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Science Applications International Corp. (SAIC)
NASDAQ:SAIC
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Science Applications
(NASDAQ:SAIC)
Rating:64Neutral
Price Target:
$126.00
▲(6.26%Upside)
Positive Factors
Bookings
SAIC posted a 1Q quarterly B2B of 1.3x and highlighted approximately $2B in bookings since the start of the new quarter, indicating a strong start to F2Q bookings.
Contract Awards
SAIC affirmed its >$5B H1 contract award target, which is plausible given $20B of outstanding bids.
Management Performance
Management is expected to maintain stable margins due to tight cost controls, which could lead to better financial performance.
Negative Factors
EBITDA Performance
Shares of SAIC, one of the leading providers of defense IT services, are trading down 12% after the company reported an April-quarter EBITDA decline from last year despite 2% revenue growth.
Near-term Growth
Despite trading at a significant discount to peers, there is a lack of catalyst for a re-rating due to uncertainty around near-term growth.
Organic Growth
SAIC's organic growth is expected to decline, facing challenges from recompete losses and program transitions.
Science Applications (SAIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.56B
Dividend Yield1.25%
Average Volume (3M)705.04K
Price to Earnings (P/E)16.6
Beta (1Y)0.37
Revenue Growth3.39%
EPS Growth-16.78%
CountryUS
Employees24,000
SectorTechnology
Sector Strength87
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.92
Shares Outstanding46,872,795
10 Day Avg. Volume643,798
30 Day Avg. Volume705,040
Financial Highlights & Ratios
PEG Ratio-17.61
Price to Book (P/B)3.42
Price to Sales (P/S)0.00
P/FCF Ratio10.43
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit6.05
Enterprise Value/Ebitda2.05
Forecast
1Y Price Target
$124.63Price Target Upside5.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Science Applications Business Overview & Revenue Model
Company DescriptionScience Applications International Corporation (SAIC) is a leading provider of engineering, digital, and IT solutions primarily serving the U.S. government, including the Department of Defense, intelligence community, and federal civilian agencies. The company specializes in offering technology integration, logistics, and supply chain management solutions, as well as advanced data analytics and cybersecurity services.
How the Company Makes MoneySAIC makes money through government contracts and service agreements, primarily with U.S. federal agencies. The company earns revenue by providing technology and systems integration services, IT modernization, and digital transformation solutions. Key revenue streams include long-term contracts for engineering and logistics services, as well as maintenance and support agreements. Partnerships with technology firms and subcontractors also enhance SAIC's ability to deliver comprehensive solutions, contributing to its earnings. The company's strong focus on government clients ensures a stable revenue base, leveraging its expertise in defense and intelligence operations.
Science Applications Earnings Call Summary
Earnings Call Date:Jun 02, 2025
(Q1-2026)
| % Change Since: 2.63%|
Next Earnings Date:Sep 04, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced mix of positive developments and challenges. While there are strong points in defense spending requests, business development, and a robust pipeline, procurement delays, cash flow issues, and margin pressures pose concerns.Q1-2026 Updates
Positive Updates
Solid Defense Spending Request
The administration proposed a 13% increase in defense spending, which includes additional funding beyond the request, emphasizing the Navy, Air Force, and Space Force.
Strong Business Development
Net bookings of $2.4 billion for a book-to-bill ratio of 1.3, including significant contracts such as a $55 million Space Development Agency role and a two-year extension on the Department of State Vanguard program.
Civilian Budget Support
Over $1 billion additional budget for the Department of Transportation and stable funding for the Department of State IT operations, Department of Treasury tech improvements, and Department of Veterans Affairs health record modernization.
Optimistic Pipeline and Backlog
A backlog of pending awards at approximately $20 billion, supporting the goal of achieving 1.2 trailing twelve-month book-to-bill in the coming quarters.
Revenue Growth and Guidance
Reported revenue of $1.877 billion, a 2% growth, with a full-year revenue guidance range of $7.6 billion to $7.75 billion, representing approximately 2.5% organic growth at the midpoint.
Negative Updates
Procurement Delays
Higher rates of turnover among customers are contributing to procurement delays, impacting the award timelines.
Negative Free Cash Flow
Free cash flow was negative $44 million due to the timing of receivables on two programs, with approximately $70 million shifting out of the first quarter.
Margin Pressure
First-quarter adjusted EBITDA margin was 8.4%, impacted by higher costs on a fixed price program in the space business and timing of investments.
Challenges with Army Budget
Potential challenges with the Army's budget outlook, although balanced by comparable revenue levels across the Department of Defense branches.
