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. While BAH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. BAH is not valued too expensively and it also shows a decent growth rate. Finally BAH also has an excellent dividend rating. These ratings would make BAH suitable 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.
BAH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.72%, BAH belongs to the top of the industry, outperforming 93.90% of the companies in the same industry.
Looking at the Return On Equity, with a value of 112.58%, BAH belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
BAH's Return On Invested Capital of 21.24% is amongst the best of the industry. BAH outperforms 93.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BAH is above the industry average of 12.16%.
The last Return On Invested Capital (21.24%) for BAH is above the 3 year average (15.43%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (8.04%) than 79.27% of its industry peers.
In the last couple of years the Profit Margin of BAH has grown nicely.
With a decent Operating Margin value of 10.44%, BAH is doing good in the industry, outperforming 75.61% of the companies in the same industry.
BAH's Operating Margin has improved in the last couple of years.
The Gross Margin of BAH (54.29%) is better than 67.07% of its industry peers.
BAH's Gross Margin has been stable in the last couple of years.
| 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.
The debt/assets ratio for BAH is higher compared to a year ago.
2.2 Solvency
BAH has an Altman-Z score of 5.01. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
BAH has a better Altman-Z score (5.01) than 84.15% 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.
BAH has a Debt to FCF ratio (4.03) which is comparable to the rest of the industry.
BAH has a Debt/Equity ratio of 3.66. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BAH (3.66) is worse than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.66 | ||
| Debt/FCF | 4.03 | ||
| Altman-Z | 5.01 |
ROIC/WACC2.73
WACC7.77%
2.3 Liquidity
BAH has a Current Ratio of 1.78. 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 better Current ratio (1.78) than 67.07% of its industry peers.
BAH has a Quick Ratio of 1.78. This is a normal value and indicates that BAH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BAH (1.78) is better than 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.22% over the past year.
The Earnings Per Share has been growing by 14.91% on average over the past years. This is quite good.
The Revenue has grown by 36.12% in the past year. This is a very strong growth!
The Revenue has been growing by 9.93% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 6.70% on average over the next years.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y2.44%
EPS Next 2Y6.16%
EPS Next 3Y6.7%
EPS Next 5YN/A
Revenue Next Year1.03%
Revenue Next 2Y3.16%
Revenue Next 3Y3.5%
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
Based on the Price/Earnings ratio of 17.28, the valuation of BAH can be described as rather expensive.
Based on the Price/Earnings ratio, BAH is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
BAH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
BAH is valuated correctly with a Price/Forward Earnings ratio of 15.57.
BAH's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BAH to the average of the S&P500 Index (36.28), we can say BAH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
75.61% of the companies in the same industry are more expensive than BAH, based on the Enterprise Value to EBITDA ratio.
70.73% 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 | 13.91 | ||
| EV/EBITDA | 9.89 |
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)7.07
PEG (5Y)1.16
EPS Next 2Y6.16%
EPS Next 3Y6.7%
5. Dividend
5.1 Amount
BAH has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.23, 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 comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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 2Y6.16%
EPS Next 3Y6.7%
111.45
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.33%
Inst Owner Change0.19%
Ins Owners1.02%
Ins Owner Change0.09%
Market Cap13.74B
Analysts67.78
Price Target129.74 (16.41%)
Short Float %3.61%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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)-1.26%
PT rev (3m)-5.97%
EPS NQ rev (1m)-4.76%
EPS NQ rev (3m)-17.96%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-6.25%
Revenue NQ rev (1m)-2.67%
Revenue NQ rev (3m)-10.65%
Revenue NY rev (1m)-1.11%
Revenue NY rev (3m)-5.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 15.57 | ||
| P/S | 0.92 | ||
| P/FCF | 13.91 | ||
| P/OCF | 12.77 | ||
| P/B | 12.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.89 |
EPS(TTM)6.45
EY5.79%
EPS(NY)7.16
Fwd EY6.42%
FCF(TTM)8.01
FCFY7.19%
OCF(TTM)8.73
OCFY7.83%
SpS120.92
BVpS8.64
TBVpS-15.33
PEG (NY)7.07
PEG (5Y)1.16
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 | 5.01 |
F-Score7
WACC7.77%
ROIC/WACC2.73
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 Y2.44%
EPS Next 2Y6.16%
EPS Next 3Y6.7%
EPS Next 5YN/A
Revenue 1Y (TTM)36.12%
Revenue growth 3Y12.72%
Revenue growth 5Y9.93%
Sales Q2Q%-0.6%
Revenue Next Year1.03%
Revenue Next 2Y3.16%
Revenue Next 3Y3.5%
Revenue Next 5YN/A
EBIT growth 1Y49.02%
EBIT growth 3Y17.29%
EBIT growth 5Y13.55%
EBIT Next Year6.77%
EBIT Next 3Y2.67%
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%