|Bid||85.00 x 800|
|Ask||94.08 x 800|
|Day's Range||92.87 - 94.84|
|52 Week Range||69.99 - 96.80|
|Beta (5Y Monthly)||1.25|
|PE Ratio (TTM)||33.41|
|Earnings Date||Mar 25, 2020 - Mar 29, 2020|
|Forward Dividend & Yield||1.48 (1.57%)|
|Ex-Dividend Date||Jan 15, 2020|
|1y Target Est||105.30|
First paragraph, second sentence of release dated February 11, 2020, should read: The multiple-award contract is valued at $133 million over a five-year period for all awardees. (instead of The multiple-award contract is valued at more than $248 million over a five-year period for all awardees.).
Science Applications International Corp. (NYSE: SAIC) announced today that 19 employees will be recognized for their accomplishments in science, technology, engineering and math at the annual Black Engineer of the Year Award (BEYA) STEM Conference in Washington, D.C. on Feb. 13-15.
Moody's Investors Service ("Moody's") said that Science Applications International Corp's agreement to acquire Unisys Federal is credit negative because the $1.2 billion acquisition price will require about $1 billion of new borrowing and will raise leverage to about 4.8x (from 3.8x) on a Moody's-adjusted (debt-to-EBITDA) basis. Despite being a leveraging transaction, Moody's views the acquisition as competitively valuable and expects de-leveraging to occur over the next two years. For further information, research subscribers are directed to Moody's website which can be found at www.moodys.com.
Moody's Investors Service, ("Moody's") placed Unisys Corporation's ("Unisys") B2 Corporate Family Rating ("CFR"), B2-PD Probability of Default rating, and B3 senior unsecured rating on review for upgrade. This rating action follows Unisys's announcement that the company has agreed to sell its US Federal business to Science Applications International Corp. ("SAIC") for $1.2 billion in an all-cash transaction (the "Divestiture"). Unisys plans to use the net proceeds for the principal and premium required to redeem all of its $440 million of 10.75% Senior Secured Notes and to make a pension contribution of $600 million.
Science Applications International Corp. (NYSE: SAIC) announced today that it will participate in the Cowen 41st Annual Aerospace/Defense & Industrials Conference in New York, NY. SAIC CEO Nazzic Keene and CFO Charlie Mathis will participate in a moderator led question-and-answer session on Wednesday, Feb. 12, 2020 from 2:50 p.m. to 3:30 p.m. ET.
Shares of Unisys Corp. rocketed 44% toward a 15-month high in active midday trading Thursday, after the information technology company announced a deal to sell its U.S. Federal business for $1.2 billion, to Science Applications International Corp. . The stock's gain, which is on track to be the biggest since it's record rally of 69% on April 16, 2009, was enough to make the stock the best performer on major U.S. exchanges. Chief Financial Officer Michael Thomson said on a conference call with analysts discussing the deal that $600 million of the proceeds will be applied to required contributions to defined-benefit pension plans over the next three years. He said that will reduce the unfunded pension deficit to about $860 million from $1.9 billion, and decrease the company's net debt leverage to 2.4 times from 4.2 times as of Sept. 30, 2019. "Our intended contribution of the net proceeds to the US pension plans will also effectively eliminate requirements to make cash contributions out of ongoing operations to those plans for the next three years and significantly accelerates our path to being free cash flow positive," Thomson said, according to a FactSet transcript. Unisys also said it plans to fully redeem the $440 million of senior secured notes outstanding. Over the past 12 months, Unisys shares have now gained 21.8%, while the S&P 500 has advanced 22.5%.
Science Applications International Corp. (NYSE: SAIC) has made its first acquisition of 2020, buying Unisys Corp.’s federal business unit for $1.2 billion. The all-cash buy announced Thursday marks the first major transaction for Reston-based SAIC since its purchase of Engility Holdings Inc. in January 2019 and signals the contractor's desire to take a bigger piece of the federal government's IT modernization and digital transformation efforts. Unisys Federal has generated solid growth for the Blue Bell, Pennsylvania, company in the past year — posting third-quarter revenue growth of 53.6% over the prior year and up to $690 million in annual revenue — built on a strong foothold in the cloud migration, information technology modernization, managed services and enterprise IT-as-a-service markets.
