Recent News
July–September 2026: SAIC won multiple federal task orders and delivery orders across defense and civilian agencies, including a NASA SEWP task order awarded in early August and several FPDS-listed awards reported in July and late August that range from low‑single‑million to mid‑hundred‑million dollars; these wins add funded backlog and near-term funded work.
Technical Analysis
ADX and Directional Indicators: ADX at 32.22 signals a strong trend environment. DI+ shows a peak-and-reverse, which reads as bearish pressure; DI- also shows a peak-and-reverse, which reads as bullish pressure. That juxtaposition indicates a contested directional environment where trend strength exists but directional conviction faces opposing forces, increasing the likelihood of short-term range compression around current levels.
MACD: MACD at 1.90 sits below the signal line at 2.45 and the MACD trend shows a peak-and-reversal, which indicates bearish momentum. That bearish momentum raises the probability of short-term downside pressure despite the broader trend strength signaled by ADX.
MRO (Momentum/Regression Oscillator): MRO at 28.89 registers positive, which indicates the current price sits above the model target and therefore carries a bias toward decreasing pressure. The magnitude suggests a material, not minimal, potential for mean reversion toward modeled value.
RSI and Price Structure: RSI at 59.33 with a peak-and-reversal denotes recent loss of upward momentum while remaining below overbought extremes. Price closed at $126.20, slightly below the 20‑day average ($127.15) but above the 50‑day ($120.65) and 200‑day ($103.88) averages, indicating short-term weakness against intact medium‑to‑longer term support. Bollinger band widths remain narrow (20‑day stdev $0.95), consistent with lower realized volatility and a higher chance of rangebound action until a decisive momentum shift occurs.
Fundamental Analysis
Top‑line and earnings: Total revenue stands at $1.88B and net income at $102M for the period ending 2026‑07‑31. Reported EPS actual of $3.01 exceeded the estimate of $2.31, producing an EPS surprise of +30.30%, which supports near-term sentiment and the company’s ability to convert contracts into above‑expected earnings.
Profitability and margins: Operating (EBIT) margin equals 8.09%; that margin declined QoQ by -13.43% but improved YoY by +2.89%, indicating quarter-to-quarter compression with a small year-over-year uplift. Gross margin sits at 12.71% and operating leverage measures suggest sensitivity of operating income to revenue changes.
Cash flow and liquidity: Operating cash flow reached $146M and free cash flow $131M; free cash flow yield equals 2.65%. Cash and short‑term investments total $126M while the cash conversion cycle of 13.62 days reflects efficient working capital turnover. The company generated positive cashflow but maintains modest cash relative to total debt.
Leverage and coverage: Total debt totals $2.705B with net debt $2.359B. Debt‑to‑EBITDA registers approximately 14.16x and debt‑to‑equity about 188.37%, while interest coverage approximates 4.61x. High leverage metrics raise sensitivity to margin swings and place incremental value on cash generation stability when assessing valuation risk.
Valuation context: Price/earnings stands near 38.85x with forward PE ~37.86x and price/ book ~3.44x. WMDST values the stock relative to the current mean price target of $141.50; that mean sits above the $126.20 close, implying potential valuation upside contingent on sustained margin recovery and deleveraging through cash generation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-07-31 |
| REPORT DATE: | 2026-08-31 |
| NEXT REPORT DATE: | 2026-11-30 |
| CASH FLOW | Begin Period Cash Flow | $ 117.0 M |
| Operating Cash Flow | $ 146.0 M | |
| Capital Expenditures | $ -15.00 M | |
| Change In Working Capital | $ -30.00 M | |
| Dividends Paid | $ -16.00 M | |
| Cash Flow Delta | $ 17.0 M | |
| End Period Cash Flow | $ 134.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.9 B | |
| Forward Revenue | $ 559.3 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.6 B | |
| Depreciation | $ 39.0 M | |
| Depreciation and Amortization | $ 39.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.7 B | |
| PROFITABILITY | ||
| Gross Profit | $ 239.0 M | |
| EBITDA | $ 191.0 M | |
| EBIT | $ 152.0 M | |
| Operating Income | $ 152.0 M | |
| Interest Income | — | |
| Interest Expense | $ 33.0 M | |
| Net Interest Income | $ -33.00 M | |
| Income Before Tax | $ 119.0 M | |
| Tax Provision | $ 17.0 M | |
| Tax Rate | 14.286 % | |
| Net Income | $ 102.0 M | |
| Net Income From Continuing Operations | $ 102.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.31 | |
| EPS Actual | $ 3.01 | |
| EPS Difference | $ 0.70 | |
| EPS Surprise | 30.303 % | |
| Forward EPS | $ 2.87 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 5.4 B | |
| Intangible Assets | $ 3.6 B | |
| Net Tangible Assets | $ -2.20 B | |
| Total Current Assets | $ 1.3 B | |
| Cash and Short-Term Investments | $ 126.0 M | |
