One-glance verdict
Within fair range
$413.09 our estimate vs market $521.51
Wall Street consensus: $680.64 (64.8% higher than our fair-value estimate)
26% above our estimate
Fundamentals snapshot
CACI International Inc
CACI · NYQ · Technology · Information Technology Services
Current price
$521.51
52-week range
$439.67 - $683.50
Market cap
$11.52B
Balance sheet
Stretched
4.81x Stretched
Net debt $5.46B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 6.2% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 61.4% over 3 years.
- Risk Stock trades 3.2% above its 5-year average P/E.
What this company does
CACI International Inc
CACI International is a technology company that makes most of its money selling expertise and solutions, like cybersecurity and intelligence systems, to the U.S. government. Its main customers are national security and defense agencies, so its business relies on long-term government contracts. This can create a predictable stream of revenue (the total money a company brings in from sales), making the company's performance closely tied to government spending on defense and technology.
How the company got here
CACI started in 1962 when two founders, Herb Karr and Harry Markowitz, left the RAND Corporation to start their own business. [1, 4] Their initial idea was to sell services for a computer programming language they helped create called SIMSCRIPT, which was used for simulations. [3, 6] The company, originally named California Analysis Center, Inc., went public (offered shares of stock to be bought by anyone) in 1968 and grew by winning contracts with the U.S. government, especially the Department of Defense. [1, 4] Over the decades, CACI expanded its information technology services and grew significantly by acquiring other companies to add new capabilities. [1, 8]
What it actually does
CACI is a technology and professional services company that primarily serves the U.S. federal government. [1, 3] Think of it as a high-tech contractor for agencies like the Department of Defense, intelligence communities, and other federal departments. [7, 9] The company provides a mix of technology and expertise to help with national security missions and to modernize government computer systems. [7, 11] This means they do everything from developing software and protecting against cyber threats to providing engineering support for military systems. [2, 7]
Expertise
This part of the business is about providing skilled people and specialized knowledge to government clients. This is a major part of CACI's business, where the government pays for the time and skills of CACI's employees. These services include mission support for intelligence and defense operations, engineering for military platforms, and managing large, complex government IT projects. [2, 7] A large portion of these employees hold security clearances, allowing them to work on sensitive national security projects. [5]
Technology
This segment focuses on providing advanced technology solutions and products, not just services. CACI develops and sells specialized software and hardware for things like secure communications, cybersecurity operations, and electronic warfare. [7] For example, they create systems that help analyze intelligence data or protect critical infrastructure from cyberattacks. [2] This is a growing part of the company, as it aims to sell more of its own unique technology rather than just the time of its experts. [7]
What management is betting on now
The company's leadership is focused on shifting from a services-based business to one that sells more of its own unique, high-value technology. [7, 13] They are heavily investing in fast-growing areas like cybersecurity, artificial intelligence (AI), and electronic warfare, often by acquiring smaller, specialized tech companies. [5, 14] The strategy is to embed this proprietary (owned by them) technology into the long-term government contracts they win. Management is also focused on winning large, long-duration contracts in national security areas that have consistent government funding. [7, 13]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$134.61M
FY2025 Q1
$23.18M
FY2025 Q2
$116.12M
FY2025 Q3
$214.08M
FY2025 Q4
$128.02M
FY2026 Q1
$154.05M
FY2026 Q2
$138.15M
FY2026 Q3
$156.37M
Revenue
$2.35B
Net income
$130.39M
Diluted EPS
5.88
Operating cash flow
$183.18M
Free cash flow
$156.37M
Fetching…
Sources
Revenue
$2.22B
Net income
$123.86M
Diluted EPS
5.59
Operating cash flow
$154.19M
Free cash flow
$138.15M
Fetching…
Sources
Revenue
$2.29B
Net income
$124.81M
Diluted EPS
5.63
Operating cash flow
$171.06M
Free cash flow
$154.05M
Fetching…
Sources
Revenue
$2.30B
Net income
$157.85M
Diluted EPS
7.11
Operating cash flow
$155.98M
Free cash flow
$128.02M
Fetching…
Sources
Revenue
$2.17B
Net income
$111.86M
Diluted EPS
5.00
Operating cash flow
$230.32M
Free cash flow
$214.08M
Fetching…
Sources
Revenue
$2.10B
Net income
$109.94M
Diluted EPS
4.88
Operating cash flow
$126.04M
Free cash flow
$116.12M
Fetching…
Sources
Revenue
$2.06B
Net income
$120.18M
Diluted EPS
5.33
Operating cash flow
$34.66M
Free cash flow
$23.18M
Fetching…
Sources
Revenue
$2.04B
Net income
$134.66M
Diluted EPS
5.97
Operating cash flow
$157.21M
Free cash flow
$134.61M
Fetching…
Sources
Is it cheap or expensive?
Fair value $413.09 vs current price $521.51
Wall Street consensus is the average analyst price target: $680.64 (64.8% higher than our fair-value estimate).
Our most-likely fair value is $413.09 a share — about 20.8% away from today's price of $521.51, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $5.5B. Interest coverage 4.8x.
Net debt
$5.46B
Interest coverage
4.81x
CACI International Inc is healthier than 0 of 1 peers on balance-sheet leverage.
Stretched
Worse cushion
Baseline
Better cushion
CACI
BASELINE
CACI International Inc
Total debt $5.62B Interest coverage 4.81x This is the baseline the peer rows are being compared against.
What you should know
The case for and against CACI
2 Rewards
2 Risks
Rewards
-
Revenue grew 6.2% last year.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 61.4% over 3 years.
-
Stock trades 3.2% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.53x
Forward P/E
16.75x
P/B
2.69x
P/S
1.26x
EV/EBITDA
15.43x
PEG ratio
514.23x
Profitability
How much profit each dollar creates
Gross margin
32.6%
Operating margin
9.7%
Net margin
5.9%
ROE
13.4%
ROA
5.5%
Health
Liquidity and balance-sheet strength
Debt / equity
1.31x
Current ratio
1.61x
Quick ratio
1.32x
Total debt
$5.62B
Total cash
$159.64M
Growth
How the business has been compounding
Revenue TTM
$9.16B
Revenue 5Y CAGR
9.3%
EPS TTM
24.22
EPS 5Y CAGR
12.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$664.43M
Free CF TTM
$481.41M
FCF margin
5.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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