Caci International (CACI) AI Stock Analysis

• Market Cap: $10.19B
• Dividend Yield: N/A
• Average Volume (3M): 571.24K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.41
• Revenue Growth: 14.16%
• EPS Growth: 22.25%
• Country: US
• Employees: 25,000
• Sector: Technology
• Sector Strength: 68
• Industry: Information Technology Services
• EPS (TTM): 21.19
• Shares Outstanding: 21,990,051
• 10 Day Avg. Volume: 470,393
• 30 Day Avg. Volume: 571,241
• PEG Ratio: 0.98
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $529.63
• Price Target Upside: 14.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

CACI International shows robust financial performance with strong revenue and profit growth. The technical indicators suggest strong momentum, but caution is advised due to overbought signals. Valuation remains a concern given its high P/E ratio. The positive earnings call, with raised guidance and strategic alignment, supports a strong growth outlook. Overall, CACI is a strong performer with some short-term technical caution.

Positive Factors

Earnings

CACI reported a beat and raise quarter with 6% organic growth and a strong bookings-to-billings ratio, which helps alleviate concerns related to defense budget cuts.

Financial Health

Free cash flow per share is expected to grow at a compound annual growth rate of 12%, highlighting strong financial health and potential for shareholder returns.

Strategic Positioning

CACI acquired E2E Limited, a biometrics and cloud engineering firm, which is a positive strategic move.

Negative Factors

Budget Cuts Exposure

The company's exposure to budget cuts is limited, as only a small portion of revenue is tied to civilian contracts affected by these cuts.

Contract Risks

Contracts identified by CACI to be at potential risk from the GSA program review total $158M over ~6 contracts, two of which are mission critical.

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 performance with robust revenue and profit growth, efficient cost management, and a solid balance sheet characterized by low leverage and strong returns. The income statement is particularly strong due to revenue growth and profitability. However, cash flow generation shows some recent declines, indicating room for improvement.

Income Statement

Caci International demonstrates strong revenue growth with a TTM increase of 9.15% from the previous year, indicating robust demand for its services. The gross profit margin for the TTM is 14.73%, reflecting efficient cost management. The net profit margin has improved to 5.70%, showcasing enhanced profitability. EBIT and EBITDA margins of 9.03% and 11.12% respectively underline solid operational performance. Overall, the income statement metrics indicate a well-performing company with strong growth and profitability trends.

Balance Sheet

The balance sheet shows a healthy equity position with a debt-to-equity ratio of 0.12, indicating low leverage and reduced financial risk. Return on equity stands at 12.86%, reflecting strong returns to shareholders. The equity ratio of 43.18% suggests a balanced capital structure. The company maintains a solid equity base, which supports its growth initiatives. Overall, the balance sheet is robust with favorable leverage and return metrics, though maintaining a higher equity ratio could enhance financial stability further.

Cash Flow

Caci International reports a free cash flow growth rate of -36.76% in the TTM, indicating a decline in cash generation relative to the previous year. The operating cash flow to net income ratio is 0.67, and the free cash flow to net income ratio is 0.57, both of which suggest adequate cash generation relative to earnings, albeit with room for improvement. While the cash flow metrics reveal some volatility, the company's ability to generate cash remains relatively stable despite recent declines.

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

Caci International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 463.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 463.17 is above the 20-day moving average (MA) of 425.26, above the 50-day MA of 388.57, and above the 200-day MA of 443.51, indicating a bullish trend. The MACD of 20.19 indicates Negative momentum. The RSI at 76.58 is Negative, neither overbought nor oversold. The STOCH value of 82.78 is Negative, 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
EXLS	78 Outperform	$7.63B	35.40	23.81%	―	14.18%	21.49%
SAIC	78 Outperform	$5.56B	16.25	21.53%	1.25%	0.47%	-18.98%
G	78 Outperform	$8.69B	17.46	22.15%	1.26%	6.46%	-16.94%
CACI	76 Outperform	$10.19B	21.86	13.48%	―	14.16%	22.25%
PSN	73 Outperform	$6.71B	16.99	17.75%	―	16.61%	1279.09%
Sector *	60 Neutral	$10.94B	10.58	-7.08%	2.98%	7.52%	-12.04%
CFLT	55 Neutral	$6.75B	―	-34.18%	―	24.11%	21.87%

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.