Leidos Holdings, Inc. (LDOS)
Industrials · Diversified Support Services · US stock · S&P 500 component
$134.73
▲ +5.50 (4.26%)
Fair valueUndervalued
$178 +32.4% to fair value
$89fair band $152–$216$268
Day's range
$130.44 – $134.92
52-week range
$98.86 – $205.77
About Leidos Holdings, Inc.
Leidos is a technology and engineering services company that serves mainly the United States government, including defense, intelligence, civilian agencies and health programs. It builds and runs information systems, provides cybersecurity and mission support, and delivers engineering and security screening solutions. Revenue comes from contracts with government customers, which may be priced on a cost-plus, time-and-materials or fixed-price basis and are often awarded through competitive bidding.
Leidos Holdings, Inc. generated $17.6 billion of revenue in the last twelve months, with sales that expanded at 6.1% a year across three years. Leverage, measured as net debt to EBITDA, is 2.3 times. The operating margin is 11.5% and the return on invested capital is 15%. The company pays a dividend with a yield of 1.3%. Its X-Ray Score is 67 out of 100.
Price chart
52-wk range $98.86 – $205.77Volume 968,269Daily, split-adjusted
Vitals
Market cap$17.0B
52-week range$98.86 – $205.77
Volume (last day)968,269
P/E (TTM)12.6
EBIT / EV yield9.1%
Free-cash-flow yield12.7%
Dividend yield1.3%
Revenue (TTM)$17.6B
Net income (TTM)$1.4B
Operating margin11.5%
Return on capital14.9%
Debt incl. leases$6.0B
Cash & securities$748M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$178middle half of models $156 – $212
Undervalued
+32.4% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $135
Undervalued < $152Fair $152 – $216Overvalued > $216
P/E multiple
$144
P/B multiple
$153
P/S multiple · not used
$279
EV/EBITDA multiple
$165
EV/EBIT multiple
$195
EV/revenue multiple
$231
10-year DCF, EBITDA exit
$200
5-year DCF, EBITDA exit
$181
10-year DCF, revenue exit
$209
5-year DCF, revenue exit
$189
10-year DCF, growth exit
$227
5-year DCF, growth exit
$213
Dividend discount, stable
$61
Dividend discount, multi-stage
$103
Earnings power value
$227
Growth the price implies
7.2%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business at a low price
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
97/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield9.1%
Free-cash-flow yield12.7%
Fair value vs price1.3×
Growth
Fair
62/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)6.1%
EPS growth (3y)31.0%
Growth consistency90%
Profitability
Weak
45/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital14.9%
Operating margin11.5%
Gross profitability20.1%
Financial health
Fair
67/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score8 / 9
Net debt / EBITDA2.3×
Interest coverNo interest cost
Dividends
Fair
58/100
Dividend is typical for its sector.
See the numbers →
Dividend yield1.3%
Dividends vs free cash flow10%
Dividend growth2.0%
Quarterly results: last 6 quarters
+6.8%
Apr '25
+2.9%
Jul '25
+6.7%
Oct '25
-3.6%
Jan '26
+3.7%
Apr '26
+7.2%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $4.6B, diluted EPS $2.81.
Compare with peers
CPRT Copart Inc65 CTAS Cintas Corp57Other Diversified Support Services companies by X-Ray Score.
SWOT analysis: Leidos Holdings, Inc.
Strengthsinside the company
- Earnings per share have compounded at 31.0% a year over three years.
- Free cash flow equals 12.7% of the market value, which funds dividends, buybacks or debt paydown.
- Operating profit covers interest 50x, so debt costs are a small drag.
- Passes 8 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Dividends use only 10% of free cash flow, which leaves room to raise them.
- Trades at 12.3x earnings, 58% below the 29.3x median of sector peers.
- The price is 32% below our fair value estimate, with the gap larger than the margin we allow for error.
Threatsvaluation and setting
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare LDOS with peers and sector
Medians of 80 Industrials peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): CAT 43, GE 49, RTX 51, GEV 50, UNP 45, DE 43.
