$Science Applications International (SAIC.US)$In the 2023.3....

The US company listed in 2013 is mainly engaged in the US government's technical engineering and IT service business. Single US market, current price is 136.07. The development of companies with single government projects is very limited. Feel free to analyze and take a look.

In the past 5 years, revenue grew in the first 4 years, shrank by 3.4% in 2023, and the average growth rate was 9.8%. The growth rate clearly declined to contraction year by year. Operating profit grew in the first 3 years and has been shrinking for the past 2 years. Net profit increased sharply by 59% in 2024 due to business sales. Without considering this portion of revenue, profit before tax shrank by 5%. Interest expenses account for 24% of operating profit in 2023, and the interest burden is very heavy. The gross margin has basically been around 11% in the past 5 years, and the net profit margin was below 4% in the first 4 years, reaching 6.4% in 2023.

Currently, the price-earnings ratio is 15.3. Considering that operating profit has begun to shrink continuously recently, and nearly 40% of revenue in 2023 comes from business sales. Excluding the impact, the price-earnings ratio is 25.5, and the valuation is still too high.