$Science Applications International (SAIC.US)$Excluded from ...

A usa company listed in 2013, mainly engaged in technical engineering and IT services for the usa government, operating in a single usa market, with the current price of 136.07. The development of a company focused on a single government project is very limited, let's analyze it casually.

Revenue increased in the first 4 years over the past 5 years, shrunk by 3.4% in 2023, with an average growth rate of 9.8%, showing a significant year-on-year decrease to a shrinkage. Operating profit increased in the first 3 years, but has been shrinking in the last two years. Net income increased significantly by 59% in 2024 due to business sales, but without considering this revenue, pre-tax profit shrank by 5%. Interest expenses accounted for 24% of operating profit in 2023, indicating a heavy interest burden. The gross margin has been around 11% for the past 5 years, while the net margin was below 4% in the first 4 years, reaching 6.4% in 2023.

Currently, the pe is 15.3. Considering that operating profit has been consistently shrinking recently, and with nearly 40% of the 2023 revenue coming from business sales, the adjusted pe excluding this impact is 25.5, indicating that the valuation is still too high.