BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BAH • US0995021062
88.32 USD
-0.41 (-0.46%)
Last: Jan 30, 2026, 11:57 AM
We assign a fundamental rating of 6 out of 10 to BAH. BAH was compared to 87 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 valued too expensively and it also shows a decent growth rate. 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.
- In the past year BAH had a positive cash flow from operations.
- Each year in the past 5 years BAH has been profitable.
- BAH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BAH's Return On Assets of 11.81% is amongst the best of the industry. BAH outperforms 87.36% of its industry peers.
- The Return On Equity of BAH (81.25%) is better than 96.55% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 15.28%, BAH belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BAH is above the industry average of 11.83%.
| 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
- Looking at the Profit Margin, with a value of 7.30%, BAH is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
- BAH's Profit Margin has improved in the last couple of years.
- BAH's Operating Margin of 9.70% is fine compared to the rest of the industry. BAH outperforms 68.97% of its industry peers.
- BAH's Operating Margin has improved in the last couple of years.
- BAH's Gross Margin of 53.05% is fine compared to the rest of the industry. BAH outperforms 72.41% of its industry peers.
- BAH's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BAH is creating value.
- The number of shares outstanding for BAH has been reduced compared to 1 year ago.
- BAH has less shares outstanding than it did 5 years ago.
- BAH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.14 indicates that BAH is not in any danger for bankruptcy at the moment.
- The Altman-Z score of BAH (4.14) is better than 78.16% of its industry peers.
- The Debt to FCF ratio of BAH is 4.22, which is a neutral value as it means it would take BAH, 4.22 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of BAH (4.22) is comparable to the rest of the industry.
- BAH has a Debt/Equity ratio of 3.76. This is a high value indicating a heavy dependency on external financing.
- BAH has a Debt to Equity ratio of 3.76. This is amonst the worse of the industry: BAH underperforms 81.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.76 | ||
| Debt/FCF | 4.22 | ||
| Altman-Z | 4.14 |
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.
- BAH's Current ratio of 1.81 is fine compared to the rest of the industry. BAH outperforms 60.92% of its industry peers.
- A Quick Ratio of 1.81 indicates that BAH should not have too much problems paying its short term obligations.
- BAH has a Quick ratio of 1.81. This is in the better half of the industry: BAH outperforms 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.61% over the past year.
- The Earnings Per Share has been growing by 14.91% on average over the past years. This is quite good.
- BAH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.49%.
- Measured over the past years, BAH shows a quite strong growth in Revenue. The Revenue has been growing by 9.93% on average per year.
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
- Based on estimates for the next years, BAH will show a small growth in Earnings Per Share. The EPS will grow by 2.35% on average per year.
- 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
- 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
- Based on the Price/Earnings ratio of 13.91, the valuation of BAH can be described as correct.
- Based on the Price/Earnings ratio, BAH is valued a bit cheaper than the industry average as 78.16% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of BAH to the average of the S&P500 Index (28.39), we can say BAH is valued rather cheaply.
- BAH is valuated correctly with a Price/Forward Earnings ratio of 14.41.
- 72.41% of the companies in the same industry are more expensive than BAH, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BAH to the average of the S&P500 Index (25.72), we can say BAH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 14.41 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BAH is valued a bit cheaper than the industry average as 71.26% of the companies are valued more expensively.
- BAH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BAH is cheaper than 85.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.48 | ||
| EV/EBITDA | 10.89 |
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 2.59%.
- Compared to an average industry Dividend Yield of 1.45, BAH pays a better dividend. On top of this BAH pays more dividend than 85.06% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BAH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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 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 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 13.91 and the Price/Book (PB) ratio is 10.45.
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.