Science Applications International Corporation
Find Ratings ReportsSCIENCE APPLICATIONS INTL CP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. SCIENCE APPLICATIONS INTL CP has weak liquidity. Currently, the Quick Ratio is 0.87 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 5.37% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 1737.0 | 1968.0 |
EBITDA ($mil) | 129.0 | 176.0 |
EBIT ($mil) | 93.0 | 137.0 |
Net Income ($mil) | 39.0 | 74.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 94.0 | 114.0 |
Total Assets ($mil) | 5314.0 | 5543.0 |
Total Debt ($mil) | 2169.0 | 2568.0 |
Equity ($mil) | 1785.0 | 1694.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 13.13 | 13.26 |
EBITDA Margin | 7.42 | 8.94 |
Operating Margin | 5.35 | 6.96 |
Sales Turnover | 1.4 | 1.39 |
Return on Assets | 8.97 | 5.41 |
Return on Equity | 26.72 | 17.71 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.98 | 1.06 |
Debt/Capital | 0.55 | 0.6 |
Interest Expense | 0.0 | 33.0 |
Interest Coverage | 0.0 | 4.15 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 52.0 | 54.0 |
Div / share | 0.37 | 0.37 |
EPS | 0.74 | 1.34 |
Book value / share | 34.33 | 31.37 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 310880.0 | 330770.0 |
BUY. SCIENCE APPLICATIONS INTL CP's P/E ratio indicates a significant discount compared to an average of 40.64 for the Professional, Scientific, and Technical Services subsector and a significant discount compared to the S&P 500 average of 28.36. To use another comparison, its price-to-book ratio of 3.70 indicates a discount versus the S&P 500 average of 4.75 and a significant discount versus the subsector average of 13.51. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, SCIENCE APPLICATIONS INTL CP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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SAIC 14.35 | Peers 40.64 | SAIC 16.68 | Peers 34.91 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. SAIC is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. SAIC is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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SAIC 14.10 | Peers 25.47 | SAIC NM | Peers 6.60 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. SAIC is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. SAIC's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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SAIC 3.70 | Peers 13.51 | SAIC 64.49 | Peers 2.94 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. SAIC is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. SAIC is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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SAIC 0.89 | Peers 4.59 | SAIC -3.38 | Peers 6.59 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. SAIC is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. SAIC significantly trails its peers on the basis of sales growth. |
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