NYSE:PRSP

Stock Analysis Report

Executive Summary

Perspecta Inc. provides enterprise information technology (IT) services to government customers in the United States federal, state, and local markets.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

PRSP

-0.8%

US IT

-0.6%

US Market


1 Year Return

2.4%

PRSP

13.4%

US IT

0.7%

US Market

PRSP underperformed the IT industry which returned 13.4% over the past year.

PRSP outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

PRSPIndustryMarket
7 Day-0.2%-0.8%-0.6%
30 Day4.7%-1.4%2.9%
90 Day12.1%0.7%1.3%
1 Year3.4%2.4%14.6%13.4%2.9%0.7%
3 Yearn/a94.6%86.5%44.6%35.2%
5 Yearn/a143.9%119.4%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

58.23x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Perspecta is overvalued based on earnings compared to the US IT industry average.

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


Price Based on Expected Growth

Perspecta is good value based on expected growth next year.


Price Based on Value of Assets

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


Next Steps

Future Growth

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

58.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Perspecta's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Perspecta's earnings are expected to grow significantly at over 20% yearly.

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

Perspecta's earnings growth is expected to exceed the United States of America market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Perspecta will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Perspecta performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Perspecta's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Perspecta's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Perspecta's 1-year earnings growth is negative, it can't be compared to the US IT industry average.


Return on Equity

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


Return on Assets

Perspecta used its assets less efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Perspecta's financial position?


Financial Position Analysis

Perspecta's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

Perspecta's level of debt (111.7%) compared to net worth is high (greater than 40%).

Unable to establish if Perspecta's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (20.2%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

0.96%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Perspecta's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Perspecta's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

It is too early to tell whether Perspecta has stable dividend payments.

Perspecta only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (8.7x coverage).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Mac Curtis (61yo)

1.3yrs

Tenure

US$6,763,383

Compensation

Mr. John McNamara Curtis, also known as Mac, has been Chief Executive Officer and President at Vencore Holding Corp. since July 2013. Mr. Curtis has been the Chief Executive Officer, President and Director ...


CEO Compensation Analysis

Mac's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Mac to compare compensation growth.


Management Age and Tenure

1.3yrs

Average Tenure

52.5yo

Average Age

The average tenure for the Perspecta management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

58yo

Average Age

The average tenure for the Perspecta board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mac Curtis (61yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: US$6.76m
  • Steve Heidt

    Senior Vice President of the Next Generation Enterprise Network (NGEN) Program

    • Tenure: 0yrs
  • Marilyn Crouther (53yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
  • Barry Barlow

    Senior VP

    • Tenure: 1.7yrs
  • Lorraine Corcoran

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • William Luebke (52yo)

    Senior VP

    • Tenure: 1.3yrs
    • Compensation: US$1.37m
  • Tammy Heller (46yo)

    Senior VP & Chief HR Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.27m
  • John Kavanaugh (57yo)

    CFO & Senior VP

    • Tenure: 1.3yrs
    • Compensation: US$2.42m
  • James Gallagher (52yo)

    Senior VP

    • Tenure: 1.3yrs
    • Compensation: US$1.29m
  • M. Davis

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Ramzi Musallam (51yo)

    Director

    • Tenure: 1.3yrs
  • Sanju Bansal (53yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$240.85k
  • Glenn Eisenberg (58yo)

    Independent Director

    • Tenure: 0.3yrs
  • Phil Nolan (60yo)

    Lead Director

    • Tenure: 0.3yrs
    • Compensation: US$247.08k
  • Pam Kimmet (60yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$242.92k
  • Mac Curtis (61yo)

    CEO, President & Director

    • Tenure: 1.3yrs
    • Compensation: US$6.76m
  • Sondra Barbour (56yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$242.92k
  • Mike Lawrie (66yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$309.43k
  • Mike Ventling (58yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$162.01k
  • Lisa Disbrow (56yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$236.69k

Company Information

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


Key Information

  • Name: Perspecta Inc.
  • Ticker: PRSP
  • Exchange: NYSE
  • Founded:
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$4.268b
  • Shares outstanding: 162.30m
  • Website: https://www.perspecta.com

Number of Employees


Location

  • Perspecta Inc.
  • 15052 Conference Center Drive
  • Chantilly
  • Virginia
  • 20151
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRSPNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2018
PRSP *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 2018
1Z5DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2018
0YSMLSE (London Stock Exchange)YesCommon StockGBUSDMay 2018

Biography

Perspecta Inc. provides enterprise information technology (IT) services to government customers in the United States federal, state, and local markets. The company develops, modernizes, transforms, and man ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 00:52
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.