Quality Investor

Leidos Holdings, Inc.

Rank #339Capital ReturnWatchlistCompare with other stocks

LDOS · NYSE · Technology

Leidos Holdings, Inc. (LDOS) — Rank #339 by gross profitability (GP/assets 0.20) · ROE 27.4% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0001336920 · all metrics point-in-time as of the filing date.

About

Leidos Holdings, Inc., together with its subsidiaries, provides services and solutions for government and commercial customers in the United States and internationally.

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The National Security & Digital segment provides national security software; services by using artificial intelligence and machine learning to coordinate sea, ground, air, and space to help warfighters; offensive, defensive, and physical cyber operation solutions; intelligence analysis, operational support, logistics operations, security, linguistics, force production, biometrics, chemical, biological, radiological, nuclear, and explosives, energetics, training, and other services; and Digital Modernization and transformation services. The Health & Civil segment offers air traffic control systems; health mission software; managed health services; infrastructure management and operation; logistical operations and information technology support; and life science research and development support services. The Commercial & International segment provides power grid engineering and design, grid modernization, utility planning and consulting, energy management and efficiency, technology-driven innovation, and software and application development; people scanners, computed tomography carry-on baggage scanners, checked baggage scanners, and explosive trace detectors; mobile, non-intrusive ports and borders inspection systems; and open-architecture platform that transforms airport security by integrating disparate devices and technologies into a unified management system. The Defense Systems segment offers air and missile defense, maritime, aerospace, and cyber and threat systems; offers airborne training, intelligence, surveillance, and reconnaissance missions; and provides space-based electro-optic infrared systems, multi/hyperspectral, electronic warfare and signals intelligence, and communications payloads. Leidos Holdings, Inc.

was founded in 1969 and is headquartered in Reston, Virginia.

Industry
Information Technology Services
Sector
Technology
Filer Category
Large accelerated filer
Fiscal Year End
January 1
Website
leidos.com

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

50,000

Industry

Information Technology Services

Exchange

NYSE

12/12

Flags passed

LDOS passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Operating leverage expanding · Deferred revenue growing · RPO outpacing revenue · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.20
Return on equity
27.4%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.93
Current ratio
1.63×
Net cash
$726.00M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.6%

Growth

2/2 pass
Revenue growth
3.1%
Piotroski F-Score
N/A
Share dilution
-4.4%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 0.20

Gross profitability (GP / assets)

0.20

Primary signal (Novy-Marx).

8th of 8 SIC 7373 peers

Return on equity

27.4%

Gross margin

18.0%

7th of 7 SIC 7373 peers

Revenue growth (YoY)

3.1%

RPO growth (YoY)

13.5%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

6.1%

Revenue CAGR (5Y)

6.9%

Earnings CAGR (3Y)

28.3%

FCF CAGR (3Y)

23.8%

Cash Flow Health

Is the cash real?

No warning flags · FCF 12% above net income

Free cash flow

$1.63B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

12.2%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.6%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $726.00M

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.93

8th of 8 SIC 7373 peers (best = lowest)

Current ratio

1.63×

4th of 8 SIC 7373 peers

Quick ratio

1.07×

Net cash

$726.00M

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

4.0 / 5

Strong
Share count trend(net buybacks)
-4.4%4/5 Strong
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
5.7%5/5 Strong

Lifecycle Phase History

20212026
Op. Leverage
Capital Return
Value

Price History

LDOS+39.1% · +6.8% CAGRSPY+82.9% · +12.8% CAGR