Quality Investor

Leidos Holdings, Inc.

Rank #358Capital Return

LDOS · NYSE · Technology

Leidos Holdings, Inc. (LDOS) — Rank #358 by gross profitability (GP/assets 0.20) · ROE 27.4% · Piotroski F-Score N/A.

As-of 2026-09-15 · 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

Price History

LDOS+38.8% · +6.8% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

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

Market Cap

$16.39B

P/E (annual)

11.7

P/S (annual)

1.0

P/B

3.1

P/OCF (annual)

9.4

Shareholder Yield

4.4%

Employees

50,000

Industry

Information Technology Services

Exchange

NYSE

Signal Flags

4 green
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

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%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-1.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -4.4% — per-share value needs a total required return of -5.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 7.6%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-5.0%

r = 10% (base)

-1.3%

r = 12%

2.0%

Net debt / market cap: -4.3%

Note: current FCF margin is 1.6σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $1.6B3Y mean FCF: $1.3B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

14.5xCheap
14.5xmed 22.2x84.2x

P / S

Price / revenue per share

1.2xExpensive
0.8xmed 1.1x1.8x

P / B

Price / book value per share

4.3xExpensive
1.8xmed 3.7x5.7x

P / GP

Price / gross profit per share

6.8xFair
6.0xmed 7.1x12.5x

P / FCF

Price / free cash flow per share

12.9xCheap
11.7xmed 15.2x27.1x

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

Profitability

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%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.93

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

Current ratio

1.63×

5th of 8 SIC 7373 peers

Quick ratio

1.07×

Net cash

$726.00M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 19 years of history

Strong
2008-2009 (GFC)
N/AN/A
2020 (COVID)
8.8%Grew through it
Worst year on record(any fiscal year, not recession-limited)
-48.3%Significant decline

Cash-flow health

Free cash flow

$1.63B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.12

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.6%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20212026
Op. Leverage
Capital Return
Value