NYSE:BAH is showing good growth, while it is not too expensive.

Uncover the potential of BOOZ ALLEN HAMILTON HOLDINGS (NYSE:BAH), a growth stock that our stock screener found to be reasonably priced. NYSE:BAH is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Understanding NYSE:BAH's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:BAH was assigned a score of 7 for growth:

• BAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.52%, which is quite impressive.
• The Earnings Per Share has been growing by 14.79% on average over the past years. This is quite good.
• Looking at the last year, BAH shows a quite strong growth in Revenue. The Revenue has grown by 13.94% in the last year.
• Measured over the past years, BAH shows a quite strong growth in Revenue. The Revenue has been growing by 9.72% on average per year.
• The Earnings Per Share is expected to grow by 12.67% on average over the next years. This is quite good.
• Based on estimates for the next years, BAH will show a quite strong growth in Revenue. The Revenue will grow by 9.15% on average per year.

Valuation Insights: NYSE:BAH

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:BAH has received a 5 out of 10:

• BAH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.58.
• BAH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.47.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAH indicates a somewhat cheap valuation: BAH is cheaper than 65.82% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, BAH is valued a bit cheaper than 73.42% of the companies in the same industry.
• The excellent profitability rating of BAH may justify a higher PE ratio.
• A more expensive valuation may be justified as BAH's earnings are expected to grow with 12.67% in the coming years.

Assessing Health Metrics for NYSE:BAH

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:BAH scores a 5 out of 10:

• BAH has an Altman-Z score of 4.86. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.86, BAH belongs to the best of the industry, outperforming 81.01% of the companies in the same industry.
• The Debt to FCF ratio of BAH is 3.68, which is a good value as it means it would take BAH, 3.68 years of fcf income to pay off all of its debts.

Profitability Assessment of NYSE:BAH

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:BAH, the assigned 8 is noteworthy for profitability:

• BAH has a better Return On Assets (11.97%) than 84.81% of its industry peers.
• Looking at the Return On Equity, with a value of 68.59%, BAH belongs to the top of the industry, outperforming 93.67% of the companies in the same industry.
• BAH has a Return On Invested Capital of 19.19%. This is amongst the best in the industry. BAH outperforms 84.81% of its industry peers.
• The last Return On Invested Capital (19.19%) for BAH is above the 3 year average (13.75%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 7.21%, BAH is in the better half of the industry, outperforming 75.95% of the companies in the same industry.
• BAH has a better Operating Margin (11.61%) than 79.75% of its industry peers.
• In the last couple of years the Operating Margin of BAH has grown nicely.
• Looking at the Gross Margin, with a value of 54.77%, BAH is in the better half of the industry, outperforming 62.03% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of BAH contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.