| Cash | $ 126.0 M | |
| Net Receivables | $ 996.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 172.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 597.0 M | |
| Short-Term Debt | $ 33.0 M | |
| Total Current Liabilities | $ 1.1 B | |
| Net Debt | $ 2.4 B | |
| Total Debt | $ 2.7 B | |
| Total Liabilities | $ 4.0 B | |
| EQUITY | ||
| Total Equity | $ 1.4 B | |
| Retained Earnings | $ 1.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 33.97 | |
| Shares Outstanding | 42.277 M | |
| Revenue Per-Share | $ 44.47 | |
| VALUATION | Market Capitalization | $ 4.9 B |
| Enterprise Value | $ 7.5 B | |
| Enterprise Multiple | 39.387 | |
| Enterprise Multiple QoQ | 27.276 % | |
| Enterprise Multiple YoY | -10.788 % | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 4.002 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.776 | |
| Asset To Liability | 1.36 | |
| Debt To Capital | 0.653 | |
| Debt To Assets | 0.499 | |
| Debt To Assets QoQ | -0.463 % | |
| Debt To Assets YoY | 6.105 % | |
| Debt To Assets IPRWA | — | |
| Debt To Equity | 1.884 | |
| Debt To Equity QoQ | 0.206 % | |
| Debt To Equity YoY | 16.874 % | |
| Debt To Equity IPRWA | — | |
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.443 | |
| Price To Book QoQ | 17.198 % | |
| Price To Book YoY | -1.178 % | |
| Price To Book IPRWA | — | |
| Price To Earnings (P/E) | 38.851 | |
| Price To Earnings QoQ | 30.343 % | |
| Price To Earnings YoY | 22.661 % | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | -5.704 | |
| Price To Sales (P/S) | 2.63 | |
| Price To Sales QoQ | 19.905 % | |
| Price To Sales YoY | -11.978 % | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | 37.86 | |
| Forward PE/G | -5.559 | |
| Forward P/S | 8.839 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.708 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.349 | |
| Asset Turnover Ratio QoQ | -1.997 % | |
| Asset Turnover Ratio YoY | 2.828 % | |
| Asset Turnover Ratio IPRWA | — | |
| Receivables Turnover | 1.92 | |
| Receivables Turnover Ratio QoQ | -8.568 % | |
| Receivables Turnover Ratio YoY | 6.384 % | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 47.518 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 13.623 | |
| Cash Conversion Cycle Days QoQ | 41.78 % | |
| Cash Conversion Cycle Days YoY | -20.071 % | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 8.664 | |
| CapEx To Revenue | -0.008 | |
| CapEx To Depreciation | -0.385 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.9 B | |
| Net Invested Capital | $ 3.9 B | |
| Invested Capital | $ 3.9 B | |
| Net Tangible Assets | $ -2.20 B | |
| Net Working Capital | $ 217.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.119 | |
| Current Ratio | 1.204 | |
| Current Ratio QoQ | 4.161 % | |
| Current Ratio YoY | 44.739 % | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 14.162 | |
| Cost Of Debt | 1.052 % | |
| Interest Coverage Ratio | 4.606 | |
| Interest Coverage Ratio QoQ | -14.607 % | |
| Interest Coverage Ratio YoY | 2.725 % | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | 0.066 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 33.895 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 6.375 | |
| Dividend Payout Ratio | 0.157 | |
| Dividend Rate | $ 0.38 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.592 % | |
| Revenue Growth | -1.364 % | |
| Revenue Growth QoQ | -115.302 % | |
| Revenue Growth YoY | -76.295 % | |
| Revenue Growth IPRWA | — | |
| Earnings Growth | -6.811 % | |
| Earnings Growth QoQ | -129.254 % | |
| Earnings Growth YoY | -107.647 % | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 12.713 % | |
| Gross Margin QoQ | -2.687 % | |
| Gross Margin YoY | 4.599 % | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 8.085 % | |
| EBIT Margin QoQ | -13.428 % | |
| EBIT Margin YoY | 2.889 % | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | 8.085 % | |
| Return On Sales QoQ | -13.907 % | |
| Return On Sales YoY | 2.889 % | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 131.0 M | |
| Free Cash Flow Yield | 2.65 % | |
| Free Cash Flow Yield QoQ | -6.128 % | |
| Free Cash Flow Yield YoY | 21.783 % | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | 11.017 % | |
| Free Cash Growth QoQ | -120.866 % | |
| Free Cash Growth YoY | -55.932 % | |
| Free Cash Growth IPRWA | — | |
| Free Cash To Net Income | 1.284 | |
| Cash Flow Margin | 3.723 % | |
| Cash Flow To Earnings | 0.686 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.896 % | |
| Return On Assets QoQ | -11.855 % | |
| Return On Assets YoY | -22.263 % | |
| Return On Assets IPRWA | — | |
| Return On Capital Employed (ROCE) | 3.485 % | |
| Return On Equity (ROE) | 0.071 | |
| Return On Equity QoQ | -12.113 % | |
| Return On Equity YoY | -15.158 % | |
| Return On Equity IPRWA | — | |
| DuPont ROE | 7.136 % | |
| Return On Invested Capital (ROIC) | 3.323 % | |
| Return On Invested Capital QoQ | -7.976 % | |
| Return On Invested Capital YoY | 15.262 % | |
| Return On Invested Capital IPRWA | — | |

