A Business at a Glance
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Science Applications International Corp
SAIC
$5.5B
Mkt Cap
$118.99
+2.14%
Science Applications International Corp (SAIC) has a current P/E ratio of 9.0, compared to its historical median P/E of 18.2. The stock is currently considered Cheap based on its historical valuation range.
Science Applications International Corp (SAIC) has a 5-year average return on invested capital (ROIC) of 12.1%. This indicates solid capital allocation.
Science Applications International Corp (SAIC) has a market capitalization of $5.5B. It is classified as a mid-cap stock.
Yes, Science Applications International Corp (SAIC) pays a dividend with a trailing twelve-month yield of 1.27%. The company also returns capital through share buybacks, with a buyback yield of 8.04%.
Based on historical P/E analysis, Science Applications International Corp (SAIC) appears cheap. The current P/E of 9.0 is 51% below its historical median of 18.2. The estimated fair value CAGR (P/E method) is 17.2%.
Science Applications International Corp (SAIC) operates in the Services-Computer Integrated Systems Design industry, within the Technology sector.
Science Applications International Corporation (SAIC) is a leading provider of technical, engineering, and mission and enterprise IT services primarily to the U.S. government, serving all military branches, NASA, the Department of State, Department of Justice, Department of Homeland Security, and the Intelligence Community through approximately 1,700 active contracts and task orders with approximately 23,000 employees. The company operates through two reportable segments—Defense and Intelligence, which provides national security solutions to the Department of War and Intelligence Community, and Civilian, which serves federal, state, and local governments on missions spanning travel, trade, health, and border security. SAIC's end-to-end service offerings span IT modernization, digital engineering, artificial intelligence, mission systems support, training and simulation, and ground vehicles support, encompassing design, development, integration, deployment, management, operations, sustainment, and security of customers' entire IT infrastructure. The company's business model is built on long-standing customer relationships that provide deep mission understanding and differentiated service offerings for complex requirements, with a focus on higher-end, differentiated technology services that drive enterprise and mission outcomes. SAIC's competitive positioning is strengthened by its specialized expertise in secure and resilient digital environments, its ability to operate at mission speed, and its track record of over 50 years serving the U.S. government across defense, intelligence, and civilian agencies.
【Margin expansion and portfolio refinement】 Management is executing a strategic shift toward higher-margin, differentiated work while exiting lower-margin enterprise IT services, with adjusted EBITDA margin guidance of 10.1%-10.3% for FY2027 representing the first time the company is guiding to double-digit margins on a full-year basis. The company is implementing a multi-year enterprise transformation initiative and cost efficiency efforts targeting $100 million in reductions to drive operational flexibility and margin improvement, while maintaining investment in high-priority mission areas including next-generation command and control, modernized radar capabilities, and autonomous systems production. Management expects organic revenue contraction of 2%-4% in FY2027 primarily due to known recompete headwinds of approximately $400 million, partially offset by on-contract growth of 2%-3% and ramp-up of recent new business wins, with recompete win rates expected to stabilize in the 90% range and new business win rates continuing above 30%. The company is targeting submissions of $25 billion-$28 billion for FY2027 and expects to complete the year with a book-to-bill comfortably above 1.0x, positioning the company for improved revenue growth in future years as recompete headwinds abate and new business contributions accelerate.
