SAIC Inc.SAI

Morningstar Rating

Stock Research and Analysis

by Michael Pierson

Science Applications International Corporation's (SAIC) technical expertise and broad suite of systems and solutions have helped the firm position itself on the list of strong government defense contractors. The company's broad revenue stream should Read more

Bulls Say

At the end of the fiscal 2009 third quarter, SAIC's total backlog was a hearty $17.2 billion, nearly double fiscal 2008 revenue.

The firm's solutions are implemented across many top-secret programs, and more than 22,000 of SAIC's employees hold a security clearance.

SAIC expects to save $100 million annually from "project alignment." The company has reduced its corporate staff, terminated or consolidated 21 leases, and is updating its information technology network. Read more

Bears Say

In fiscal 2009, approximately 88% of SAIC's revenue was derived from the U.S. government.

The company's inorganic growth strategy presents the perils inherent to acquisitions.

Approximately 2% of fiscal 2009 total revenue was generated internationally. This amplifies SAIC's dependence upon the U.S.

No dividends are expected to be paid in the foreseeable future. Read more

Strategy

SAIC is striving for operating margin improvement by increasing contract fees, reducing the use of subcontractors, increasing growth in higher-margin products and services, improving execution of its Read more

Management

Due to the company's policy of mandatory retirement at the age of 65, Chairman and CEO Ken Dahlberg passed the reigns to outsider Walter Havenstein on September 21, 2009, though Dahlberg will remain Chairman until June 2010. Dahlberg has been instrumental Read more

Profile

SAIC is a U.S. defense contractor that provides scientific, engineering, systems integration, technical services, and solutions. The company also conducts business in areas Read more

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