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Caci International (CACI)
NYSE:CACI
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Caci International
(NYSE:CACI)77Outperform
Positive Factors
Financial Performance
CACI's strong 2QFY25 performance and robust pipeline of opportunities is a testament to the strength of the company’s portfolio.
Strategic Partnerships
CACI has a strong track record of partnerships with commercial tech companies like Amazon or Microsoft to bring scale and speed.
Negative Factors
Investor Sentiment
Investor urgency to engage with CACI stock and the sector broadly is low.
Caci International (CACI) vs. S&P 500 (SPY)
Market Cap
$7.51B
Dividend YieldN/A
Average Volume (3M)536.90K
Price to Earnings (P/E)15.5
Beta (1Y)0.70
Revenue Growth14.04%
EPS Growth29.08%
CountryUS
Employees24,000
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)21.32
Shares Outstanding22,419,739
10 Day Avg. Volume539,259
30 Day Avg. Volume536,898
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)N/A
Price to Sales (P/S)0.92
Price to Cash Flow (P/CF)14.90
P/FCF Ratio16.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$508.33Price Target Upside43.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Caci International Business Overview & Revenue Model
Company DescriptionCACI International, Inc. operates as holding company, which engages in the provision of information solutions and services in support of national security missions and government transformation for intelligence, defense, and federal civilian customers. It operates through the Domestic Operations and International Operations segment. The Domestic Operations segment offers information solutions and services to U.S. federal government agencies, state and local governments, and commercial enterprises to different market areas, including business systems, command and control, communications, cyber security, enterprise information technology (IT), health, intelligence services, investigation and litigation support, logistics and material readiness, and surveillance and reconnaissance. The International Operations segment includes the provision of IT services and proprietary data and software products, serving commercial and government customers. The company was founded by Herb Karr and Harry Markowitz in July 1962 and is headquartered in Arlington, VA.
How the Company Makes MoneyCACI 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
Overall, CACI International displays solid financial health with strong profitability, a well-managed balance sheet, and stable cash flows. The company shows consistent revenue growth and efficient operational performance. While the increase in liabilities and decline in free cash flow growth warrant caution, the overall financial position remains strong, positioning the company well within the software industry.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.85
Very Positive
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.78
Positive
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.80
Positive
| 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 | ||||
| 133.96M | 133.96M | 115.78M | 114.80M | 88.03M | 107.24M | Total Assets |
| 6.80B | 6.80B | 6.60B | 6.63B | 6.17B | 5.54B | Total Debt |
| 1.92B | 1.92B | 2.03B | 2.05B | 1.74B | 1.40B | Net Debt |
| 1.78B | 1.78B | 1.91B | 1.93B | 1.65B | 1.30B | Total Liabilities |
| 3.28B | 3.28B | 3.38B | 3.58B | 3.51B | 2.88B | Stockholders Equity |
| 3.52B | 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
Neutral
353.02
Price Trends
389.94
Negative
445.11
Negative
449.56
Negative
Market Momentum
-17.67
Negative
45.71
Neutral
55.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CACI, the sentiment is Neutral. The current price of 353.02 is above the 20-day moving average (MA) of 349.90, below the 50-day MA of 389.94, and below the 200-day MA of 449.56, indicating a neutral trend. The MACD of -17.67 indicates Negative momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 55.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CACI.
Caci International Risk Analysis
Caci International disclosed 36 risk factors in its most recent earnings report. Caci International reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Caci International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.84B | 21.10 | 30.74% | 1.86% | 2.39% | 39.20% | |
77 Outperform | $7.51B | 15.45 | 12.88% | ― | 14.04% | 29.08% | |
69 Neutral | $17.34B | 14.34 | 28.42% | 1.19% | 7.93% | 541.97% | |
66 Neutral | $4.83B | 16.66 | 18.80% | 1.54% | -3.87% | -37.31% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
54 Neutral | $2.66B | ― | -14.58% | ― | -7.31% | 89.53% |
* Technology Sector Average
Performance Comparison
CACI
Caci International
353.02
-23.99
-6.36%
CSGS
CSG Systems International
63.93
11.93
22.94%
PAR
Par Technology
66.14
24.57
59.11%
SAIC
Science Applications
101.03
-40.43
-28.58%
LDOS
Leidos Holdings
132.22
4.30
3.36%
Caci International Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -24.10% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance with significant revenue growth, increased profitability, and a positive outlook for fiscal 2025. Despite some concerns about leverage and potential risks from government changes, the overall sentiment was optimistic.Highlights
Strong Revenue Growth
CACI delivered revenue growth of 14.5% for the second quarter and organic growth of 8.1% or 14.3% on an underlying basis.
Increased EBITDA Margin
The second quarter EBITDA margin was 11.1%, representing a year-over-year increase of 180 basis points.
Significant Contract Wins
CACI won $1.2 billion of awards for the quarter and secured a $300 million award with the Navy, aiding backlog growth.
Raised Fiscal 2025 Guidance
CACI raised its fiscal 2025 revenue guidance to between $8.45 billion and $8.65 billion and adjusted EPS guidance to between $23.87 and $24.76.
Strong Book-to-Bill Ratio
The trailing 12-month book-to-bill ratio of 1.7x reflects strong performance, with a backlog of $32 billion.
Lowlights
High Leverage
Net debt to trailing 12-month EBITDA was 2.9x, at the upper end of the company's target range of 2.5 to 3x.
Potential Risks from Government Changes
Concerns about potential changes in government efficiency initiatives (DOGE) and their impact on cost-plus contracts were discussed.
Company Guidance
During the CACI International Q2 2025 earnings call, the company provided updated guidance for the fiscal year, reflecting strong performance and continued momentum. CACI raised its fiscal '25 revenue guidance to between $8.45 billion and $8.65 billion, indicating 13% to 16% total growth, with 6 points attributed to recent acquisitions. The company maintained its EBITDA margin expectation in the low 11% range, while also increasing adjusted net income guidance to between $537 million and $557 million. This adjustment results in an increased adjusted EPS forecast of $23.87 to $24.76 per share, representing 13% to 18% growth. Additionally, CACI raised its free cash flow guidance to at least $450 million, highlighting an 8% to 10% growth in free cash flow per share. These updates underscore the company's confidence in delivering long-term growth and shareholder value.Caci International Corporate Events
Private Placements and FinancingM&A Transactions
CACI International Secures Loan for Acquisition Financing
Neutral
Nov 5, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.