Science Applications International Corporation (SAIC): Investment Report

Overview

Science Applications International Corporation (SAIC) is a leading provider of technical, engineering, and enterprise information technology (IT) services primarily in the United States. With a strong track record of delivering innovative solutions to the federal government and other customers, SAIC has established itself as a trusted partner in the IT services industry. This report provides an in-depth analysis of SAIC's financial performance, growth prospects, and recent news updates, making a compelling case for investors to consider adding SAIC to their portfolio.

Core Metrics

• Current price: $133.15 USD
• 52-week high: $145.17
• 52-week low: $104.27
• Market Cap: $6,593,601,024 USD
• P/E Ratio: 23.819319
• Earnings per Share: $5.59
• 50-day average: $122.787
• 200-day average: $127.089
• Analyst Recommendations: Hold (8 analysts)

Financial Performance

SAIC's financial performance has been steady, with revenues growing 2% organically in Q2 FY 2025. The company reported net income of $81 million, adjusted EBITDA of $170 million, and diluted earnings per share of $1.58. SAIC's strong financial performance is driven by its diverse portfolio of services, including IT modernization, digital engineering, and artificial intelligence. The company's solid backlog of $22.9 billion, with $4.2 billion funded, provides a strong foundation for future growth.

Growth Prospects

SAIC's growth prospects are promising, driven by the increasing demand for digital transformation and IT modernization services. The company's strong relationships with the federal government and other customers position it well to benefit from the rising demand for technology services. SAIC's acquisition strategy and willingness to invest in new technologies will also drive growth in the coming years.

News and Updates

Recent news articles highlight SAIC's strong Q2 earnings, with revenue growth and adjusted EBITDA beating analyst estimates. The company's FY 2025 guidance has also been lifted, providing a positive outlook for the rest of the year. Additionally, analyst Tobey Sommer of Truist Financial maintained a Hold rating on SAIC, citing the company's strong financial performance and growth prospects.

Upgrades and Downgrades

Citigroup maintained a Buy rating on SAIC, while JP Morgan kept a Neutral rating. TD Cowen reiterated a Buy rating, and Truist Securities maintained a Hold rating. These mixed analyst opinions suggest that SAIC's stock is still undervalued, making it an attractive investment opportunity.

Summary

In conclusion, SAIC is a solid investment opportunity, driven by its strong financial performance, diverse portfolio of services, and promising growth prospects. With a solid backlog, strong relationships with customers, and a willingness to invest in new technologies, SAIC is well-positioned for future growth. Despite mixed analyst opinions, the company's financial performance and guidance provide a compelling case for investors to consider adding SAIC to their portfolio.

Disclosures

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