BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
NYSE:BAH - New York Stock Exchange, Inc. - US0995021062 - Common Stock - Currency: USD
Taking everything into account, BAH scores 7 out of 10 in our fundamental rating. BAH was compared to 83 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 growing strongly while it is still valued neutral. This is a good combination! This makes BAH very considerable for growth 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.
In the past 5 years BAH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.10%, BAH belongs to the top of the industry, outperforming 90.36% of the companies in the same industry.
BAH's Return On Equity of 85.10% is amongst the best of the industry. BAH outperforms 93.98% of its industry peers.
BAH's Return On Invested Capital of 23.56% is amongst the best of the industry. BAH outperforms 91.57% 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 13.57%.
The 3 year average ROIC (13.75%) for BAH is below the current ROIC(23.56%), indicating increased profibility in the last year.
| 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
BAH's Profit Margin of 7.00% is fine compared to the rest of the industry. BAH outperforms 72.29% of its industry peers.
In the last couple of years the Profit Margin of BAH has declined.
The Operating Margin of BAH (11.08%) is better than 80.72% of its industry peers.
BAH's Operating Margin has improved in the last couple of years.
BAH's Gross Margin of 54.71% is fine compared to the rest of the industry. BAH outperforms 66.27% 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 | 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.
Compared to 1 year ago, BAH has less shares outstanding
The number of shares outstanding for BAH has been reduced compared to 5 years ago.
BAH has a worse debt/assets ratio than last year.
2.2 Solvency
BAH has an Altman-Z score of 5.27. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
BAH has a better Altman-Z score (5.27) than 90.36% 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.
With a Debt to FCF ratio value of 4.00, BAH perfoms like the industry average, outperforming 59.04% of the companies in the same industry.
BAH has a Debt/Equity ratio of 2.72. This is a high value indicating a heavy dependency on external financing.
BAH has a Debt to Equity ratio of 2.72. This is amonst the worse of the industry: BAH underperforms 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 5.27 |
ROIC/WACC2.84
WACC8.29%
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.
With a decent Current ratio value of 1.57, BAH is doing good in the industry, outperforming 60.24% of the companies in the same industry.
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's Quick ratio of 1.57 is fine compared to the rest of the industry. BAH outperforms 61.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
BAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.18%, which is quite good.
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 very strong growth in Revenue. The Revenue has grown by 42.57%.
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.
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 13.38% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.52% on average over the next years. This is quite good.
EPS Next Y16.36%
EPS Next 2Y13.46%
EPS Next 3Y13.07%
EPS Next 5Y13.38%
Revenue Next Year13.48%
Revenue Next 2Y10.27%
Revenue Next 3Y9.14%
Revenue Next 5Y9.52%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.73, the valuation of BAH can be described as rather expensive.
BAH's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. BAH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.06, the valuation of BAH can be described as correct.
Based on the Price/Forward Earnings ratio, BAH is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
BAH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 16.06 |
4.2 Price Multiples
BAH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BAH is cheaper than 74.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAH is valued a bit cheaper than 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.06 | ||
| EV/EBITDA | 9.65 |
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 13.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)1.27
EPS Next 2Y13.46%
EPS Next 3Y13.07%
5. Dividend
5.1 Amount
BAH has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.24, BAH pays a better dividend. On top of this BAH pays more dividend than 84.34% of the companies listed in the same industry.
BAH's Dividend Yield is slightly below the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
The dividend of BAH is nicely growing with an annual growth rate of 19.21%!
BAH has paid a dividend for at least 10 years, which is 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
BAH pays out 25.74% of its income as dividend. This is a sustainable payout ratio.
BAH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.74%
EPS Next 2Y13.46%
EPS Next 3Y13.07%
113.68
+2.39 (+2.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.98%
Inst Owner Change0%
Ins Owners0.92%
Ins Owner Change-0.05%
Market Cap14.40B
Analysts71.58
Price Target155.22 (36.54%)
Short Float %4.78%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)-2.97%
PT rev (3m)-10.03%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)0%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 16.06 | ||
| P/S | 0.98 | ||
| P/FCF | 17.06 | ||
| P/OCF | 15.42 | ||
| P/B | 11.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.65 |
EPS(TTM)6.07
EY5.34%
EPS(NY)7.08
Fwd EY6.23%
FCF(TTM)6.67
FCFY5.86%
OCF(TTM)7.37
OCFY6.49%
SpS116.21
BVpS9.55
TBVpS-14.02
PEG (NY)1.14
PEG (5Y)1.27
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 | 5.27 |
F-Score7
WACC8.29%
ROIC/WACC2.84
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 Y16.36%
EPS Next 2Y13.46%
EPS Next 3Y13.07%
EPS Next 5Y13.38%
Revenue 1Y (TTM)42.57%
Revenue growth 3Y10.7%
Revenue growth 5Y9.72%
Sales Q2Q%13.52%
Revenue Next Year13.48%
Revenue Next 2Y10.27%
Revenue Next 3Y9.14%
Revenue Next 5Y9.52%
EBIT growth 1Y68.21%
EBIT growth 3Y11.6%
EBIT growth 5Y11.72%
EBIT Next Year28.52%
EBIT Next 3Y14.77%
EBIT Next 5Y13.56%
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%