BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
USA - NYSE:BAH - US0995021062 - Common Stock
104.53 USD
+0.51 (+0.49%)
BAH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. BAH scores excellent on profitability, but 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.
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 16.72%, BAH belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
BAH has a better Return On Equity (112.58%) than 96.34% of its industry peers.
The Return On Invested Capital of BAH (21.24%) is better than 92.68% 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 13.20%.
The 3 year average ROIC (15.43%) for BAH is below the current ROIC(21.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | 112.58% | ||
| ROIC | 21.24% |
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 8.04% is fine compared to the rest of the industry. BAH outperforms 76.83% of its industry peers.
BAH's Profit Margin has improved in the last couple of years.
BAH has a Operating Margin of 10.44%. This is in the better half of the industry: BAH outperforms 70.73% of its industry peers.
In the last couple of years the Operating Margin of BAH has grown nicely.
The Gross Margin of BAH (54.29%) is better than 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 | 10.44% | ||
| PM (TTM) | 8.04% | ||
| GM | 54.29% |
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.
The number of shares outstanding for BAH has been reduced compared to 1 year ago.
The number of shares outstanding for BAH has been reduced compared to 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 4.92. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
BAH's Altman-Z score of 4.92 is amongst the best of the industry. BAH outperforms 82.93% of its industry peers.
BAH has a debt to FCF ratio of 4.03. This is a neutral value as BAH would need 4.03 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.03, BAH perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
BAH has a Debt/Equity ratio of 3.66. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.66, BAH is not doing good in the industry: 86.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.66 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 4.92 |
ROIC/WACC2.78
WACC7.63%
2.3 Liquidity
A Current Ratio of 1.78 indicates that BAH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.78, BAH is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
A Quick Ratio of 1.78 indicates that BAH should not have too much problems paying its short term obligations.
BAH's Quick ratio of 1.78 is fine compared to the rest of the industry. BAH outperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
BAH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.22%, which is quite good.
BAH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.91% yearly.
The Revenue has grown by 36.12% in the past year. This is a very strong growth!
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)19.22%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%7.25%
Revenue 1Y (TTM)36.12%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%-0.6%
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 6.87% on average per year.
Based on estimates for the next years, BAH will show a small growth in Revenue. The Revenue will grow by 3.56% on average per year.
EPS Next Y1.48%
EPS Next 2Y5.78%
EPS Next 3Y6.87%
EPS Next 5YN/A
Revenue Next Year0.8%
Revenue Next 2Y3.02%
Revenue Next 3Y3.56%
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
BAH is valuated correctly with a Price/Earnings ratio of 16.21.
BAH's Price/Earnings ratio is a bit cheaper when compared to the industry. BAH is cheaper than 68.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of BAH to the average of the S&P500 Index (27.86), we can say BAH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.71, the valuation of BAH can be described as correct.
Based on the Price/Forward Earnings ratio, BAH is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
BAH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.21 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
79.27% of the companies in the same industry are more expensive than BAH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BAH is valued a bit cheaper than 74.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.05 | ||
| EV/EBITDA | 9.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BAH does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BAH may justify a higher PE ratio.
PEG (NY)10.92
PEG (5Y)1.09
EPS Next 2Y5.78%
EPS Next 3Y6.87%
5. Dividend
5.1 Amount
BAH has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.62, BAH pays a better dividend. On top of this BAH pays more dividend than 85.37% of the companies listed in the same industry.
BAH's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
On average, the dividend of BAH grows each year by 14.89%, which is quite nice.
BAH has paid a dividend for at least 10 years, which is 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
BAH pays out 22.65% of its income as dividend. This is a sustainable payout ratio.
BAH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.65%
EPS Next 2Y5.78%
EPS Next 3Y6.87%
NYSE:BAH (10/6/2025, 11:30:10 AM)
104.53
+0.51 (+0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.09%
Inst Owner Change0%
Ins Owners1.03%
Ins Owner Change4.61%
Market Cap12.88B
Analysts68.89
Price Target129.9 (24.27%)
Short Float %5.4%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend2.11
Dividend Growth(5Y)14.89%
DP22.65%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.65%
Min EPS beat(2)0.21%
Max EPS beat(2)1.1%
EPS beat(4)4
Avg EPS beat(4)5.74%
Min EPS beat(4)0.21%
Max EPS beat(4)20.49%
EPS beat(8)6
Avg EPS beat(8)4.87%
EPS beat(12)10
Avg EPS beat(12)6.57%
EPS beat(16)13
Avg EPS beat(16)6.19%
Revenue beat(2)0
Avg Revenue beat(2)-2.34%
Min Revenue beat(2)-2.94%
Max Revenue beat(2)-1.75%
Revenue beat(4)2
Avg Revenue beat(4)0.28%
Min Revenue beat(4)-2.94%
Max Revenue beat(4)5.05%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)9
Avg Revenue beat(12)0.88%
Revenue beat(16)10
Avg Revenue beat(16)0.25%
PT rev (1m)0.53%
PT rev (3m)-1.13%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-5.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.31%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.21 | ||
| Fwd PE | 14.71 | ||
| P/S | 0.86 | ||
| P/FCF | 13.05 | ||
| P/OCF | 11.97 | ||
| P/B | 12.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.35 |
EPS(TTM)6.45
EY6.17%
EPS(NY)7.1
Fwd EY6.8%
FCF(TTM)8.01
FCFY7.66%
OCF(TTM)8.73
OCFY8.35%
SpS120.92
BVpS8.64
TBVpS-15.33
PEG (NY)10.92
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.72% | ||
| ROE | 112.58% | ||
| ROCE | 28.76% | ||
| ROIC | 21.24% | ||
| ROICexc | 24.45% | ||
| ROICexgc | 65.84% | ||
| OM | 10.44% | ||
| PM (TTM) | 8.04% | ||
| GM | 54.29% | ||
| FCFM | 6.62% |
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 Turnover2.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.66 | ||
| Debt/FCF | 4.03 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 54.04% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 8.59 | ||
| Cash Conversion | 62.56% | ||
| Profit Quality | 82.34% | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 4.92 |
F-Score7
WACC7.63%
ROIC/WACC2.78
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)19.22%
EPS 3Y14.68%
EPS 5Y14.91%
EPS Q2Q%7.25%
EPS Next Y1.48%
EPS Next 2Y5.78%
EPS Next 3Y6.87%
EPS Next 5YN/A
Revenue 1Y (TTM)36.12%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%-0.6%
Revenue Next Year0.8%
Revenue Next 2Y3.02%
Revenue Next 3Y3.56%
Revenue Next 5YN/A
EBIT growth 1Y49.02%
EBIT growth 3Y17.29%
EBIT growth 5Y13.55%
EBIT Next Year-1.47%
EBIT Next 3Y2.91%
EBIT Next 5YN/A
FCF growth 1Y95.9%
FCF growth 3Y11.54%
FCF growth 5Y16.57%
OCF growth 1Y86.49%
OCF growth 3Y11.06%
OCF growth 5Y12.85%