Leidos Holdings Stock Rises, But Remains Below Market Performance
November 16, 2023
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Leidos Holdings ($NYSE:LDOS) Inc., a diversified technology company based in Reston, Virginia, saw its stock rise Tuesday, yet failed to outperform the market. The company provides services and solutions in the defense, intelligence, civil, and health markets. In the defense sector, Leidos works to develop and maintain combat systems and weapons systems for the military. In the intelligence space, the company provides cyber and intelligence operations services to the government. In the civil sector, Leidos focuses on research, engineering, and operations for transportation and infrastructure projects. Finally, in the health sector, the company offers service and support to medical groups and health care organizations.
Despite rising stock prices, Leidos Holdings Inc. remains below the market’s performance. Analysts have stated that despite the stock remaining below market performance, its outlook is positive due to strong earnings and revenue growth. Furthermore, the company is expected to benefit from an increase in government spending on defense-related projects. Overall, while Leidos Holdings Inc. stock rose Tuesday, it was not enough to match the market’s performance. Even so, analysts remain optimistic about the company’s future due to its strong revenue growth and potential for increased government spending.
Stock Price
The stock opened at $105.0 and closed at $105.0, remaining barely unchanged from the prior day’s closing price. This follows a recent trend of under-performance for the company compared to the broader stock market. Despite the recent rise, investors are still wary of investing in the company as its stock is not keeping up with the market. It remains to be seen if LEIDOS HOLDINGS can turn around its performance and climb back up to more reasonable levels. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Leidos Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 15.15k | 147 | 4.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Leidos Holdings. More…
| Operations | Investing | Financing |
| 980 | -393 | -605 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Leidos Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.76k | 8.55k | 30.15 |
Key Ratios Snapshot
Some of the financial key ratios for Leidos Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.1% | 10.5% | 3.5% |
| FCF Margin | ROE | ROA |
| 5.3% | 7.5% | 2.6% |
Analysis
At GoodWhale, we analyzed the financials of LEIDOS HOLDINGS and found that it had a high health score of 8/10 with regard to its cashflows and debt, making it capable to sustain future operations in times of crisis. We classified it as a ‘rhino’, meaning that it has achieved moderate revenue or earnings growth. Given this information, investors who are looking for dividend-paying companies and those seeking to invest in companies with strong profitability and medium growth prospects may find LEIDOS HOLDINGS attractive. However, investors looking for companies with strong asset growth may need to look elsewhere. More…
Peers
Leidos Holdings Inc is an American technology company that provides products and services for the national security, health, and engineering sectors. The company operates in three segments: National Security Solutions, Health Solutions, and Engineering Solutions. Leidos Holdings Inc’s competitors include Vama Industries Ltd, STS Evermedia Corp, and Societe Pour L’Informatique Industrielle.
– Vama Industries Ltd ($BSE:512175)
Vama Industries Ltd is an Indian company that manufactures automotive components and parts. It has a market cap of 370.93M as of 2022 and a Return on Equity of 3.33%. The company was founded in 1963 and is headquartered in Mumbai, India. Vama Industries Ltd manufactures a variety of automotive components and parts, including engine parts, suspension parts, and electrical parts.
– STS Evermedia Corp ($OTCPK:SEVM)
Societe Pour L’Informatique Industrielle is a France-based company that provides software solutions and services for industrial applications. The Company operates in three segments: Software Solutions, Services and Maintenance, and Hardware. The Software Solutions segment offers software products, including design and development tools, manufacturing execution systems, and industrial connectivity solutions. The Services and Maintenance segment provides services, such as consulting, training, and support, as well as maintenance and support services for software products. The Hardware segment offers hardware products, such as programmable logic controllers, human machine interfaces, and industrial PCs.
Summary
Despite this increase, the stock is still underperforming compared to the broader market. Analysts point to a few factors that may be contributing to the underperformance. Second, Leidos’ margins have been pressured due to the steep costs of research and development in some of its existing contracts.
Finally, analysts are concerned that the company may face further risks if it fails to secure new contracts in the near future. Despite these negative factors, analysts remain optimistic that Leidos will be able to rebound and deliver strong performance in the future.
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