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 82 industry peers in the Professional Services industry. While BAH has a great profitability rating, 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.
In the past year BAH had a positive cash flow from operations.
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 (14.97%) than 91.46% of its industry peers.
Looking at the Return On Equity, with a value of 109.13%, BAH belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
BAH has a better Return On Invested Capital (20.59%) than 93.90% of its industry peers.
BAH had an Average Return On Invested Capital over the past 3 years of 15.43%. This is above the industry average of 12.28%.
The 3 year average ROIC (15.43%) for BAH is below the current ROIC(20.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.97% | ||
| ROE | 109.13% | ||
| ROIC | 20.59% |
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
Looking at the Profit Margin, with a value of 7.34%, BAH is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
In the last couple of years the Profit Margin of BAH has grown nicely.
BAH has a Operating Margin of 10.21%. This is in the better half of the industry: BAH outperforms 75.61% of its industry peers.
In the last couple of years the Operating Margin of BAH has grown nicely.
BAH's Gross Margin of 54.49% is fine compared to the rest of the industry. BAH outperforms 67.07% 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 | 10.21% | ||
| PM (TTM) | 7.34% | ||
| GM | 54.49% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 4.82. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of BAH (4.82) is better than 81.71% of its industry peers.
The Debt to FCF ratio of BAH is 4.39, which is a neutral value as it means it would take BAH, 4.39 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.39, BAH perfoms like the industry average, outperforming 54.88% of the companies in the same industry.
A Debt/Equity ratio of 3.90 is on the high side and indicates that BAH has dependencies on debt financing.
The Debt to Equity ratio of BAH (3.90) is worse than 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 4.82 |
ROIC/WACC2.44
WACC8.44%
2.3 Liquidity
A Current Ratio of 1.79 indicates that BAH should not have too much problems paying its short term obligations.
BAH's Current ratio of 1.79 is fine compared to the rest of the industry. BAH outperforms 67.07% of its industry peers.
A Quick Ratio of 1.79 indicates that BAH should not have too much problems paying its short term obligations.
BAH has a better Quick ratio (1.79) than 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.45% over the past year.
The Earnings Per Share has been growing by 14.91% 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 39.95%.
The Revenue has been growing by 9.93% on average over the past years. This is quite good.
EPS 1Y (TTM)15.45%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%21.05%
Revenue 1Y (TTM)39.95%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%7.31%
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 6.70% on average per year.
The Revenue is expected to grow by 3.28% on average over the next years.
EPS Next Y2.44%
EPS Next 2Y6.16%
EPS Next 3Y6.7%
EPS Next 5YN/A
Revenue Next Year2.11%
Revenue Next 2Y3.48%
Revenue Next 3Y3.28%
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.
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
A Price/Earnings ratio of 16.84 indicates a correct valuation of BAH.
Based on the Price/Earnings ratio, BAH is valued a bit cheaper than 67.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. BAH is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.44 indicates a correct valuation of BAH.
BAH's Price/Forward Earnings is on the same level as the industry average.
BAH is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 16.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BAH indicates a somewhat cheap valuation: BAH is cheaper than 79.27% of the companies listed in the same industry.
71.95% of the companies in the same industry are more expensive than BAH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.57 | ||
| EV/EBITDA | 9.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BAH may justify a higher PE ratio.
PEG (NY)6.89
PEG (5Y)1.13
EPS Next 2Y6.16%
EPS Next 3Y6.7%
5. Dividend
5.1 Amount
BAH has a Yearly Dividend Yield of 2.04%.
BAH's Dividend Yield is rather good when compared to the industry average which is at 2.06. BAH pays more dividend than 84.15% of the companies in the same industry.
BAH's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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
24.48% 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.
DP24.48%
EPS Next 2Y6.16%
EPS Next 3Y6.7%
106.94
-0.74 (-0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.33%
Inst Owner Change-0.02%
Ins Owners1.02%
Ins Owner Change0.11%
Market Cap13.27B
Analysts67.78
Price Target131.39 (22.86%)
Short Float %3.34%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend2.11
Dividend Growth(5Y)14.89%
DP24.48%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.69%
Min EPS beat(2)0.21%
Max EPS beat(2)1.17%
EPS beat(4)3
Avg EPS beat(4)2.99%
Min EPS beat(4)-9.89%
Max EPS beat(4)20.49%
EPS beat(8)6
Avg EPS beat(8)6.73%
EPS beat(12)10
Avg EPS beat(12)6.86%
EPS beat(16)13
Avg EPS beat(16)6.67%
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.94%
Max Revenue beat(2)0.73%
Revenue beat(4)2
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-2.94%
Max Revenue beat(4)5.05%
Revenue beat(8)6
Avg Revenue beat(8)1.17%
Revenue beat(12)10
Avg Revenue beat(12)1.16%
Revenue beat(16)10
Avg Revenue beat(16)0.2%
PT rev (1m)-0.56%
PT rev (3m)-15.35%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)-11.08%
EPS NY rev (1m)-6.25%
EPS NY rev (3m)-8.12%
Revenue NQ rev (1m)-0.79%
Revenue NQ rev (3m)-6.43%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 16.44 | ||
| P/S | 0.89 | ||
| P/FCF | 14.57 | ||
| P/OCF | 13.15 | ||
| P/B | 13.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.7 |
EPS(TTM)6.35
EY5.94%
EPS(NY)6.51
Fwd EY6.08%
FCF(TTM)7.34
FCFY6.87%
OCF(TTM)8.13
OCFY7.6%
SpS120.26
BVpS8.08
TBVpS-15.84
PEG (NY)6.89
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.97% | ||
| ROE | 109.13% | ||
| ROCE | 27.88% | ||
| ROIC | 20.59% | ||
| ROICexc | 24.56% | ||
| ROICexgc | 69.76% | ||
| OM | 10.21% | ||
| PM (TTM) | 7.34% | ||
| GM | 54.49% | ||
| FCFM | 6.11% |
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 Turnover2.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 4.39 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 59.39% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 8.19 | ||
| Cash Conversion | 59.75% | ||
| Profit Quality | 83.23% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 4.82 |
F-Score7
WACC8.44%
ROIC/WACC2.44
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)15.45%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%21.05%
EPS Next Y2.44%
EPS Next 2Y6.16%
EPS Next 3Y6.7%
EPS Next 5YN/A
Revenue 1Y (TTM)39.95%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%7.31%
Revenue Next Year2.11%
Revenue Next 2Y3.48%
Revenue Next 3Y3.28%
Revenue Next 5YN/A
EBIT growth 1Y45.34%
EBIT growth 3Y17.29%
EBIT growth 5Y13.55%
EBIT Next Year6.77%
EBIT Next 3Y2.67%
EBIT Next 5YN/A
FCF growth 1Y374.14%
FCF growth 3Y11.54%
FCF growth 5Y16.57%
OCF growth 1Y289.82%
OCF growth 3Y11.06%
OCF growth 5Y12.85%