CACI Remains Focused On Organic Growth Despite Headwinds
Zacks Investment Research | Jan 08, 2018 10:10PM ET
On Jan 9, we updated the research report on information technology services provider, CACI International Inc. (NYSE:CACI) .
CACI International intends to drive operational excellence by intensively focusing on a holistic growth model and strengthening its existing customer relationships while building newer ones. The company anticipates to significantly benefit from its cost-reduction program. It is also 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.
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 to earn 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 witnessed a compounded annual growth rate of 4.03%.
However, CACI International has underperformed the Zacks Investment Research
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