CACI International Poised For Growth Despite Inherent Risks
Zacks Investment Research | Jun 05, 2017 09:45PM ET
On Jun 6, we updated the research report on information technology services provider, CACI International Inc. (NYSE:CACI) .
Based in Arlington, VA, CACI International delivers IT applications and infrastructure to improve communications and secure the integrity of information systems and networks, enhance data collection and analysis, and increase efficiency and mission effectiveness. Over the years, the company has provided support services to the U.S. federal forces.
CACI International intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy and strengthening its existing customer relationships while building newer ones. The company further anticipates to significantly benefit from its cost-reduction program. CACI International also remains focused on its strategy to grow in larger markets, drive operational excellence, and leverage mergers and acquisitions to increase its market share and create long-term value for its shareholders. The strategic partnership with Appcelerator – a provider of leading mobile engagement platform – will likely augment its position in the market. The deal combines CACI International’s automated security testing, compliance testing and vulnerability detection capabilities with Appcelerator’s comprehensive platform for creating, delivering, and analyzing mobile applications. This enables customers to quickly deploy mobile applications at a lower cost and a higher return on investment (ROI).
In addition, CACI International has a large pipeline of new projects and continues to win more deals at regular intervals. These back-to-back contract wins are the key catalysts to the company’s success. Furthermore, having the government as a big client lends stability to the business and moderates fluctuations in revenues. Although the government’s approval process is usually lengthy, the project continues earning money even years after it has been approved. Moreover, government contracts improve the visibility of future revenue streams. We believe the company is comfortably positioned, given its favored relationship with the Department of Defense. Cyber attacks are also creating increased awareness, leading to a heightened demand for cyber solutions. From 2009 to 2016, the company’s revenues increased at a CAGR of 4.03%.
However, CACI International has underperformed the Zacks categorized Original post
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