BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
NYSE:BAH - New York Stock Exchange, Inc. - US0995021062 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BAH. BAH was compared to 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 is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make BAH a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
BAH had positive earnings in the past year.
In the past year BAH had a positive cash flow from operations.
BAH had positive earnings in each of the past 5 years.
BAH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BAH has a Return On Assets of 15.10%. This is amongst the best in the industry. BAH outperforms 92.41% of its industry peers.
BAH has a better Return On Equity (85.10%) than 94.94% of its industry peers.
BAH has a better Return On Invested Capital (23.56%) than 89.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BAH is in line with the industry average of 13.77%.
The last Return On Invested Capital (23.56%) for BAH is above the 3 year average (13.75%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.1% | ||
| ROE | 85.1% | ||
| ROIC | 23.56% |
ROA(3y)6.99%
ROA(5y)8.4%
ROE(3y)42.97%
ROE(5y)48.32%
ROIC(3y)13.75%
ROIC(5y)13.64%
1.3 Margins
The Profit Margin of BAH (7.00%) is better than 74.68% of its industry peers.
BAH's Profit Margin has declined in the last couple of years.
BAH's Operating Margin of 11.08% is fine compared to the rest of the industry. BAH outperforms 78.48% 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 54.71%, BAH is in the better half of the industry, outperforming 62.03% of the companies in the same industry.
BAH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.08% | ||
| PM (TTM) | 7% | ||
| GM | 54.71% |
OM growth 3Y0.81%
OM growth 5Y1.82%
PM growth 3Y-9.9%
PM growth 5Y-1.94%
GM growth 3Y0.24%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
BAH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
BAH has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 5.54 indicates that BAH is not in any danger for bankruptcy at the moment.
BAH has a Altman-Z score of 5.54. This is amongst the best in the industry. BAH outperforms 87.34% of its industry peers.
BAH has a debt to FCF ratio of 4.00. This is a good value and a sign of high solvency as BAH would need 4.00 years to pay back of all of its debts.
BAH has a Debt to FCF ratio of 4.00. This is comparable to the rest of the industry: BAH outperforms 55.70% of its industry peers.
BAH has a Debt/Equity ratio of 2.72. This is a high value indicating a heavy dependency on external financing.
BAH's Debt to Equity ratio of 2.72 is on the low side compared to the rest of the industry. BAH is outperformed by 87.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 5.54 |
ROIC/WACC2.64
WACC8.93%
2.3 Liquidity
BAH has a Current Ratio of 1.57. 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 1.57 is in line compared to the rest of the industry. BAH outperforms 55.70% of its industry peers.
BAH has a Quick Ratio of 1.57. This is a normal value and indicates that BAH is financially healthy and should not expect problems in meeting its short term obligations.
BAH has a Quick ratio (1.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.18% over the past year.
BAH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.79% yearly.
Looking at the last year, BAH shows a very strong growth in Revenue. The Revenue has grown by 42.57%.
BAH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.72% yearly.
EPS 1Y (TTM)17.18%
EPS 3Y12.24%
EPS 5Y14.79%
EPS Q2Q%9.93%
Revenue 1Y (TTM)42.57%
Revenue growth 3Y10.7%
Revenue growth 5Y9.72%
Sales Q2Q%13.52%
3.2 Future
The Earnings Per Share is expected to grow by 12.89% on average over the next years. This is quite good.
BAH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.20% yearly.
EPS Next Y15.7%
EPS Next 2Y13.49%
EPS Next 3Y12.89%
EPS Next 5YN/A
Revenue Next Year13.49%
Revenue Next 2Y10.31%
Revenue Next 3Y9.2%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BAH is valuated rather expensively with a Price/Earnings ratio of 21.54.
The rest of the industry has a similar Price/Earnings ratio as BAH.
Compared to an average S&P500 Price/Earnings ratio of 28.47, BAH is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.46, the valuation of BAH can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAH is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, BAH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.54 | ||
| Fwd PE | 18.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAH is valued a bit cheaper than the industry average as 75.95% of the companies are valued more expensively.
69.62% of the companies in the same industry are more expensive than BAH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.79 | ||
| EV/EBITDA | 11.03 |
4.3 Compensation for Growth
BAH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BAH may justify a higher PE ratio.
BAH's earnings are expected to grow with 12.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)1.46
EPS Next 2Y13.49%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, BAH has a reasonable but not impressive dividend return.
The stock price of BAH dropped by -28.08% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
BAH's Dividend Yield is rather good when compared to the industry average which is at 1.82. BAH pays more dividend than 83.54% of the companies in the same industry.
BAH's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of BAH grows each year by 19.21%, 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)19.21%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
25.74% of the earnings are spent on dividend by BAH. This is a low number and sustainable payout ratio.