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll show...
Shares of Unisys Corp. ran up 11.4% in premarket trading Thursday, after the information technology company announced a deal to sell its U.S. Federal business to Science Applications International Corp. for $1.2 billion. SAIC shares were still inactive ahead of the open. Unisys said it plans to use the proceeds to "significantly" improve its balance sheet by paying down debt and reducing pension obligations. Unisys said the transaction multiple of 13-times adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) represents a "significant premium" to Unisys' overall multiple. Separately, Unisys said it has adopted a tax asset protection plan. As part of the plan, the company declared a dividend of one preferred share purchase right for each common share outstanding, payable to shareholders as of Feb. 15. The stock has gained 3.4% over the past three months through Wednesday, while the S&P 500 has hiked up 8.4%.
Science Applications International Corp. (NYSE: SAIC), a premier technology integrator, today announced that it has entered into a definitive agreement to acquire Unisys Federal, in an all-cash transaction valued at $1.2 billion ($1.025 billion net of the present value of tax assets of approximately $175 million), in a highly strategic and value creating transaction. This represents a transaction multiple of approximately 10.5x CY2020 adjusted EBITDA, adjusted for the net present value of tax assets.
Unisys Corporation (NYSE: UIS), a leader in digital transformation solutions, today entered into a definitive agreement to sell the company's U.S. Federal business to Science Applications International Corp. (SAIC) (NYSE: SAIC) for $1.2 billion. The transaction multiple of approximately 13x LTM 9/30/19 Adjusted EBITDA(5) represents a significant premium to Unisys' trading multiple. Net proceeds are largely expected to be used to pay down debt and reduce pension obligations, thereby significantly improving Unisys' balance sheet, its U.S. pension funded status and overall financial flexibility. The transaction was unanimously approved by the Unisys Board of Directors and is expected to close in the first half of 2020, subject to customary closing conditions.
After a banner year for stocks, in which the S&P 500 gained a strong 29%, the outlook for 2020 is quiet and tame – analysts are predicting a yearly gain in the range of 3% to 5%. But that’s an average; not every market sector has to underperform for the average to dip that low. Defense stocks, the companies that specialize in supplying and servicing the Armed Forces, have outperformed the broader S&P 500 by 40% since November 2016.This translates into serious money, especially in the US, the world’s largest spender on arms. US defense spending – over $700 billion in fiscal 2019 – is by far the largest in the world, easily surpassing the military budgets of the next seven largest defense spenders combined.Spending of this magnitude makes a mark on the economy generally, and that can be seen in the recent growth of large defense contractors. In 2017 and 2018, aerospace giants Northrop Grumman and Lockheed Martin saw earnings grow by 61% and 155% respectively. The increases in the defense budget set in place by the Trump Administration are creating a boomlet for defense stocks.That boomlet has attracted attention from investment firm Cowen, which outlined the prospects for the sector: “We see solid Q4's for defense IT sector... [There is] potential for revenue acceleration & margin lift in 2020 offer valuation upside… Defense primes typically outperform in election years… services revenues are in an acceleration mode vs. relatively stable prospective 5-8% growth for the defense primes; and all of the companies have at least modest margin upside as revenue growth picks up…”With that in mind, we’ve pulled three stocks – all flagged in the Cowen report for further growth – and used the TipRanks Stock Comparison tool to lay out their various strengths in a single chart.KBR, Inc. (KBR)This small-cap engineering, construction, and services company provides support to civil infrastructure, energy, government services, and petrochemical sectors worldwide. KBR operates mainly through two business divisions: Energy and Chemicals, and Government and Infrastructure. The company holds 15 logistic contracts to