Looking for growth without the hefty price tag? Consider BOOZ ALLEN HAMILTON HOLDINGS (NYSE:BAH).

Take a closer look at BOOZ ALLEN HAMILTON HOLDINGS (NYSE:BAH), an affordable growth stock uncovered by our stock screener. BAH boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Evaluating Growth: BAH

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. BAH has received a 7 out of 10:

• The Earnings Per Share has grown by an nice 17.18% over the past year.
• The Earnings Per Share has been growing by 14.79% on average over the past years. This is quite good.
• BAH shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.57%.
• BAH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.72% yearly.
• The Earnings Per Share is expected to grow by 13.38% on average over the next years. This is quite good.
• Based on estimates for the next years, BAH will show a quite strong growth in Revenue. The Revenue will grow by 9.52% on average per year.

Analyzing Valuation Metrics

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. BAH scores a 5 out of 10:

• BAH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAH indicates a somewhat cheap valuation: BAH is cheaper than 70.73% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAH indicates a somewhat cheap valuation: BAH is cheaper than 69.51% of the companies listed in the same industry.
• BAH has an outstanding profitability rating, which may justify a higher PE ratio.
• BAH's earnings are expected to grow with 12.43% in the coming years. This may justify a more expensive valuation.

Unpacking BAH's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For BAH, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 5.35 indicates that BAH is not in any danger for bankruptcy at the moment.
• BAH has a better Altman-Z score (5.35) than 86.59% of its industry peers.
• 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.
• BAH's Debt to FCF ratio of 4.00 is fine compared to the rest of the industry. BAH outperforms 60.98% of its industry peers.
• Looking at the Quick ratio, with a value of 1.57, BAH is in the better half of the industry, outperforming 60.98% of the companies in the same industry.

Profitability Assessment of BAH

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of BAH, the assigned 8 is noteworthy for profitability:

• BAH's Return On Assets of 15.10% is amongst the best of the industry. BAH outperforms 90.24% of its industry peers.
• The Return On Equity of BAH (85.10%) is better than 93.90% of its industry peers.
• BAH's Return On Invested Capital of 23.56% is amongst the best of the industry. BAH outperforms 92.68% of its industry peers.
• 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.
• BAH's Profit Margin of 7.00% is fine compared to the rest of the industry. BAH outperforms 69.51% of its industry peers.
• The Operating Margin of BAH (11.08%) is better than 80.49% of its industry peers.
• In the last couple of years the Operating Margin of BAH has grown nicely.
• With a decent Gross Margin value of 54.71%, BAH is doing good in the industry, outperforming 65.85% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of BAH

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.