SAIC Stock Analysis: Science Applications | NASDAQ
Information Technology Services | NASDAQ, USA | Market Cap: 5.571m USD | 12M Return: 38.4% | US8086251076 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 63.3M
EPS Trend: 91.0%
Qual. Beats: 5
Rev. Trend: -39.6%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Science Applications International Corporation (SAIC) is a U.S.-based provider of technical, engineering, and mission-focused information technology services, operating through two reporting segments: Defense and Intelligence, and Civilian. The company delivers a broad portfolio that includes IT modernization, digital engineering, artificial intelligence (AI) solutions, training and simulation, mission IT offerings such as CJADC2 and cloud/cybersecurity, and ground vehicle support for the armed forces. Its customer base spans all major U.S. military branches, federal civilian agencies (including the Department of War, NASA, the Department of State, the Department of Justice, and the Department of Homeland Security), the Intelligence Community, and various state and local government clients. Founded in 1969 and headquartered in Reston, Virginia, the company rebranded from SAIC Gemini, Inc. to its current name in September 2013.
SAIC operates in the IT consulting and government services segment of the broader Information Technology sector, competing largely with other mid-to-large federal contractors such as Leidos, Booz Allen Hamilton, CACI International, and Perspecta (now part of Peraton). Its business model is heavily dependent on long-term contracts with U.S. federal government agencies, which account for the overwhelming majority of its revenue. As a mid-cap stock with a market capitalization of approximately $4.3 billion, SAICs financial performance is closely tied to federal defense and civilian IT spending priorities.
- Federal AI and digital engineering contract awards accelerate revenue
- Defense and Intelligence segment benefits from rising DoD budget
- Labor cost inflation continues to pressure service margins
| Net Income: 380.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 2.94 > 1.0 |
| NWC/Revenue: 2.93% < 20% (prev -3.26%; Δ 6.19% < -1%) |
| CFO/TA 0.12 > 3% & CFO 660.0m > Net Income 380.0m |
| Net Debt (2.80b) to EBITDA (735.0m): 3.81 < 3 |
| Current Ratio: 1.20 > 1.5 & < 3 |
| Outstanding Shares: last quarter (42.8m) vs 12m ago -8.55% < -2% |
| Gross Margin: 12.65% > 18% (prev 11.49%; Δ 1.16% > 0.5%) |
| Asset Turnover: 139.3% > 50% (prev 143.4%; Δ -4.09% > 0%) |
| Interest Coverage Ratio: 4.28 > 6 (EBIT TTM 578.0m / Interest Expense TTM 135.0m) |
| A: 0.04 (Total Current Assets 1.28b - Total Current Liabilities 1.06b) / Total Assets 5.42b |
| B: 0.26 (Retained Earnings 1.43b / Total Assets 5.42b) |
| C: 0.11 (EBIT TTM 578.0m / Avg Total Assets 5.31b) |
| D: 0.36 (Book Value of Equity 1.44b / Total Liabilities 3.99b) |
| Altman-Z'' = 2.23 = BBB |
| DSRI: 1.06 (Receivables 996.0m/951.0m, Revenue 7.40b/7.46b) |
| GMI: 0.91 (GM 11.49% / 12.65%) |
| AQI: 0.98 (AQ_t 0.70 / AQ_t-1 0.72) |
| SGI: 0.99 (Revenue 7.40b / 7.46b) |
| TATA: -0.05 (NI 380.0m - CFO 660.0m) / TA 5.42b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
As of September 27, 2026, the stock is trading at USD 132.61 with a total of 331,528 shares traded. Over the past week, the price has changed by -0.44%, over one month by +4.19%, over three months by +24.77% and over the past year by +38.38%.
Current recommended Stop Loss: 128.20 (which is 3.3% or 1.1 ATR below the current price).
Science Applications has received a consensus analysts rating of 3.42. Therefore, it is recommended to hold SAIC.
