BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
NYSE:BAH - New York Stock Exchange, Inc. - US0995021062 - Common Stock - Currency: USD
Overall BAH gets a fundamental rating of 6 out of 10. We evaluated BAH against 82 industry peers in the Professional Services industry. BAH has an excellent profitability rating, 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! With these ratings, BAH could be worth investigating further for 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.
BAH had positive earnings in each of the past 5 years.
Each year in the past 5 years BAH had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 15.10%, BAH belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
The Return On Equity of BAH (85.10%) is better than 93.90% of its industry peers.
With an excellent Return On Invested Capital value of 23.56%, BAH belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BAH is in line with the industry average of 13.38%.
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
Looking at the Profit Margin, with a value of 7.00%, BAH is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
BAH's Profit Margin has declined in the last couple of years.
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.
BAH has a Gross Margin of 54.71%. This is in the better half of the industry: BAH outperforms 65.85% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BAH is creating value.
BAH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BAH has less shares outstanding
The debt/assets ratio for BAH is higher compared to a year ago.
2.2 Solvency
BAH has an Altman-Z score of 5.35. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
BAH's Altman-Z score of 5.35 is amongst the best of the industry. BAH outperforms 86.59% of its industry peers.
The Debt to FCF ratio of BAH is 4.00, which is a good value as it means it would take BAH, 4.00 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.00, BAH is in line with its industry, outperforming 59.76% of the companies in the same industry.
BAH has a Debt/Equity ratio of 2.72. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.72, BAH is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 5.35 |
ROIC/WACC2.92
WACC8.07%
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 in line with its industry peers.
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 of 1.57. This is in the better half of the industry: BAH outperforms 60.98% of its industry peers.
| 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.
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.
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
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.
EPS Next Y17.53%
EPS Next 2Y12.32%
EPS Next 3Y12.43%
EPS Next 5Y13.38%
Revenue Next Year13.44%
Revenue Next 2Y10.11%
Revenue Next 3Y8.97%
Revenue Next 5Y9.52%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.69 indicates a rather expensive valuation of BAH.
BAH's Price/Earnings ratio is in line with the industry average.
BAH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.75.
Based on the Price/Forward Earnings ratio of 17.23, the valuation of BAH can be described as rather expensive.
BAH's Price/Forward Earnings is on the same level as the industry average.
BAH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 17.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAH is valued a bit cheaper than 71.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BAH is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.93 | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
BAH's 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 12.43% in the coming years.
PEG (NY)1.12
PEG (5Y)1.33
EPS Next 2Y12.32%
EPS Next 3Y12.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, BAH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.40, BAH pays a better dividend. On top of this BAH pays more dividend than 82.93% of the companies listed in the same industry.
BAH's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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 2Y12.32%
EPS Next 3Y12.43%
119.53
-0.49 (-0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.98%
Inst Owner Change0.62%
Ins Owners0.92%
Ins Owner Change-0.03%
Market Cap15.14B
Analysts71.58
Price Target137.97 (15.43%)
Short Float %5.31%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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)-13.76%
PT rev (3m)-20.03%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-1.09%
EPS NY rev (1m)1.01%
EPS NY rev (3m)1.96%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 17.23 | ||
| P/S | 1.03 | ||
| P/FCF | 17.93 | ||
| P/OCF | 16.21 | ||
| P/B | 12.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.07 |
EPS(TTM)6.07
EY5.08%
EPS(NY)6.94
Fwd EY5.8%
FCF(TTM)6.67
FCFY5.58%
OCF(TTM)7.37
OCFY6.17%
SpS116.21
BVpS9.55
TBVpS-14.02
PEG (NY)1.12
PEG (5Y)1.33
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 | 5.35 |
F-Score7
WACC8.07%
ROIC/WACC2.92
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 Y17.53%
EPS Next 2Y12.32%
EPS Next 3Y12.43%
EPS Next 5Y13.38%
Revenue 1Y (TTM)42.57%
Revenue growth 3Y10.7%
Revenue growth 5Y9.72%
Sales Q2Q%13.52%
Revenue Next Year13.44%
Revenue Next 2Y10.11%
Revenue Next 3Y8.97%
Revenue Next 5Y9.52%
EBIT growth 1Y68.21%
EBIT growth 3Y11.6%
EBIT growth 5Y11.72%
EBIT Next Year28.52%
EBIT Next 3Y14.77%
EBIT Next 5Y13.56%
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%