Analysis for LDOS

📈 Growth & Financial Trajectory

Eight quarters show a stable revenue base around $4.25B-$4.56B, rising from about $4.25B in early 2025 to $4.56B in Q2 2027, a modest gain. Net income attributable to parent stays positive across periods, with fluctuations but an upward drift to the mid-$300Ms-$370Ms range in later quarters. Gross Margin hovers around 18% and Operating Margin around 11–12%, signaling solid profitability with limited expansion. Net Cash Flow From Operating Activities ranges from about $301M (early 2027) to $793M (mid-2027) per quarter, supporting a positive cash profile despite financing outflows in some quarters.

💰 Margins & Cash Flow

• Gross Profit margins around 18% on revenues ~ $4.2B-$4.56B.
• Operating Margin steady ~11–12%;
• Operating cash flow remains robust; investing cash flow is typically negative while financing varies.

🛡️ Balance Sheet & Liquidity

Current assets exceed current liabilities by a comfortable margin; current ratio has run roughly 1.4–1.6. Equity remains solid (~$4.7B-$5.4B) with total liabilities in the $8B-$10B range, indicating manageable leverage and resilience.

⚠️ Key Drivers & Risks

• Drivers: Defense/government contracting demand; cybersecurity modernization.
• Risks: Budget cycle volatility and procurement delays; valuation sensitivity to growth assumptions.