BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BAH • US0995021062
88.42 USD
-0.31 (-0.35%)
At close: Jan 30, 2026
88.42 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, BAH scores 6 out of 10 in our fundamental rating. BAH was compared to 88 industry peers in the Professional Services industry. BAH scores excellent on profitability, but there are some minor concerns on its financial health. BAH has a decent growth rate and is not valued too expensively. Finally BAH also has an excellent dividend rating. These ratings would make BAH suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year BAH was profitable.
- BAH had a positive operating cash flow in the past year.
- Each year in the past 5 years BAH has been profitable.
- Each year in the past 5 years BAH had a positive operating cash flow.
1.2 Ratios
- BAH has a Return On Assets of 11.81%. This is amongst the best in the industry. BAH outperforms 87.64% of its industry peers.
- BAH's Return On Equity of 81.25% is amongst the best of the industry. BAH outperforms 96.63% of its industry peers.
- With an excellent Return On Invested Capital value of 15.28%, BAH belongs to the best of the industry, outperforming 83.15% of the companies in the same industry.
- BAH had an Average Return On Invested Capital over the past 3 years of 15.43%. This is above the industry average of 12.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.81% | ||
| ROE | 81.25% | ||
| ROIC | 15.28% |
ROA(3y)8.66%
ROA(5y)8.94%
ROE(3y)59.1%
ROE(5y)55.63%
ROIC(3y)15.43%
ROIC(5y)14.48%
1.3 Margins
- BAH has a better Profit Margin (7.30%) than 73.03% of its industry peers.
- In the last couple of years the Profit Margin of BAH has grown nicely.
- BAH has a better Operating Margin (9.70%) than 69.66% of its industry peers.
- BAH's Operating Margin has improved in the last couple of years.
- BAH has a Gross Margin of 53.05%. This is in the better half of the industry: BAH outperforms 71.91% of its industry peers.
- In the last couple of years the Gross Margin of BAH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 7.3% | ||
| GM | 53.05% |
OM growth 3Y4.05%
OM growth 5Y3.29%
PM growth 3Y11.88%
PM growth 5Y3.79%
GM growth 3Y0.86%
GM growth 5Y0.01%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BAH is creating value.
- BAH has less shares outstanding than it did 1 year ago.
- BAH has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BAH has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.13 indicates that BAH is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.13, BAH is in the better half of the industry, outperforming 78.65% of the companies in the same industry.
- BAH has a debt to FCF ratio of 4.22. This is a neutral value as BAH would need 4.22 years to pay back of all of its debts.
- BAH has a better Debt to FCF ratio (4.22) than 60.67% of its industry peers.
- BAH has a Debt/Equity ratio of 3.76. This is a high value indicating a heavy dependency on external financing.
- BAH has a worse Debt to Equity ratio (3.76) than 82.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.76 | ||
| Debt/FCF | 4.22 | ||
| Altman-Z | 4.13 |
ROIC/WACC2.02
WACC7.57%
2.3 Liquidity
- BAH has a Current Ratio of 1.81. This is a normal value and indicates that BAH is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of BAH (1.81) is better than 61.80% of its industry peers.
- A Quick Ratio of 1.81 indicates that BAH should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.81, BAH is in the better half of the industry, outperforming 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
- BAH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.61%.
- Measured over the past years, BAH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.91% on average per year.
- BAH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.49%.
- The Revenue has been growing by 9.93% on average over the past years. This is quite good.
EPS 1Y (TTM)4.61%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%14.19%
Revenue 1Y (TTM)-22.49%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%-10.19%
3.2 Future
- The Earnings Per Share is expected to grow by 2.35% on average over the next years.
- BAH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.54% yearly.
EPS Next Y-10.6%
EPS Next 2Y-1.77%
EPS Next 3Y2.35%
EPS Next 5YN/A
Revenue Next Year-5.28%
Revenue Next 2Y-1.54%
Revenue Next 3Y0.54%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 13.92 indicates a correct valuation of BAH.
- Compared to the rest of the industry, the Price/Earnings ratio of BAH indicates a somewhat cheap valuation: BAH is cheaper than 77.53% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, BAH is valued rather cheaply.
- BAH is valuated correctly with a Price/Forward Earnings ratio of 14.43.
- 70.79% of the companies in the same industry are more expensive than BAH, based on the Price/Forward Earnings ratio.
- BAH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.92 | ||
| Fwd PE | 14.43 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAH indicates a somewhat cheap valuation: BAH is cheaper than 74.16% of the companies listed in the same industry.
- BAH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BAH is cheaper than 85.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.49 | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
- The excellent profitability rating of BAH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-1.77%
EPS Next 3Y2.35%
5. Dividend
5.1 Amount
- BAH has a Yearly Dividend Yield of 2.66%.
- Compared to an average industry Dividend Yield of 1.49, BAH pays a better dividend. On top of this BAH pays more dividend than 84.27% of the companies listed in the same industry.
- BAH's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
- The dividend of BAH is nicely growing with an annual growth rate of 14.89%!
- BAH has paid a dividend for at least 10 years, which is a reliable track record.
- BAH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.89%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- BAH pays out 32.97% of its income as dividend. This is a sustainable payout ratio.
- The dividend of BAH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.97%
EPS Next 2Y-1.77%
EPS Next 3Y2.35%
BOOZ ALLEN HAMILTON HOLDINGS / BAH FAQ
Can you provide the ChartMill fundamental rating for BOOZ ALLEN HAMILTON HOLDINGS?
ChartMill assigns a fundamental rating of 6 / 10 to BAH.
Can you provide the valuation status for BOOZ ALLEN HAMILTON HOLDINGS?
ChartMill assigns a valuation rating of 6 / 10 to BOOZ ALLEN HAMILTON HOLDINGS (BAH). This can be considered as Fairly Valued.
What is the profitability of BAH stock?
BOOZ ALLEN HAMILTON HOLDINGS (BAH) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for BAH stock?
The Price/Earnings (PE) ratio for BOOZ ALLEN HAMILTON HOLDINGS (BAH) is 13.92 and the Price/Book (PB) ratio is 10.46.
What is the expected EPS growth for BOOZ ALLEN HAMILTON HOLDINGS (BAH) stock?
The Earnings per Share (EPS) of BOOZ ALLEN HAMILTON HOLDINGS (BAH) is expected to decline by -10.6% in the next year.