Definitive Analysis
Definitive Analysis

Financial Statements

Analysis Mode

Ticker

Industry

Sector

Science Applications International Corporation (SAIC)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$110.31 - $199.46$147.50
Multi-Stage$145.84 - $160.07$152.82
Blended Fair Value$150.16
Current Price$93.71
Upside60.24%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-2.92%3.73%1.571.661.741.811.831.831.111.131.131.15
YoY Growth---5.06%-4.82%-3.49%-1.15%0.00%64.15%-1.85%0.00%-1.82%5.77%
Dividend Yield--1.33%1.26%1.72%2.17%2.04%2.31%1.48%1.32%1.52%2.72%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)371.00
(-) Cash Dividends Paid (M)71.00
(=) Cash Retained (M)300.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)74.2046.3827.83
Cash Retained (M)300.00300.00300.00
(-) Cash Required (M)-74.20-46.38-27.83
(=) Excess Retained (M)225.80253.63272.18
(/) Shares Outstanding (M)47.6347.6347.63
(=) Excess Retained per Share4.745.335.71
LTM Dividend per Share1.491.491.49
(+) Excess Retained per Share4.745.335.71
(=) Adjusted Dividend6.236.827.21
WACC / Discount Rate7.48%7.48%7.48%
Growth Rate1.73%2.73%3.73%
Fair Value$110.31$147.50$199.46
Upside / Downside17.71%57.40%112.85%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)371.00381.13391.54402.23413.21424.49437.22
Payout Ratio19.14%33.31%47.48%61.65%75.83%90.00%92.50%
Projected Dividends (M)71.00126.95185.91247.99313.33382.04404.43

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.48%7.48%7.48%
Growth Rate1.73%2.73%3.73%
Year 1 PV (M)116.97118.12119.27
Year 2 PV (M)157.82160.94164.09
Year 3 PV (M)193.97199.75205.64
Year 4 PV (M)225.80234.81244.09
Year 5 PV (M)253.67266.39279.61
PV of Terminal Value (M)5,997.326,297.946,610.49
Equity Value (M)6,945.567,277.957,623.19
Shares Outstanding (M)47.6347.6347.63
Fair Value$145.84$152.82$160.07
Upside / Downside55.63%63.08%70.81%

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