs Market: LDOS's revenue (10% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: LDOS's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LDOS's Return on Equity is forecast to be high in 3 years time (21.6%)


Next Steps

Past Performance

How has Leidos Holdings performed over the past 5 years?

36.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LDOS has high quality earnings.

Growing Profit Margin: LDOS's current net profit margins (6%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: LDOS has become profitable over the past 5 years, growing earnings by 36% per year.

Accelerating Growth: LDOS's earnings growth over the past year (13.7%) is below its 5-year average (36% per year).

Earnings vs Industry: LDOS earnings growth over the past year (13.7%) exceeded the IT industry 13.4%.


Return on Equity

High ROE: LDOS's Return on Equity (19.6%) is considered low.


Next Steps

Financial Health

How is Leidos Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LDOS's short term assets ($2.8B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: LDOS's short term assets ($2.8B) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: LDOS's debt to equity ratio (89.4%) is considered high.

Reducing Debt: LDOS's debt to equity ratio has reduced from 119.4% to 89.4% over the past 5 years.

Debt Coverage: LDOS's debt is well covered by operating cash flow (32.5%).

Interest Coverage: LDOS's interest payments on its debt are well covered by EBIT (6.8x 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?

1.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LDOS's dividend (1.46%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: LDOS's dividend (1.46%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

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 (28.3%), 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 (23% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Roger Krone (62yo)

5.75s

Tenure

US$10,671,271

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 ($USD10.67M) is about average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roger Krone
Chairman & CEO5.75yrsUS$10.67m0.15% $19.7m
James Reagan
Executive VP & CFO4.75yrsUS$3.11m0.023% $3.0m
Jerald Howe
Executive VP & General Counsel2.75yrsUS$2.27m0.0014% $183.3k
Gerard Fasano
Group President of Defense Group3.67yrsUS$2.19m0.029% $3.7m
Christopher Cage
Senior VP0.83yrno data0.0030% $393.9k
James Carlini
Chief Technology Officer1.25yrsno datano data
Steve Hull
Senior VP & Chief Information Officerno datano datano data
Kelly Hernandez
Senior Vice President of Investor Relations6yrsno datano data
Michele Brown
Chief Ethics & Compliance Officer and Senior VP3.92yrsno datano data
Melissa Koskovich
SVP & Director of Corporate Communications and Marketingno datano datano data

3.8yrs

Average Tenure

60yo

Average Age

Experienced Management: LDOS's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roger Krone
Chairman & CEO5.75yrsUS$10.67m0.15% $19.7m
Noel Williams
Independent Director6.58yrsUS$290.00k0.0094% $1.2m
Surya Mohapatra
Independent Director3.67yrsUS$275.00k0.0091% $1.2m
Robert Shapard
Lead Director2.25yrsUS$320.00k0.012% $1.6m
Harry M. Kraemer
Independent Director23yrsUS$275.00k0.048% $6.2m
Lawrence Nussdorf
Independent Director9.58yrsUS$300.00k0.030% $3.9m
Miriam John
Independent Director12.83yrsUS$290.00k0.012% $1.6m
Gregory Dahlberg
Independent Director3.67yrsUS$275.00k0.0042% $549.9k
David Fubini
Independent Director6.58yrsUS$275.00k0.0094% $1.2m
Gary May
Independent Director5.17yrsUS$282.50k0.0055% $711.1k

5.9yrs

Average Tenure

64.5yo

Average Age

Experienced Board: LDOS's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LDOS 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

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$13.000b
  • Shares outstanding: 141.85m
  • 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, Civil, and Health. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S. Intelligence Community, Department of Defense, military services, the U.S. Department of Homeland Security, and government agencies of U.S. allies abroad, as well as other federal, civilian, and commercial customers in the national security industry. Its solutions include technology, intelligence systems, command and control platforms, data analytics, logistics, and cybersecurity solutions, as well as intelligence analysis and operations support services to critical missions. The Civil segment provides systems integration services to Air Navigation Service providers, including the Federal Aviation Administration, Transportation Security Administration, and airport operators; and vehicle and cargo inspection system, which enables the scanning of vehicles and cargo that produces an image using a low radiation dose. It also offers information technology (IT) solutions in cloud computing, mobility, application modernization, DevOps, data center, network modernization, asset management, help desk operations, and digital workplace enablement; federal environment and infrastructure; and logistics services. The Health segment offers solutions to federal and commercial customers responsible for health and well-being of people worldwide, including complex systems integration, managed health services, enterprise IT transformation, and life sciences services. Leidos Holdings, Inc. was founded in 1969 and is headquartered in Reston, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:38
End of Day Share Price2020/03/31 00:00
Earnings2020/01/03
Annual Earnings2020/01/03


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.