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Leidos Holdings Owner Earnings per Share (TTM)

: 4.23 (As of Sep. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Leidos Holdings's Owner Earnings per Share (TTM) ended in Sep. 2021 was $4.23. It's Price-to-Owner-Earnings ratio for today is 21.


The historical rank and industry rank for Leidos Holdings's Owner Earnings per Share (TTM) or its related term are showing as below:

NYSE:LDOS' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 3.49   Med: 14.63   Max: 73.27
Current: 21.11

3.49
73.27

During the past 13 years, the highest Price-to-Owner-Earnings ratio of Leidos Holdings was 73.27. The lowest was 3.49. And the median was 14.63.


NYSE:LDOS's Price-to-Owner-Earnings is ranked higher than
58% of the 1064 Companies
in the Software industry.

( Industry Median: 25.22 vs. NYSE:LDOS: 21.11 )

Leidos Holdings's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $1.43. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $5.40. It's PE Ratio ratio for today is 16.45.

Leidos Holdings's EPS without NRI for the three months ended in Sep. 2021 was $1.43. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $5.40. It's PE Ratio without NRI ratio for today is 16.45.


Leidos Holdings Owner Earnings per Share (TTM) Historical Data

The historical data trend for Leidos Holdings's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Leidos Holdings Annual Data
Trend Jan11 Jan12 Jan13 Jan14 Jan15 Dec16 Dec17 Dec18 Dec19 Dec20
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.38 1.49 4.66 6.70 7.76

Leidos Holdings Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.49 7.76 7.07 4.46 4.23

Competitive Comparison

For the Information Technology Services subindustry, Leidos Holdings's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Leidos Holdings Owner Earnings per Share (TTM) Distribution

For the Software industry and Technology sector, Leidos Holdings's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Leidos Holdings's Owner Earnings per Share (TTM) falls into.



Leidos Holdings Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Leidos Holdings's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 776
Depreciation, Depletion and Amortization 312
Change In Deferred Tax 2
5Y Average of Maintenance Capital Expenditure 97
Change In Working Capital -388
Shares Outstanding (Diluted Average) 143

1. Start with "Net Income" from income statement. Leidos Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2021 was $776 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Leidos Holdings's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2021 was $312 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Leidos Holdings's Change In Deferred Tax for the trailing twelve months (TTM) ended in Sep. 2021 was $2 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $97 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Leidos Holdings's 5-Year Average Maintenance Capital Expenditure = $97 Mil

5. "Change In Working Capital" is from cashflow statement. Leidos Holdings's Change In Working Capital for the trailing twelve months (TTM) ended in Sep. 2021 was $-388 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Leidos Holdings's Shares Outstanding (Diluted Average) for the months ended in Sep. 2021 was 143.000 Mil.

Leidos Holdings's Onwer Earnings Per Share for Sep. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 776 +312+2
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-96.995495207017+-388)/143.000
=4.23

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=88.82/4.23
=21

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Leidos Holdings Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Leidos Holdings's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Leidos Holdings Business Description

Leidos Holdings logo
Industry
Technology » Software NAICS : 541513 SIC : 7373
Traded in Other Exchanges
Address
11951 Freedom Drive, Reston, VA, USA, 20190
Leidos Holdings Inc is engaged in scientific, engineering, system integration, technical services, and solutions to various government entities and highly regulated industries, including the U.S. Department of Defense, Intelligence Community and the British Ministry of Defense. Areas of focus include intelligence and surveillance, cybersecurity, complex logistics, energy, and health.
Executives
John Miriam E director 7011 EAST AVENUE LIVERMORE CA 94550
Moos James Robert officer: Group President 11951 FREEDOM DRIVE RESTON VA 20190
Kraemer Harry M Jansen Jr director DENTSPLY SIRONA INC. 13320 BALLANTYNE CORPORATE PLACE CHARLOTTE NC 28277
Krone Roger A director, officer: CEO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: KRONE ROGER A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Cage Christopher R officer: SVP and Corporate Controller 11951 FREEDOM DRIVE RESTON VA 20190
Kendall Frank Iii director 11951 FREEDOM DRIVE RESTON VA 20190
Reagan James officer: EVP, Chief Financial Officer C/O DELTEK 13880 DULLES CORNER LANE HERNDON VA 20171
Howe Jerald S Jr officer: Executive VP & General Counsel PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HOWE JERALD S JR a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Williams Noel B director ONE PARK PLAZA NASHVILLE TN 37203
Schmanske Mary Vicki officer: Group President 11951 FREEDOM DRIVE RESTON VA 20190
Porter Elizabeth A officer: Group President 1750 PRESIDENTS STREET RESTON VA 20190
Stevens Roy E officer: Chief of Business Development 11951 FREEDOM DRIVE RESTON VA 20190
May Gary Stephen director 11951 FREEDOM DRIVE RESTON VA 20190
Fubini David G director D.G. FUBINI CONSULTANTS, LLC 80 SEARS ROAD BROOKLINE MA 02445
Stalnecker Susan M director TWO N NINTHST ALLENTOWN PA 18101

Leidos Holdings Headlines

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