Science Applications (SAIC) AI Stock Analysis

• Market Cap: $5.38B
• Dividend Yield: 1.29%
• Average Volume (3M): 489.13K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.38
• Revenue Growth: 3.39%
• EPS Growth: -16.78%
• Country: US
• Employees: 24,000
• Sector: Technology
• Sector Strength: 91
• Industry: Information Technology Services
• EPS (TTM): 1.92
• Shares Outstanding: 46,872,795
• 10 Day Avg. Volume: 401,667
• 30 Day Avg. Volume: 489,135
• PEG Ratio: -19.02
• Price to Book (P/B): 3.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.26
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 6.47
• Enterprise Value/Ebitda: 2.19
• 1Y Price Target: $123.22
• Price Target Upside: 7.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 72 Outperform
• Price Target: $126.00 ▲(9.75%Upside)

Science Applications exhibits solid financial and operational performance, supported by a stable earnings outlook and strategic corporate initiatives. Moderate valuation metrics and technical indicators suggest potential for steady, albeit cautious, growth. Key risks include procurement delays and margin pressures, which warrant close monitoring.

Positive Factors

Bookings Performance

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 Extensions

There is no major recompete risk with the recent extension on the Vanguard contract.

Operational Confidence

SAIC bumped up its multi-year targets, indicating long-term confidence in its growth.

Negative Factors

Industry Pressure

The government tech services sector lost some of its recent momentum after Booz Allen’s guide-down and another Department of Defense anti-consulting memo.

Near-term Growth Concerns

Shares fell approximately 15% intra-day as investors remain concerned about near-term book-to-bill growth targets and recent DoD news.

Organic Growth Challenges

SAIC's organic growth is expected to decline, facing challenges from recompete losses and program transitions.

Science Applications Business Overview & Revenue Model

Company Description

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company's offerings include engineering; technology integration; IT modernization; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers' IT infrastructure, as well as cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; Department of Defense agencies; National Aeronautics and Space Administration; the U.S. Department of State; Department of Justice; Department of Homeland Security; and various intelligence community agencies, as well as U.S. federal civilian agencies. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. Science Applications International Corporation was founded in 1969 and is headquartered in Reston, Virginia.

How the Company Makes Money

SAIC 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 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.

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.

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.

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
EBITDA	694.00M	882.00M	650.00M	628.00M	572.00M
Net Income	362.00M	477.00M	300.00M	277.00M	209.00M
Balance Sheet
Total Assets	5.25B	5.31B	5.54B	5.75B	5.72B
Cash, Cash Equivalents and Short-Term Investments	56.00M	94.00M	109.00M	106.00M	171.00M
Total Debt	2.39B	2.25B	2.53B	2.71B	2.72B
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	458.00M	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: 114.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 114.81 is above the 20-day moving average (MA) of 114.40, above the 50-day MA of 111.91, and below the 200-day MA of 116.67, indicating a neutral trend. The MACD of 1.06 indicates Negative momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 64.24 is Neutral, 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
G	77 Outperform	$7.96B	15.49	22.21%	1.42%	7.31%	-15.86%
LDOS	77 Outperform	$21.01B	16.43	31.31%	0.97%	7.75%	325.28%
CACI	76 Outperform	$10.55B	22.64	13.48%	―	14.16%	22.25%
FORTY	74 Outperform	$1.92B	23.76	12.47%	1.54%	6.22%	24.91%
SAIC	72 Outperform	$5.38B	16.08	21.63%	1.29%	3.39%	-16.78%
Sector *	63 Neutral	$34.72B	5.19	-11.20%	1.67%	5.59%	-16.73%
KD	52 Neutral	$9.05B	37.78	22.47%	―	-8.20%	―

Science Applications Corporate Events

Science Applications Appoints David Urban to Board

On July 24, 2025, Science Applications International Corporation announced the appointment of David Urban to its Board of Directors, effective September 15, 2025, increasing the board size from eleven to twelve members. Mr. Urban, who brings extensive leadership experience from various sectors including legal, business, and military, will also join the Audit Committee. This strategic appointment is expected to enhance the company’s governance and leverage Mr. Urban’s diverse expertise to strengthen its industry positioning.

The most recent analyst rating on (SAIC) stock is a Buy with a $176.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.

Science Applications Holds Virtual Annual Stockholders Meeting

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.

SAIC Declares Cash Dividend for Shareholders

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.