| Metric | Target | Period |
|---|---|---|
| Revenue | $7.0B–$7.2B | FY2027 |
| Adjusted EBITDA margin | 10.1%-10.3% | FY2027 |
| Adjusted diluted EPS | $9.90–$10.10 | FY2027 |
| Free cash flow | greater than $600 million | FY2027 |
| Free cash flow per share | at least $14 | FY2027 |
| Free cash flow per share | at least $13 | FY2028 |
| Submissions | $25 billion–$28 billion | FY2027 |
Revenue (FY2027): “we expect total revenue in a range of $7 Billion-$ 7.2 billion, representing organic contraction of 2%-4%”
Adjusted EBITDA margin (FY2027): “we now see at 10.1%-10.3%”
Adjusted diluted EPS (FY2027): “our adjusted EPS guidance increases by approximately 4% to a range of $9.90-$10.10”
Free cash flow (FY2027): “Our free cash flow outlook of greater than $600 million is unchanged”
Free cash flow per share (FY2027): “We continue to see at least $14 free cash flow per share this year”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 7.3B | 7.3B | 7.5B | 7.4B | 7.7B | 7.4B |
| Net Income | 358M | 358M | 362M | 477M | 300M | 277M |
| EPS | $7.70 | $7.70 | $7.17 | $8.88 | $5.38 | $4.77 |
| Free Cash Flow | 577M | 577M | 458M | 369M | 507M | 482M |
| ROIC | 12.7% | 13.3% | 12.8% | 14.8% | 10.3% | 9.2% |
| Gross Margin | 12.0% | 12.0% | 11.9% | 11.7% | 11.5% | 11.6% |
| Debt/Equity | 1.66 | 1.66 | 1.41 | 1.18 | 1.40 | 1.56 |
| Dividends/Share | $1.51 | $1.51 | $1.49 | $1.47 | $1.49 | $1.48 |
| Operating Income | 521M | 521M | 563M | 741M | 501M | 462M |
| Operating Margin | 7.2% | 7.2% | 7.5% | 10.0% | 6.5% | 6.2% |
| ROE | 23.9% | 23.3% | 21.5% | 27.4% | 18.1% | 17.5% |
| Shares Outstanding | 46M | 46M | 50M | 54M | 56M | 58M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.9B | 4.3B | 4.4B | 4.5B | 4.7B | 6.4B | 7.1B | 7.4B | 7.7B | 7.4B | 7.5B | 7.3B | 7.3B |
| Gross Margin | 8.6% | 9.5% | 9.9% | 9.2% | 10.0% | 11.1% | 11.2% | 11.6% | 11.5% | 11.7% | 11.9% | 12.0% | 12.0% |
| R&D | 5.0M | 4.0M | 4.0M | 4.0M | 5.0M | 7.0M | 6.0M | 4.0M | 1.0M | 4.0M | 12M | 13M | 13M |
| SG&A | 95M | 184M | 166M | 155M | 158M | 288M | 352M | 344M | 374M | 373M | 339M | 350M | 350M |
| EBIT | 240M | 227M | 263M | 256M | 220M | 370M | 390M | 462M | 501M | 741M | 563M | 521M | 521M |
| Op. Margin | 6.2% | 5.3% | 5.9% | 5.7% | 4.7% | 5.8% | 5.5% | 6.2% | 6.5% | 10.0% | 7.5% | 7.2% | 7.2% |
| Net Income | 141M | 117M | 143M | 179M | 137M | 226M | 209M | 277M | 300M | 477M | 362M | 358M | 358M |
| Net Margin | 3.6% | 2.7% | 3.2% | 4.0% | 2.9% | 3.5% | 3.0% | 3.7% | 3.9% | 6.4% | 4.8% | 4.9% | 4.9% |
| Non-Recurring | 0 | -1.0M | -1.0M | 13M | 29M | 16M | 0 | 3.0M | 20M | 270M | 8.0M | 12M | 12M |
| Returns on Capital | |||||||||||||
| ROIC | 26.6% | 16.6% | 14.9% | 18.1% | 7.9% | 9.2% | 8.7% | 9.2% | 10.3% | 14.8% | 12.8% | 13.3% | 12.7% |
| ROE | 39.1% | 32.3% | 39.2% | 53.0% | 15.1% | 15.6% | 14.1% | 17.5% | 18.1% | 27.4% | 21.5% | 23.3% | 23.9% |
| ROA | 9.9% | 6.7% | 6.9% | 8.7% | 4.1% | 4.9% | 4.0% | 4.8% | 5.3% | 8.8% | 6.9% | 6.8% | 6.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 277M | 226M | 273M | 217M | 184M | 458M | 755M | 518M | 532M | 396M | 494M | 609M | 609M |
| Free Cash Flow | 255M | 206M | 258M | 195M | 156M | 437M | 709M | 482M | 507M | 369M | 458M | 577M | 577M |
| Owner Earnings | 223M | 167M | 219M | 167M | 116M | 385M | 681M | 435M | 452M | 302M | 416M | 515M | 515M |
| CapEx | 22M | 20M | 15M | 22M | 28M | 21M | 46M | 36M | 25M | 27M | 36M | 32M | 32M |
