One-glance verdict
Undervalued
$834.29 our estimate vs market $615.04
Wall Street consensus: $736.79 (-11.7% lower than our fair-value estimate)
26% below our estimate, below the bear case
Fundamentals snapshot
CACI International Inc
CACI · NYQ · Technology · Information Technology Services
Current price
$615.04
52-week range
$434.70 - $683.50
Market cap
$13.59B
Balance sheet
Stretched
4.27x Stretched
Net debt $5.19B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 10.9% last year.
- Reward Returns 12.8% on equity, ahead of 16% of its peers.
- Risk Net debt grew 165.4% over 3 years.
- Risk Stock trades 20.7% above its 5-year average P/E.
What this company does
CACI International Inc
CACI International is a technology company that mainly works for the U.S. government on national security, defense, and intelligence projects. The company makes its money by selling expertise and high-tech solutions, like cybersecurity to protect against hackers, secure communication systems for the military, and engineering support for space missions. Because its primary customer is the government, CACI's business is often built on stable, long-term contracts, making it less sensitive to the everyday ups and downs of the consumer economy.
How the company got here
CACI started in 1962 when two founders, Herb Karr and Harry Markowitz, wanted to sell a new computer programming language for simulations. [11, 14, 15] Their first big break was a contract with the U.S. Navy to help manage inventory for ship parts. [3, 11] Over the years, the company grew by acquiring (buying) other companies and expanded its work with the U.S. government. [3, 14] A major turning point was after the events of September 11, 2001, when CACI sharpened its focus on providing technology and expertise for national security missions. [15]
What it actually does
CACI doesn't sell products you'd find in a store; instead, it acts as a high-tech contractor for the U.S. government, especially for the military and intelligence agencies. [4, 8, 13] Think of it as a team of experts and technology specialists that the government hires for complex jobs like protecting against cyber threats, modernizing computer systems, and developing secure communication tools for soldiers. [2, 5] Essentially, CACI provides the brainpower and the technology to support critical national security missions. [8, 10] The U.S. government is its main customer, making up over 95% of its business. [6, 7]
Domestic Operations
This is by far the largest part of CACI, making up almost all of its revenue (the money it brings in from sales). [7, 9] This segment provides a wide range of technology and expert services to various U.S. federal government agencies, with a major focus on the Department of Defense and the intelligence community. [7, 13] For example, they might be hired to upgrade a government agency's entire IT network, develop software to analyze intelligence data, or provide engineering support for military equipment. [2, 13] The government pays CACI through contracts for these highly specialized services. [4]
International Operations
This is a much smaller slice of the company's business. [7, 9] It provides similar technology and expertise to customers outside of the United States, primarily to other governments and some commercial (non-government) businesses. [7] For instance, they might help an allied country with its communication systems or provide data products to a European company. [20] While it gives the company a global presence, it represents a very small portion of its overall work compared to its U.S. government contracts. [7]
What management is betting on now
The company's leadership is focusing on high-tech areas that are top priorities for national security, such as space, artificial intelligence (AI), and electronic warfare (using technology to control the airwaves and disrupt enemy communications). [4, 17] They are also heavily investing in developing new technologies before their government customers even ask for them, a strategy they call "investing ahead of need." [16, 20] The goal is to shift more of their business from just providing expert staff to offering unique, high-value technology solutions, which they believe will lead to more growth. [4, 17] This includes making strategic acquisitions of other companies to quickly gain new and advanced capabilities. [16, 20]
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.
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
FY2026 Q4
$331.49M
Revenue
$2.71B
Net income
$156.75M
Diluted EPS
7.06
Operating cash flow
$378.27M
Free cash flow
$331.49M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $834.29 vs current price $615.04
Wall Street consensus is the average analyst price target: $736.79 (-11.7% lower than our fair-value estimate).
Our most-likely fair value is $834.29 a share — about 35.6% above today's price of $615.04, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $5.2B. Interest coverage 4.3x.
Net debt
$5.19B
Interest coverage
4.27x
CACI International Inc's profit covers its interest bill about 4.3 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
CACI
BASELINE
CACI International Inc
Total debt $5.38B Interest coverage 4.27x This is the baseline the peer rows are being compared against.
Total debt $6.58B Interest coverage 10.34x +142% vs CACI Carries about 2.4x more debt cushion than CACI.
Total debt $4.16B Interest coverage 4.97x +16% vs CACI Carries about 1.2x more debt cushion than CACI.
Total debt $2.70B Interest coverage 4.07x -5% vs CACI Has roughly the same debt cushion as CACI.
Total debt $1.65B Interest coverage 8.10x +90% vs CACI Carries about 1.9x more debt cushion than CACI.
What you should know
The case for and against CACI
3 Rewards
3 Risks
Rewards
-
Revenue grew 10.9% last year.
-
Returns 12.8% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 165.4% over 3 years.
-
Stock trades 20.7% above its 5-year average P/E.
-
Insider ownership is only 1.0% (peer median: 1.2%).
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)
25.48x
Forward P/E
16.34x
P/B
3.05x
P/S
1.42x
EV/EBITDA
15.80x
PEG ratio
514.23x
Profitability
How much profit each dollar creates
Gross margin
33.2%
Operating margin
10.1%
Net margin
5.6%
ROE
12.8%
ROA
5.8%
Health
Liquidity and balance-sheet strength
Debt / equity
1.21x
Current ratio
1.48x
Quick ratio
1.25x
Total debt
$5.38B
Total cash
$192.99M
Growth
How the business has been compounding
Revenue TTM
$9.57B
Revenue 5Y CAGR
11.4%
EPS TTM
24.14
EPS 5Y CAGR
13.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$886.71M
Free CF TTM
$780.06M
FCF margin
8.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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