Leidos Holdings Inc
Exchange: NYSESector: TechnologyIndustry: Information Technology Services
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 47,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026.
Did you know?
Earnings per share grew at a 13.8% CAGR.
Current Price
$157.59
+3.08%GoodMoat Value
$558.86
254.6% undervaluedProfile
Valuation (TTM)
Market Cap$20.15B
P/E13.91
EV$24.91B
P/B4.10
Shares Out127.86M
P/Sales1.17
Revenue$17.17B
EV/EBITDA10.17
Leidos Holdings Inc (LDOS) Stock Analysis
GoodMoat Analysis
Leidos is a large-scale defense and IT services contractor with a strong competitive position, but its current valuation appears to be at odds with the GoodMoat target. The business shows signs of a durable moat and high profitability, yet recent revenue declines and a significant valuation gap require careful investigation.
Read full analysis
Leidos Holdings Inc is a major provider of technology and science solutions, primarily serving the U.S. defense, intelligence, and civil government sectors. Applying the GoodMoat framework, the company likely possesses a durable competitive moat (a score of 5+ is plausible) based on high switching costs from mission-critical, long-term government contracts, regulatory barriers to entry, and significant scale in a complex, security-focused industry. This is supported by strong quality indicators, including a high ROE of 29.5% and a robust free cash flow yield of 8.0%, suggesting the business generates substantial returns on capital and cash for shareholders. However, the recent YoY revenue decline of -3.6% is a point for scrutiny regarding growth sustainability. The Decision Framework presents a puzzle: the stock's current price of $158.88, with a P/E of 14.0, appears fundamentally reasonable and potentially favourable for a quality business. Yet, it is dramatically below the GoodMoat target of $558.86, implying a massive margin of safety of over 70%. This extreme discrepancy between the market price and the model's intrinsic value estimate is the central question for a value investor. It warrants a deep dive to either validate the assumptions behind the high target price or to understand the market's significant discount, which could relate to the debt level (Debt/Equity of 1.06) or the recent revenue trend. The analysis suggests a business worth investigating further, but the investigation must focus on reconciling this stark valuation gap. Analysis based on data as of 2024-05-15.
Market Cap$20.15B
Current Price$157.59
P/E Ratio13.91
Forward P/E—
PEG Ratio0.67
EPS$11.14
Book Value$38.45
P/B Ratio4.10
LDOS Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 9.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 4.1B
Revenue
11.1B
FY20
12.3B
FY21
13.7B
FY21
14.4B
FY22
15.4B
FY23
16.7B
FY25
17.2B
FY26
Net Income
667M
FY20
628M
FY21
753M
FY21
685M
FY22
199M
FY23
1.3B
FY25
1.4B
FY26
LDOS 52-Week Range
$136.90
$198.58
50-Day MA: $170.83200-Day MA: $178.96
Did you know?
Earnings per share grew at a 13.8% CAGR.
Leidos Holdings Inc (LDOS) Financial Summary
Leidos Holdings Inc (LDOS) is a Technology company in the Information Technology Services industry, listed on NYSE. The stock currently trades at $157.59 with a market capitalization of $20.15B.
Key valuation metrics include a P/E ratio of 13.91, price-to-book ratio of 4.10, and EPS of $11.14. The company reports a profit margin of 8.4% and return on equity of 29.5%.
LDOS Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $20.15B |
| P/E Ratio | 13.91 |
| EPS | $11.14 |
| P/B Ratio | 4.10 |
| P/S Ratio | 1.17 |
| EV/EBITDA | 10.17 |
| Dividend Yield | 1.05% |
| Profit Margin | 8.4% |
| Return on Equity | 29.5% |
| Debt/Equity | 1.06 |
LDOS Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $11.09B | $667.00M |
| FY21 | $12.30B | $628.00M |
| FY21 | $13.74B | $628.00M |
| FY22 | $14.40B | $685.00M |
| FY23 | $15.44B | $199.00M |
| FY25 | $16.66B | $1.25B |
| FY26 | $17.17B | $1.45B |
Leidos Holdings Inc (LDOS) Valuation
Based on GoodMoat's DCF model, Leidos Holdings Inc has a fair value estimate of $558.86. At the current price of $157.59, the stock appears 71.8% undervalued relative to our intrinsic value estimate.
LDOS Quality Indicators
Leidos Holdings Inc maintains a profit margin of 8.4% and an operating margin of 12.1%. Return on equity stands at 29.5%. The current ratio is 1.70. Debt-to-equity ratio is 1.06.
About Leidos Holdings Inc
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 47,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026.
LDOS Free Cash Flow
Leidos Holdings Inc generated $1.63B in trailing twelve-month free cash flow, representing an FCF yield of 8.07%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
LDOS Shares Outstanding
Leidos Holdings Inc has 0.13 billion shares outstanding at a share price of $157.59, giving it a market capitalization of $20.15B.
LDOS Recent Insider Trades
Recent insider transactions at Leidos Holdings Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Porter Elizabeth A (Sector President) | SELL | 3,000 | $576635.10 |
| Porter Elizabeth A (Sector President) | SELL | 2,303 | $416589.67 |