| Maint. CapEx | 19M | 26M | 23M | 23M | 23M | 36M | 32M | 37M | 32M | 26M | 25M | 30M | 30M |
| Growth CapEx | 3.0M | 0 | 0 | 0 | 5.0M | 0 | 14M | 0 | 0 | 1.0M | 11M | 2.0M | 2.0M |
| D&A | 19M | 26M | 23M | 23M | 23M | 36M | 32M | 37M | 32M | 26M | 25M | 30M | 30M |
| CapEx/OCF | 7.9% | 8.8% | 5.5% | 10.1% | 15.2% | 4.6% | 6.1% | 6.9% | 4.7% | 6.8% | 7.3% | N/A | 5.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 52M | 55M | 54M | 54M | 53M | 87M | 87M | 86M | 83M | 79M | 75M | 70M | 70M |
| Dividend Yield | 3.0% | 2.8% | 2.2% | 1.9% | 1.7% | 2.0% | 1.9% | 1.8% | 1.7% | 1.4% | 1.2% | N/A | 1.3% |
| Share Buybacks | 149M | 69M | 180M | 186M | 69M | 197M | 34M | 226M | 267M | 382M | 558M | 445M | 445M |
| Buyback Yield | 7.4% | 4.1% | 5.4% | 6.0% | 2.6% | 4.0% | 0.6% | 5.1% | 4.9% | 5.6% | 10.6% | 0.0% | 8.0% |
| Stock-Based Comp | 35M | 33M | 31M | 27M | 45M | 37M | 42M | 46M | 48M | 68M | 53M | 64M | 64M |
| Debt Repayment | 13M | 72M | 236M | 50M | 779M | 274M | 399M | 119M | 990M | 441M | 1.4B | 2.5B | 2.5B |
| Balance Sheet | |||||||||||||
| Net Debt | 185M | 875M | 837M | 880M | 1.9B | 1.7B | 2.3B | 2.4B | 2.3B | 2.0B | 2.2B | 2.3B | 2.3B |
| Cash & Equiv. | 301M | 195M | 210M | 144M | 237M | 188M | 171M | 106M | 109M | 94M | 56M | 182M | 182M |
| Long-Term Debt | 454M | 1.0B | 1.0B | 983M | 2.1B | 1.9B | 2.4B | 2.4B | 2.3B | 2.0B | 1.9B | 2.5B | 2.5B |
| Debt/Equity | 1.41 | 2.82 | 3.00 | 3.13 | 1.41 | 1.36 | 1.63 | 1.56 | 1.40 | 1.18 | 1.41 | 1.66 | 1.66 |
| Interest Coverage | 14.1 | 5.2 | 5.1 | 5.8 | 4.2 | 4.1 | 3.2 | 4.4 | 4.2 | 6.2 | 4.5 | 4.1 | 4.1 |
| Equity | 345M | 380M | 349M | 327M | 1.5B | 1.4B | 1.5B | 1.6B | 1.7B | 1.8B | 1.6B | 1.5B | 1.5B |
| Total Assets | 1.4B | 2.1B | 2.0B | 2.1B | 4.6B | 4.7B | 5.7B | 5.7B | 5.5B | 5.3B | 5.2B | 5.4B | 5.4B |
| Total Liabilities | 1.0B | 1.7B | 1.7B | 1.7B | 3.1B | 3.3B | 4.2B | 4.1B | 3.8B | 3.5B | 3.7B | 3.9B | 3.9B |
| Intangibles | 2.0M | 224M | 200M | 179M | 803M | 711M | 1.1B | 1.1B | 1.0B | 894M | 779M | 761M | 761M |
| Retained Earnings | 116M | 174M | 260M | 323M | 367M | 506M | 627M | 818M | 1.0B | 1.4B | 1.6B | 1.5B | 1.5B |
| Working Capital | 390M | 264M | 278M | 255M | 536M | 302M | 14M | -89M | 71M | -27M | -242M | 197M | 197M |
| Current Assets | 942M | 952M | 901M | 950M | 1.4B | 1.4B | 1.3B | 1.3B | 1.2B | 1.1B | 1.2B | 1.2B | 1.2B |
| Current Liabilities | 552M | 688M | 623M | 695M | 897M | 1.1B | 1.3B | 1.4B | 1.1B | 1.2B | 1.4B | 982M | 982M |
| Per Share Data | |||||||||||||
| EPS | 2.91 | 2.47 | 3.12 | 4.02 | 3.11 | 3.83 | 3.56 | 4.77 | 5.38 | 8.88 | 7.17 | 7.70 | 7.70 |
| Owner EPS | 4.60 | 3.53 | 4.78 | 3.75 | 2.63 | 6.52 | 11.60 | 7.49 | 8.11 | 5.62 | 8.24 | 11.08 | 11.08 |
| Book Value | 7.12 | 8.02 | 7.61 | 7.34 | 33.71 | 24.01 | 26.27 | 27.88 | 30.38 | 33.23 | 31.24 | 32.26 | 32.26 |
| Cash Flow/Share | 5.72 | 4.77 | 5.96 | 4.87 | 4.18 | 7.76 | 12.86 | 8.92 | 9.54 | 7.37 | 9.78 | 13.10 | 8.35 |
| Dividends/Share | 1.12 | 1.21 | 1.24 | 1.24 | 1.20 | 1.47 | 1.48 | 1.48 | 1.49 | 1.47 | 1.49 | 1.51 | 1.51 |
| Shares Out. | 48.5M | 47.4M | 45.8M | 44.5M | 44.1M | 59.0M | 58.7M | 58.1M | 55.8M | 53.7M | 50.5M | 46.5M | 46.5M |
| Valuation | |||||||||||||
| P/E Ratio | 14.3 | 14.2 | 23.2 | 17.2 | 19.3 | 21.7 | 26.2 | 16.1 | 18.2 | 14.4 | 14.6 | N/A | 15.5 |
| P/FCF | 7.9 | 8.1 | 12.9 | 15.8 | 16.9 | 11.2 | 7.7 | 9.3 | 10.8 | 18.6 | 11.5 | N/A | 9.6 |
| EV/EBIT | 8.0 | 10.6 | 15.1 | 15.1 | 19.4 | 17.6 | 19.8 | 15.0 | 15.3 | 11.9 | 13.7 | N/A | 15.0 |
| Price/Book | 5.8 | 4.4 | 9.5 | 9.4 | 1.8 | 3.5 | 3.6 | 2.8 | 3.2 | 3.8 | 3.3 | N/A | 3.7 |
| Price/Sales | 0.4 | 0.5 | 0.6 | 0.7 | 0.7 | 0.7 | 0.6 | 0.6 | 0.7 | 0.8 | 0.8 | N/A | 0.8 |
| FCF Yield | 12.7% | 12.4% | 7.8% | 6.3% | 5.9% | 8.9% | 12.9% | 10.8% | 9.3% | 5.4% | 8.7% | N/A | 10.4% |
| Market Cap | 2.0B | 1.7B | 3.3B | 3.1B | 2.6B | 4.9B | 5.5B | 4.5B | 5.5B | 6.9B | 5.3B | 0 | 5.5B |
