BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
NYSE:BAH - New York Stock Exchange, Inc. - US0995021062 - Common Stock - Currency: USD
Overall BAH gets a fundamental rating of 6 out of 10. We evaluated BAH against 82 industry peers in the Professional Services industry. BAH has an excellent profitability rating, but there are some minor concerns on its financial health. BAH has a decent growth rate and is not valued too expensively. BAH also has an excellent dividend rating. These ratings could make BAH a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
BAH had positive earnings in the past year.
BAH had a positive operating cash flow in the past year.
In the past 5 years BAH has always been profitable.
Each year in the past 5 years BAH had a positive operating cash flow.
1.2 Ratios
BAH has a better Return On Assets (14.97%) than 91.46% of its industry peers.
BAH has a better Return On Equity (109.13%) than 95.12% of its industry peers.
The Return On Invested Capital of BAH (20.59%) is better than 93.90% of its industry peers.
BAH had an Average Return On Invested Capital over the past 3 years of 15.43%. This is above the industry average of 12.28%.
The last Return On Invested Capital (20.59%) for BAH is above the 3 year average (15.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.97% | ||
| ROE | 109.13% | ||
| ROIC | 20.59% |
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 Profit Margin of 7.34%. This is in the better half of the industry: BAH outperforms 74.39% of its industry peers.
BAH's Profit Margin has improved in the last couple of years.
BAH has a Operating Margin of 10.21%. This is in the better half of the industry: BAH outperforms 75.61% of its industry peers.
BAH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 54.49%, BAH is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
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 | 10.21% | ||
| PM (TTM) | 7.34% | ||
| GM | 54.49% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BAH is creating value.
Compared to 1 year ago, BAH has less shares outstanding
Compared to 5 years ago, BAH has less shares outstanding
The debt/assets ratio for BAH is higher compared to a year ago.
2.2 Solvency
BAH has an Altman-Z score of 4.83. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.83, BAH belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
The Debt to FCF ratio of BAH is 4.39, which is a neutral value as it means it would take BAH, 4.39 years of fcf income to pay off all of its debts.
BAH has a Debt to FCF ratio (4.39) which is in line with its industry peers.
A Debt/Equity ratio of 3.90 is on the high side and indicates that BAH has dependencies on debt financing.
The Debt to Equity ratio of BAH (3.90) is worse than 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 4.83 |
ROIC/WACC2.4
WACC8.58%
2.3 Liquidity
BAH has a Current Ratio of 1.79. This is a normal value and indicates that BAH is financially healthy and should not expect problems in meeting its short term obligations.
BAH's Current ratio of 1.79 is fine compared to the rest of the industry. BAH outperforms 67.07% of its industry peers.
A Quick Ratio of 1.79 indicates that BAH should not have too much problems paying its short term obligations.
BAH has a Quick ratio of 1.79. This is in the better half of the industry: BAH outperforms 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
BAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.45%, which is quite good.
BAH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.91% yearly.
Looking at the last year, BAH shows a very strong growth in Revenue. The Revenue has grown by 39.95%.
The Revenue has been growing by 9.93% on average over the past years. This is quite good.
EPS 1Y (TTM)15.45%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%21.05%
Revenue 1Y (TTM)39.95%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%7.31%
3.2 Future
Based on estimates for the next years, BAH will show a small growth in Earnings Per Share. The EPS will grow by 6.70% on average per year.
Based on estimates for the next years, BAH will show a small growth in Revenue. The Revenue will grow by 3.28% on average per year.
EPS Next Y2.44%
EPS Next 2Y6.16%
EPS Next 3Y6.7%
EPS Next 5YN/A
Revenue Next Year2.11%
Revenue Next 2Y3.48%
Revenue Next 3Y3.28%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
BAH is valuated correctly with a Price/Earnings ratio of 16.50.
BAH's Price/Earnings ratio is a bit cheaper when compared to the industry. BAH is cheaper than 65.85% of the companies in the same industry.
BAH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.11 indicates a correct valuation of BAH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAH is on the same level as its industry peers.
BAH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
BAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BAH is cheaper than 79.27% of the companies in the same industry.
BAH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BAH is cheaper than 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.27 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BAH does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BAH may justify a higher PE ratio.
PEG (NY)6.75
PEG (5Y)1.11
EPS Next 2Y6.16%
EPS Next 3Y6.7%
5. Dividend
5.1 Amount
BAH has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
BAH's Dividend Yield is rather good when compared to the industry average which is at 2.06. BAH pays more dividend than 84.15% of the companies in the same industry.
