Science Applications International Corp (SAIC) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Science Applications International's EV/EBITDA of 13.9 is above its 5-year median of 13.4.

P/B above the industry

Science Applications International's price-to-book of 4.45 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading below fair value

The share price of $152.57 is below our fair value estimate of $165.57.

Margin of safety under 20%

The price is 7.9% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -2.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 12.7% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -0.8% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance raised

Science Applications International raised its Fiscal Year 2027 Guidance Organic Growth outlook on Aug 31, 2026.

Gross margin improving

Gross margin was 12.6% over the last twelve months, against 12.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 13.0%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

High debt

Debt is 173% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 163% five years ago to 173%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 26.6% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.20 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.10; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Science Applications International paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Science Applications International yields 1.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 10.8% of free cash flow.