Science Applications International Corporation
Science Applications International Corporation Fundamental Analysis
Science Applications International Corporation (SAIC) shows moderate financial fundamentals with a PE ratio of 11.34, profit margin of 5.05%, and ROE of 24.28%. The company generates $7.2B in annual revenue with weak year-over-year growth of -3.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SAIC's fundamental strength across five key dimensions:
Efficiency Score
WeakSAIC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSAIC trades at attractive valuation levels.
Growth Score
ModerateSAIC shows steady but slowing expansion.
Financial Health Score
ModerateSAIC shows balanced financial health with some risks.
Profitability Score
ModerateSAIC maintains healthy but balanced margins.
Key Financial Metrics
Is SAIC Expensive or Cheap?
P/E Ratio
SAIC trades at 11.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SAIC's PEG of -2.10 indicates potential undervaluation.
Price to Book
The market values Science Applications International Corporation at 2.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.09 times EBITDA. This is generally considered low.
How Well Does SAIC Make Money?
Net Profit Margin
For every $100 in sales, Science Applications International Corporation keeps $5.05 as profit after all expenses.
Operating Margin
Core operations generate 7.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.28 in profit for every $100 of shareholder equity.
ROA
Science Applications International Corporation generates $6.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Science Applications International Corporation generates limited operating cash flow of $459.23M, signaling weaker underlying cash strength.
Free Cash Flow
Science Applications International Corporation produces free cash flow of $452.34M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.83 in free cash annually.
FCF Yield
SAIC converts 11.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How SAIC Stacks Against Its Sector Peers
| Metric | SAIC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.34 | 35.19 | Better (Cheaper) |
| ROE | 24.28% | 1155.00% | Weak |
| Net Margin | 5.05% | -127067.00% (disorted) | Weak |
| Debt/Equity | 1.86 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.20 | 4.71 | Neutral |
| ROA | 6.84% | -314918.00% (disorted) | Weak |
SAIC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Science Applications International Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.59%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
184.57%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
75.90%
Industry Style: Growth, Innovation, High Beta
High Growth