1. Financial Health Check
- Revenue: $7.48B
- Net Income: $362.00M
- Net Margin: 4.84%
- Revenue Growth (3yr CAGR): N/A (Need historical data)
- ROE (Return on Equity): N/A (Missing Equity)
- ROIC (Return on Invested Capital): [ROIC (Return on Invested Capital)]
- Debt/Equity: N/A (Missing Liabilities)
- Free Cash Flow Yield: [Free Cash Flow Yield]
- Free Cash Flow Trend: [Free Cash Flow Trend]
2. Financial Trends
3. Historical Data
| Year | Revenue | Net Income | Gross Profit | Op. Cash Flow |
|---|---|---|---|---|
| 2025 | 7.48B | 362.00M | 892.00M | 494.00M |
| 2024 | 7.44B | 477.00M | 872.00M | 396.00M |
| 2023 | 7.70B | 300.00M | 888.00M | 532.00M |
| 2022 | 7.39B | 277.00M | 859.00M | 518.00M |
| 2021 | 7.06B | 209.00M | 792.00M | 755.00M |
4. Competitive Advantage (Moat)
- Type of Moat: Switching Costs & Intangible Assets
- Strength: Narrow
- Description: SAIC possesses an advantage rooted in deep mission understanding and integration, leading to 'gritty tech'. This irreplaceable knowledge of customer missions creates switching costs, while their reputation and expertise act as intangible assets. They provide specialized solutions like DevSecOps sprints and contribute to integrating critical systems like the license plate recognition system for CBP.
5. Management Quality
- CEO: Toni Townes-Whitley
- Capital Allocation: Plans include $350-400 million in share repurchases for FY 2026 and 2027, while maintaining capacity for capability-focused M&A. Incentive compensation plans are being refined to align with enterprise-wide performance. Executive leadership intends to make discretionary purchases of SAIC shares.
- Tone: Cautious Optimistic
- Key Quotes:
- "What makes our teams uniquely positioned to deliver this value is our role as a mission integrator with intimate and irreplaceable knowledge of customer missions. In other words, gritty tech, which underpins our legacy and undergirds our future."
- "We expect to repurchase between $350 million to $400 million in FY 2026 and 2027 while maintaining sufficient capacity for capability-focused M&A or additional share repurchases. This is unchanged from our prior framework."
6. Growth Prospects
- Total Addressable Market (TAM): [Size and Growth Rate]
- Market Share: [Current share and potential to gain]
- New Products/Services: [Pipeline]
7. Scuttlebutt & Soft Data
- Customer Reviews: [Trends in customer satisfaction]
- Employee Feedback: [Glassdoor ratings, turnover]
- Channel Checks: [Insights from suppliers or distributors]
8. Valuation
- P/E Ratio: [Current vs. Historical vs. Peers]
- EV/EBITDA: [Current vs. Historical vs. Peers]
- DCF Fair Value: [Estimate]
9. Risks
- [Risk 1: Potential disruptions from government efficiency initiatives]
- [Risk 2: Procurement timelines being extended]
- [Risk 3: Recompete losses] ```
10. Checklist
- Do I understand the business model?
- Is the balance sheet healthy?
- Is management aligned with shareholders?
- Is the valuation reasonable?
- Is there a clear catalyst?