CACI International Inc (NYSE:), a leader in computer integrated systems design with annual revenue of $7.87 billion, has extended its Master Accounts Receivable Purchase Agreement for another year.
This extension pushes the Scheduled Termination Date from December 20, 2024, to December 19, 2025. According to InvestingPro analysis, CACI maintains a strong financial health profile with an overall “GOOD” rating, suggesting solid operational stability.
On Monday, CACI, Inc. – Federal, a wholly-owned subsidiary of CACI International, and certain of its subsidiaries, collectively referred to as the Sellers, amended the Purchase Agreement with MUFG Bank, Ltd., as administrative agent, and various purchasers. The Amendment No. 6 to the agreement includes modifications to certain commercial provisions, although specific details of these changes were not disclosed.
The Purchase Agreement involves the sale of the Sellers’ accounts receivable to the purchasers, which is a common financial practice for companies to manage cash flow and working capital. This extension suggests that CACI International continues to leverage such financial instruments to maintain liquidity.
The company’s strong financial position is evidenced by its healthy current ratio of 1.75, indicating that liquid assets comfortably exceed short-term obligations. InvestingPro data reveals that CACI operates with a moderate debt level, maintaining financial flexibility.
The information comes from a Current Report on Form 8-K filed by CACI International with the Securities and Exchange Commission, which serves as a public disclosure of material events affecting a company’s financial status. The filing also indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of a registrant, as per the SEC requirements.
With a market capitalization of $9.1 billion and currently trading below its Fair Value according to InvestingPro analysis, CACI presents an interesting case for investors seeking detailed insights. Subscribers to InvestingPro can access a comprehensive Pro Research Report, offering deep-dive analysis of CACI’s financial health, valuation metrics, and growth prospects.
Investors and stakeholders in the technology and defense contracting sectors often monitor such financial arrangements closely, as they can impact a company’s cash flow and financial health. CACI International Inc’s shares are traded on the New York Stock Exchange under the ticker symbol CACI.
The extension of the Purchase Agreement is now an integral part of the company’s financial framework for the upcoming year, as stated in the amendment filed with the SEC.
In other recent news, CACI International has been a focal point of several significant developments. The company reported an 11% increase in Q1 revenue for fiscal year 2025, reaching nearly $2.1 billion. This led CACI to raise its revenue guidance for FY 2025 to between $8.1 billion and $8.3 billion. In terms of mergers, CACI recently completed the acquisition of Azure Summit Technology for $1.275 billion, partially financed by a $750 million Term Loan B Facility.
On the analyst front, Barclays (LON:) increased its price target for CACI to $625 due to the company’s promising three-year forecast. Jefferies and TD Cowen also raised their price targets to $570, citing strong Q1 performance and significant awards. However, Goldman Sachs revised its stance on CACI, downgrading the stock from Neutral to Sell and significantly reducing its price target to $373.
In contrast, Baird reaffirmed its positive stance on shares of CACI, maintaining an Outperform rating with a price target of $640.00, despite concerns over the DOGE initiative. Lastly, UBS began coverage on shares of CACI with a Buy rating and a price target of $557.00, citing the company’s low Federal Civilian spending exposure and focus on technology.
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