Leidos Holdings, Inc. (LDOS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

RTX Corp.

Howmet Aerospace, Inc.

L3Harris Technologies, Inc.

General Dynamics Corp.

Northrop Grumman Corp.

Leidos Holdings, Inc.

Teledyne Technologies, Inc.

Textron, Inc.

Axon Enterprise, Inc.

Lockheed Martin Corp.

TransDigm Group, Inc.

Why is Leidos Holdings, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 8.03% and Operating profit at 15.79%

The company has declared Positive results for the last 8 consecutive quarters

ROCE(HY) Highest at 30.76%
RAW MATERIAL COST(Y) Fallen by -8.28% (YoY)
CASH AND EQV(HY) Highest at USD 1,944 MM

With ROCE of 22.80%, it has a attractive valuation with a 2.75 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 14.81%, its profits have risen by 30.9% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Leidos Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Leidos Holdings, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Leidos Holdings, Inc.

16.58%

1.13

26.64%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.03%

EBIT Growth (5y)

15.79%

EBIT to Interest (avg)

7.18

Debt to EBITDA (avg)

2.68

Net Debt to Equity (avg)

0.99

Sales to Capital Employed (avg)

1.72

Tax Ratio

23.79%

Dividend Payout Ratio

16.70%

Pledged Shares

Institutional Holding

80.99%

ROCE (avg)

16.03%

ROE (avg)

22.18%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.48

EV to EBIT

12.06

EV to EBITDA

10.49

EV to Capital Employed

2.75

EV to Sales

1.37

PEG Ratio

0.40

Dividend Yield

1.12%

ROCE (Latest)

22.80%

ROE (Latest)

31.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

ROCE(HY)

Highest at 30.76%

RAW MATERIAL COST(Y)

Fallen by -8.28% (YoY

CASH AND EQV(HY)

Highest at USD 1,944 MM

DIVIDEND PER SHARE(HY)

Highest at USD 6.17

OPERATING PROFIT(Q)

Highest at USD 637 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.98 %

PRE-TAX PROFIT(Q)

Highest at USD 520 MM

NET PROFIT(Q)

Highest at USD 392.52 MM

EPS(Q)

Highest at USD 3.01

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 13.3%

INVENTORY TURNOVER RATIO(HY)

Lowest at 40.34 times

INTEREST(Q)

Highest at USD 53 MM

Here's what is working for Leidos Holdings, Inc.

Operating Profit

Highest at USD 637 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 14.98 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 520 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 392.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 3.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 1,944 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 6.17

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -8.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Leidos Holdings, Inc.

Interest

Highest at USD 53 MM

in the last five periods and Increased by 10.42% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 40.34 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 13.3%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)