DLH HOLDINGS CORP (DLHC) Stock Fundamental Analysis
USA - NASDAQ:DLHC - US23335Q1004 - Common Stock
5.56 USD
-0.04 (-0.71%)
5.56 USD
0 (0%)
DLHC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. There are concerns on the financial health of DLHC while its profitability can be described as average. DLHC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DLHC had positive earnings in the past year.
DLHC had a positive operating cash flow in the past year.
DLHC had positive earnings in each of the past 5 years.
Each year in the past 5 years DLHC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.53%, DLHC is in line with its industry, outperforming 41.98% of the companies in the same industry.
DLHC has a Return On Equity (4.03%) which is in line with its industry peers.
DLHC's Return On Invested Capital of 6.51% is in line compared to the rest of the industry. DLHC outperforms 49.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLHC is in line with the industry average of 12.93%.
The last Return On Invested Capital (6.51%) for DLHC is well below the 3 year average (11.89%), which needs to be investigated, but indicates that DLHC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.53% | ||
| ROE | 4.03% | ||
| ROIC | 6.51% |
ROA(3y)5.52%
ROA(5y)5.11%
ROE(3y)11.15%
ROE(5y)12.44%
ROIC(3y)11.89%
ROIC(5y)11.02%
1.3 Margins
DLHC has a Profit Margin (1.27%) which is comparable to the rest of the industry.
DLHC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.81%, DLHC perfoms like the industry average, outperforming 53.09% of the companies in the same industry.
In the last couple of years the Operating Margin of DLHC has declined.
DLHC's Gross Margin of 19.88% is on the low side compared to the rest of the industry. DLHC is outperformed by 74.07% of its industry peers.
In the last couple of years the Gross Margin of DLHC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.81% | ||
| PM (TTM) | 1.27% | ||
| GM | 19.88% |
OM growth 3Y-5.45%
OM growth 5Y-2.42%
PM growth 3Y-23.19%
PM growth 5Y-10.78%
GM growth 3Y-1.6%
GM growth 5Y-2.24%
2. Health
2.1 Basic Checks
DLHC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DLHC has been increased compared to 1 year ago.
The number of shares outstanding for DLHC has been increased compared to 5 years ago.
Compared to 1 year ago, DLHC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that DLHC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.76, DLHC is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
DLHC has a debt to FCF ratio of 5.74. This is a neutral value as DLHC would need 5.74 years to pay back of all of its debts.
The Debt to FCF ratio of DLHC (5.74) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.09 is on the high side and indicates that DLHC has dependencies on debt financing.
The Debt to Equity ratio of DLHC (1.09) is worse than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.74 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.66
WACC9.87%
2.3 Liquidity
DLHC has a Current Ratio of 1.08. This is a normal value and indicates that DLHC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.08, DLHC is doing worse than 69.14% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that DLHC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, DLHC is doing worse than 69.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for DLHC have decreased strongly by -37.25% in the last year.
Measured over the past 5 years, DLHC shows a small growth in Earnings Per Share. The EPS has been growing by 1.22% on average per year.
Looking at the last year, DLHC shows a very negative growth in Revenue. The Revenue has decreased by -10.30% in the last year.
DLHC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.81% yearly.
EPS 1Y (TTM)-37.25%
EPS 3Y-11.67%
EPS 5Y1.22%
EPS Q2Q%-75%
Revenue 1Y (TTM)-10.3%
Revenue growth 3Y17.18%
Revenue growth 5Y19.81%
Sales Q2Q%-17.23%
3.2 Future
DLHC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -59.37% yearly.
Based on estimates for the next years, DLHC will show a very negative growth in Revenue. The Revenue will decrease by -21.79% on average per year.
EPS Next Y-66%
EPS Next 2Y-59.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.41%
Revenue Next 2Y-21.79%
Revenue Next 3YN/A
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 17.38, DLHC is valued on the expensive side.
65.43% of the companies in the same industry are more expensive than DLHC, based on the Price/Earnings ratio.
