BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
NYSE:BAH - New York Stock Exchange, Inc. - US0995021062 - Common Stock - Currency: USD
BAH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 80 industry peers in the Professional Services industry. BAH scores excellent on profitability, but there are some minor concerns on its financial health. BAH is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! Finally BAH also has an excellent dividend rating. With these ratings, BAH could be worth investigating further for dividend and 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.
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
BAH has a Return On Assets of 15.10%. This is amongst the best in the industry. BAH outperforms 90.00% of its industry peers.
BAH has a better Return On Equity (85.10%) than 93.75% of its industry peers.
The Return On Invested Capital of BAH (23.56%) is better than 88.75% 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 13.48%.
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
With a decent Profit Margin value of 7.00%, BAH is doing good in the industry, outperforming 73.75% of the companies in the same industry.
In the last couple of years the Profit Margin of BAH has declined.
With a decent Operating Margin value of 11.08%, BAH is doing good in the industry, outperforming 78.75% of the companies in the same industry.
In the last couple of years the Operating Margin of BAH has grown nicely.
The Gross Margin of BAH (54.71%) is better than 63.75% of its industry peers.
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.
The number of shares outstanding for BAH has been reduced compared to 1 year ago.
The number of shares outstanding for BAH has been reduced compared to 5 years ago.
The debt/assets ratio for BAH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.31 indicates that BAH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.31, BAH belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
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.
The Debt to FCF ratio of BAH (4.00) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.72 is on the high side and indicates that BAH has dependencies on debt financing.
BAH has a worse Debt to Equity ratio (2.72) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 5.31 |
ROIC/WACC2.76
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.57 indicates that BAH should not have too much problems paying its short term obligations.
BAH has a Current ratio (1.57) which is comparable to the rest of the 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 has a Quick ratio (1.57) which is comparable to the rest of the industry.
| 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.
Measured over the past years, BAH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.79% on average per year.
The Revenue has grown by 42.57% in the past year. This is a very strong growth!
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
Based on estimates for the next years, BAH will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.07% on average per year.
BAH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.18% yearly.
EPS Next Y16.36%
EPS Next 2Y13.46%
EPS Next 3Y13.07%
EPS Next 5YN/A
Revenue Next Year13.49%
Revenue Next 2Y10.29%
Revenue Next 3Y9.18%
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 stable.
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
Based on the Price/Earnings ratio of 19.19, the valuation of BAH can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as BAH.
Compared to an average S&P500 Price/Earnings ratio of 29.35, BAH is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.45, 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 65.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.10. BAH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 16.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAH is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BAH is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.47 | ||
| EV/EBITDA | 9.85 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as BAH's earnings are expected to grow with 13.07% in the coming years.
PEG (NY)1.17
PEG (5Y)1.3
EPS Next 2Y13.46%
EPS Next 3Y13.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.03%, BAH has a reasonable but not impressive dividend return.
The stock price of BAH dropped by -20.08% 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 1.97. BAH pays more dividend than 85.00% of the companies in the same industry.
BAH's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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
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 2Y13.46%
EPS Next 3Y13.07%
116.47
+8.14 (+7.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.98%
Inst Owner Change2.82%
Ins Owners0.92%
Ins Owner Change-0.02%
Market Cap14.75B
Analysts73.33
Price Target159.98 (37.36%)
Short Float %4.88%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)0.14%
PT rev (3m)-14.32%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-0.19%
EPS NY rev (1m)0.57%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 16.45 | ||
| P/S | 1 | ||
| P/FCF | 17.47 | ||
| P/OCF | 15.8 | ||
| P/B | 12.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.85 |
EPS(TTM)6.07
EY5.21%
EPS(NY)7.08
Fwd EY6.08%
FCF(TTM)6.67
FCFY5.72%
OCF(TTM)7.37
OCFY6.33%
SpS116.21
BVpS9.55
TBVpS-14.02
PEG (NY)1.17
PEG (5Y)1.3
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 | 5.31 |
F-Score7
WACC8.54%
ROIC/WACC2.76
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 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 2Y10.29%
Revenue Next 3Y9.18%
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%