SAIC Stock Analysis — Science Applications International Corporation
Sector: Government IT Services
AI Verdict
SAIC is cheap for the growth you're getting at 9.7x forward earnings, but the moat only holds if they keep winning and retaining government contracts.
Competitive Moat
SAIC specializes in mission-critical IT modernization and engineering solutions for U.S. government agencies, with entrenched long-term contracts that create high switching costs. Its deep integration in defense and intelligence workflows makes it hard for rivals to displace them, even as budgets shift.
Summary
SAIC trades at just 9.7x next year's earnings with nearly 30% EPS growth expected, making it a standout for value in government tech.
Where It Stands
Shares are up against a forward P/E of 9.7x and a trailing P/E of 12.5x, both well below the 20x industrials median, while RSI and return data are not provided.
Key Metrics
- Trailing P/E: 12.5x
- Forward P/E: 9.7x
- PEG Ratio: 0.42
- Earnings Growth: +0.3%
- Revenue Growth: -0.0%
- Dividend Yield: 0.01%
- 52-Week High: $121.05
- 52-Week Low: $81.08
Analyst Consensus
2 Buy · 9 Hold · 5 Sell (16 analysts)
Bull Case
Analysts expect 29.6% EPS growth next year, so the 9.7x forward P/E is cheap for the growth on offer if contract retention holds.
Bear Case
Trailing revenue shrank -2.9% YoY, so if earnings growth stalls, a re-rating back to the 20x sector median could be off the table.
Catalyst to Watch
Watch for new federal contract wins or renewals, as these will determine whether the 29.6% EPS growth forecast is sustainable.