Caci International (CACI) AI Stock Analysis

• Market Cap: $8.68B
• Dividend Yield: N/A
• Average Volume (3M): 668.05K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.30
• Revenue Growth: 14.04%
• EPS Growth: 29.08%
• Country: US
• Employees: 24,000
• Sector: Technology
• Sector Strength: 40
• Industry: Information Technology Services
• EPS (TTM): 21.32
• Shares Outstanding: 22,419,739
• 10 Day Avg. Volume: 667,256
• 30 Day Avg. Volume: 668,049
• PEG Ratio: 0.62
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.01
• Price to Cash Flow (P/CF): 16.30
• P/FCF Ratio: 17.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $511.36
• Price Target Upside: 32.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

CACI International's stock score is driven by its strong financial performance and positive earnings outlook. The company benefits from robust revenue growth and profitability, supported by effective cost management and strategic guidance increases. Technical indicators suggest potential strength, though caution is required due to mixed signals. Valuation appears fair, with the P/E ratio in line with industry norms. Overall, CACI is well-positioned in the software industry, though attention to leverage and cash flow trends is advised.

Positive Factors

Government Contracts

CACI is strongly positioned to key government/DoD priorities and is a likely beneficiary of the increased focus on government efficiencies.

Technological Solutions

The company underwent a strategic change with an emphasis on involvement in 'stickier' business and software-driven technological solutions, which better positions the company to the next generation of warfare.

Negative Factors

Investor Sentiment

Investor urgency to engage with CACI stock and the sector broadly is low.

Stock Performance

The limited guidance hike and focus on Q4 may have contributed to the stock's sell-off.

Caci International Business Overview & Revenue Model

Company Description

CACI International Inc, together with its subsidiaries, provides expertise and technology to enterprise and mission customers in support of national security missions and government modernization/transformation in the intelligence, defense, and federal civilian sectors. It operates in two segments, Domestic Operations and International Operations. The Domestic Operations segment offers information solutions and services to the U.S. federal government agencies and commercial enterprises in the areas, such as digital solutions, C4ISR, cyber and space, engineering services, enterprise IT, and mission support. The International Operations segment provides a range of IT services, proprietary data, and software products to the commercial and government customers in the United Kingdom, continental Europe, and internationally. The company designs, implements, protects, and manages secure enterprise IT solutions. It also offers software-defined, full-spectrum cyber, electronic warfare, and counter-unmanned aircraft system solutions; and platform integration and modernization and sustainment, as well as system engineering, naval architecture, training and simulation, and logistics engineering. In addition, the company provides enterprise cloud solutions for classified and unclassified networks; and intelligence support that ensures continuous advances in collection, analysis, and dissemination to optimize decision-making. CACI International Inc was founded in 1962 and is headquartered in Reston, Virginia.

How the Company Makes Money

CACI International makes money primarily through government contracts, offering a range of IT and professional services to defense, intelligence, and civilian agencies. Key revenue streams include systems integration, enterprise IT solutions, and cybersecurity services. The company often engages in multi-year contracts, which provide stable and recurring revenue. Additionally, CACI forms strategic partnerships with technology firms and defense contractors to enhance its service offerings and expand its market reach. The company’s earnings are significantly influenced by government spending policies and technological advancements in national security and IT infrastructure.

Caci International Financial Statement Overview

Summary

CACI International exhibits strong financial health with consistent revenue growth and efficient operations. The strong profitability metrics and well-managed balance sheet are notable, although the increase in liabilities and decline in free cash flow growth require close monitoring.

Income Statement

CACI International demonstrates strong profitability with a consistent increase in total revenue over the years. The TTM revenue growth from the previous annual period is approximately 6.15%, indicating a healthy upward trend. Gross profit margin for the TTM is approximately 20.25%, and the net profit margin is 5.91%, both strong indicators of profitability. The EBIT margin for the TTM is 9.10% and EBITDA margin is 11.02%, reflecting efficient operations. However, there is a slight decline in gross profit margin from the previous annual period, which is a point to monitor.

