CACI International: Growth Is Impressive, But Profitability Is Not

CACI International is rated a hold, as profitability is still lagging behind while the earnings multiple trades in line with the sector median and ahead of the 5-year rolling multiple. Growth metrics are leading the peer group significantly as the firm is pivoting more to being tech-driven as opposed to relying on expertise. This gives it leverage to aggressively bid on contract work that demands proprietary technology to be fully serviced, like defense work, while peers compete on cost-plus work.

CACI International is one of the leading government and IT contractors. With a market cap of roughly $14 billion, the firm has recently experienced a significant rally, as the market prices in increasing contract wins.