Leidos (LDOS)
Industrials · $15.9B market cap · SEC CIK 0001336920
fundamentals score out of 100
Next reports on Nov 2, 2026, with analysts expecting $3.10 in earnings per share.
The case for LDOS
- Cheap on earnings at 11.6×, well under the market's usual 20×.
- Earns 27% back on shareholder equity.
- Free cash flow of 10.2% of its market value a year: a lot of cash for the price.
- Earnings per share up 85.7%.
- A PEG of 0.14: a P/E of 11.6× is low for EPS growing 86%.
- Moves less than the market (beta 0.59).
The case against
- Down 31.6% over the past year.
- Weakest against its peers: net margin of 8% is thinner than 76% of Industrials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 89 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 67 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 43 |
| Momentumhow the price has behaved lately | 40 |
| Stabilityhow violently it moves, what it owes and what it pays you | 51 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 11.6× |
|---|---|
| Price / book | 2.59× |
| Price / sales | 0.9× |
| Revenue growth (YoY) | +3.4% |
| EPS growth (YoY) | +85.7% |
| Gross margin | 18% |
| Operating margin | 11% |
| Net margin | 8% |
| Return on equity | 27% |
| Debt / equity | 1.14× |
| Current ratio | 1.63 |
| Dividend yield | 1.42% |
| Beta | 0.59 |
| 52-week range | $98.86 – $205.77 |
| Position in that range | 23% of the way up |
| 3-month return | +19.7% |
| 1-year return | -31.6% |
Five years of financials, as filed
Pulled from Leidos's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $17.1B | $16.6B | $15.3B | $14.3B | $13.6B |
| Operating income | $2.1B | $1.8B | $621M | $1.1B | $1.2B |
| Net income | $1.4B | $1.3B | $199M | $685M | $753M |
| Operating cash flow | $1.8B | $1.4B | $1.2B | $992M | $1.0B |
| Capital expenditure | $125M | $149M | $207M | $129M | $104M |
| Total assets | $13.5B | $13.0B | $12.7B | $13.1B | $13.3B |
| Total liabilities | $8.5B | $8.6B | $8.4B | $8.7B | $8.9B |
| Shareholder equity | $4.9B | $4.4B | $4.2B | $4.3B | $4.3B |
| Cash | $1.1B | $849M | $641M | $516M | $727M |
| Free cash flow | $1.6B | $1.3B | $980M | $863M | $929M |
| Operating margin | 12.3% | 11.0% | 4.0% | 7.6% | 8.5% |
| Net margin | 8.5% | 7.6% | 1.3% | 4.8% | 5.5% |
| Diluted shares | 130M | 136M | 138M | 138M | 143M |
Share count is down 9.1% over 4 years. Buybacks have been shrinking the pie.
What Leidos says it does
OUR COMPANY Leidos Holdings, Inc. ("Leidos"), a Delaware corporation, is a holding company whose direct 100%-owned subsidiary and principal operating company is Leidos, Inc. Leidos was founded in 1969 by physicist Dr. Robert Beyster. Since our founding 57 years ago, we have applied our expertise in science, research and engineering in rapidly-evolving technologies and markets to solve complex problems of global concern. We use the terms "we," "us" and "our" to refer collectively to Leidos Holdings, Inc. and its consolidated subsidiaries. Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 47,000, global employees, we pursue strategic growth across five pillars: space and maritime; energy infrastructure; digital modernization and cyber; mission software; and managed health services. Our customers…
Risk factors LDOS lists in its 10-K
- Leidos Holdings, Inc. Annual Report
- We depend on government agencies as our primary customers and if our reputation or relationships with these agencies were harmed, our future revenues and growth prospects could be adversely affected
- A decline in the U.S. government budget, changes in spending or budgetary priorities or delays in contract awards may significantly and adversely affect our future revenues and limit our growth prospects
- Due to the competitive process to obtain contracts and the likelihood of bid protests, we may be unable to achieve or sustain revenue growth and profitability
- We face intense competition that can impact our ability to obtain contracts and, therefore, affect our future revenues and growth prospects
- Deterioration of economic conditions or weakening in credit or capital markets may have a material adverse effect on our business, results of operations and financial condition
- We cannot predict the consequences of current or future geopolitical events, but they may adversely affect the markets in which we operate and our results of operations
- The U.S. government may adopt new contract rules and regulations or revise its procurement practices in a manner adverse to us at any time
- Application of the U.S. government's organizational conflict of interest (OCI) rules could limit our ability to successfully compete for new contracts or task orders, which would adversely affect our results of operations
- Our business is subject to governmental review and investigation, which could adversely affect our financial position, operating results and growth prospects
- Our business and operations expose us to numerous legal and regulatory requirements, and any violation of these requirements could harm our business
- Increasing attention and changing expectations from governmental authorities, customers, and our employees with respect to our ESG-related practices may impose additional costs on us or expose us to new or additional risks
- A failure to attract, retain, and develop talent with critical skills, including our leadership team, would adversely affect our ability to execute our strategy and may disrupt our operations
- We may not realize the full amounts reflected in our backlog as revenues, which could adversely affect our expected future revenues and growth prospects