Leidos Stock Analysis, Valuation (NYSE:LDOS)

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$70.24 $0.34 (0.48%) LDOS stock closing price Sep 18, 2018 (Closing)

Watch the robo advisor video of Leidos stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for LDOS stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Leidos Holdings, Inc. Stock Rating 2.8/5

Amigobulls LDOS stock analysis takes into account various financial ratios like relative valuation, Leidos revenue, growth and return on equity based on latest quarter 2019 Q2 financial statements. We also check Leidos dividend performance. Leidos valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Leidos stock rating is our opinion about the business fundamentals of the company.

Should you buy LDOS stock?

  • The company has an operating cash flow which is 1.8819 times the net income.
  • The Leidos stock currently trades at a price to earnings ratio of 17.8, compared to the sector average of 23. We rate this as a positive.
  • When compared with the Aerospace sector average PS ratio of 1.7, the price-to-sales ratio of 1.1 for LDOS stock is attractive.
  • The company has a healthy free cash flow margin of 10.2.

Should you sell LDOS stock?

  • Revenue declined at a CAGR of -1.5 over the last 5 years.
  • Leidos's TTM operating margin of 6.11 was rather poor.
  • With a debt/equity ratio of 0.9, Leidos is highly leveraged in comparison to Aerospace peers.

Comments on this video and Leidos stock

Investors can use Amigobulls Leidos stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of LDOS stock and helps investors in making good buy and sell decision.

Among the financials of the company, Leidos revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of LDOS technical analysis to check whether the fundamental story is reflected in the market sentiment.