NYSE:SAIC

Stock Analysis Report

Science Applications International

Executive Summary

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States.

Snowflake

Fundamentals

Reasonable growth potential and fair value.


Similar Companies

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


Market Performance


7 Day Return

0.6%

SAIC

3.5%

US IT

3.4%

US Market


1 Year Return

15.0%

SAIC

22.1%

US IT

5.4%

US Market

Return vs Industry: SAIC underperformed the US IT industry which returned 22.1% over the past year.

Return vs Market: SAIC exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

SAICIndustryMarket
7 Day0.6%3.5%3.4%
30 Day0.2%0.5%-1.0%
90 Day-2.7%-1.5%-0.4%
1 Year17.1%15.0%23.4%22.1%7.7%5.4%
3 Year30.8%24.3%99.6%91.3%46.2%36.8%
5 Year102.5%83.6%155.4%132.0%65.6%47.5%

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

Valuation

Is Science Applications International undervalued compared to its fair value and its price relative to the market?

36.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SAIC ($83.89) is trading below our estimate of fair value ($132.13)

Significantly Undervalued: SAIC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SAIC is good value based on its PE Ratio (28.7x) compared to the IT industry average (36.5x).

PE vs Market: SAIC is poor value based on its PE Ratio (28.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SAIC is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SAIC is good value based on its PB Ratio (3.6x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Science Applications International forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAIC's forecast earnings growth (23.8% per year) is above the savings rate (2.7%).

Earnings vs Market: SAIC's earnings (23.8% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SAIC's revenue (4.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SAIC's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SAIC's Return on Equity is forecast to be high in 3 years time (31%)


Next Steps

Past Performance

How has Science Applications International performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SAIC's earnings have grown by 6.3% 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 (-21.3%) over the past year, making it difficult to compare to the IT industry average (8.4%).


Return on Equity

High ROE: SAIC's Return on Equity (11.3%) is considered low.


Return on Assets

ROA vs Industry: SAIC's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: SAIC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Science Applications International's financial position?


Financial Position Analysis

Short Term Liabilities: SAIC's short term assets ($1.3B) exceeds its short term liabilities ($1.1B)

Long Term Liabilities: SAIC's short term assets (1.3B) do not cover its long term liabilities (2.1B)


Debt to Equity History and Analysis

Debt Level: SAIC's debt to equity ratio (157.2%) is considered high

Reducing Debt: SAIC's debt to equity ratio has increased from 129.2% to 157.2% over the past 5 years.

Debt Coverage: SAIC's debt is not well covered by operating cash flow (18%).

Interest Coverage: SAIC's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

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 0.6x debt).


Next Steps

Dividend

What is Science Applications International's current dividend yield, its reliability and sustainability?

1.76%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SAIC's dividend (1.76%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SAIC's dividend (1.76%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (46.6%), 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 (24.3% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Software industry.

Management

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

2.1yrs

Average management tenure


CEO

Nazzic Keene (58yo)

0.2yrs

Tenure

US$3,736,367

Compensation

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Nazzic's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.1yrs

Average Tenure

58yo

Average Age

Experienced Management: SAIC's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

0.8yrs

Average Tenure

61yo

Average Age

Experienced Board: SAIC's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SAIC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$864,26330 Sep 19
John Hamre
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$86.95
SellUS$1,090,04514 Jun 19
Anthony Moraco
EntityIndividual
Shares12,694
Max PriceUS$86.22
SellUS$2,407,39213 Jun 19
Anthony Moraco
EntityIndividual
Shares28,000
Max PriceUS$86.79
SellUS$1,581,87415 Apr 19
Anthony Moraco
EntityIndividual
Shares21,270
Max PriceUS$75.00

Ownership Breakdown


Management Team

  • Lucy Fitch

    Chief Communications Officer & Senior VP

    • Tenure: 0yrs
  • Paul Greiner

    Senior VP

    • Tenure: 0yrs
  • Charlie Mathis (59yo)

    Executive VP & CFO

    • Tenure: 2.9yrs
    • Compensation: US$2.20m
  • Steve Mahon (58yo)

    Executive VP

    • Tenure: 3.9yrs
    • Compensation: US$1.76m
  • Nazzic Keene (58yo)

    CEO & Director

    • Tenure: 0.2yrs
    • Compensation: US$3.74m
  • Tom Eldridge

    Senior Vice President of Strategic Development & Communications

    • Tenure: 0yrs
  • Karen Wheeler (49yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: US$1.23m
  • Chris Donaghey

    Senior Vice President of Corporate Development

    • Tenure: 1.3yrs
  • Shane Canestra

    Director of Investor Relations

    • Tenure: 0yrs
  • Michelle O’Hara

    Executive VP & Chief Human Resource Officer

    • Tenure: 0yrs

Board Members

  • Donna Morea (64yo)

    Independent Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$343.45k
  • John Hamre (68yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$268.29k
  • Tim Mayopoulos (60yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$273.29k
  • David Kerko (46yo)

    Independent Director

    • Tenure: 0.8yrs
  • Yvette Kanouff

    Director

    • Tenure: 0.2yrs
  • Nazzic Keene (58yo)

    CEO & Director

    • Tenure: 0.2yrs
    • Compensation: US$3.74m
  • Bob Bedingfield (70yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$305.29k
  • Steven Shane (61yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$302.45k
  • Carol Goode (65yo)

    Director

    • Tenure: 0.2yrs
  • Katharina McFarland (59yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Science Applications International Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Science Applications International Corporation
  • Ticker: SAIC
  • Exchange: NYSE
  • Founded: 1969
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$4.841b
  • Shares outstanding: 57.70m
  • Website: https://www.saic.com

Number of Employees


Location

  • Science Applications International Corporation
  • 12010 Sunset Hills Road
  • Reston
  • Virginia
  • 20190
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAICNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2013
85SDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2013
0V9NLSE (London Stock Exchange)YesCommon StockGBUSDSep 2013

Biography

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineeri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:19
End of Day Share Price2019/10/15 00:00
Earnings2019/08/02
Annual Earnings2019/02/01


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.