- StrongBuy: 2
- Buy: 2
- Hold: 7
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 133.7 | 0.8% |
P/E Trailing = 15.1091
P/E Forward = 10.6496
P/S = 0.7526
P/B = 3.7839
P/EG = 3.67
Revenue TTM = 7.40b USD
EBIT TTM = 578.0m USD
EBITDA TTM = 735.0m USD
Long Term Debt = 2.45b USD (from longTermDebt, last quarter)
Short Term Debt = 33.0m USD (from shortTermDebt, last quarter)
Debt = 2.92b USD (from shortLongTermDebtTotal, last quarter) + Leases 220.0m
Net Debt = 2.80b USD (calculated: Debt 2.92b - CCE 126.0m)
Enterprise Value = 8.37b USD (5.57b + Debt 2.92b - CCE 126.0m)
Interest Coverage Ratio = 4.28 (Ebit TTM 578.0m / Interest Expense TTM 135.0m)
EV/FCF = 13.52x (Enterprise Value 8.37b / FCF TTM 619.0m)
FCF Yield = 7.40% (FCF TTM 619.0m / Enterprise Value 8.37b)
FCF Margin = 8.36% (FCF TTM 619.0m / Revenue TTM 7.40b)
Net Margin = 5.13% (Net Income TTM 380.0m / Revenue TTM 7.40b)
Gross Margin = 12.65% ((Revenue TTM 7.40b - Cost of Revenue TTM 6.47b) / Revenue TTM)
Gross Margin QoQ = 12.71% (prev 13.06%)
Tobins Q-Ratio = 1.54 (Enterprise Value 8.37b / Total Assets 5.42b)
Interest Expense / Debt = 4.62% (Interest Expense 135.0m / Debt 2.92b)
Taxrate = 16.85% (77.0m / 457.0m)
NOPAT = 480.6m (EBIT 578.0m * (1 - 16.85%))
Current Ratio = 1.20 (Total Current Assets 1.28b / Total Current Liabilities 1.06b)
Debt / Equity = 2.04 (Debt 2.92b / totalStockholderEquity, last quarter 1.44b)
Debt / EBITDA = 3.81 (Net Debt 2.80b / EBITDA 735.0m)
Debt / FCF = 4.52 (Net Debt 2.80b / FCF TTM 619.0m)
Total Stockholder Equity = 1.47b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.15% (Net Income 380.0m / Total Assets 5.42b)
RoE = 25.89% (Net Income TTM 380.0m / Total Stockholder Equity 1.47b)
RoCE = 14.75% (EBIT 578.0m / Capital Employed (Equity 1.47b + L.T.Debt 2.45b))
RoIC = 11.26% (NOPAT 480.6m / Invested Capital 4.27b)
WACC = 5.37% (E(5.57b)/V(8.50b) * Re(6.17%) + D(2.92b)/V(8.50b) * Rd(4.62%) * (1-Tc(0.17)))
Discount Rate = 6.17% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -99.32 | Cagr: -8.37%
[DCF] Terminal Value 77.97% ; FCFF base≈547.8m ; Y1≈628.0m ; Y5≈924.2m
[DCF] Fair Price = 265.1 (EV 13.9b - Net Debt 2.80b = Equity 11.1b / Shares 41.9m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 91.04 | EPS CAGR: 18.26% | SUE: 1.60 | # QB: 5
Revenue Correlation: -39.60 | Revenue CAGR: -0.71% | SUE: 2.22 | # QB: 2
EPS current Quarter (2026-10-31): EPS=2.34 | Chg30d=-1.64% | Revisions=-30% | Analysts=9
EPS current Year (2027-01-31): EPS=10.81 | Chg30d=+6.24% | Revisions=+75% | GrowthEPS=+0.6% | GrowthRev=+0.5%
EPS next Year (2028-01-31): EPS=11.48 | Chg30d=+4.39% | Revisions=+36% | GrowthEPS=+6.2% | GrowthRev=+1.4%
[Analyst] Revisions Ratio: +37% (up=17, down=7)