| Metric | LDOS | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 67 | 50 | 50 |
| Valuation | 97 | 44 | 44 |
| Growth | 61 | 50 | 50 |
| Profitability | 45 | 51 | 51 |
| Financial health | 66 | 49 | 49 |
| Dividends | 58 | 53 | 53 |
Sector leaders: highest X-Ray Score in Industrials
LDOS ranks #4 of 81 in Industrials by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for LDOS
Each factor is rated by where LDOS stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 13 Good · 8 Average · 2 Bad of 23
Growth: 1 · 2 · 0
Profitability: 0 · 3 · 2
Financial strength: 3 · 1 · 0
Valuation: 5 · 0 · 0
Cash flow: 3 · 1 · 0
Efficiency: 1 · 1 · 0
| Factor | LDOS | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +6.1% | Average beats 54% | +5.6% | – | – |
| Revenue growth, last year | +3.1% | Average beats 39% | +4.5% | +7.2% | ▼ Worse |
| EPS growth, 3 years a year | +31.0% | Good beats 87% | +5.7% | – | – |
| Profitability | |||||
| Gross margin | 17.8% | Bad beats 7% | 38.0% | 14.7% | ▲ Better |
| Operating margin | 11.5% | Average beats 35% | 17.5% | 8.4% | ▲ Better |
| Net margin | 7.8% | Bad beats 28% | 12.8% | 5.5% | ▲ Better |
| Return on invested capital | 14.9% | Average beats 50% | 14.9% | – | – |
| Return on equity | 26.0% | Average beats 55% | 23.7% | 17.5% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 2.3x | Average beats 35% | 1.8x | 3.3x | ▲ Better |
| Interest cover | 50.0x | Good beats 76% | 21.4x | – | – |
| Current ratio | 1.63 | Good beats 75% | 1.25 | 1.22 | ▲ Better |
| Piotroski F-score | 8 / 9 | Good beats 86% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 12.3x | Good beats 97% | 28.9x | 16.9x | ▲ Better |
| Price / book | 3.2x | Good beats 79% | 6.2x | 3.6x | ≈ In line |
| Price / sales | 1.0x | Good beats 91% | 3.5x | 1.0x | ≈ In line |
| EV / EBITDA | 9.6x | Good beats 94% | 18.5x | 11.9x | ▲ Better |
| Free cash flow yield | 12.7% | Good beats 99% | 3.8% | 6.6% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 12.3% | Average beats 39% | 13.8% | 6.8% | ▲ Better |
| Cash from operations / net income | 1.67 | Good beats 71% | 1.39 | 1.37 | ▲ Better |
| Free cash flow growth, 3 years a year | +23.5% | Good beats 73% | +14.5% | – | – |
| Accruals (lower is better) | −5.9% | Good beats 81% | −3.2% | – | – |
| Efficiency | |||||
| Inventory turnover | 154.2x | Good beats 99% | 4.0x | 42.8x | ▲ Better |
| Days sales outstanding | 61 days | Average beats 42% | 57 days | 58 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 9 Good · ● 6 Average · ● 1 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldGood
Risk models
Altman Z''Average
Piotroski F-ScoreGood
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Good
Revenue growth (3y)Average
Growth consistencyAverage
Balance sheet
Current ratioGood
Net debt / EBITDAAverage
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalAverage
Operating marginAverage
Gross profitabilityBad
Each check is graded against the company's sector, not a fixed number. Checklist score 69/100.
Financials
| FY21 | FY22 | FY23 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $13.7B | $14.4B | $15.4B | $16.7B | $17.2B |
| Operating income | $1.2B | $1.1B | $621M | $1.8B | $2.1B |
| Net income | $753M | $685M | $199M | $1.3B | $1.4B |
| Operating cash flow | $1.0B | $992M | $1.2B | $1.4B | $1.8B |
| Operating margin | 8.4% | 7.6% | 4.0% | 11.0% | 12.3% |
| Free cash flow | $929M | $863M | $980M | $1.3B | $1.6B |
| Diluted EPS | $5.27 | $4.96 | $1.44 | $9.22 | $11.14 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
10 bullish · 1 neutral · 5 bearish
Weekly
Neutral
6 bullish · 1 neutral · 5 bearish
Monthly
Strongly bearish
1 bullish · 1 neutral · 6 bearish
Moving averages (daily)
| SMA 10 | 125.0 | Bullish |
| EMA 10 | 126.3 | Bullish |
| SMA 20 | 122.5 | Bullish |
| EMA 20 | 125.0 | Bullish |
| SMA 50 | 129.5 | Bullish |
| EMA 50 | 125.7 | Bullish |
| SMA 100 | 122.0 | Bullish |
| EMA 100 | 128.6 | Bullish |
| SMA 200 | 142.0 | Bearish |
| EMA 200 | 137.6 | Bearish |
Oscillators (daily)
| RSI (14) | 66.91 | Neutral |
| MACD (12, 26) | 0.67 | Bullish |
| Momentum (12) | 15.46 | Bullish |
| Stochastic %K (14) | 99.17 | Bearish |
| Williams %R (14) | -0.83 | Bearish |
| CCI (20) | 226.6 | Bearish |
Pivot points (classic, last session)
S3 127.3 | S2 128.9 | S1 131.8 | Pivot 133.4 | R1 136.3 | R2 137.8 | R3 140.8 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
1.72 USD
Yield on today's price
1.28%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.4300 | |
| 0.4300 | |
| 0.4300 | |
| 0.4300 | |
| 0.4000 | |
| 0.4000 | |
| 0.4000 | |
| 0.4000 | |
| 0.3800 | |
| 0.3800 | |
| 0.3800 | |
| 0.3800 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold LDOS
| ETF | Share of the fund |
|---|---|
| SHLD Global X Defense Tech | 2.77% |
| CALF Pacer US Small Cap Cash Cows 100 | 1.70% |
| CIBR First Trust NASDAQ Cybersecurity | 1.60% |
| DIVB iShares U.S. Dividend and Buyback | 1.38% |
| RSPN Invesco S&P 500 Equal Weight Industria... | 1.12% |
| VFLO VictoryShares Free Cash Flow | 1.06% |
| PPA Invesco Aerospace & Defense | 1.01% |
| VBR Vanguard Small-Cap Value | 0.28% |
The eight funds with the largest weight in LDOS among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
LDOS SEC filings
8-KSEC EDGAR
Entered a material agreement; Regulation FD disclosure
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change; Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Entered a material agreement; Regulation FD disclosure
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.