CACI INTERNATIONAL INC /DE/

Steady, growing federal-IT/defense services contractor — solid growth and profitability, but heavy government concentration and modest cash conversion.

Strengths

• Solid growth and earnings — revenue +12.6% (56th), net income +19.0% (64th)
• Profitable with good asset returns — operating margin 8.9% (52nd), ROA 5.8% (77th)
• Recurring federal/defense backlog provides revenue visibility — qualitative (per 10-K)

Risks

• Extreme customer concentration — 10-K: 95.7% of FY25 revenue from federal contracts, 75.4% from the DoD — suspension/debarment or budget cuts would be material
• Modest cash conversion — OCF margin 6.3% (40th), typical of a services/working-capital-heavy model
• Budget-cycle and appropriations risk — qualitative (per 10-K)

Notable findings

• Customer concentration~95% of revenue from one customer/distributor — 7% and 95
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC
• Exec changeRecent 8-K item 5.02 8-K ↗
• Buying back stockNet buyback — share count -2%/yr over 4y
• Strong balance sheetStrong balance sheet — $106M cash & investments
• Notable holderHeld by 5 notable fund(s): FMR LLC, STATE STREET CORP, GOLDMAN SACHS GROUP INC +2 more (as of 2026-03-31)
• Insider sellingInsider selling — 3 open-market sale(s) by 3 insider(s) (cluster of 3 insiders, ~$1M, last 6mo) Form 4 ↗