BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAH - US0995021062 - Common Stock
80.78 USD
+0.88 (+1.1%)
80.78 USD
0 (0%)
Overall BAH gets a fundamental rating of 6 out of 10. We evaluated BAH against 87 industry peers in the Professional Services industry. While BAH has a great profitability rating, 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.
In the past 5 years BAH has always been profitable.
BAH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BAH has a better Return On Assets (11.47%) than 86.21% of its industry peers.
BAH has a better Return On Equity (82.40%) than 94.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.87%, BAH belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BAH is significantly below the industry average of 22.56%.
The 3 year average ROIC (15.43%) for BAH is below the current ROIC(15.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.47% | ||
| ROE | 82.4% | ||
| ROIC | 15.87% |
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's Profit Margin of 7.01% is fine compared to the rest of the industry. BAH outperforms 71.26% of its industry peers.
BAH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.77%, BAH is doing good in the industry, outperforming 70.11% of the companies in the same industry.
BAH's Operating Margin has improved in the last couple of years.
The Gross Margin of BAH (53.71%) is better than 68.97% 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 | 9.77% | ||
| PM (TTM) | 7.01% | ||
| GM | 53.71% |
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.
The debt/assets ratio for BAH is higher compared to a year ago.
2.2 Solvency
BAH has an Altman-Z score of 4.02. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
BAH has a Altman-Z score of 4.02. This is in the better half of the industry: BAH outperforms 75.86% of its industry peers.
The Debt to FCF ratio of BAH is 4.83, which is a neutral value as it means it would take BAH, 4.83 years of fcf income to pay off all of its debts.
BAH has a Debt to FCF ratio of 4.83. This is comparable to the rest of the industry: BAH outperforms 51.72% of its industry peers.
A Debt/Equity ratio of 3.89 is on the high side and indicates that BAH has dependencies on debt financing.
BAH's Debt to Equity ratio of 3.89 is on the low side compared to the rest of the industry. BAH is outperformed by 83.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 4.02 |
ROIC/WACC2.15
WACC7.37%
2.3 Liquidity
A Current Ratio of 1.76 indicates that BAH should not have too much problems paying its short term obligations.
The Current ratio of BAH (1.76) is better than 65.52% of its industry peers.
A Quick Ratio of 1.76 indicates that BAH should not have too much problems paying its short term obligations.
The Quick ratio of BAH (1.76) is better than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.37% 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 14.91% yearly.
BAH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.55%.
BAH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.93% yearly.
EPS 1Y (TTM)3.37%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%-17.68%
Revenue 1Y (TTM)-18.55%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%-8.15%
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 2.52% on average per year.
The Revenue is expected to grow by 0.56% on average over the next years.
EPS Next Y-10.41%
EPS Next 2Y-1.48%
EPS Next 3Y2.52%
EPS Next 5YN/A
Revenue Next Year-4.16%
Revenue Next 2Y-0.78%
Revenue Next 3Y0.56%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.18, BAH is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of BAH indicates a somewhat cheap valuation: BAH is cheaper than 73.56% of the companies listed in the same industry.
BAH is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.11, which indicates a correct valuation of BAH.
BAH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BAH is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, BAH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAH is valued a bit cheaper than 75.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAH is valued a bit cheaper than 77.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.16 | ||
| EV/EBITDA | 9.95 |
4.3 Compensation for Growth
BAH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y-1.48%
EPS Next 3Y2.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, BAH has a reasonable but not impressive dividend return.
In the last 3 months the price of BAH has falen by -26.52%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.28, BAH pays a better dividend. On top of this BAH pays more dividend than 85.06% of the companies listed in the same industry.
BAH's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
The dividend of BAH is nicely growing with an annual growth rate of 14.89%!
BAH has been paying a dividend for at least 10 years, so it has 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
33.27% 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.
