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I’ve been keeping an eye on Science Applications International Corporation (NYSE:SAIC) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SAIC has a lot to offer. Basically, it has a a strong track record of performance as well as a buoyant future outlook going forward. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Science Applications International here.
Solid track record with reasonable growth potential
One reason why investors are attracted to SAIC is its earnings growth potential in the near future of 21%, made up of high-quality, operational cash from its core business, which is expected to increase by 98% next year. This indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. SAIC delivered a bottom-line expansion of 24% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did SAIC outperformed its past performance, its growth also surpassed the IT industry expansion, which generated a 18% earnings growth. This paints a buoyant picture for the company.
Next Steps:
For Science Applications International, there are three key factors you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is SAIC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SAIC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SAIC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.