DLH HOLDINGS CORP (DLHC) Stock Fundamental Analysis
NASDAQ:DLHC - Nasdaq - US23335Q1004 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to DLHC. DLHC was compared to 80 industry peers in the Professional Services industry. There are concerns on the financial health of DLHC while its profitability can be described as average. DLHC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DLHC was profitable.
DLHC had a positive operating cash flow in the past year.
DLHC had positive earnings in each of the past 5 years.
Each year in the past 5 years DLHC had a positive operating cash flow.
1.2 Ratios
DLHC has a Return On Assets of 1.96%. This is comparable to the rest of the industry: DLHC outperforms 46.25% of its industry peers.
Looking at the Return On Equity, with a value of 5.71%, DLHC is in line with its industry, outperforming 48.75% of the companies in the same industry.
DLHC's Return On Invested Capital of 7.20% is in line compared to the rest of the industry. DLHC outperforms 51.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DLHC is in line with the industry average of 13.70%.
The 3 year average ROIC (11.89%) for DLHC is well above the current ROIC(7.20%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 5.71% | ||
| ROIC | 7.2% |
ROA(3y)5.52%
ROA(5y)5.11%
ROE(3y)11.15%
ROE(5y)12.44%
ROIC(3y)11.89%
ROIC(5y)11.02%
1.3 Margins
DLHC's Profit Margin of 1.64% is in line compared to the rest of the industry. DLHC outperforms 46.25% of its industry peers.
In the last couple of years the Profit Margin of DLHC has declined.
The Operating Margin of DLHC (6.10%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DLHC has declined.
DLHC has a worse Gross Margin (20.20%) than 77.50% of its industry peers.
DLHC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.1% | ||
| PM (TTM) | 1.64% | ||
| GM | 20.2% |
OM growth 3Y-5.45%
OM growth 5Y-2.42%
PM growth 3Y-23.19%
PM growth 5Y-10.78%
GM growth 3Y-1.6%
GM growth 5Y-2.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DLHC is still creating some value.
The number of shares outstanding for DLHC has been increased compared to 1 year ago.
The number of shares outstanding for DLHC has been increased compared to 5 years ago.
DLHC has a better debt/assets ratio than last year.
2.2 Solvency
DLHC has an Altman-Z score of 1.71. This is a bad value and indicates that DLHC is not financially healthy and even has some risk of bankruptcy.
DLHC's Altman-Z score of 1.71 is on the low side compared to the rest of the industry. DLHC is outperformed by 63.75% of its industry peers.
DLHC has a debt to FCF ratio of 17.00. This is a negative value and a sign of low solvency as DLHC would need 17.00 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.00, DLHC is not doing good in the industry: 66.25% of the companies in the same industry are doing better.
DLHC has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.21, DLHC is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 17 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.69
WACC10.44%
2.3 Liquidity
DLHC has a Current Ratio of 1.04. This is a normal value and indicates that DLHC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DLHC (1.04) is worse than 72.50% of its industry peers.
A Quick Ratio of 1.04 indicates that DLHC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, DLHC is doing worse than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for DLHC have decreased strongly by -10.20% in the last year.
The Earnings Per Share has been growing slightly by 1.22% on average over the past years.
Looking at the last year, DLHC shows a decrease in Revenue. The Revenue has decreased by -3.02% in the last year.
The Revenue has been growing by 19.81% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.2%
EPS 3Y-11.67%
EPS 5Y1.22%
EPS Q2Q%-46.67%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y17.18%
Revenue growth 5Y19.81%
Sales Q2Q%-7.22%
3.2 Future
DLHC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -50.33% yearly.
Based on estimates for the next years, DLHC will show a very negative growth in Revenue. The Revenue will decrease by -17.14% on average per year.
EPS Next Y-126%
EPS Next 2Y-50.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-19.91%
Revenue Next 2Y-17.14%
Revenue Next 3YN/A
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.
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 11.86, the valuation of DLHC can be described as very reasonable.
Based on the Price/Earnings ratio, DLHC is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.35. DLHC is valued rather cheaply when compared to this.
