Leidos Holdings (LDOS) AI Stock Analysis

• Market Cap: $24.47B
• Dividend Yield: 0.84%
• Average Volume (3M): 772.41K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.70
• Revenue Growth: 6.48%
• EPS Growth: 22.17%
• Country: US
• Employees: 47,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.05
• Shares Outstanding: 127,855,170
• 10 Day Avg. Volume: 910,927
• 30 Day Avg. Volume: 772,409
• PEG Ratio: 0.03
• Price to Book (P/B): 4.47
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 15.86
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 9.70
• Enterprise Value/Ebitda: 12.59
• 1Y Price Target: $223.44
• Price Target Upside: 16.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 11.76
• Revenue Forecast (FY): $17.24B

• Rating: 80 Outperform
• Price Target: $222.00 ▲(15.98% Upside)

Leidos Holdings scores highly due to its strong financial performance and positive earnings call, which highlight robust growth and strategic initiatives. Technical indicators support a bullish outlook, though valuation metrics suggest the stock is fairly priced. The absence of notable corporate events does not detract from the overall positive assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Strategic Partnerships

Strategic partnerships enhance Leidos' capabilities in AI and cybersecurity, strengthening its competitive position and service offerings.

Cash Flow Management

Strong cash flow management allows Leidos to invest in growth opportunities and manage debt, ensuring long-term operational flexibility.

Negative Factors

Government Shutdown Impact

Delays due to government shutdowns can disrupt revenue streams and project timelines, affecting financial performance and planning.

Legal Reserves Increase

Increased legal reserves may indicate potential legal challenges, which could impact financial health and require resource allocation.

Security Products Business Pressure

Pressure in the Security Products business could hinder growth in this segment, impacting overall revenue diversification and profitability.

Leidos Holdings Business Overview & Revenue Model

Company Description

Leidos Holdings, Inc., together with its subsidiaries, provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. It operates through three segments: Defense Solutions, Civil, and Health. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S. Intelligence Community, the Department of Defense, the National Aeronautics and Space Administration, military services, and government agencies of U.S. allies abroad, as well as other federal and commercial customers in the national security industry. Its solutions include technology, large-scale systems, command and control platforms, data analytics, logistics, and cybersecurity solutions, as well as intelligence analysis and operations support services to critical missions. The Civil segment provides systems integration services to air navigation service providers, including the federal aviation administration, the En route automation modernization, advanced technology oceanic procedure, time based flow management, terminal flight data management, geo-7, and future flight services, as well as enterprise-information display systems; and security detection and automation services. It also offers information technology (IT) solutions in cloud computing, mobility, application modernization, DevOps, data center, network modernization, asset management, help desk operations, and digital workplace enablement; and environment, energy, and infrastructure services. The Health segment offers solutions to federal and commercial customers responsible for health and well-being of people worldwide, including health information management, managed health, digital transformation, and life sciences research and development services. Leidos Holdings, Inc. was founded in 1969 and is headquartered in Reston, Virginia.

How the Company Makes Money

Leidos generates revenue primarily through contracts with government agencies, including the Department of Defense (DoD), Department of Homeland Security (DHS), and other federal entities. The company's revenue model is largely based on a mix of cost-plus, fixed-price, and time-and-materials contracts. Key revenue streams include defense solutions, which encompass logistics and engineering services, and civil solutions that involve information technology and infrastructure projects. Additionally, Leidos earns income from health-related services, notably through contracts that involve biomedical research and public health initiatives. Significant partnerships with government agencies and collaborations with private sector firms enhance its ability to secure contracts and expand its service offerings, contributing to the company's overall earnings.

Leidos Holdings Financial Statement Overview

Summary

Leidos Holdings exhibits strong financial performance with significant revenue growth and solid profitability margins. The balance sheet reflects prudent leverage, and cash flow metrics underscore effective cash management. The company is well-positioned for continued growth, though monitoring leverage and equity ratios will be crucial.

