Science Applications Internatio (SAIC) concentration risks

The company's concentration profile is defined by two high-share, mixed-character customer exposures that together describe a business almost entirely dependent on a single end-customer: the U.S. government. The company generated 98% of total revenues during each of the last three fiscal years from contracts with the U.S. government — a high-share exposure that is structural in the sense that the business model is built around federal contracting, yet mixed in character because government contracts are subject to appropriations, scope changes, termination for convenience, and competitive re-bids that introduce idiosyncratic event risk. Within that near-total government dependency, approximately 52% of total revenues were attributable to the Department of War — a high-share sub-concentration within an already concentrated customer base. This means more than half of revenues are tied to a single department's priorities, budget allocations, and program decisions. Changes in defense spending levels, shifting departmental priorities, or loss of key program re-competes could have a disproportionate effect on revenues given the starting point of this share. The two disclosures are nested: essentially all revenue comes from the U.S. government, and of that, a majority comes from one department. This creates a highly concentrated profile in which macro factors like the federal budget environment, continuing resolutions, and defense authorization acts are the primary variables that drive revenue visibility and growth. The company has virtually no private-sector revenue offset and no disclosed geographic or supplier diversification that would materially alter this picture.

For the engine’s reasoning on SAIC’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.