BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
USA - NYSE:BAH - US0995021062 - Common Stock
102.14 USD
+0.93 (+0.92%)
102.14 USD
0 (0%)
Overall BAH gets a fundamental rating of 6 out of 10. We evaluated BAH against 82 industry peers in the Professional Services industry. BAH scores excellent on profitability, 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 could make BAH a good candidate 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.
Each year in the past 5 years BAH has been profitable.
In the past 5 years BAH always reported a positive cash flow from operatings.
1.2 Ratios
BAH has a Return On Assets of 16.72%. This is amongst the best in the industry. BAH outperforms 93.90% of its industry peers.
With an excellent Return On Equity value of 112.58%, BAH belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.24%, BAH belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
BAH had an Average Return On Invested Capital over the past 3 years of 15.43%. This is above the industry average of 12.76%.
The 3 year average ROIC (15.43%) for BAH is below the current ROIC(21.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | 112.58% | ||
| ROIC | 21.24% |
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 8.04%. This is in the better half of the industry: BAH outperforms 78.05% of its industry peers.
BAH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 10.44%, BAH is doing good in the industry, outperforming 71.95% of the companies in the same industry.
BAH's Operating Margin has improved in the last couple of years.
The Gross Margin of BAH (54.29%) is better than 68.29% of its industry peers.
BAH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.44% | ||
| PM (TTM) | 8.04% | ||
| GM | 54.29% |
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
BAH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BAH has a worse debt to assets ratio.
2.2 Solvency
BAH has an Altman-Z score of 4.89. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
BAH's Altman-Z score of 4.89 is amongst the best of the industry. BAH outperforms 80.49% of its industry peers.
BAH has a debt to FCF ratio of 4.03. This is a neutral value as BAH would need 4.03 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.03, BAH perfoms like the industry average, outperforming 54.88% of the companies in the same industry.
A Debt/Equity ratio of 3.66 is on the high side and indicates that BAH has dependencies on debt financing.
BAH has a worse Debt to Equity ratio (3.66) than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.66 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 4.89 |
ROIC/WACC2.79
WACC7.6%
2.3 Liquidity
BAH has a Current Ratio of 1.78. 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 better Current ratio (1.78) than 69.51% of its industry peers.
A Quick Ratio of 1.78 indicates that BAH should not have too much problems paying its short term obligations.
BAH has a Quick ratio of 1.78. This is in the better half of the industry: BAH outperforms 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
BAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.22%, which is quite good.
The Earnings Per Share has been growing by 14.91% on average over the past years. This is quite good.
The Revenue has grown by 36.12% in the past year. This is a very strong growth!
The Revenue has been growing by 9.93% on average over the past years. This is quite good.
EPS 1Y (TTM)19.22%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%7.25%
Revenue 1Y (TTM)36.12%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%-0.6%
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 6.82% on average per year.
The Revenue is expected to grow by 2.86% on average over the next years.
EPS Next Y1.48%
EPS Next 2Y5.78%
EPS Next 3Y6.82%
EPS Next 5YN/A
Revenue Next Year0.67%
Revenue Next 2Y2.85%
Revenue Next 3Y2.86%
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.
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
With a Price/Earnings ratio of 15.84, 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 73.17% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BAH to the average of the S&P500 Index (27.38), we can say BAH is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.38 indicates a correct valuation of BAH.
71.95% 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 (22.86), we can say BAH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 14.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAH is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAH indicates a somewhat cheap valuation: BAH is cheaper than 79.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.75 | ||
| EV/EBITDA | 9.15 |
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)10.67
PEG (5Y)1.06
EPS Next 2Y5.78%
EPS Next 3Y6.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, BAH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.07, BAH pays a better dividend. On top of this BAH pays more dividend than 86.59% of the companies listed in the same industry.
BAH's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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
BAH pays out 22.65% 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.
DP22.65%
EPS Next 2Y5.78%
EPS Next 3Y6.82%
102.14
+0.93 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners102.64%
Inst Owner Change-7.18%
Ins Owners1.01%
Ins Owner Change3.65%
Market Cap12.59B
Analysts68.42
Price Target129.22 (26.51%)
Short Float %5.28%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend2.11
Dividend Growth(5Y)14.89%
DP22.65%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.65%
Min EPS beat(2)0.21%
Max EPS beat(2)1.1%
EPS beat(4)4
Avg EPS beat(4)5.74%
Min EPS beat(4)0.21%
Max EPS beat(4)20.49%
EPS beat(8)6
Avg EPS beat(8)4.87%
EPS beat(12)10
Avg EPS beat(12)6.57%
EPS beat(16)13
Avg EPS beat(16)6.19%
Revenue beat(2)0
Avg Revenue beat(2)-2.34%
Min Revenue beat(2)-2.94%
Max Revenue beat(2)-1.75%
Revenue beat(4)2
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-2.94%
Max Revenue beat(4)5.05%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)9
Avg Revenue beat(12)0.88%
Revenue beat(16)10
Avg Revenue beat(16)0.25%
PT rev (1m)-0.4%
PT rev (3m)-2.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.19%
EPS NY rev (1m)-0.94%
EPS NY rev (3m)-7.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.74%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 14.38 | ||
| P/S | 0.84 | ||
| P/FCF | 12.75 | ||
| P/OCF | 11.7 | ||
| P/B | 11.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.15 |
EPS(TTM)6.45
EY6.31%
EPS(NY)7.1
Fwd EY6.96%
FCF(TTM)8.01
FCFY7.84%
OCF(TTM)8.73
OCFY8.55%
SpS120.92
BVpS8.64
TBVpS-15.33
PEG (NY)10.67
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | 112.58% | ||
| ROCE | 28.76% | ||
| ROIC | 21.24% | ||
| ROICexc | 24.45% | ||
| ROICexgc | 65.84% | ||
| OM | 10.44% | ||
| PM (TTM) | 8.04% | ||
| GM | 54.29% | ||
| FCFM | 6.62% |
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 Turnover2.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.66 | ||
| Debt/FCF | 4.03 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 54.04% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 8.59 | ||
| Cash Conversion | 62.56% | ||
| Profit Quality | 82.34% | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 4.89 |
F-Score7
WACC7.6%
ROIC/WACC2.79
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)19.22%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%7.25%
EPS Next Y1.48%
EPS Next 2Y5.78%
EPS Next 3Y6.82%
EPS Next 5YN/A
Revenue 1Y (TTM)36.12%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%-0.6%
Revenue Next Year0.67%
Revenue Next 2Y2.85%
Revenue Next 3Y2.86%
Revenue Next 5YN/A
EBIT growth 1Y49.02%
EBIT growth 3Y17.29%
EBIT growth 5Y13.55%
EBIT Next Year-1.47%
EBIT Next 3Y2.91%
EBIT Next 5YN/A
FCF growth 1Y95.9%
FCF growth 3Y11.54%
FCF growth 5Y16.57%
OCF growth 1Y86.49%
OCF growth 3Y11.06%
OCF growth 5Y12.85%