BAH's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
On average, the dividend of BAH grows each year by 14.89%, which is quite nice.
BAH has been paying a dividend for at least 10 years, so it has a reliable track record.
BAH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.89%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
BAH pays out 24.48% 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.
DP24.48%
EPS Next 2Y6.16%
EPS Next 3Y6.7%
104.77
-2.98 (-2.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.33%
Inst Owner Change-0.02%
Ins Owners1.02%
Ins Owner Change0.11%
Market Cap13.00B
Analysts67.78
Price Target131.39 (25.41%)
Short Float %3.4%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend2.11
Dividend Growth(5Y)14.89%
DP24.48%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.69%
Min EPS beat(2)0.21%
Max EPS beat(2)1.17%
EPS beat(4)3
Avg EPS beat(4)2.99%
Min EPS beat(4)-9.89%
Max EPS beat(4)20.49%
EPS beat(8)6
Avg EPS beat(8)6.73%
EPS beat(12)10
Avg EPS beat(12)6.86%
EPS beat(16)13
Avg EPS beat(16)6.67%
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.94%
Max Revenue beat(2)0.73%
Revenue beat(4)2
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-2.94%
Max Revenue beat(4)5.05%
Revenue beat(8)6
Avg Revenue beat(8)1.17%
Revenue beat(12)10
Avg Revenue beat(12)1.16%
Revenue beat(16)10
Avg Revenue beat(16)0.2%
PT rev (1m)-0.56%
PT rev (3m)-15.35%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)-11.08%
EPS NY rev (1m)-6.25%
EPS NY rev (3m)-8.12%
Revenue NQ rev (1m)-0.79%
Revenue NQ rev (3m)-6.43%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 16.11 | ||
| P/S | 0.87 | ||
| P/FCF | 14.27 | ||
| P/OCF | 12.88 | ||
| P/B | 12.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.76 |
EPS(TTM)6.35
EY6.06%
EPS(NY)6.51
Fwd EY6.21%
FCF(TTM)7.34
FCFY7.01%
OCF(TTM)8.13
OCFY7.76%
SpS120.26
BVpS8.08
TBVpS-15.84
PEG (NY)6.75
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.97% | ||
| ROE | 109.13% | ||
| ROCE | 27.88% | ||
| ROIC | 20.59% | ||
| ROICexc | 24.56% | ||
| ROICexgc | 69.76% | ||
| OM | 10.21% | ||
| PM (TTM) | 7.34% | ||
| GM | 54.49% | ||
| FCFM | 6.11% |
ROA(3y)8.66%
ROA(5y)8.94%
ROE(3y)59.1%
ROE(5y)55.63%
ROIC(3y)15.43%
ROIC(5y)14.48%
ROICexc(3y)17.64%
ROICexc(5y)17.09%
ROICexgc(3y)54.98%
ROICexgc(5y)51.63%
ROCE(3y)20.9%
ROCE(5y)19.61%
ROICexcg growth 3Y4.08%
ROICexcg growth 5Y-0.29%
ROICexc growth 3Y10.17%
ROICexc growth 5Y2.34%
OM growth 3Y4.05%
OM growth 5Y3.29%
PM growth 3Y11.88%
PM growth 5Y3.79%
GM growth 3Y0.86%
GM growth 5Y0.01%
F-Score7
Asset Turnover2.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 4.39 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 59.39% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 8.19 | ||
| Cash Conversion | 59.75% | ||
| Profit Quality | 83.23% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 4.83 |
F-Score7
WACC8.58%
ROIC/WACC2.4
Cap/Depr(3y)48.67%
Cap/Depr(5y)60.87%
Cap/Sales(3y)0.76%
Cap/Sales(5y)0.87%
Profit Quality(3y)108.41%
Profit Quality(5y)114.23%
High Growth Momentum
Growth
EPS 1Y (TTM)15.45%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%21.05%
EPS Next Y2.44%
EPS Next 2Y6.16%
EPS Next 3Y6.7%
EPS Next 5YN/A
Revenue 1Y (TTM)39.95%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%7.31%
Revenue Next Year2.11%
Revenue Next 2Y3.48%
Revenue Next 3Y3.28%
Revenue Next 5YN/A
EBIT growth 1Y45.34%
EBIT growth 3Y17.29%
EBIT growth 5Y13.55%
EBIT Next Year6.77%
EBIT Next 3Y2.67%
EBIT Next 5YN/A
FCF growth 1Y374.14%
FCF growth 3Y11.54%
FCF growth 5Y16.57%
OCF growth 1Y289.82%
OCF growth 3Y11.06%
OCF growth 5Y12.85%