CSRA

CSRA

Industrial/Transportation, Event Driven/Special Sit


Presented:01/21/2016
Price:$26.80
Cap:$4.39B
Current Price:$41.23
Cap:$6.76B

Presented

Date01/21/2016
Price$26.80
Market Cap$4.39B
Ent Value$4.56B
P/E Ratio19.6x
Book Value$5.25
Div Yield1.49%
Shares O/S163.93M
Ave Daily Vol2,269,425
Short Int1.28%

Current

Price$41.23
Market Cap$6.76B
CSRA, Inc. engages in the provision of information technology solutions and services to public sector clients. It provides cloud-powered commercial solutions; cloud broker services; custom platform services; cyber security; big data science and analytics solutions; application modernization and optimization; application innovation services; citizen service enablement; classical services; mission services solutions; and science and threat reduction solutions. The company was founded on June 16, 2015 and is headquartered in Falls Church, VA.

Publicly traded companies mentioned herein: Amazon.com (AMZN), Booz Allen Hamilton Holding Corporation (BAH), Computer Sciences Corporation (CSC), CSRA Inc (CSRA), Harris Corporation (HRS)

Highlights

The presenter is long shares of CSRA, which was formally spun out of Computer Sciences Corporation (CSC) in late November, 2015 (and SRA International merged with and into the independent company). The new company is the only pure play IT solutions provider focused on the government sector and has decades of history with its clients. Given the lack of Emerging Markets and FX exposure, favorable bookings trends, and attractive valuation relative to the peer group, the risk/ reward on CSRA shares at ~$28 appears to be favorable. In the event of a broader market selloff, CSRA shares should hold up well, and if the market turns up the multiple should expand.

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Idea Discussion

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