CACI International Inc

**Analysis of CACI International (CACI)**

Technical Perspective CACI has shown strong long-term performance, trading 74% above its 52-week low despite recent weakness. The stock’s low beta suggests it has navigated market turbulence with relative stability. Though it has underperformed the broader market recently, the retreat from overbought levels may present a neutral-to-favorable entry point for investors focused on steady growth.

Fundamental Strength CACI maintains solid profitability, with net margins improving slightly even amid modest revenue contraction. Its financial health is robust, characterized by low debt, strong liquidity, and consistent cash flow generation. While operational efficiency metrics like ROE and asset turnover indicate room for improvement, the company’s disciplined execution supports stable earnings.

Valuation & Risk Considerations With a TTM PE around 24, CACI’s valuation appears reasonable, though the lack of peer data limits comparative insight. The negative PEG ratio due to recent earnings pressure warrants attention, but low beta and minimal short interest reflect investor confidence and lower volatility risk. Broader market or sector-specific liquidity risks remain, but overall risk exposure is moderate.

Recommendation CACI represents a disciplined investment with resilient fundamentals and manageable risk. Its stability, strong balance sheet, and technical positioning after recent declines support a favorable risk-reward profile. For investors seeking exposure to a low-volatility defense and IT services name, CACI is a BUY. Always consider personal investment goals and market conditions.

RockFlow Model Forecast: Three Scenarios for 2026

Based on the provided analysis, here is a 12-month outlook for CACI International (CACI):

12-Month Outlook for CACI International (CACI)

Over the next 12 months, CACI is poised for steady performance, with key catalysts including its strong positioning in the resilient government IT and defense services sector, a robust balance sheet with low debt, and consistent cash flow generation to support operations and potential strategic initiatives. The primary risk is a continuation of modest revenue contraction, which could pressure earnings growth and validate the current negative PEG ratio, alongside broader sector-specific budget or liquidity shifts. Given the absence of a specific analyst target price, but considering its reasonable TTM PE and favorable risk-reward profile post recent declines, a target price range of $590 to $630 appears achievable, reflecting moderate upside from the current price of $573.32.

Wall Street Consensus

Most Wall Street analysts are optimistic about CACI International Inc's 12-month outlook, with consensus target around $591.20, indicating expected upside potential.

Overall, CACI has investment potential but also faces challenges. Here are key factors to weigh before investing.

CACI has demonstrated robust long-term performance despite recent weakness, with the current price significantly elevated from its 52-week low.

Over the past one and three months, the stock has declined by 9.77% and 2.27%, respectively, underperforming the broader market by 2.7% over the quarterly period, indicating a recent bout of relative weakness. Despite this short-term pullback, the stock's low beta suggests these moves have been less volatile than the overall market.

Positioned approximately 74% above its 52-week low and about 16% below its all-time high, CACI is in the upper half of its yearly range. Following the recent decline, the stock appears to be moving away from overbought territory and may be approaching a more neutral technical condition.

Revenue & Profitability Revenue declined modestly from $2.29B to $2.22B quarter-over-quarter, while profitability metrics remained stable. The net profit margin improved slightly to 5.58%, supported by consistent operating margins near 9.3%. This demonstrates CACI's ability to maintain profitability despite a slight contraction in top-line performance.

Financial Health CACI maintains a strong financial position with a low debt-to-equity ratio of 0.11 and solid interest coverage of 4.6x. The company's current ratio of 1.97 indicates good short-term liquidity, while the cash flow to debt ratio of 0.33 suggests adequate capacity to service obligations from operating cash flows.

Operational Efficiency Operational efficiency appears moderate with an ROE of 3.0% and asset turnover of 0.25. The cash conversion cycle of 40 days reflects reasonable working capital management, though the relatively low asset utilization suggests potential for improved capital efficiency. The stable operating metrics indicate consistent execution within the current business model.

Valuation Level: CACI's TTM PE of 24.05 and forward PE of 23.70 indicate a consistent valuation level, suggesting the market anticipates stable earnings. While not extreme, the PE ratio alone provides limited insight into whether the stock is overvalued or undervalued without an industry benchmark. The negative PEG ratio, resulting from negative earnings growth, makes growth-based valuation metrics unreliable for this analysis.

Peer Comparison: A peer comparison cannot be conducted as industry average data is unavailable. The absence of benchmark metrics for PE, PB, and EV/EBITDA ratios prevents a meaningful assessment of CACI's valuation relative to its sector peers. This analysis should be revisited when comparative industry data becomes accessible.

Volatility Risk: CACI exhibits low volatility risk relative to the broader market, as evidenced by its Beta of 0.597, indicating it is approximately 40% less volatile than the market index. The stock's moderate maximum drawdown of -15.22% over the past year further reflects its historically stable price movements compared to more volatile equities.

Other Risks: The notable absence of significant short interest suggests a high degree of market confidence and minimal speculative pressure against the stock's price. However, like any equity, it remains subject to liquidity risks depending on trading volume and broader market conditions affecting its sector.