The dividend of BAH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.74%
EPS Next 2Y13.49%
EPS Next 3Y12.89%
BOOZ ALLEN HAMILTON HOLDINGS
NYSE:BAH (2/5/2025, 12:48:09 PM)
130.76
-1.21 (-0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners93.06%
Inst Owner Change-1.27%
Ins Owners0.91%
Ins Owner Change-0.02%
Market Cap16.71B
Analysts72.22
Price Target159.75 (22.17%)
Short Float %3.35%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.94
Dividend Growth(5Y)19.21%
DP25.74%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.83%
Min EPS beat(2)1.17%
Max EPS beat(2)20.49%
EPS beat(4)3
Avg EPS beat(4)4.75%
Min EPS beat(4)-9.89%
Max EPS beat(4)20.49%
EPS beat(8)6
Avg EPS beat(8)7.36%
EPS beat(12)9
Avg EPS beat(12)6.67%
EPS beat(16)13
Avg EPS beat(16)7.09%
Revenue beat(2)2
Avg Revenue beat(2)2.89%
Min Revenue beat(2)0.73%
Max Revenue beat(2)5.05%
Revenue beat(4)3
Avg Revenue beat(4)1.57%
Min Revenue beat(4)-0.45%
Max Revenue beat(4)5.05%
Revenue beat(8)7
Avg Revenue beat(8)1.63%
Revenue beat(12)10
Avg Revenue beat(12)1.4%
Revenue beat(16)10
Avg Revenue beat(16)0.25%
PT rev (1m)-7.4%
PT rev (3m)-8.73%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)1.47%
EPS NY rev (1m)0.37%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.54 | ||
| Fwd PE | 18.46 | ||
| P/S | 1.14 | ||
| P/FCF | 19.79 | ||
| P/OCF | 17.89 | ||
| P/B | 13.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.03 |
EPS(TTM)6.07
EY4.64%
EPS(NY)7.08
Fwd EY5.42%
FCF(TTM)6.61
FCFY5.05%
OCF(TTM)7.31
OCFY5.59%
SpS115.2
BVpS9.47
TBVpS-13.89
PEG (NY)1.37
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.1% | ||
| ROE | 85.1% | ||
| ROCE | 32.56% | ||
| ROIC | 23.56% | ||
| ROICexc | 25.9% | ||
| ROICexgc | 75.21% | ||
| OM | 11.08% | ||
| PM (TTM) | 7% | ||
| GM | 54.71% | ||
| FCFM | 5.74% |
ROA(3y)6.99%
ROA(5y)8.4%
ROE(3y)42.97%
ROE(5y)48.32%
ROIC(3y)13.75%
ROIC(5y)13.64%
ROICexc(3y)15.6%
ROICexc(5y)16.31%
ROICexgc(3y)51.73%
ROICexgc(5y)50.75%
ROCE(3y)19.01%
ROCE(5y)18.85%
ROICexcg growth 3Y10.41%
ROICexcg growth 5Y-8.7%
ROICexc growth 3Y1.18%
ROICexc growth 5Y-0.92%
OM growth 3Y0.81%
OM growth 5Y1.82%
PM growth 3Y-9.9%
PM growth 5Y-1.94%
GM growth 3Y0.24%
GM growth 5Y0.03%
F-Score7
Asset Turnover2.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 4 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 54.74% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 9.48 | ||
| Cash Conversion | 52.06% | ||
| Profit Quality | 81.99% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 5.54 |
F-Score7
WACC8.93%
ROIC/WACC2.64
Cap/Depr(3y)47.17%
Cap/Depr(5y)80.58%
Cap/Sales(3y)0.8%
Cap/Sales(5y)1.05%
Profit Quality(3y)122.96%
Profit Quality(5y)112.24%
High Growth Momentum
Growth
EPS 1Y (TTM)17.18%
EPS 3Y12.24%
EPS 5Y14.79%
EPS Q2Q%9.93%
EPS Next Y15.7%
EPS Next 2Y13.49%
EPS Next 3Y12.89%
EPS Next 5YN/A
Revenue 1Y (TTM)42.57%
Revenue growth 3Y10.7%
Revenue growth 5Y9.72%
Sales Q2Q%13.52%
Revenue Next Year13.49%
Revenue Next 2Y10.31%
Revenue Next 3Y9.2%
Revenue Next 5YN/A
EBIT growth 1Y68.21%
EBIT growth 3Y11.6%
EBIT growth 5Y11.72%
EBIT Next Year29.38%
EBIT Next 3Y14.8%
EBIT Next 5YN/A
FCF growth 1Y55.98%
FCF growth 3Y-32.74%
FCF growth 5Y-13.85%
OCF growth 1Y50.36%
OCF growth 3Y-28.85%
OCF growth 5Y-12.32%