DLH HOLDINGS CORP (DLHC)
US23335Q1004 - Common Stock
We assign a fundamental rating of 4 out of 10 to DLHC. DLHC was compared to 81 industry peers in the Professional Services industry. While DLHC is still in line with the averages on profitability rating, there are concerns on its financial health. DLHC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DLHC was profitable.
DLHC had a positive operating cash flow in the past year.
In the past 5 years DLHC has always been profitable.
In the past 5 years DLHC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.62%, DLHC perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
DLHC's Return On Equity of 1.97% is in line compared to the rest of the industry. DLHC outperforms 41.25% of its industry peers.
With a Return On Invested Capital value of 7.61%, DLHC perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DLHC is in line with the industry average of 12.22%.
The last Return On Invested Capital (7.61%) for DLHC is well below the 3 year average (12.40%), which needs to be investigated, but indicates that DLHC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 1.97% | ||
| ROIC | 7.61% |
ROA(3y)6.45%
ROA(5y)5.46%
ROE(3y)14.06%
ROE(5y)13.42%
ROIC(3y)12.4%
ROIC(5y)10.74%
1.3 Margins
DLHC has a Profit Margin of 0.51%. This is in the lower half of the industry: DLHC underperforms 60.00% of its industry peers.
DLHC's Profit Margin has declined in the last couple of years.
DLHC has a Operating Margin (6.91%) which is in line with its industry peers.
In the last couple of years the Operating Margin of DLHC has remained more or less at the same level.
The Gross Margin of DLHC (20.83%) is worse than 80.00% of its industry peers.
In the last couple of years the Gross Margin of DLHC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.91% | ||
| PM (TTM) | 0.51% | ||
| GM | 20.83% |
OM growth 3Y0.8%
OM growth 5Y1.31%
PM growth 3Y-51.44%
PM growth 5Y-22.06%
GM growth 3Y-0.85%
GM growth 5Y-1.29%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DLHC is still 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.
The debt/assets ratio for DLHC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.91 indicates that DLHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DLHC (1.91) is worse than 66.25% of its industry peers.
The Debt to FCF ratio of DLHC is 6.06, which is on the high side as it means it would take DLHC, 6.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.06, DLHC is in line with its industry, outperforming 43.75% of the companies in the same industry.
DLHC has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.45, DLHC is doing worse than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 6.06 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.71
WACC10.71%
2.3 Liquidity
DLHC has a Current Ratio of 1.01. This is a normal value and indicates that DLHC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.01, DLHC is not doing good in the industry: 76.25% of the companies in the same industry are doing better.
A Quick Ratio of 1.01 indicates that DLHC should not have too much problems paying its short term obligations.
DLHC has a worse Quick ratio (1.01) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
DLHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -63.16%.
DLHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.08% yearly.
Looking at the last year, DLHC shows a very strong growth in Revenue. The Revenue has grown by 27.26%.
DLHC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.06% yearly.
EPS 1Y (TTM)-63.16%
EPS 3Y0%
EPS 5Y8.08%
EPS growth Q2Q-40%
Revenue 1Y (TTM)27.26%
Revenue growth 3Y21.57%
Revenue growth 5Y23.06%
Revenue growth Q2Q34.52%
3.2 Future
Based on estimates for the next years, DLHC will show a very strong growth in Earnings Per Share. The EPS will grow by 28.16% on average per year.
DLHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.98% yearly.
EPS Next Y-4.92%
EPS Next 2Y28.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.01%
Revenue Next 2Y7.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 22.33, the valuation of DLHC can be described as rather expensive.
DLHC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.92, DLHC is valued at the same level.
The Price/Forward Earnings ratio is 11.29, which indicates a very decent valuation of DLHC.
DLHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. DLHC is cheaper than 90.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.49. DLHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLHC is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
DLHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DLHC is cheaper than 96.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.62 | ||
| EV/EBITDA | 7.08 |
4.3 Compensation for Growth
DLHC's earnings are expected to grow with 28.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.76
EPS Next 2Y28.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DLHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DLH HOLDINGS CORP
NASDAQ:DLHC (4/26/2024, 7:00:02 PM)
10.94
+0.27 (+2.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap155.68M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.33 | ||
| Fwd PE | 11.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 1.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.91% | ||
| PM (TTM) | 0.51% | ||
| GM | 20.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-63.16%
EPS 3Y0%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)27.26%
Revenue growth 3Y21.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y