support US military operations in Afghanistan, and is the largest private contractor supporting US Government ops in Iraq. KBR is based in Houston, Texas.In KBR’s most recent reported quarter, Q3 2019, it beat both the EPS and revenue forecasts. At the top line, revenues were a quarter-percent above expectations, at $1.43 billion. EPS was 2% better than expected, at 45 cents. KBR shares gained 95% in 2019.As an added benefit for investors, KBR has used its success over the past decade to maintain a steady dividend. While not high – the payment is only 8 cents per quarter, and the yield is just 1.16% – the payment supplements the share appreciation, and guarantees an income stream for shareholders. And there is no worry that the company cannot sustain the dividend – the payout ratio, a comparison of the payment to the quarterly earnings – is only 17%.Wall Street is sanguine about KBR stock. Writing on it for Cowen, 5-star analyst Gautam Khanna says, “We would be comfortable owning KBR into the print given the stock's SOTP discount, but initial C20E EPS guidance at KBR may lag consensus, which could give investors an opportunity to add to positions. LOGCAP V is expected to ramp in C20 following a deluge of protests (assuming original award allocations remain intact), Freeport's expected H1 FID bolsters the E&C outlook in C21+, and Ichthys arbitration may confer a cash windfall at some point over the next 1-2 years.”Khanna maintains his $34 price target on KBR, supporting the Buy rating and implying an upside of 21% from current levels. (To watch Khanna’s track record, click here)With 3 Buy ratings versus 1 Hold set in recent months, KBR shares get a Strong Buy from the analyst consensus. The average price target, $33.50, indicates a premium of ~20% from the $27.51 current trading price. (See KBR stock analysis at TipRanks)Booz Allen Hamilton Holding (BAH)Our next stock is a consulting firm, specializing is management and information tech. Based in McLean, Virginia, in the suburbs of Washington, DC, Booz Allen Hamilton is well-located to enter the government contractor niche. The company offers its services primarily to the US defense, intelligence, and civil government markets. It’s a lucrative business – BAH saw $6.7 billion in revenues in fiscal 2019, and has started 2020 with a 9% share gain.Like KBR, BAH’s most recent reported quarter was solid. Fiscal Q2, reported in early November, showed above-expectation results in both earnings and revenues. EPS was strong, at 81 cents per share, beating the forecast by 15.7%. Revenues beat by less, 2.9%, and came in at $1.82 billion. That was 13% over the year-ago number. Forward guidance shows the company bringing in $7.28 billion for the current fiscal year, and predicts a full-year EPS of $3.07.BAH’s 27-cent dividend annualizes to $1.08, and the company has been gradually raising it for the last 5 years, with three of the increases coming since 2017. The current payment gives a yield of 1.4%, nothing to write home about but in-line with bond yields. So, it’s an added incentive for a stock that is showing strong price appreciation.5-star Cowen analyst Cai Rumohr describes BAH as one of his favorite defense stocks. He writes, “BAH offers potential for a Q3 EPS beat on a 10%+ sales gain... Dec Q book-bill may only be near nine-year average of 0.63x. But BAH should … FY20 guide with potential for organic growth near the top of its indicated 9-11% range and possible "color" on its plan to monetize IP.”In line with his comments, Rumohr puts a Buy rating and a $92 price target on this stock, showing his confidence in an 17% upside. (To watch Rumohr’s track record, click here).Ovearall, BAH gets a Moderate Buy from the analyst consensus, based on 7 ratings that include 4 Buys and 3 Holds. Shares are selling for $77.57, so the average target of $82 would suggest a modest upside of 4%. But, as Rumohr points out above, there may be room here for additional growth. (See Booz Allen's stock analysis at TipRanks)Science Applications International (SAIC)Last on our list today is Science Applications International, another consulting firm. Like BAH, and a host of other government contractors, SAIC is based in NOVA, the Northern Virginia suburbs of Washington. The company provides applications and solutions in the scientific, engineering, and technology sectors for government services