BOOZ ALLEN HAMILTON HOLDINGS (BAH) Stock Fundamental Analysis
NYSE:BAH - New York Stock Exchange, Inc. - US0995021062 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to BAH. BAH was compared to 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 not priced too expensively while it is growing strongly. 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.
In the past 5 years BAH has always been profitable.
Each year in the past 5 years BAH had a positive operating cash flow.
1.2 Ratios
BAH has a better Return On Assets (15.10%) than 90.24% of its industry peers.
The Return On Equity of BAH (85.10%) is better than 95.12% of its industry peers.
BAH's Return On Invested Capital of 23.56% is amongst the best of the industry. BAH outperforms 95.12% of its industry peers.
BAH had an Average Return On Invested Capital over the past 3 years of 13.75%. This is in line with the industry average of 12.98%.
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.
In the last couple of years the Profit Margin of BAH has declined.
Looking at the Operating Margin, with a value of 11.08%, BAH is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
BAH's Operating Margin has improved in the last couple of years.
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.
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 | 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.
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 5.47. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
BAH has a Altman-Z score of 5.47. This is amongst the best in the industry. BAH outperforms 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.
Looking at the Debt to FCF ratio, with a value of 4.00, BAH is in the better half of the industry, outperforming 60.98% 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.
Looking at the Debt to Equity ratio, with a value of 2.72, BAH is doing worse than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.72 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 5.47 |
ROIC/WACC2.74
WACC8.61%
2.3 Liquidity
BAH has a Current 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's Current ratio of 1.57 is in line compared to the rest of the industry. BAH outperforms 59.76% of its industry peers.
A Quick Ratio of 1.57 indicates that BAH should not have too much problems paying its short term obligations.
BAH has a better Quick ratio (1.57) than 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.18% over the past year.
Measured over the past years, BAH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.79% on average per year.
Looking at the last year, BAH shows a very strong growth in Revenue. The Revenue has grown by 42.57%.
Measured over the past years, BAH shows a quite strong growth in Revenue. The Revenue has been growing by 9.72% on average per year.
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
Based on estimates for the next years, BAH will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.38% on average per year.
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 3Y12.23%
EPS Next 5Y13.38%
Revenue Next Year13.44%
Revenue Next 2Y10.11%
Revenue Next 3Y8.97%
Revenue Next 5Y9.52%
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 stable.
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
The Price/Earnings ratio is 21.27, which indicates a rather expensive current valuation of BAH.
The rest of the industry has a similar Price/Earnings ratio as BAH.
BAH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
BAH is valuated rather expensively with a Price/Forward Earnings ratio of 18.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BAH is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.85. BAH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 18.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BAH is valued a bit cheaper than the industry average as 69.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BAH is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.37 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BAH has an outstanding profitability rating, which may justify a higher PE ratio.
BAH's earnings are expected to grow with 12.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)1.44
EPS Next 2Y12.32%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
BAH has a Yearly Dividend Yield of 1.72%.
BAH's Dividend Yield is rather good when compared to the industry average which is at 1.98. BAH pays more dividend than 82.93% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, BAH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)19.21%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
BAH pays out 25.74% 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.
DP25.74%
EPS Next 2Y12.32%
EPS Next 3Y12.23%
129.13
+0.71 (+0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.98%
Inst Owner Change2.3%
Ins Owners0.92%
Ins Owner Change-0.03%
Market Cap16.35B
Analysts70.53
Price Target137.97 (6.85%)
Short Float %4.42%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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)-11.11%
PT rev (3m)-13.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.11%
EPS NY rev (1m)0%
EPS NY rev (3m)1.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 18.61 | ||
| P/S | 1.11 | ||
| P/FCF | 19.37 | ||
| P/OCF | 17.51 | ||
| P/B | 13.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.7 |
EPS(TTM)6.07
EY4.7%
EPS(NY)6.94
Fwd EY5.37%
FCF(TTM)6.67
FCFY5.16%
OCF(TTM)7.37
OCFY5.71%
SpS116.21
BVpS9.55
TBVpS-14.02
PEG (NY)1.21
PEG (5Y)1.44
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 | 5.47 |
F-Score7
WACC8.61%
ROIC/WACC2.74
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 3Y12.23%
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%