DLHC is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLHC is valued cheaper than 92.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLHC indicates a rather cheap valuation: DLHC is cheaper than 96.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.87 | ||
| EV/EBITDA | 5.8 |
4.3 Compensation for Growth
A cheap valuation may be justified as DLHC's earnings are expected to decrease with -50.33% in the coming years.
PEG (NY)N/A
PEG (5Y)9.73
EPS Next 2Y-50.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DLHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.22
+0.35 (+7.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners76.45%
Inst Owner Change9.55%
Ins Owners13.55%
Ins Owner Change9.36%
Market Cap75.12M
Analysts82.86
Price Target15.3 (193.1%)
Short Float %1.86%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.32%
Min EPS beat(2)12.04%
Max EPS beat(2)42.6%
EPS beat(4)2
Avg EPS beat(4)0.29%
Min EPS beat(4)-43.98%
Max EPS beat(4)42.6%
EPS beat(8)5
Avg EPS beat(8)-0.15%
EPS beat(12)8
Avg EPS beat(12)9.62%
EPS beat(16)10
Avg EPS beat(16)5.62%
Revenue beat(2)0
Avg Revenue beat(2)-7.34%
Min Revenue beat(2)-8.25%
Max Revenue beat(2)-6.44%
Revenue beat(4)1
Avg Revenue beat(4)-4.7%
Min Revenue beat(4)-8.25%
Max Revenue beat(4)0.03%
Revenue beat(8)1
Avg Revenue beat(8)-4.41%
Revenue beat(12)2
Avg Revenue beat(12)-3.02%
Revenue beat(16)4
Avg Revenue beat(16)-2.42%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-30%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-18.18%
EPS NY rev (3m)-120%
Revenue NQ rev (1m)-7.69%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-24.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | N/A | ||
| P/S | 0.19 | ||
| P/FCF | 7.87 | ||
| P/OCF | 6.98 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.8 |
EPS(TTM)0.44
EY8.43%
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)0.66
FCFY12.7%
OCF(TTM)0.75
OCFY14.32%
SpS27.02
BVpS7.74
TBVpS-9.1
PEG (NY)N/A
PEG (5Y)9.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 5.71% | ||
| ROCE | 9.11% | ||
| ROIC | 7.2% | ||
| ROICexc | 7.21% | ||
| ROICexgc | 107.06% | ||
| OM | 6.1% | ||
| PM (TTM) | 1.64% | ||
| GM | 20.2% | ||
| FCFM | 2.45% |
ROA(3y)5.52%
ROA(5y)5.11%
ROE(3y)11.15%
ROE(5y)12.44%
ROIC(3y)11.89%
ROIC(5y)11.02%
ROICexc(3y)11.91%
ROICexc(5y)11.55%
ROICexgc(3y)142.07%
ROICexgc(5y)N/A
ROCE(3y)15.05%
ROCE(5y)13.95%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-9.4%
ROICexc growth 3Y-17.74%
ROICexc growth 5Y-3.87%
OM growth 3Y-5.45%
OM growth 5Y-2.42%
PM growth 3Y-23.19%
PM growth 5Y-10.78%
GM growth 3Y-1.6%
GM growth 5Y-2.24%
F-Score7
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 17 | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 7.1% | ||
| Cap/Sales | 0.31% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 26.35% | ||
| Profit Quality | 150.02% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.71 |
F-Score7
WACC10.44%
ROIC/WACC0.69
Cap/Depr(3y)6.77%
Cap/Depr(5y)4.74%
Cap/Sales(3y)0.2%
Cap/Sales(5y)0.14%
Profit Quality(3y)813.86%
Profit Quality(5y)632.5%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.2%
EPS 3Y-11.67%
EPS 5Y1.22%
EPS Q2Q%-46.67%
EPS Next Y-126%
EPS Next 2Y-50.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y17.18%
Revenue growth 5Y19.81%
Sales Q2Q%-7.22%
Revenue Next Year-19.91%
Revenue Next 2Y-17.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-14.44%
EBIT growth 3Y10.79%
EBIT growth 5Y16.91%
EBIT Next Year30.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-60.43%
FCF growth 3Y-16.5%
FCF growth 5Y8.52%
OCF growth 1Y-57.6%
OCF growth 3Y-15.69%
OCF growth 5Y8.69%