Balance Sheet

The company maintains a strong equity base with a debt-to-equity ratio of 0.12 in the TTM period, which is well-managed and indicates low leverage risk. The return on equity (ROE) for the TTM is 12.88%, showing effective use of equity capital. The equity ratio is 43.61%, indicating a balanced financial structure with a healthy proportion of assets financed by equity. However, there is an increase in total liabilities, which could pose a risk if not carefully managed in future periods.

Cash Flow

CACI's cash flow position is robust, with a TTM operating cash flow to net income ratio of 0.81, demonstrating strong cash conversion efficiency. The free cash flow to net income ratio is 0.72, which is healthy and indicates good cash generation relative to profits. The free cash flow growth rate from the previous annual period is approximately -20.55%, which shows some volatility that needs attention. Overall, cash flows are stable, but the decline in free cash flow growth is a potential concern.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
8.13B	7.66B	6.70B	6.20B	6.04B	5.72B
	Gross Profit
1.65B	2.37B	567.50M	496.33M	539.45M	457.70M
	EBIT
740.19M	649.71M	567.50M	496.33M	539.45M	457.70M
	EBITDA
895.37M	791.85M	709.06M	631.01M	664.81M	568.38M
	Net Income Common Stockholders
480.12M	419.92M	384.74M	366.79M	457.44M	321.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
174.75M	133.96M	115.78M	114.80M	88.03M	107.24M
	Total Assets
2.17B	6.80B	6.60B	6.63B	6.17B	5.54B
	Total Debt
529.16M	1.92B	2.03B	2.05B	1.74B	1.40B
	Net Debt
354.41M	1.78B	1.91B	1.93B	1.65B	1.30B
	Total Liabilities
1.04B	3.28B	3.38B	3.58B	3.51B	2.88B
	Stockholders Equity
1.13B	3.52B	3.22B	3.05B	2.67B	2.66B
Cash Flow		Free Cash Flow
460.51M	433.64M	324.34M	670.99M	519.09M	446.40M
	Operating Cash Flow
516.18M	497.33M	388.06M	745.55M	592.22M	518.71M
	Investing Cash Flow
-1.70B	-151.95M	-75.72M	-689.15M	-426.65M	-178.53M
	Financing Cash Flow
1.24B	-326.89M	-316.11M	-21.21M	-190.60M	-303.39M

Caci International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 386.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CACI, the sentiment is Positive. The current price of 386.7 is above the 20-day moving average (MA) of 376.92, above the 50-day MA of 367.61, and below the 200-day MA of 443.74, indicating a neutral trend. The MACD of 1.13 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 36.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CACI.

Caci International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CACI	80 Outperform	$8.68B	18.13	13.79%	―	14.04%	29.08%
G	80 Outperform	$8.27B	16.53	22.15%	1.33%	6.46%	-16.94%
EXLS	79 Outperform	$6.85B	34.53	21.80%	―	12.74%	9.92%
SAIC	78 Outperform	$5.21B	15.22	21.53%	1.36%	0.47%	-18.98%
PSN	67 Neutral	$6.29B	28.21	9.99%	―	24.03%	43.75%
CFLT	64 Neutral	$6.81B	―	-38.95%	―	24.03%	27.45%
Sector *	57 Neutral	$18.45B	9.41	-13.97%	2.74%	5.04%	-23.56%

Caci International Corporate Events

CACI International Secures Loan for Acquisition Financing

On October 30, 2024, CACI International Inc secured a $750 million Term Loan B Facility to partially finance the acquisition of Azure Summit Technology, LLC for $1.275 billion. The loan, maturing in 2031, is backed by the company’s assets and allows for potential increases in principal, with interest based on a floating rate. The agreement imposes customary restrictions on further indebtedness and financial activities.