Margin Breakdown
| Operating Margin | 5.74 | |
| EBITDA Margin | 0.0884 | |
| Gross Margin | 0.14 | |
| Profit Margin | 0.0463 |
Does Leidos Holdings (NYSE:LDOS) create value for retail investors?
 | By Rifka Kats | Macroaxis Story |
In this article, we will sum up Leidos Holdings as a potential position in addition to your existing holdings. We will discuss why it could be a game-changer for Leidos Holdings retail investors.
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Reviewed by Vlad Skutelnik
This firm has a beta of 0.7567. Let's try to break down what Leidos's beta means in this case. Leidos Holdings returns are very sensitive to returns on the market. As the market goes up or down, Leidos Holdings is expected to follow. The beta indicator helps investors understand whether Leidos Holdings moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Leidos deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Leidos Holdings. Your research has to be compared to or analyzed against Leidos Holdings' peers to derive any actionable benefits. When done correctly, Leidos Holdings' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Leidos Holdings.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Leidos Holdings. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Leidos Holdings
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Leidos Holdings' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Leidos Holdings's Liquidity
Leidos Holdings financial leverage refers to using borrowed capital as a funding source to finance Leidos Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Leidos Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Leidos Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Leidos Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Leidos Holdings's total debt and its cash.
Leidos Holdings Gross Profit
Leidos Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Leidos Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Leidos Holdings Gross Profit growth over the last 10 years. Please check Leidos Holdings' gross profit and other fundamental indicators for more details.
A Deeper look at Leidos
Leidos Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Leidos Holdings independently to ensure intended market timing strategies are aligned with expectations about Leidos Holdings volatility.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Leidos Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.