agencies. SAIC sees approximately $4.7 billion in annual revenues, and saw a 39% share price gain in 2019.The most recent quarterly, reported in December, was not as kind to SAIC as it was to the companies above. Fiscal Q3 saw SAIC miss the EPS and revenue forecasts. Both numbers were strongly positive, however, and well above the year-ago figures. EPS came in at $1.39 per share, with top-line revenues of $1.63 billion. This compares well with the $1.35 and $1.18 billion from the year before. Looking ahead, analysts expect the company to continue seeing earnings growth – the forecast for the next quarter is $1.57 billion in revenues.SAIC has been consistent in sharing out the profits with investors. The dividend has been maintained for the past 6 years, and was increased last year to 37 cents per share quarterly. That gives an annualized payout of $1.48 and a yield of 1.65%. A low payout ratio, just 26%, makes the dividend easily sustainable into the foreseeable future.Cai Rumohr, quoted above, describes SAIC as a ‘wild card.’ He says of the stock, “EPS may slightly lag Street's $1.34, but the stock has support from a peer-hi 9.0% cash flow yield. Moreover, book-bill should top 1.0x... These point to uptick in FY21 organic growth to ~4-5%… and SAIC's robust pipeline of 2.5x bids outstanding/sales suggests continued award vigor in FY21.”Rumohr raises his price target here to $105, backing his Buy rating. His new target suggests an upside potential of 16%. (To watch Rumohr’s track record, click here)SAIC has only two recent analyst reviews, but both rated the stock a Buy. Shares are priced at $89.56, and the average target of $108.50 indicates room for 20% growth to the upside. (See Science Applications stock analysis at TipRanks.)
Science Applications International Corp. (NYSE: SAIC) earned partner status with HashiCorp, the leader in multi-cloud automation software. As the first federal technology integrator with this distinction, SAIC will partner with HashiCorp to help federal customers innovate as they manage complex multi-cloud environments and deliver results on their IT modernization journey.
Defense officials are increasingly fueling a boom of alternative contracting vehicles to help bolster modernization efforts with greater speed, and that’s OK with Science Applications International Corp.’s Jim Scanlon. Speaking Thursday at the Center Strategic & International Studies’ Main Street Defense Series, Scanlon, general manager for the Reston contractor’s defense systems unit, said the Other Transaction Authorities (OTAs) — which bypass some traditional acquisition regulations in favor of rapid prototyping and speed — have made it easier for companies like SAIC (NYSE: SAIC) to collaborate on the vehicles and platforms the Department of Defense is seeking.
Barron’s 2020 Roundtable panelist Scott Black likes to buy stocks with a high return on equity. Royal Caribbean fits the bill.
Science Applications International Corp. (NYSE: SAIC) announced today that for the second consecutive year, it received a score of 100% on the Human Rights Campaign Foundation’s 2020 Corporate Equality Index (CEI), the nation’s premier benchmarking survey and report measuring corporate policies and practices related to LGBTQ workplace equality.
Purcell Julie & Lefkowitz LLP, a class action law firm dedicated to representing shareholders nationwide, is investigating a potential breach of fiduciary duty claim involving the board of directors of Science Applications International Corporation (NYSE: SAIC).
While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and deteriorating expectations towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the third quarter and hedging or reducing many of […]
The Reston-based contractor will migrate close to 800 Army and Air Force software applications to a common cloud environment dubbed Cloud One.
Science Applications International Corporation (NYSE:SAIC), which is in the it business, and is based in United...
The contract requires Science Applications (SAIC) to aid the transformation of about 800 Air Force and U.S. Army mission applications to the cloud.
The U.S. Air Force has awarded the Common Computing Environment (Cloud One) contract to Science Applications International Corp. (NYSE: SAIC). SAIC will migrate approximately 800 Air Force and U.S. Army mission applications into the cloud.