Leidos Holdings (LDOS) AI Stock Analysis

• Market Cap: $20.04B
• Dividend Yield: 1.03%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.77
• Revenue Growth: 7.75%
• EPS Growth: 325.28%
• Country: US
• Employees: 47,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.97
• Shares Outstanding: 128,718,870
• 10 Day Avg. Volume: 1,268,715
• 30 Day Avg. Volume: 1,266,988
• PEG Ratio: -3.30
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.82
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 6.65
• Enterprise Value/Ebitda: 2.55
• 1Y Price Target: $174.50
• Price Target Upside: 12.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 77 Outperform
• Price Target: $168.00 ▲(7.91%Upside)

Leidos Holdings earns a strong overall score due to its robust financial performance and positive earnings call outcomes, which highlight strategic growth initiatives and reaffirmed guidance. While technical analysis presents mixed signals, the valuation remains reasonable. The company's financial health and strategic positioning are the most significant contributors to its high score.

Positive Factors

Financial Performance

Health & Civil reported another quarter of standout performance with revenues up 8% and adjusted operating margins of 23.6%.

Strategic Alignment

Leidos is strategically aligned with high-priority programs under the new administration, including VA medical exams, Golden Dome, hypersonics, and FAA modernization.

Negative Factors

Bookings Environment

The one negative during the quarter was the soft bookings, with backlog down 7% sequentially.

Government Services Challenges

Contract terminations, weak government outlays, and backlog erosion are expected to create challenges for the company.

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 makes money primarily through government contracts and commercial services. Its revenue streams are diversified across three main business segments: Defense Solutions, Civil, and Health. The Defense Solutions segment provides a wide array of services including logistics, operational support, and mission systems integration primarily for the U.S. Department of Defense and allied nations. The Civil segment focuses on IT solutions, cybersecurity, and infrastructure modernization for civil agencies, including the FAA and other federal and state government entities. The Health segment offers technology solutions and services for both government and commercial healthcare sectors, including the Department of Veterans Affairs and other public health agencies. Key factors contributing to its earnings include long-term contracts, strategic partnerships, and a focus on high-demand areas such as cybersecurity and digital modernization.

Leidos Holdings Financial Statement Overview

Summary

Leidos Holdings demonstrates robust financial performance with solid revenue growth, profitability, and effective cash flow management. The company utilizes its equity well to generate returns, but moderate leverage could pose risks under adverse conditions.

Income Statement

Leidos Holdings has demonstrated strong revenue growth with a consistent upward trend in gross profit and net income, reflecting robust operational efficiency. The TTM gross profit margin stands at 17.23%, with a net profit margin of 7.87%, indicating healthy profitability levels. Additionally, the company shows a positive revenue growth rate of approximately 1.62% from the previous annual report, showcasing its ability to expand its market presence.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 1.35, indicating a balanced approach to using debt for growth. The return on equity (ROE) is solid at 31.3%, demonstrating effective use of equity capital to generate profits. However, the equity ratio of 32.25% suggests a reliance on liabilities, which could pose risks in a downturn.

Cash Flow

Leidos Holdings shows strong cash flow performance with a stable operating cash flow to net income ratio of 1.04, indicating efficient cash generation from operations. The free cash flow has grown by 4.26% year-over-year, underscoring effective capital management. The free cash flow to net income ratio of 0.97 highlights the company's ability to convert earnings into cash.

Breakdown	TTM	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Mar 2021
Income Statement
Total Revenue	16.93B	16.66B	15.44B	14.40B	13.74B	12.30B
Gross Profit	2.92B	2.80B	2.24B	2.08B	2.01B	1.74B
EBITDA	2.23B	1.83B	931.00M	1.41B	1.50B	1.26B
Net Income	1.33B	1.25B	199.00M	685.00M	753.00M	628.00M
Balance Sheet
Total Assets	13.20B	13.10B	12.70B	13.07B	13.26B	12.51B
Cash, Cash Equivalents and Short-Term Investments	842.00M	943.00M	777.00M	516.00M	727.00M	524.00M
Total Debt	5.74B	5.29B	5.20B	5.49B	5.67B	5.31B
Total Liabilities	8.89B	8.64B	8.44B	8.72B	8.92B	8.64B
Stockholders Equity	4.26B	4.41B	4.20B	4.30B	4.29B	3.86B
Cash Flow
Free Cash Flow	1.30B	1.24B	958.00M	857.00M	927.00M	1.15B
Operating Cash Flow	1.39B	1.39B	1.17B	986.00M	1.03B	1.33B
Investing Cash Flow	-152.00M	-142.00M	-211.00M	-313.00M	-730.00M	-2.81B
Financing Cash Flow	-966.00M	-1.08B	-715.00M	-865.00M	-113.00M	1.45B

Leidos Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 155.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 155.68 is above the 20-day moving average (MA) of 148.30, above the 50-day MA of 149.38, and above the 200-day MA of 151.07, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 65.17 is Neutral, neither overbought nor oversold. The STOCH value of 88.43 is Negative, 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	77 Outperform	$20.04B	15.67	31.31%	1.03%	7.75%	325.28%
CACI	75 Outperform	$10.23B	21.96	13.48%	―	14.16%	22.25%
G	75 Outperform	$7.61B	14.82	22.21%	1.61%	7.31%	-15.86%
EPAM	71 Outperform	$9.91B	24.46	11.57%	―	4.72%	-3.06%
SAIC	68 Neutral	$5.04B	15.07	21.63%	1.35%	3.39%	-16.78%
Sector *	49 Neutral	C$2.90B	2.14	-80.91%	2.94%	6.62%	-18.96%
DXC	46 Neutral	$2.73B	7.21	12.88%	―	-5.65%	78.20%

Leidos Holdings Corporate Events

Leidos Holdings Stockholders Approve Key Amendments

Leidos Holdings, Inc. held its Annual Meeting of Stockholders on May 2, 2025, where stockholders approved amendments to the company’s Certificate of Incorporation. These amendments clarify stockholders’ rights to call special meetings and limit the liability of officers as permitted by law. The meeting also saw the election of board members, approval of executive compensation, and the ratification of Deloitte & Touche LLP as the company’s independent auditor for the fiscal year ending January 2, 2026.

Leidos Holdings Reports Strong Q1 2025 Financial Results

Leidos Holdings reported strong financial results for the first quarter of fiscal year 2025, with revenues of $4.2 billion, a 7% increase year-over-year, and net income of $365 million, up 29% from the previous year. The company also announced a change in its backlog policy, which now includes estimated future revenue on task orders expected under sole source IDIQ contracts, resulting in a backlog of $46.3 billion. Leidos secured several significant contracts, including a $205 million task order with the Defense Threat Reduction Agency and a $150 million task order with the Naval Surface Warfare Center Carderock Division, highlighting its strong position in the defense and IT services market.