2024-03-20 22:59:14 ET
Summary
- SAIC has acquired companies with digital transformation and AI capabilities, positioning itself for business growth in growing industries.
- The company's strong connections with government institutions and long-term contracts provide sustainability.
- SAIC's recent investments and guidance suggest value generation for shareholders in 2025, with positive FCF and EPS expected.
Science Applications International Corporation ( SAIC ) acquired companies with capabilities in digital transformation and artificial intelligence know-how. Also, with recent contracts in the cybersecurity market , I believe that SAIC could receive significant business growth from growing industries. Given the total backlog of approximately $22.8 billion, noted in the most recent quarter, and agreements with the United States government, SAIC will most likely deliver net sales growth. There are several risks from dependence on government institutions and fierce competition. With that, I think that the stock remains undervalued at 12x EBITDA.
Business Model
SAIC is an engineering, and information technology company. With more than half a century of experience, it provides first-class solutions that change secure and resilient digital environments, including engineering, technology updating, and system management....
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Science Applications: Government Agreements And Cybersecurity Exposure, Buy