Leidos Holdings, Inc.
Leidos Holdings, Inc. Fundamental Analysis
Leidos Holdings, Inc. (LDOS) shows moderate financial fundamentals with a PE ratio of 10.93, profit margin of 8.20%, and ROE of 29.15%. The company generates $17.3B in annual revenue with moderate year-over-year growth of 3.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LDOS's fundamental strength across five key dimensions:
Efficiency Score
WeakLDOS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLDOS trades at attractive valuation levels.
Growth Score
ModerateLDOS shows steady but slowing expansion.
Financial Health Score
ModerateLDOS shows balanced financial health with some risks.
Profitability Score
ModerateLDOS maintains healthy but balanced margins.
Key Financial Metrics
Is LDOS Expensive or Cheap?
P/E Ratio
LDOS trades at 10.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LDOS's PEG of 1.11 indicates fair valuation.
Price to Book
The market values Leidos Holdings, Inc. at 3.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.85 times EBITDA. This is generally considered low.
How Well Does LDOS Make Money?
Net Profit Margin
For every $100 in sales, Leidos Holdings, Inc. keeps $8.20 as profit after all expenses.
Operating Margin
Core operations generate 12.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.15 in profit for every $100 of shareholder equity.
ROA
Leidos Holdings, Inc. generates $9.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Leidos Holdings, Inc. produces operating cash flow of $1.99B, showing steady but balanced cash generation.
Free Cash Flow
Leidos Holdings, Inc. generates strong free cash flow of $1.86B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $14.75 in free cash annually.
FCF Yield
LDOS converts 12.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How LDOS Stacks Against Its Sector Peers
| Metric | LDOS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.93 | 36.74 | Better (Cheaper) |
| ROE | 29.15% | 968.00% | Weak |
| Net Margin | 8.20% | 5945062585.00% | Weak |
| Debt/Equity | 1.39 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.40 | 4.94 | Neutral |
| ROA | 9.24% | -296476.00% (disorted) | Weak |
LDOS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Leidos Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.77%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
148.64%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
40.68%
Industry Style: Growth, Innovation, High Beta
High Growth