Company Guidance
During the Science Applications International Corporation fiscal year 2026 Quarter One earnings call, several key metrics and guidance points were discussed. The company reported first-quarter revenue of $1.877 billion, marking a growth of approximately 2% compared to the previous year. Adjusted EBITDA was noted at $157 million, with an adjusted EBITDA margin of 8.4%. The company also highlighted a book-to-bill ratio of 1.3, with net bookings of $2.4 billion for the quarter. Looking ahead, the company provided guidance for fiscal year 2026, projecting revenues in the range of $7.6 billion to $7.75 billion, indicating an organic growth rate of approximately 2.5% at the midpoint. Adjusted EBITDA margins are expected to range from 9.4% to 9.6%. Additionally, the company reiterated its full-year adjusted diluted earnings per share guidance of $9.10 to $9.30, alongside a free cash flow projection of $510 million to $530 million. Despite challenges, such as procurement delays and government efficiency initiatives, the company remains optimistic about achieving its growth targets, supported by a robust pipeline of pending awards and a strategic focus on mission and enterprise IT solutions.Science Applications Financial Statement Overview
Summary
Science Applications exhibits solid financial health with strong operating margins and cash flow efficiencies. The firm maintains a stable leverage profile, though revenue growth and asset management could be optimized further for enhanced performance.Income Statement
The company shows a stable gross profit margin, indicating cost management efficiency, with a slight improvement in net profit margin. EBIT and EBITDA margins are robust, reflecting solid operational performance. However, the revenue growth rate is modest, suggesting steady but not aggressive expansion.78
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced leverage approach. ROE is reasonable, demonstrating effective equity utilization. The equity ratio is stable, though there's room for improvement in asset management.72
Positive
Cash Flow
The company has demonstrated strong free cash flow growth, supported by consistent operating cash flow. Ratios of cash flows to net income are healthy, showcasing efficient cash management and conversion of profits into cash.80
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.51B | 7.48B | 7.44B | 7.70B | 7.39B | 7.06B |
| Gross Profit | 888.00M | 892.00M | 872.00M | 888.00M | 859.00M | 792.00M |
| EBITDA | 682.00M | 694.00M | 882.00M | 650.00M | 628.00M | 572.00M |
| Net Income | 353.00M | 362.00M | 477.00M | 300.00M | 277.00M | 209.00M |
Balance Sheet | ||||||
| Total Assets | 5.21B | 5.25B | 5.31B | 5.54B | 5.75B | 5.72B |
| Cash, Cash Equivalents and Short-Term Investments | 47.00M | 56.00M | 94.00M | 109.00M | 106.00M | 171.00M |
| Total Debt | 2.44B | 2.39B | 2.25B | 2.53B | 2.71B | 2.72B |
| Total Liabilities | 3.71B | 3.67B | 3.53B | 3.84B | 4.12B | 4.17B |
| Stockholders Equity | 1.50B | 1.58B | 1.78B | 1.69B | 1.62B | 1.54B |
Cash Flow | ||||||
| Free Cash Flow | 466.00M | 458.00M | 369.00M | 507.00M | 482.00M | 709.00M |
| Operating Cash Flow | 496.00M | 494.00M | 396.00M | 532.00M | 518.00M | 755.00M |
| Investing Cash Flow | -43.00M | -35.00M | 314.00M | -36.00M | -292.00M | -1.23B |
| Financing Cash Flow | -456.00M | -498.00M | -725.00M | -493.00M | -301.00M | 464.00M |
Science Applications Technical Analysis
Positive
118.58
Price Trends
113.94
Positive
110.80
Positive
118.72
Negative
Market Momentum
0.94
Negative
68.98
Neutral
98.08
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 118.58 is above the 20-day moving average (MA) of 107.37, above the 50-day MA of 113.94, and below the 200-day MA of 118.72, indicating a neutral trend. The MACD of 0.94 indicates Negative momentum. The RSI at 68.98 is Neutral, neither overbought nor oversold. The STOCH value of 98.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAIC.
Science Applications Risk Analysis
Science Applications disclosed 30 risk factors in its most recent earnings report. Science Applications 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
Science Applications Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.00B | 20.24 | 17.75% | ― | 16.61% | 1279.09% | |
77 Outperform | $9.25B | 52.54 | 39.29% | 0.22% | 14.29% | 151.35% | |
74 Outperform | $10.75B | 23.08 | 13.48% | ― | 14.16% | 22.25% | |
74 Outperform | $10.75B | 23.08 | 13.48% | ― | 14.16% | 22.25% | |
64 Neutral | $5.56B | 16.60 | 21.63% | 1.25% | 3.39% | -16.78% | |
62 Neutral | $4.97B | 482.28 | 0.97% | ― | 14.52% | ― | |
62 Neutral | $4.97B | 482.28 | 0.97% | ― | 14.52% | ― | |
59 Neutral | $5.18B | 19.47 | 24.37% | ― | 0.90% | 26.13% | |
59 Neutral | €3.24B | 12.44 | -9.91% | 2.79% | 2.38% | -49.53% |
* Technology Sector Average
Performance Comparison
SAIC
Science Applications
117.55
4.48
3.96%
CACI
Caci International
489.02
61.71
14.44%
CACI
Caci International
489.02
61.71
14.44%
PEGA
Pegasystems
54.68
25.22
85.61%
WEX
WEX
151.23
-27.64
-15.45%
PSN
Parsons
74.34
-4.35
-5.53%
BILL
Bill.com Holdings
48.21
-3.47
-6.71%
BILL
Bill.com Holdings
48.21
-3.47
-6.71%
Science Applications Corporate Events
Executive/Board ChangesShareholder Meetings
Science Applications Holds Virtual Annual Stockholders Meeting
Neutral
Jun 9, 2025
On June 4, 2025, Science Applications International Corporation held its virtual Annual Meeting of Stockholders, where 82.7% of the outstanding shares were represented. During the meeting, all nominees to the Board of Directors were elected for one-year terms, the executive compensation was approved in a non-binding vote, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending January 30, 2026.
The most recent analyst rating on (SAIC) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.
Dividends
SAIC Declares Cash Dividend for Shareholders
Positive
May 30, 2025
On May 29, 2025, SAIC’s Board of Directors declared a cash dividend of $0.37 per share, payable on July 25, 2025, to stockholders of record on July 11, 2025. This decision reflects the company’s ongoing commitment to providing shareholder value, with plans to continue quarterly dividend payments, subject to quarterly board evaluations based on earnings, financial condition, and capital requirements.
The most recent analyst rating on (SAIC) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.