SAIC Stock Analysis — Science Applications International Corporation
Sector: Government IT Services
AI Verdict
SAIC is cheap for the growth you're getting at 11.0x forward earnings, but the moat relies on sticky government contracts, so if those slip, the value case evaporates fast.
Competitive Moat
SAIC specializes in complex IT modernization and mission-critical systems integration for U.S. government agencies, where long-term contracts and high switching costs make it hard for rivals to displace them. Their deep entrenchment in defense and intelligence workflows creates recurring revenue streams that are difficult for new entrants to replicate.
Summary
SAIC's forward P/E of 11.0x and expected 36.1% EPS growth make it a rare value play among government contractors.
Where It Stands
The stock trades at 11.0x next year's earnings, well below the 20x industrials median, with analysts expecting 36.1% EPS growth and a trailing RSI in neutral territory.
Key Metrics
- Trailing P/E: 14.9x
- Forward P/E: 11.0x
- PEG Ratio: 0.41
- Earnings Growth: +0.4%
- Revenue Growth: -0.0%
- Dividend Yield: 0.01%
- 52-Week High: $127.28
- 52-Week Low: $81.08
Analyst Consensus
2 Buy · 10 Hold · 5 Sell (17 analysts)
Bull Case
With forward EPS growth of 36.1% and a forward P/E of just 11.0x, you're paying a low price for substantial earnings momentum if contract wins materialize.
Bear Case
If the forward P/E rerates up to the sector median of 20x only because growth disappoints, the stock could see a sharp reversal as the current 36.1% EPS growth expectation is already baked in.
Catalyst to Watch
Watch for large new contract awards or renewals—missing out on expected government deals could undercut the 36.1% EPS growth forecast.