BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAH - US0995021062 - Common Stock
91.06 USD
-0.04 (-0.04%)
Taking everything into account, BAH scores 6 out of 10 in our fundamental rating. BAH was compared to 87 industry peers in the Professional Services industry. While BAH has a great profitability rating, there are some minor concerns on its financial health. BAH has a correct valuation and a medium growth rate. Finally BAH also has an excellent dividend rating. With these ratings, BAH could be worth investigating further 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.
- Each year in the past 5 years BAH has been profitable.
- Each year in the past 5 years BAH had a positive operating cash flow.
1.2 Ratios
- BAH's Return On Assets of 11.81% is amongst the best of the industry. BAH outperforms 87.36% of its industry peers.
- With an excellent Return On Equity value of 81.25%, BAH belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
- BAH has a better Return On Invested Capital (15.28%) than 82.76% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BAH is above the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.81% | ||
| ROE | 81.25% | ||
| ROIC | 15.28% |
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
- BAH's Profit Margin of 7.30% is fine compared to the rest of the industry. BAH outperforms 72.41% of its industry peers.
- BAH's Profit Margin has improved in the last couple of years.
- BAH's Operating Margin of 9.70% is fine compared to the rest of the industry. BAH outperforms 68.97% of its industry peers.
- In the last couple of years the Operating Margin of BAH has grown nicely.
- Looking at the Gross Margin, with a value of 53.05%, BAH is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
- BAH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 7.3% | ||
| GM | 53.05% |
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
- BAH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, BAH has less shares outstanding
- Compared to 5 years ago, BAH has less shares outstanding
- Compared to 1 year ago, BAH has a worse debt to assets ratio.
2.2 Solvency
- BAH has an Altman-Z score of 4.17. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
- BAH has a better Altman-Z score (4.17) than 78.16% of its industry peers.
- The Debt to FCF ratio of BAH is 4.22, which is a neutral value as it means it would take BAH, 4.22 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of BAH (4.22) is comparable to the rest of the industry.
- A Debt/Equity ratio of 3.76 is on the high side and indicates that BAH has dependencies on debt financing.
- The Debt to Equity ratio of BAH (3.76) is worse than 81.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.76 | ||
| Debt/FCF | 4.22 | ||
| Altman-Z | 4.17 |
ROIC/WACC2.02
WACC7.58%
2.3 Liquidity
- A Current Ratio of 1.81 indicates that BAH should not have too much problems paying its short term obligations.
- BAH has a Current ratio of 1.81. This is in the better half of the industry: BAH outperforms 60.92% of its industry peers.
- A Quick Ratio of 1.81 indicates that BAH should not have too much problems paying its short term obligations.
- BAH has a better Quick ratio (1.81) than 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
- BAH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.61%.
- BAH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.91% yearly.
- Looking at the last year, BAH shows a very negative growth in Revenue. The Revenue has decreased by -22.49% in the last year.
- Measured over the past years, BAH shows a quite strong growth in Revenue. The Revenue has been growing by 9.93% on average per year.
EPS 1Y (TTM)4.61%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%14.19%
Revenue 1Y (TTM)-22.49%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%-10.19%
3.2 Future
- The Earnings Per Share is expected to grow by 2.35% on average over the next years.
- The Revenue is expected to grow by 0.54% on average over the next years.
EPS Next Y-10.6%
EPS Next 2Y-1.77%
EPS Next 3Y2.35%
EPS Next 5YN/A
Revenue Next Year-5.28%
Revenue Next 2Y-1.54%
Revenue Next 3Y0.54%
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 decreasing.
- 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 14.34, BAH is valued correctly.
- 75.86% of the companies in the same industry are more expensive than BAH, based on the Price/Earnings ratio.
- BAH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 14.86, BAH is valued correctly.
- 68.97% of the companies in the same industry are more expensive than BAH, based on the Price/Forward Earnings ratio.
- BAH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BAH is valued a bit cheaper than the industry average as 71.26% of the companies are valued more expensively.
- BAH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BAH is cheaper than 81.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.83 | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
- The excellent profitability rating of BAH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y-1.77%
EPS Next 3Y2.35%
5. Dividend
5.1 Amount
- BAH has a Yearly Dividend Yield of 2.64%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.44, BAH pays a better dividend. On top of this BAH pays more dividend than 85.06% of the companies listed in the same industry.
- BAH's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.89%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 32.97% 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.
DP32.97%
EPS Next 2Y-1.77%
EPS Next 3Y2.35%
BOOZ ALLEN HAMILTON HOLDINGS / BAH FAQ
Can you provide the ChartMill fundamental rating for BOOZ ALLEN HAMILTON HOLDINGS?
ChartMill assigns a fundamental rating of 6 / 10 to BAH.
Can you provide the valuation status for BOOZ ALLEN HAMILTON HOLDINGS?
ChartMill assigns a valuation rating of 6 / 10 to BOOZ ALLEN HAMILTON HOLDINGS (BAH). This can be considered as Fairly Valued.
What is the profitability of BAH stock?
BOOZ ALLEN HAMILTON HOLDINGS (BAH) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for BAH stock?
The Price/Earnings (PE) ratio for BOOZ ALLEN HAMILTON HOLDINGS (BAH) is 14.34 and the Price/Book (PB) ratio is 10.78.
What is the expected EPS growth for BOOZ ALLEN HAMILTON HOLDINGS (BAH) stock?
The Earnings per Share (EPS) of BOOZ ALLEN HAMILTON HOLDINGS (BAH) is expected to decline by -10.6% in the next year.