Science Applications (SAIC) AI Stock Analysis

• Market Cap: $5.56B
• Dividend Yield: 1.26%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.38
• Revenue Growth: 0.47%
• EPS Growth: -18.98%
• Country: US
• Employees: 24,000
• Sector: Technology
• Sector Strength: 51
• Industry: Information Technology Services
• EPS (TTM): 2.57
• Shares Outstanding: 47,737,200
• 10 Day Avg. Volume: 987,435
• 30 Day Avg. Volume: 1,080,901
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.69
• Price to Cash Flow (P/CF): 8.80
• P/FCF Ratio: 7.90
• 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: $123.00
• Price Target Upside: 4.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

SAIC's overall score reflects solid financial performance and strategic growth initiatives, supported by strong cash flow and reasonable valuation. The earnings call was positive but highlighted some risks related to government contracts and market conditions. Technical indicators suggest moderate optimism, but longer-term challenges remain, emphasizing the need for continued strategic execution.

Positive Factors

Contract Wins

SAIC won the $1.8B system software lifecycle engineering contract, showing strong performance in securing new business.

Financial Performance

SAIC reported financials above estimates and raised its fiscal 2026 outlook while reaffirming its $11 per share free cash flow target.

Growth Outlook

SAIC raised guidance and expects around 3% organic growth in F2025, despite anticipated headwinds.

Negative Factors

Competitive Challenges

SAIC has lost recompetes and has a re-bid win rate of only 70% compared to the peer average of 90%+.

Contract Delays

SAIC believes that contract award adjudication timelines may extend, posing a potential risk.

Market Sentiment

The creation of the DOGE commission and the looming debt ceiling expiration have soured investor sentiment on government services stocks.

Science Applications Business Overview & Revenue Model

Company Description

Science Applications International Corporation (SAIC) is a leading technology integrator providing full lifecycle services and solutions in the technical, engineering, and enterprise information technology sectors. The company offers a broad range of services, including systems engineering, software development, data analytics, and IT modernization to government and commercial customers. SAIC is known for its ability to integrate complex technologies and deliver mission-critical services that advance the capabilities of its clients.

How the Company Makes Money

SAIC primarily makes money through contracts and projects with government agencies, especially in the defense, intelligence, and civilian markets. The company's revenue streams include providing engineering and technical support, IT infrastructure services, cybersecurity solutions, and managed services. These contracts are often long-term and are secured through competitive bidding processes. Additionally, SAIC partners with various technology providers and leverages these relationships to enhance its service offerings and drive additional revenue through collaboration on large-scale projects. The company's earnings are significantly influenced by government budgets and spending priorities, particularly in defense and technology modernization initiatives.

Science Applications Financial Statement Overview

Summary

Science Applications has demonstrated consistent revenue growth with strong profitability metrics. The balance sheet is reasonably leveraged, though caution is warranted due to the proportion of assets financed by liabilities. Cash flow performance is strong, providing a solid foundation for future investments and debt management.

Income Statement

Science Applications has demonstrated consistent revenue growth over the years, with a notable increase in net income for the most recent period. The gross profit margin and net profit margin are strong, indicating effective cost management and profitability. However, the EBIT margin shows some volatility, suggesting potential fluctuations in operating efficiency.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. Return on equity is commendable, showcasing effective use of shareholder funds. However, the company's equity ratio suggests that a significant portion of its assets is financed by liabilities, which could pose a risk in uncertain economic conditions.

Cash Flow

Science Applications has shown strong free cash flow growth, with a robust operating cash flow to net income ratio, indicating efficient cash generation relative to profits. The free cash flow to net income ratio is favorable, suggesting that the company is successful in converting profits into available cash, enhancing financial flexibility.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
7.48B	7.44B	7.70B	7.39B	7.06B
	Gross Profit
892.00M	872.00M	888.00M	859.00M	792.00M
	EBIT
563.00M	741.00M	501.00M	462.00M	390.00M
	EBITDA
694.00M	882.00M	665.00M	684.00M	626.00M
	Net Income Common Stockholders
362.00M	477.00M	300.00M	277.00M	209.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
56.00M	94.00M	109.00M	106.00M	171.00M
	Total Assets
5.25B	5.31B	5.54B	5.75B	5.72B
	Total Debt
486.00M	2.25B	2.53B	2.71B	2.72B
	Net Debt
430.00M	2.15B	2.42B	2.60B	2.55B
	Total Liabilities
3.67B	3.53B	3.84B	4.12B	4.17B
	Stockholders Equity
1.58B	1.78B	1.69B	1.62B	1.54B
Cash Flow		Free Cash Flow
494.00M	369.00M	507.00M	482.00M	709.00M
	Operating Cash Flow
494.00M	396.00M	532.00M	518.00M	755.00M
	Investing Cash Flow
-35.00M	314.00M	-36.00M	-292.00M	-1.23B
	Financing Cash Flow
-498.00M	-725.00M	-493.00M	-301.00M	464.00M

Science Applications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 117.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAIC, the sentiment is Positive. The current price of 117.55 is above the 20-day moving average (MA) of 111.60, above the 50-day MA of 106.80, and below the 200-day MA of 121.06, indicating a neutral trend. The MACD of 2.35 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 87.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAIC.

Science Applications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CACI	80 Outperform	$9.25B	19.35	13.79%	―	14.04%	29.08%
SAIC	78 Outperform	$5.56B	16.25	21.53%	1.26%	0.47%	-18.98%
PEGA	68 Neutral	$5.90B	62.30	21.12%	0.17%	4.51%	43.29%
PSN	67 Neutral	$6.93B	30.70	9.99%	―	24.03%	43.75%
WEX	66 Neutral	$4.37B	16.95	18.71%	―	3.15%	21.82%
BILL	65 Neutral	$4.20B	450.48	2.11%	―	16.42%	―
Sector *	58 Neutral	$11.09B	9.81	-6.44%	3.15%	7.57%	-10.71%

Science Applications Corporate Events

Science Applications Expands Board with New Appointment

Science Applications International Corporation appointed John K. Tien, Jr. to its Board of Directors, expanding the board to twelve members. Tien, with a rich background in government and finance, including roles at Citigroup and the U.S. Department of Homeland Security, will join the Nominating and Corporate Governance Committee. His appointment reflects his diverse leadership experience and promises to bring strategic insights to the company’s governance.