The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 87 | 12.6x | 20.8x | Top tier | |
Growth | 38 | -2.9% | 6.1% | Bottom tier | |
Quality | 67 | 13.2% | 6.6% | Top tier | |
Safety | 54 | 3.3x | 0.7x | Around median | |
Capital Return | 46 | 0.31% | 2.02% | Around median | |
Momentum | 60 | -1.9% | 4.1% | Around median | |
Sentiment | 91 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Science Applications International Corporation (SAIC) is a technology and engineering services and solutions company that works for U.S. government agencies in defense, intelligence, and the civil sector, and its model is based on executing mission-critical programs rather than selling a standardized consumer product. In the first-quarter fiscal 2027 call, management described its work as including legacy software modernization, secure data layers, multimodal artificial intelligence, data integration, cyber defense, command and control, radar support, loitering munitions, and systems such as Mark 48, GMAS, and MSHORAD increment 4. The company generates its revenue primarily from government contracts that include cost-plus, time-and-materials, and fixed-price or outcome-based work, with management highlighting that its civil-sector work tends to be more fixed-price and time-and-materials, giving it margin levers that differ from the defense and intelligence businesses.
In fiscal 2026, SAIC recorded revenue of 7.3 billion dollars, gross profit of 872 million dollars, net income of 358 million dollars, and EPS of 7.7 dollars according to the available EDGAR data. During the quarters of fiscal 2026, reported quarterly revenue ranged between 1.8 billion and 1.9 billion dollars in the first three quarters, with net income of 68 million dollars in the first quarter, 127 million dollars in the second quarter, and 78 million dollars in the third quarter. These figures provide important background before the first quarter of fiscal 2027, because management itself stressed that restoring confidence requires proving sustainable organic growth after recompete losses in some enterprise IT contracts.
In the first quarter of fiscal 2027 ended 2026-05-01, SAIC reported revenue of 1.9 billion dollars and organic growth of 0.5%, which was better than management expected because of materials timing and the RITS extension. Adjusted EBITDA was about 222 million dollars, and management described the quarter’s margin as a company record, with a 12 million dollar benefit from the initial public offering of a venture investment that added 60 basis points to EBITDA margin and about 0.20 dollars to EPS. Adjusted diluted EPS was 3.23 dollars, and free cash flow was 118 million dollars, while net bookings were 2.1 billion dollars and the quarterly book-to-bill ratio was 1.1 times; as for the business mix presented by management, it is based on the defense, intelligence, and civil segments, with a higher weighting of mission and engineering work in the qualified pipeline of about 85 billion dollars and a lower weighting of the more commoditized enterprise IT.
The analyst consensus reflects a Neutral rating for SAIC stock, with an average price target of 111.75 dollars, a high target of 137 dollars, and a low target of 95 dollars; therefore, valuation should be read relative to this updated target outside the text rather than fixing a momentary price that may change. The P/E multiple is not available in the data, but the market capitalization of 4.8 billion dollars and the 52-week range between 81.08 and 123.41 dollars place the stock within a wide range influenced by EBITDA margins, free cash flow, and recompete risks such as RITS and Vanguard/Evolve.
Figures in the text are as of 2026-07-07; the live price is shown at the top of the page.
SAIC announced results for the first quarter of fiscal 2027 for the period ended 2026-05-01. Revenue was 1.9 billion dollars, with organic growth of 0.5%, which was better than management expected because of materials timing and the RITS extension. Adjusted EBITDA was about 222 million dollars, and management described the quarter’s margin as a company record. Adjusted diluted EPS was also 3.23 dollars, and free cash flow was 118 million dollars.
Management said the RITS recompete loss had been expected as a burden of about 200 million dollars in fiscal 2027. The impact had been expected to begin in the second quarter, but the protest was resolved only recently, so the decline is likely to be delayed until the third quarter. The company explained that RITS may represent a headwind of about 3% to organic growth in each of the third and fourth quarters. This is one of the reasons management kept sales guidance cautious despite first-quarter organic growth of 0.5%.
Vanguard is a program that supports the global information technology infrastructure of the Department of State, and SAIC says it generates about 250 million dollars in annual sales at above-average margins. Evolve, by contrast, is a new multiple-award program with a 10 billion dollar ceiling over 7 years, and it is larger and broader than Vanguard because it incorporates work outside the current scope. SAIC said it won seats in 4 out of 5 work tracks in Evolve, and did not bid on the fifth track because of organizational conflict-of-interest issues. Management does not expect a large material impact on current-year guidance from Evolve, but it sees Vanguard/Evolve risk removal taking place over several quarters.
Automated analysis for informational purposes only — not investment advice.
The first-quarter margin benefited from a specific item, a 12 million dollar gain from the initial public offering of a venture investment, and this gain added 60 basis points to EBITDA margin and about 0.20 dollars to EPS. Even after this effect, management said operating margins were strong thanks to program execution and efficiency efforts. The company raised fiscal 2027 EBITDA margin guidance to a range of 10.1%–10.3%. But it also cautioned that the first-quarter level may normalize during the rest of the year because of the investments needed for growth and recompete losses.
Management said it reduced the weighting of enterprise IT in the qualified pipeline and is focusing more on areas that give it greater differentiation and better win probability. These areas include mission and engineering, artificial intelligence applications in legacy code modernization, generation of operational task orders, data integration, and strengthening cyber defense. The company also mentioned concrete examples in next generation command and control, radar modernization, loitering munitions, GMAS radar sustainment, and Mark 48. The qualified pipeline is about 85 billion dollars, and management says mission and engineering work represents a larger share of it and is growing faster than the rest of the portfolio.
SAIC generated free cash flow of 118 million dollars in the first quarter of fiscal 2027, and kept its annual expectation at more than 600 million dollars. Management said it expects at least 14 dollars of free cash flow per share in fiscal 2027, and at least 13 dollars in fiscal 2028 as some historical tax assets decline. The company executed share repurchases worth 188 million dollars in the quarter, and stated that the annual repurchase plan is about 400 million dollars. Net leverage was also 3.1 times, which is within the target range according to management.