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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zillow Group, Inc.

Science Applications International Corp.

SS&C Technologies Holdings, Inc.

Amdocs Ltd.

CACI International, Inc.

EPAM Systems, Inc.

Globant SA

Cloudflare, Inc.

Juniper Networks, Inc.

KBR, Inc.

Guidewire Software, Inc.

Why is Science Applications International Corp. ?

With a growth in Net Profit of 35.29%, the company declared Very Positive results in Apr 26

OPERATING CASH FLOW(Y) Highest at USD 636 MM
ROCE(HY) Highest at 27.66%
INTEREST COVERAGE RATIO(Q) Highest at 608.82

With ROCE of 13.58%, it has a very attractive valuation with a 1.71 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 8.48%, its profits have fallen by -2.8% ; the PEG ratio of the company is 2.3

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 11.6% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you buy?

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Science Applications International Corp.

8.48%

0.19

38.46%

S&P 500

22.93%

1.75

13.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.58%

EBIT Growth (5y)

3.17%

EBIT to Interest (avg)

4.76

Debt to EBITDA (avg)

3.22

Net Debt to Equity (avg)

1.48

Sales to Capital Employed (avg)

1.91

Tax Ratio

15.75%

Dividend Payout Ratio

19.22%

Pledged Shares

Institutional Holding

100.00%

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

2.82

EV to EBIT

12.61

EV to EBITDA

9.80

EV to Capital Employed

1.71

EV to Sales

0.90

PEG Ratio

2.25

Dividend Yield

0.00%

ROCE (Latest)

13.58%

ROE (Latest)

23.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly 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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 636 MM

ROCE(HY)

Highest at 27.66%

INTEREST COVERAGE RATIO(Q)

Highest at 608.82

RAW MATERIAL COST(Y)

Fallen by -46.72% (YoY

NET SALES(Q)

Highest at USD 1,906 MM

OPERATING PROFIT(Q)

Highest at USD 207 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.86 %

PRE-TAX PROFIT(Q)

Highest at USD 146 MM

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 180.11 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 14.16%

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

Operating Cash Flow

Highest at USD 636 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 608.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 1,906 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 207 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 10.86 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 146 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 146 MM has Grown at 52.08%

over average net sales of the previous four periods of USD 96 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by -46.72% (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 180.11 % 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

Dividend Payout Ratio

Lowest at 14.16%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)