DLHC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
DLHC is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLHC is valued cheaply inside the industry as 95.06% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than DLHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.32 | ||
| EV/EBITDA | 5.78 |
4.3 Compensation for Growth
A cheap valuation may be justified as DLHC's earnings are expected to decrease with -59.37% in the coming years.
PEG (NY)N/A
PEG (5Y)14.24
EPS Next 2Y-59.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DLHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.56
-0.04 (-0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners72.98%
Inst Owner Change9.71%
Ins Owners13.55%
Ins Owner Change0%
Market Cap80.01M
Analysts82.86
Price Target10.2 (83.45%)
Short Float %0.79%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.96%
Min EPS beat(2)-15.97%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)9.18%
Min EPS beat(4)-15.97%
Max EPS beat(4)42.6%
EPS beat(8)4
Avg EPS beat(8)3.31%
EPS beat(12)6
Avg EPS beat(12)0.33%
EPS beat(16)8
Avg EPS beat(16)2.25%
Revenue beat(2)0
Avg Revenue beat(2)-2.19%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-4.76%
Min Revenue beat(4)-8.25%
Max Revenue beat(4)-1.56%
Revenue beat(8)1
Avg Revenue beat(8)-3.95%
Revenue beat(12)1
Avg Revenue beat(12)-4.15%
Revenue beat(16)3
Avg Revenue beat(16)-2.78%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)50%
EPS NQ rev (3m)-40%
EPS NY rev (1m)0%
EPS NY rev (3m)230.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | N/A | ||
| P/S | 0.22 | ||
| P/FCF | 3.32 | ||
| P/OCF | 3.26 | ||
| P/B | 0.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.78 |
EPS(TTM)0.32
EY5.76%
EPS(NY)-0.28
Fwd EYN/A
FCF(TTM)1.68
FCFY30.14%
OCF(TTM)1.71
OCFY30.67%
SpS25
BVpS7.9
TBVpS-8.37
PEG (NY)N/A
PEG (5Y)14.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.53% | ||
| ROE | 4.03% | ||
| ROCE | 8.24% | ||
| ROIC | 6.51% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 86.01% | ||
| OM | 5.81% | ||
| PM (TTM) | 1.27% | ||
| GM | 19.88% | ||
| FCFM | 6.7% |
ROA(3y)5.52%
ROA(5y)5.11%
ROE(3y)11.15%
ROE(5y)12.44%
ROIC(3y)11.89%
ROIC(5y)11.02%
ROICexc(3y)11.91%
ROICexc(5y)11.55%
ROICexgc(3y)142.07%
ROICexgc(5y)N/A
ROCE(3y)15.05%
ROCE(5y)13.95%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-9.4%
ROICexc growth 3Y-17.74%
ROICexc growth 5Y-3.87%
OM growth 3Y-5.45%
OM growth 5Y-2.42%
PM growth 3Y-23.19%
PM growth 5Y-10.78%
GM growth 3Y-1.6%
GM growth 5Y-2.24%
F-Score7
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.74 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 2.51% | ||
| Cap/Sales | 0.12% | ||
| Interest Coverage | 1.45 | ||
| Cash Conversion | 64.97% | ||
| Profit Quality | 526.26% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.76 |
F-Score7
WACC9.87%
ROIC/WACC0.66
Cap/Depr(3y)6.77%
Cap/Depr(5y)4.74%
Cap/Sales(3y)0.2%
Cap/Sales(5y)0.14%
Profit Quality(3y)813.86%
Profit Quality(5y)632.5%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.25%
EPS 3Y-11.67%
EPS 5Y1.22%
EPS Q2Q%-75%
EPS Next Y-66%
EPS Next 2Y-59.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.3%
Revenue growth 3Y17.18%
Revenue growth 5Y19.81%
Sales Q2Q%-17.23%
Revenue Next Year-13.41%
Revenue Next 2Y-21.79%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20.78%
EBIT growth 3Y10.79%
EBIT growth 5Y16.91%
EBIT Next Year46.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y21.84%
FCF growth 3Y-16.5%
FCF growth 5Y8.52%
OCF growth 1Y16.84%
OCF growth 3Y-15.69%
OCF growth 5Y8.69%