| Avg. Price | 35.48 | 41.20 | 53.95 | 65.23 | 69.21 | 73.63 | 76.98 | 82.55 | 90.13 | 108.30 | 125.78 | 0.00 | 118.99 |
| Year-End Price | 41.51 | 35.12 | 72.51 | 69.34 | 59.87 | 82.92 | 93.29 | 77.03 | 98.15 | 127.64 | 104.47 | 0.00 | 118.99 |
Science Applications International Corp passes 5 of 9 quality checks, suggesting mixed fundamentals.
Science Applications International Corp trades at 9.0x trailing earnings, compared to its 15-year median P/E of 18.2x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 8.9x vs a median of 11.5x. The company's 5-year average ROIC is 12.1% with a gross margin of 11.8%. Total shareholder yield (dividends + buybacks) is 9.3%. At current prices, the estimated annualized return to fair value is +8.7%.
Science Applications International Corp (SAIC) reported annual revenue of $7.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Science Applications International Corp (SAIC) has a net profit margin of 4.9%. This is a modest margin.
Science Applications International Corp (SAIC) generated $577 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Science Applications International Corp (SAIC) has a debt-to-equity ratio of 1.66. This indicates higher leverage, which may increase financial risk.
Science Applications International Corp (SAIC) reported earnings per share (EPS) of $7.70 in its most recent fiscal year.
Science Applications International Corp (SAIC) has a return on equity (ROE) of 23.3%. This indicates the company generates strong returns for shareholders.
Science Applications International Corp (SAIC) has a 5-year average gross margin of 11.8%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for Science Applications International Corp (SAIC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Science Applications International Corp (SAIC) has a book value per share of $32.26, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is executing a strategic shift toward higher-margin, differentiated work while exiting lower-margin enterprise IT services, with adjusted EBITDA margin guidance of 10.1%-10.3% for FY2027 representing the first time the company is guiding to double-digit margins on a full-year basis. The company is implementing a multi-year enterprise transformation initiative and cost efficiency efforts targeting $100 million in reductions to drive operational flexibility and margin improvement, while maintaining investment in high-priority mission areas including next-generation command and control, modernized radar capabilities, and autonomous systems production. Management expects organic revenue contraction of 2%-4% in FY2027 primarily due to known recompete headwinds of approximately $400 million, partially offset by on-contract growth of 2%-3% and ramp-up of recent new business wins, with recompete win rates expected to stabilize in the 90% range and new business win rates continuing above 30%. The company is targeting submissions of $25 billion-$28 billion for FY2027 and expects to complete the year with a book-to-bill comfortably above 1.0x, positioning the company for improved revenue growth in future years as recompete headwinds abate and new business contributions accelerate.
Based on recent SEC filings and earnings calls, Science Applications International Corp (SAIC) has provided the following forward guidance: Revenue: $7.0B–$7.2B (FY2027); Adjusted EBITDA margin: 10.1%-10.3% (FY2027); Adjusted diluted EPS: $9.90–$10.10 (FY2027); Free cash flow: greater than $600 million (FY2027); Free cash flow per share: at least $14 (FY2027), plus 2 additional metrics.
Free cash flow per share (FY2028): “and at least $13 of free cash flow per share next year in FY 2028”
Submissions (FY2027): “we're now aiming for $25 billion-$ 28 billion of submissions”