Leidos HoldingsSTU:S6IA -1.15%67 ROE % is 26.60% as of Mar. 2026, which is 53% above its 10-year median of 17.33. GuruFocus rates STU:S6IA with a GF Score™ of 67/100 and a GF Value™ of €145.79 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,678 Software companies, Leidos Holdings ranks better than 89.77% on this metric.
The historical rank and industry rank for Leidos Holdings's ROE % or its related term are showing as below:
STU:S6IA'
s ROE % Range Over the Past 10 Years
Min: 4.68 Med: 17.33 Max: 31.05
Current: 29.74
During the past 13 years, Leidos Holdings's highest ROE % was 31.05%. The lowest was 4.68%. And the median was 17.33%.
STU:S6IA's ROE % is ranked better than 89.77% of 2678
companies
in the Software industry
Industry Median: 4.685
vs STU:S6IA: 29.74
Leidos Holdings (STU:S6IA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Leidos Holdings ROE % Related Terms
Leidos Holdings ROE % Historical Data
* Premium members only.
The historical data trend for Leidos Holdings's ROE % 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.
For the Information Technology Services subindustry, Leidos Holdings's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, Leidos Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Leidos Holdings's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Leidos Holdings (STU:S6IA) has a ROE % of 26.60% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Leidos Holdings and its competitors. This is 53% above median its historical median of 17.33. Over the past decade, Leidos Holdings' ROE % has ranged from 4.68 to 31.05. According to the industry distribution chart, Leidos Holdings ranks #274 out of 2678 companies in the Software industry, placing it in the top 10.2%.
Is Leidos Holdings' ROE % too high?
Leidos Holdings' current ROE % of 26.60% is 53% above median its 10-year median of 17.33. Over the past 10 years, this metric has ranged from a low of 4.68 to a high of 31.05. The Software industry median ROE % is 4.69. Leidos Holdings' value of 26.60% is 467.8% above this industry median. Based on the distribution chart, Leidos Holdings ranks #274 out of 2678 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Leidos Holdings has a GF Score™ of 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Leidos Holdings' ROE % compare to WSE and APLD?
According to the Software industry distribution chart, Leidos Holdings ranks #274 out of 2678 companies for ROE %. This places Leidos Holdings in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 4.69. Leidos Holdings' value of 26.60% is 467.8% above this benchmark. Historically, Leidos Holdings' own ROE % has ranged from 4.68 to 31.05 over the past decade. While the company's 10-year median is 17.33 vs. the industry median of 4.69, Leidos Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Software company?
The median ROE % among Software companies is 4.69, based on 2,678 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Leidos Holdings's current ROE % of 26.60% is 467.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Leidos Holdings and its competitors. For the Software industry, the median ROE % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leidos Holdings's current ROE % is 26.60%, which is 53% above median its own 10-year median of 17.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leidos Holdings stock overvalued right now?
Based on GuruFocus' analysis, Leidos Holdings (STU:S6IA) is currently considered Significantly Undervalued. The stock's GF Value™ is €145.79, compared to a current price of €87.70 — trading 39.8% below its estimated fair value. The current ROE % is 26.60%, which is 53% above median its 10-year median of 17.33 and 467.8% above the Software industry median of 4.69. Leidos Holdings' overall GF Score™ is 67/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Leidos Holdings (STU:S6IA), the current ROE % is 26.60% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Leidos Holdings (STU:S6IA) Overvalued in 2026?
Based on GuruFocus' analysis, Leidos Holdings stock appears to be undervalued.
The current stock price of €87.70 is trading 39.8% below its estimated GF Value™ of €145.79.
GuruFocus considers Leidos Holdings to be Significantly Undervalued.
Key valuation signals for STU:S6IA:
ROE %: 26.60% (53% above median its 10-year median of 17.33)
GF Value™: €145.79 vs. price of €87.70 (39.8% below fair value)
Industry Position: 467.8% above the Software median (#274 of 2678)
No single metric tells the full story. See the STU:S6IA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leidos Holdings Inc is a technology, engineering, and science company that provides services and solutions in the defense, intelligence, civil, and health management, both domestically and internationally. The customers of the company includes the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration ("FAA"), the Department of Veterans Affairs ("VA"), and many other U.S. civilian, state and local government agencies, etc. The company is engaged in four reportable segments; National Security & Digital, Health & Civil, Commercial & International and Defense Systems. It provides a wide array of scientific, engineering and technical services and solutions across these reportable segments.
67GF Score
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