DP33.27%
EPS Next 2Y-1.48%
EPS Next 3Y2.52%
80.78
+0.88 (+1.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.09%
Inst Owner Change2.84%
Ins Owners1.03%
Ins Owner Change9.43%
Market Cap9.96B
Revenue(TTM)11.71B
Net Income(TTM)820.68M
Analysts53.33
Price Target109.01 (34.95%)
Short Float %5.97%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend2.11
Dividend Growth(5Y)14.89%
DP33.27%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.75%
Min EPS beat(2)-2.59%
Max EPS beat(2)1.1%
EPS beat(4)3
Avg EPS beat(4)-0.03%
Min EPS beat(4)-2.59%
Max EPS beat(4)1.17%
EPS beat(8)6
Avg EPS beat(8)5.01%
EPS beat(12)9
Avg EPS beat(12)4.9%
EPS beat(16)12
Avg EPS beat(16)5.05%
Revenue beat(2)0
Avg Revenue beat(2)-3.03%
Min Revenue beat(2)-4.3%
Max Revenue beat(2)-1.75%
Revenue beat(4)1
Avg Revenue beat(4)-2.06%
Min Revenue beat(4)-4.3%
Max Revenue beat(4)0.73%
Revenue beat(8)4
Avg Revenue beat(8)-0.32%
Revenue beat(12)8
Avg Revenue beat(12)0.46%
Revenue beat(16)10
Avg Revenue beat(16)0.14%
PT rev (1m)-16.09%
PT rev (3m)-15.98%
EPS NQ rev (1m)-20.09%
EPS NQ rev (3m)-21.71%
EPS NY rev (1m)-11.72%
EPS NY rev (3m)-12.55%
Revenue NQ rev (1m)-6.81%
Revenue NQ rev (3m)-7.75%
Revenue NY rev (1m)-4.92%
Revenue NY rev (3m)-5.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 13.11 | ||
| P/S | 0.85 | ||
| P/FCF | 12.16 | ||
| P/OCF | 10.94 | ||
| P/B | 10 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.95 |
EPS(TTM)6.13
EY7.59%
EPS(NY)6.16
Fwd EY7.63%
FCF(TTM)6.65
FCFY8.23%
OCF(TTM)7.38
OCFY9.14%
SpS94.98
BVpS8.08
TBVpS-15.79
PEG (NY)N/A
PEG (5Y)0.88
Graham Number33.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.47% | ||
| ROE | 82.4% | ||
| ROCE | 21.49% | ||
| ROIC | 15.87% | ||
| ROICexc | 18.75% | ||
| ROICexgc | 54.08% | ||
| OM | 9.77% | ||
| PM (TTM) | 7.01% | ||
| GM | 53.71% | ||
| FCFM | 7% |
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%
ROICexgc growth 3Y4.08%
ROICexgc 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-Score5
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 4.84 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 55.74% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 6.5 | ||
| Cash Conversion | 69.66% | ||
| Profit Quality | 99.8% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 4.02 |
F-Score5
WACC7.37%
ROIC/WACC2.15
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)3.37%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%-17.68%
EPS Next Y-10.41%
EPS Next 2Y-1.48%
EPS Next 3Y2.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.55%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%-8.15%
Revenue Next Year-4.16%
Revenue Next 2Y-0.78%
Revenue Next 3Y0.56%
Revenue Next 5YN/A
EBIT growth 1Y-22.38%
EBIT growth 3Y17.29%
EBIT growth 5Y13.55%
EBIT Next Year-1.47%
EBIT Next 3Y0.05%
EBIT Next 5YN/A
FCF growth 1Y347.56%
FCF growth 3Y11.54%
FCF growth 5Y16.57%
OCF growth 1Y254.28%
OCF growth 3Y11.06%
OCF growth 5Y12.85%
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.
What is the valuation status for BAH stock?
ChartMill assigns a valuation rating of 5 / 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.
What are the PE and PB ratios of BOOZ ALLEN HAMILTON HOLDINGS (BAH) stock?
The Price/Earnings (PE) ratio for BOOZ ALLEN HAMILTON HOLDINGS (BAH) is 13.18 and the Price/Book (PB) ratio is 10.
What is the financial health of BOOZ ALLEN HAMILTON HOLDINGS (BAH) stock?
The financial health rating of BOOZ ALLEN HAMILTON HOLDINGS (BAH) is 5 / 10.