Analysts Divide on Science Applications Intl Ratings

A recent review of Science Applications Intl reveals a split among analysts, with evolving sentiments impacting stock projections. Analysts show cautious optimism amid mixed ratings. The average price target decreased slightly, indicating a need for close monitoring by investors.

Date: 16-05-2025

AI Rating: 6

Analyst Ratings Overview: Recent evaluations of Science Applications Intl (SAIC) by analysts reflect a divided sentiment. While four analysts remain somewhat bullish, there’s a notable absence of strong bullish sentiment, as evidenced by no bullish ratings and several hold/neutral positions. The recent changes in price targets also indicate cautious repositioning as market conditions shift.

Revenue Growth: The report indicates a revenue growth rate of 5.81% for SAIC. This growth, although robust, is still below industry peers in the Industrials sector, suggesting competitive challenges. Given the slow growth relative to the sector, investors may perceive this as a slight negative, as it may indicate underlying operational issues or difficulties in market penetration.

Net Income and Profit Margins: SAIC boasts a commendable net margin of 5.33%, suggesting effective control over expenses and strong profitability. This is a positive indicator for investors, despite broader revenue growth concerns. Additionally, the combination of solid net margins alongside revenue growth, albeit slow, demonstrates potential for maintaining profitability even when revenue is modest. Hence, it can be viewed positively in the context of overall financial performance.

Return on Equity (ROE): The company reports an ROE of 6.15%, which sits below industry averages. This signifies less than optimal efficiency in generating returns on shareholders' equity and could be a red flag for some investors who seek higher returns on investment. If not addressed, this could hinder further investor interest.

Market Capitalization: SAIC’s lower-than-average market capitalization could be attributed to investor hesitancy based on the mixed revenue growth and ROE performance. A smaller market cap may also contribute to increased volatility and risk perceptions among long-term investors.

Debt Management: Positive news emerges from SAIC's debt-to-equity ratio of 1.52, indicating lower reliance on debt financing compared to industry averages. This aspect provides a semblance of financial health, boosting investor confidence in the company's ability to weather economic challenges.

Stocks: SAIC