Income Statement

Leidos Holdings demonstrates strong revenue growth with a TTM increase of 71.5%, significantly outpacing prior periods. The company maintains healthy profitability metrics, with a gross profit margin of 17.56% and a net profit margin of 8.22% in the TTM. EBIT and EBITDA margins are also robust at 11.94% and 13.65%, respectively. These figures indicate effective cost management and operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.22, reflecting a balanced approach to leveraging. Return on equity is impressive at 31.25%, indicating strong profitability relative to shareholder equity. However, the equity ratio is not explicitly provided, which could offer additional insights into asset financing.

Cash Flow

Leidos Holdings exhibits a solid cash flow position with a 10.42% growth in free cash flow. The operating cash flow to net income ratio is 0.51, suggesting efficient cash generation relative to earnings. The free cash flow to net income ratio of 0.94 highlights the company's ability to convert earnings into cash, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.33B	16.66B	15.44B	14.40B	13.74B	12.30B
Gross Profit	3.05B	2.80B	2.24B	2.08B	2.01B	1.74B
EBITDA	2.35B	2.12B	946.00M	1.42B	1.48B	1.25B
Net Income	1.41B	1.25B	199.00M	685.00M	753.00M	628.00M
Balance Sheet
Total Assets	13.54B	13.10B	12.70B	13.07B	13.26B	12.51B
Cash, Cash Equivalents and Short-Term Investments	974.00M	943.00M	777.00M	516.00M	727.00M	524.00M
Total Debt	5.23B	5.29B	5.20B	5.49B	5.67B	5.31B
Total Liabilities	8.59B	8.64B	8.44B	8.72B	8.92B	8.64B
Stockholders Equity	4.91B	4.41B	4.20B	4.30B	4.29B	3.86B
Cash Flow
Free Cash Flow	1.39B	1.24B	958.00M	857.00M	927.00M	1.15B
Operating Cash Flow	1.55B	1.39B	1.17B	986.00M	1.03B	1.33B
Investing Cash Flow	-458.00M	-142.00M	-211.00M	-313.00M	-730.00M	-2.81B
Financing Cash Flow	-1.23B	-1.08B	-715.00M	-865.00M	-113.00M	1.45B

Leidos Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 191.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDOS, the sentiment is Positive. The current price of 191.41 is below the 20-day moving average (MA) of 192.51, above the 50-day MA of 189.34, and above the 200-day MA of 160.38, indicating a neutral trend. The MACD of 1.49 indicates Positive momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 21.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LDOS.

Leidos Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LDOS	80 Outperform	$24.47B	17.85	29.51%	0.84%	6.48%	22.17%
CTSH	80 Outperform	$35.05B	16.83	14.50%	1.72%	7.44%	-4.57%
CACI	78 Outperform	$13.05B	26.09	13.14%	―	12.61%	11.85%
INFY	74 Outperform	$70.37B	21.10	29.15%	3.12%	4.62%	1.06%
WIT	73 Outperform	$28.88B	17.65	16.39%	3.12%	-1.97%	48.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SAIC	61 Neutral	$4.08B	10.71	25.40%	1.67%	2.23%	48.38%

Leidos Holdings Corporate Events

Leidos Holdings Inc. Reports Strong Q2 2025 Results

Leidos Holdings Inc., a leader in the technology and defense sector, is renowned for providing innovative solutions to government and commercial clients, focusing on digital transformation and mission-critical services.

Leidos Holdings Inc. Earnings Call Highlights Growth

Leidos Holdings Inc. recently held its earnings call, which was marked by an overall positive sentiment. The company showcased strong financial performance, increased guidance, and strategic initiatives that align with government funding priorities. Despite facing challenges such as procurement delays and headwinds from the Department of Government Efficiency (DOGE), Leidos remains confident in its growth trajectory due to proactive measures and a robust pipeline.