Asset Structure Analysis
Leidos Holdings’ total assets were $12.7 billion as of December 29, 2023, down from $13.1 billion as of December 30, 2022.
Goodwill was $6.1 billion as of December 29, accounting for 48% of total assets.
Total current assets were $4 billion at December 29, making up 31.5% of total assets.
Among total current assets, cash and cash equivalents were $777 million at December 29, 2023.
Liquidity and Solvency
Total current liabilities were $3 billion at December 29.
The current ratio was 1.33 for fiscal 2023.
Long-term debt, net of current portion was $4.7 billion at December 29, 2023.
We think that Leidos Holdings’ debt hit a high level , but the company ‘s cash flow can maintain debt level.
Net cash provided by operating activities was $1.17 billion, $1 billion and $1 billion in fiscal 2023, 2022 and 2021, respectively.
Profitability Analysis
Leidos Holdings’ revenues were $15.5 billion, $14.4 billion and $13.7 billion in fiscal 2023, 2022 and 2021, respectively.
Cost of revenues was $13.2 billion, $12.3 billion and $11.7 billion in fiscal 2023, 2022 and 2021, respectively.
The gross profit margin was 14.8%, $14.6% and 14.6% in fiscal 2023, 2022 and 2021, respectively.
Net income was $208 million, $693 million and $759 million for fiscal 2023, 2022 and 2021, respectively.
Cash Flow Analysis
Net cash provided by operating activities was $1.17 billion, $1 billion and $1 billion in fiscal 2023, 2022 and 2021, respectively.
Payments for property, equipment and software were $207 million, $129 million and $104 million in fiscal 2023, 2022 and 2021, respectively.
Leidos Holdings’ free cash flow was $960 million, $871 million and $896 million for fiscal 2023, 2022 and 2021, respectively.
Dividends payments were $201 million, $199 million and $199 million in fiscal 2023, 2022 and 2021, respectively.
Repurchases of stock and other were $246 million, $542 million and $270 million in fiscal 2023, 2022 and 2021, respectively.
As you can see, Leidos Holdings returned capital to shareholders in repurchasing stock and paying dividends.
Leidos Holdings’ operating performance for the quarterly period ended March 29, 2024
Leidos Holdings’ revenues were $4 billion in three months ended March 29, 2024, up from $3.7 billion in three months ended March 31, 2023.
Net income was $283 million and $164 million for the quarterly period ended March 29, 2024 and for the quarterly period ended March 31, 2023.
Conclusion
Leidos Holdings’ profit margin has been very low, but the company ‘s cash flow has been very strong.
We reckon that Leidos Holdings’ reasonable valuation is about $10 billion, while Leidos Holdings’ market capitalization is $19.68 billion, which is equivalent to $145.56 per share.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
Leidos Holdings, Inc. (“Leidos”), a Delaware corporation, is a holding company whose direct 100%-owned subsidiary and principal operating company is Leidos, Inc. Leidos was founded in 1969 by physicist Dr. Robert Beyster. Since our founding 55 years ago, we have applied our expertise in science, research and engineering in rapidly-evolving technologies and markets to solve complex problems of global concern.
At December 29, 2023, our business has been aligned into three reportable segments (Defense Solutions, Civil and Health). Additionally, we separately present the unallocable costs associated with corporate functions as Corporate. Our operations and reportable segments are organized around the customers and markets we serve. We provide a wide array of scientific, engineering and technical services and solutions across these reportable segments. Approximately 9% of our revenues are generated by entities located outside of the United States. (from Leidos Holdings’ form 10k )
