Caci International Inc /De/ (NYSE: CACI)

Sector: Technology Industry: Information Technology Services CIK: 0000016058
Market Cap 11.95 Bn
P/B 2.97
P/E 23.69
P/S 1.35
ROIC (Qtr) 8.30
Div Yield % 0.00
Rev 1y % (Qtr) 11.22
Total Debt (Qtr) 3.20 Bn
Debt/Equity (Qtr) 0.80

About

CACI International Inc, commonly known as CACI, is a prominent company operating in the intelligence, defense, and federal civilian sectors. With a rich history dating back to 1962, CACI has established itself as a leading provider of expertise and differentiated technology, primarily in the United States and Europe. CACI's main business activities revolve around delivering a diverse range of products and services, including digital solutions, C4ISR, cyber, space, engineering services, and enterprise IT. These offerings are designed to modernize...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 683.41M provides strong 11.49x coverage of stock compensation 59.48M, indicating sustainable incentive practices.
  • Robust free cash flow of 612.27M exceeds capital expenditure of 71.14M by 8.61x, indicating strong organic growth funding capability.
  • Operating cash flow of 683.41M fully covers other non-current liabilities 345.25M by 1.98x, showing strong long-term stability.
  • Robust tangible asset base of 2.63B provides 4.02x coverage of working capital 654.09M, indicating strong operational backing.
  • Operating cash flow of 683.41M provides strong 3.18x coverage of operating expenses 214.75M, showing operational efficiency.

Bear case

  • Operating cash flow of 683.41M barely covers its investment activities of (1.75B), with a coverage ratio of -0.39, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 133.02M provide limited coverage of acquisition spending of (1.68B), which is -0.08x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Cash position of 133.02M provides weak coverage of payables of 371.39M, which is 0.36x, indicating potential working capital stress and supplier relationship risks.
  • High financing cash flow of 756.29M relative to working capital of 654.09M, which is 1.16x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of 683.41M is outpaced by equity issuance of (155.01M) (-4.41 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 279.99 Bn 35.41 4.28 66.57 Bn
2 ACN Accenture plc 168.17 Bn 22.09 2.38 8.20 Bn
3 INFY Infosys Ltd 74.96 Bn 23.74 3.89 -
4 CTSH Cognizant Technology Solutions Corp 41.45 Bn 19.48 1.99 1.17 Bn
5 FIS Fidelity National Information Services, Inc. 35.21 Bn 231.62 3.36 13.00 Bn
6 WIT Wipro Ltd 29.93 Bn 19.70 2.97 1.95 Bn
7 BR Broadridge Financial Solutions, Inc. 26.38 Bn 28.51 3.74 3.28 Bn
8 LDOS Leidos Holdings, Inc. 23.72 Bn 16.88 1.37 5.23 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.74 1.44
EV to Cash from Ops. EV/CFO 22.15 5.63
EV to Debt EV to Debt 4.73 8.06
EV to EBIT EV/EBIT 19.01 -4.05
EV to EBITDA EV/EBITDA 14.97 -0.52
EV to Free Cash Flow [EV/FCF] EV/FCF 24.73 -1.66
EV to Market Cap EV to Market Cap 1.27 1.35
EV to Revenue EV/Rev 1.71 57.14
Price to Book Value [P/B] P/B 2.97 3.34
Price to Earnings [P/E] P/E 23.69 -5.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.83
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.66
Dividend per Basic Share Div per Share (Qtr) 0.00 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.24
Interest Coverage Int. cover (Qtr) 4.40 -319.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -16.30 -253.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -69.82 114.15
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 35.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 22.29 -22.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 21.30 -25.03
EBIT Growth (1y) % EBIT 1y % (Qtr) 15.09 -82.44
EBT Growth (1y) % EBT 1y % (Qtr) 4.56 97.07
EPS Growth (1y) % EPS 1y % (Qtr) 11.79 147.29
FCF Growth (1y) % FCF 1y % (Qtr) 52.79 -8,638.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.13 -8.24
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.02 0.78
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.11 0.66
Current Ratio Curr Ratio (Qtr) 1.55 2.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.80 0.88
Interest Cover Ratio Int Coverage (Qtr) 4.40 -319.17
Times Interest Earned Times Interest Earned (Qtr) 4.40 -319.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.40 -550.76
EBIT Margin % EBIT Margin % (Qtr) 8.99 -775.74
EBT Margin % EBT Margin % (Qtr) 6.95 -827.89
Gross Margin % Gross Margin % (Qtr) 32.60 24.07
Net Profit Margin % Net Margin % (Qtr) 5.70 -830.34