Leidos Holdings LDOS
Leidos Holdings is a technology and information services company that provides defense, intelligence, health, and civil security solutions to U.S. government agencies, primarily under long-term contracts. Leidos shows acceptable financial health (Net Debt/EBITDA 2.45) and solid quality (ROE 27.78%), but its earnings growth is negative (-6.70%) and momentum is weak (score 2.74). Valuation is attractive (P/E 11.55, FCF yield 7.39%), suggesting the market already discounts these weaknesses.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Leidos Holdings is a technology and information services company that provides defense, intelligence, health, and civil security solutions to U.S. government agencies, primarily under long-term contracts. Leidos shows acceptable financial health (Net Debt/EBITDA 2.45) and solid quality (ROE 27.78%), but its earnings growth is negative (-6.70%) and momentum is weak (score 2.74). Valuation is attractive (P/E 11.55, FCF yield 7.39%), suggesting the market already discounts these weaknesses.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.4 |
| Quality / Moat | 6.1 |
| Valuation | 7.4 |
| Growth | 4.5 |
| Dividend | 4.8 |
| Momentum | 2.7 |
| Risk & Context | 7.7 |
OVERALL SCORE: 5.9/10
Context and risks
Leidos operates in the U.S. defense sector, where spending is subject to budget cycles and fiscal policy. The rise in 10-year Treasury yields (5.17%) makes financing more expensive for a business with Net Debt/EBITDA of 2.45, although its long-term government contract backlog mitigates interest rate risk.
News considered in the analysis
- Leidos Holdings (LDOS) Lands Army Contract, Is The Stock Trading Below Fair Value? — La adjudicación de un contrato del Ejército es positiva, pero es un hecho recurrente en su modelo de negocio y su magnitud no se detalla; el mercado ya lo descuenta parcialmente.
- How Much Higher Can Planet Labs Stock Go From Here? — Artículo sobre otra empresa (Planet Labs), sin información relevante para Leidos.
- Leidos (LDOS) Suffers a Larger Drop Than the General Market: Key Insights — La caída mayor que el mercado refleja el momentum negativo ya capturado en la nota de Momentum (2.74); no aporta información fundamental nueva.
- US Running Low on the 2 Weapons It Would Need Most — La posible escasez de armamento podría traducirse en mayores pedidos para contratistas de defensa como Leidos, pero es especulativo y no está confirmado.
- 2 Industrials Stocks to Consider Right Now and 1 That Underwhelm — Listículo genérico sin información específica y accionable sobre Leidos.
Verdict: Hold; the cheap valuation and business quality offset weak growth, but wait for an improvement in momentum or earnings growth before adding to the position.
Main risk: The main risk is dependence on U.S. government contracts, subject to federal budget volatility and potential award delays, which is already reflected in negative earnings growth.
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