Science Applications International Corp. (SAIC) 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

Guidewire Software, Inc.

Zillow Group, Inc.

SS&C Technologies Holdings, Inc.

CACI International, Inc.

Amdocs Ltd.

EPAM Systems, Inc.

Science Applications International Corp.

Juniper Networks, Inc.

KBR, Inc.

Cloudflare, Inc.

Globant SA

Why is Science Applications International Corp. ?

Flat results in Jul 25

DEBT-EQUITY RATIO (HY) Highest at 157.81 %
CASH AND EQV(HY) Lowest at USD 101 MM
NET SALES(Q) Lowest at USD 1,769 MM

With ROCE of 14.69%, it has a fair valuation with a 1.92 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 -29.91%, its profits have fallen by -24.8%

High Institutional Holdings at 83.78%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 3.64% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -29.91% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Science Applications International Corp. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Science Applications International Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Science Applications International Corp.

-17.25%

-0.58

33.06%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.20%

EBIT Growth (5y)

5.32%

EBIT to Interest (avg)

4.76

Debt to EBITDA (avg)

3.22

Net Debt to Equity (avg)

1.48

Sales to Capital Employed (avg)

1.92

Tax Ratio

15.75%

Dividend Payout Ratio

20.65%

Pledged Shares

Institutional Holding

83.78%

ROCE (avg)

13.59%

ROE (avg)

21.64%

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

3.28

EV to EBIT

13.06

EV to EBITDA

10.39

EV to Capital Employed

1.92

EV to Sales

0.95

PEG Ratio

Dividend Yield

0.00%

ROCE (Latest)

14.69%

ROE (Latest)

23.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -24.44% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 9.89 %

NET PROFIT(Q)

Highest at USD 127 MM

EPS(Q)

Highest at USD 2.71

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 157.81 %

CASH AND EQV(HY)

Lowest at USD 101 MM

NET SALES(Q)

Lowest at USD 1,769 MM

Here's what is working for Science Applications International Corp.

Operating Profit Margin

Highest at 9.89 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at USD 127 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 127 MM has Grown at 42.43%

over average net sales of the previous four periods of USD 89.17 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.71

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -24.44% (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 Science Applications International Corp.

Debt-Equity Ratio

Highest at 157.81 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at USD 1,769 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Cash and Eqv

Lowest at USD 101 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents