SAIC Stock Analysis — Science Applications International Corporation
Sector: IT Services / Defense
AI Verdict
SAIC is cheap for the growth you're getting, but the market is skeptical that the 35.0% EPS jump is sustainable given last year's -2.9% revenue slip and the lumpy nature of government contracts.
Competitive Moat
SAIC specializes in government IT modernization and mission-critical systems integration, with deep-rooted, multi-year contracts across U.S. defense and intelligence agencies. Its moat comes from entrenched relationships, high switching costs, and security clearances that limit new entrants.
Summary
SAIC is notable for its double-digit forward EPS growth expectations despite a recent revenue decline.
Where It Stands
SAIC trades at 10.0x next year's earnings versus a sector median near 20x, with analysts expecting 35.0% EPS growth and a trailing P/E of 13.5x.
Key Metrics
- Trailing P/E: 13.5x
- Forward P/E: 10.0x
- PEG Ratio: 0.43
- Earnings Growth: +0.4%
- Revenue Growth: -0.0%
- Dividend Yield: 0.01%
- 52-Week High: $123.41
- 52-Week Low: $81.08
Analyst Consensus
2 Buy · 10 Hold · 5 Sell (17 analysts)
Bull Case
You’re getting 35.0% forward EPS growth for just 10.0x forward earnings, which is cheap for the growth on offer if contract stickiness holds.
Bear Case
If the forward P/E reverts to the sector median of 20x, shares could double, but if growth disappoints or defense budgets tighten, the current 13.5x trailing P/E could compress further, erasing gains.
Catalyst to Watch
Watch for new contract wins or renewals with major federal agencies — upside or downside to guidance will swing sentiment.