Science Applications International (SAIC) just named Ravi Dankanikote as Chief Growth Officer, a move that puts its expansion strategy front and center for investors watching how the GovCon specialist plans its next leg of growth.

The timing of Dankanikote’s return comes as SAIC’s share price has climbed 15.47% over the last month, even though its year to date share price return is still negative and the 1 year total shareholder return of minus 7.37% points to longer term consolidation rather than a sustained rally so far.

If this leadership move has you thinking more broadly about defense and government contractors, it could be worth scanning other aerospace and defense stocks that are starting to show similar growth narratives.

With shares still down over the past year but trading nearly 16% below analyst targets and at a sizable intrinsic discount, is SAIC quietly undervalued today, or is the market already baking in Dankanikote driven growth?

Most Popular Narrative: 11.2% Undervalued

With Science Applications International last closing at $100.63 against a narrative fair value of about $113.38, the story leans toward upside supported by cash flows rather than headline growth.

Progress in operational efficiency through enterprise wide adoption of artificial intelligence and automation is expected to drive incremental margin improvement, even in a restrained revenue environment, supporting higher net margins and free cash flow.

Want to see why modest growth assumptions still point to meaningful upside? The narrative focuses on resilient margins and a future earnings multiple that suggests potential for a quiet re rating. Curious which specific profit, revenue, and capital return levers underpin the valuation case, even as top line forecasts cool? Explore the detailed roadmap behind this upside view.

Result: Fair Value of $113.38 (UNDERVALUED)

However, lingering budget uncertainty and intensifying competition for federal IT contracts could squeeze SAIC’s revenue base and threaten the margin-led upside story.

Build Your Own Science Applications International Narrative

If you see the outlook differently or want to stress test the assumptions yourself, you can build a custom narrative in just minutes using Do it your way.

A great starting point for your Science Applications International research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.