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

2.9%

NYSE:SAIC

-0.5%

US IT

1.1%

US Market


1 Year Return

7.7%

NYSE:SAIC

15.6%

US IT

2.1%

US Market

SAIC underperformed the IT industry which returned 15.9% over the past year.

SAIC outperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

SAICIndustryMarket
7 Day2.9%-0.5%1.1%
30 Day0.4%-0.01%3.7%
90 Day-4.0%2.3%2.3%
1 Year9.7%7.7%16.9%15.6%4.4%2.1%
3 Year30.3%23.8%98.5%90.1%47.0%37.4%
5 Year107.5%87.9%142.0%117.4%61.6%43.8%

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

34%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Science Applications International's share price is below the future cash flow value, and at a moderate discount (> 20%).

Science Applications International's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Science Applications International is good value based on earnings compared to the US IT industry average.

Science Applications International is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Science Applications International is poor value based on expected growth next year.


Price Based on Value of Assets

Science Applications International is good value based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Science Applications International expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

23.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Science Applications International's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

Science Applications International's earnings are expected to grow significantly at over 20% yearly.

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

Science Applications International is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Science Applications International's year on year earnings growth rate has been positive over the past 5 years.

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

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


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Science Applications International's financial position?


Financial Position Analysis

Science Applications International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Science Applications International's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Science Applications International's level of debt (157.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (129.2% vs 157.2% today).

Debt is not well covered by operating cash flow (18%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.8x coverage).


Balance Sheet

Low level of unsold assets.

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?

1.89%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Science Applications International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Science Applications International's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, Science Applications International has been paying a dividend for less than 10 years.

Dividend payments have increased, but Science Applications International only paid a dividend in the past 6 years.


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 well covered by earnings (4.1x coverage).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Nazzic Keene (58yo)

0.08yrs

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

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

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

2.2yrs

Average Tenure

58yo

Average Age

The tenure for the Science Applications International management team is about average.


Board Age and Tenure

0.7yrs

Average Tenure

61yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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: 2.8yrs
    • Compensation: US$2.20m
  • Steve Mahon (58yo)

    Executive VP

    • Tenure: 3.8yrs
    • Compensation: US$1.76m
  • Nazzic Keene (58yo)

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: US$3.74m
  • Tom Eldridge

    Senior Vice President of Strategic Development & Communications

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

    Executive VP & Chief Human Resources Officer

    • Tenure: 2.6yrs
    • Compensation: US$1.23m
  • Jim Scanlon

    Executive VP & General Manager

    • Tenure: 1.8yrs
  • Chris Donaghey

    Senior Vice President of Corporate Development

    • Tenure: 1.3yrs
  • Shane Canestra

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Donna Morea (64yo)

    Independent Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: US$343.45k
  • John Hamre (68yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$268.29k
  • Tim Mayopoulos (60yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$273.29k
  • David Kerko (46yo)

    Independent Director

    • Tenure: 0.7yrs
  • Yvette Kanouff

    Director

    • Tenure: 0.08yrs
  • Nazzic Keene (58yo)

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: US$3.74m
  • Bob Bedingfield (70yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$305.29k
  • Steven Shane (61yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$302.45k
  • Carol Goode (65yo)

    Director

    • Tenure: 0.08yrs
  • Katharina McFarland (59yo)

    Independent Director

    • Tenure: 0.7yrs

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$4.832b
  • 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 Analysis2019/09/17 00:31
End of Day Share Price2019/09/16 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.