Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States.
+ 1 more risk
Reasonable growth potential and fair value.
Share Price & News
How has Science Applications International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SAIC has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: SAIC underperformed the US IT industry which returned 34.8% over the past year.
Return vs Market: SAIC exceeded the US Market which returned 17.9% over the past year.
Price Volatility Vs. Market
How volatile is Science Applications International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StDo You Know About Science Applications International Corporation’s (NYSE:SAIC) ROCE?
3 weeks ago | Simply Wall StWith A -20% Earnings Drop, Is Science Applications International Corporation's (NYSE:SAIC) A Concern?
1 month ago | Simply Wall StWhat Type Of Shareholder Owns Science Applications International Corporation's (NYSE:SAIC)?
Is Science Applications International undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SAIC ($94.83) is trading below our estimate of fair value ($140.99)
Significantly Below Fair Value: SAIC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SAIC is poor value based on its PE Ratio (33.3x) compared to the IT industry average (31.4x).
PE vs Market: SAIC is poor value based on its PE Ratio (33.3x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: SAIC is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: SAIC is good value based on its PB Ratio (4x) compared to the US IT industry average (4.2x).
How is Science Applications International forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SAIC's forecast earnings growth (24.8% per year) is above the savings rate (1.7%).
Earnings vs Market: SAIC's earnings (24.8% per year) are forecast to grow faster than the US market (14.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SAIC's revenue (4.1% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: SAIC's revenue (4.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SAIC's Return on Equity is forecast to be high in 3 years time (31.6%)
How has Science Applications International performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SAIC has a large one-off loss of $102.0M impacting its November 1 2019 financial results.
Growing Profit Margin: SAIC's current net profit margins (2.6%) are lower than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: SAIC's earnings have grown by 5.7% per year over the past 5 years.
Accelerating Growth: SAIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SAIC had negative earnings growth (-19.8%) over the past year, making it difficult to compare to the IT industry average (12%).
Return on Equity
High ROE: SAIC's Return on Equity (11.5%) is considered low.
Return on Assets
Return on Capital Employed
How is Science Applications International's financial position?
Financial Position Analysis
Short Term Liabilities: SAIC's short term assets ($1.4B) exceed its short term liabilities ($1.2B).
Long Term Liabilities: SAIC's short term assets ($1.4B) do not cover its long term liabilities ($2.1B).
Debt to Equity History and Analysis
Debt Level: SAIC's debt to equity ratio (145.6%) is considered high.
Reducing Debt: SAIC's debt to equity ratio has increased from 133.9% to 145.6% over the past 5 years.
Debt Coverage: SAIC's debt is well covered by operating cash flow (20.3%).
Interest Coverage: SAIC's interest payments on its debt are well covered by EBIT (4.7x coverage).
Inventory Level: SAIC has a low level of unsold assets or inventory.
Debt Coverage by Assets: SAIC's debt is not covered by short term assets (assets are 0.7x debt).
What is Science Applications International's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SAIC's dividend (1.56%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: SAIC's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, SAIC has been paying a dividend for less than 10 years.
Growing Dividend: SAIC's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (49.8%), SAIC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SAIC's dividends in 3 years are forecast to be well covered by earnings (23.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Nazzic Keene (58yo)
Ms. Nazzic S. Keene has been the Chief Executive Officer and Director of Science Applications International Corporation since July 31, 2019. Ms. Keene served as Chief Operating Officer at Science Applicati ...
CEO Compensation Analysis
Compensation vs Market: Nazzic's total compensation ($USD3.74M) is below average for companies of similar size in the US market ($USD6.39M).
Compensation vs Earnings: Nazzic's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO & Director||0.5yrs||US$3.74m||0.075% $4.0m|
|Executive VP & CFO||3.3yrs||US$2.20m||0.0083% $442.7k|
|Executive VP||4.3yrs||US$1.76m||0.015% $811.0k|
|Director of Investor Relations||0yrs||no data||no data|
|Chief Communications Officer & Senior VP||0yrs||no data||no data|
|Senior Vice President of Corporate Development||1.7yrs||no data||no data|
|Executive VP & Chief Human Resource Officer||0.3yrs||no data||0.026% $1.4m|
|Senior VP||0yrs||no data||no data|
|Senior Vice President of Strategic Development & Communications||0yrs||no data||no data|
|Executive VP & GM of Defense Systems Group||2.2yrs||no data||0.042% $2.2m|
Experienced Management: SAIC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
|CEO & Director||0.5yrs||US$3.74m||0.075% $4.0m|
|Independent Chairman of the Board||1.1yrs||US$343.45k||0.019% $996.5k|
|Independent Director||6.4yrs||US$268.29k||0.023% $1.2m|
|Independent Director||5yrs||US$273.29k||0.011% $604.3k|
|Independent Director||1.1yrs||no data||0.0034% $178.0k|
|Director||0.5yrs||no data||no data|
|Independent Director||6.4yrs||US$305.29k||0.024% $1.3m|
|Independent Director||6.4yrs||US$302.45k||0.022% $1.2m|
|Director||0.5yrs||no data||0.0016% $82.9k|
|Independent Director||1.1yrs||no data||0.0090% $476.2k|
Experienced Board: SAIC's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.2%.
Science Applications International Corporation's company bio, employee growth, exchange listings and data sources
- Name: Science Applications International Corporation
- Ticker: SAIC
- Exchange: NYSE
- Founded: 1969
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: US$5.315b
- Shares outstanding: 57.72m
- Website: https://www.saic.com
Number of Employees
- Science Applications International Corporation
- 12010 Sunset Hills Road
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SAIC||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Sep 2013|
|85S||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Sep 2013|
|0V9N||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Sep 2013|
Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineering; technology and equipment platform integration; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers’ IT infrastructure. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; U.S. Defense Logistics Agency; National Aeronautics and Space Administration; the U.S. Department of State; and Department of Justice and various intelligence community agencies. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. Science Applications International Corporation was founded in 1969 and is headquartered in Reston, Virginia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/25 01:52|
|End of Day Share Price||2020/02/24 00:00|
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.