At its recent investor event, CACI International (CACI), an information solutions and services provider focused on government intelligence and defense, unveiled a clever new 2x2 approach to its business model - the latest framework aligns "Enterprise" and "Mission" across "Expertise" and "Technology." The shift is significant - it adds transparency and provides a clear representation of the business to investors.

CACI also reiterated its five-year goal of outpacing market growth by at least 100bps and improving margins by 10-30bps. To achieve these targets, management is equally committed to growing each quadrant, although the "Mission Technology" quadrant (~30% of sales) gets the spotlight given its growth potential and superior margin profile. CACI, with its proven M&A track record, remains on the look-out for attractive bolt-on acquisitions that can add to the company's array of strong products and services.

I favor buying CACI on weakness as its growth potential remains strong and the company has a great track record of compounding its bottom line. Shares currently trade in line with peers, though there could be potential upside from M&A, which remains a priority.

READ FULL ARTICLE HERE