Monday, April 15, 2019 9:12:30 AM
Simply Wall St.•April 15, 2019
When we invest, we're generally looking for stocks that outperform the market average. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, the Science Applications International Corporation (NYSE:SAIC) share price is up 91% in the last 5 years, clearly besting than the market return of around 47% (ignoring dividends).
View our latest analysis for Science Applications International
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Over half a decade, Science Applications International managed to grow its earnings per share at 6.3% a year. This EPS growth is lower than the 14% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
NYSE:SAIC Past and Future Earnings, April 15th 2019
NYSE:SAIC Past and Future Earnings, April 15th 2019
This free interactive report on Science Applications International's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Science Applications International, it has a TSR of 111% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!
A Different Perspective
While the broader market gained around 10% in the last year, Science Applications International shareholders lost 8.9% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 16% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
But note: Science Applications International may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
https://finance.yahoo.com/news/does-science-applications-internationals-nyse-125640573.html
GO SAIC
"PEACE"
Recent SAIC News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/30/2024 08:07:34 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/30/2024 08:07:19 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 04/24/2024 08:08:11 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 04/24/2024 08:06:29 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/15/2024 08:03:27 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/15/2024 08:03:16 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/15/2024 08:03:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/12/2024 08:06:57 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 04/12/2024 02:14:57 PM
- SAIC Launches Multi-Year Growth Strategy at 2024 Investor Day • Business Wire • 04/11/2024 10:29:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 04/11/2024 12:01:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/09/2024 09:55:47 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/09/2024 09:55:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/09/2024 09:54:49 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/09/2024 09:54:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/09/2024 09:51:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/09/2024 09:49:59 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/09/2024 09:46:28 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/09/2024 09:45:32 PM
- SAIC Named a Leader in IDC MarketScape for U.S. National Government Professional Security Services • Business Wire • 04/09/2024 12:05:00 PM
- SAIC Appoints Srini Attili as New Civilian Business Group Executive • Business Wire • 04/04/2024 09:27:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/03/2024 08:06:10 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/03/2024 08:05:49 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/03/2024 08:05:28 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 04/03/2024 08:05:11 PM
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