CACI Stock Analysis — CACI International
Sector: Government IT Services
AI Verdict
CACI is cheap for the growth you're getting, and the moat from sticky government contracts makes the earnings ramp look credible.
Competitive Moat
CACI provides mission-critical IT, cybersecurity, and intelligence solutions to U.S. government agencies, benefiting from long-term contracts and high switching costs due to security clearances and integration complexity. Its deep relationships with defense and intelligence customers create recurring revenue streams that are difficult for new entrants to disrupt.
Summary
Earnings are expected to jump 24.5% next year, drawing attention to CACI's government contract pipeline.
Where It Stands
With analyst consensus calling for 24.5% forward EPS growth and a trailing PEG of 0.88, CACI is priced attractively for its growth rate compared to typical government services peers.
Key Metrics
- PEG Ratio: 0.88
- Earnings Growth: +0.2%
Analyst Consensus
19 Buy · 4 Hold · 0 Sell (23 analysts)
Bull Case
A 24.5% forward EPS growth expectation paired with a PEG of 0.88 suggests the market isn't fully pricing in CACI's growth runway.
Bear Case
If the PEG ratio normalizes closer to 1.5, CACI's multiple could compress by over 40%, erasing gains if growth disappoints.
Catalyst to Watch
Watch for new contract wins or renewals with federal agencies, as a major award could validate the growth outlook and support the current valuation.