DLH HOLDINGS CORP (DLHC) Stock Fundamental Analysis
NASDAQ:DLHC - Nasdaq - US23335Q1004 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to DLHC. DLHC was compared to 82 industry peers in the Professional Services industry. DLHC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
DLHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DLHC has a Return On Assets of 1.96%. This is comparable to the rest of the industry: DLHC outperforms 46.34% of its industry peers.
The Return On Equity of DLHC (5.71%) is comparable to the rest of the industry.
DLHC has a Return On Invested Capital (7.20%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DLHC is in line with the industry average of 12.96%.
The 3 year average ROIC (11.89%) for DLHC is well above the current ROIC(7.20%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 5.71% | ||
| ROIC | 7.2% |
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
The Profit Margin of DLHC (1.64%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DLHC has declined.
DLHC has a Operating Margin (6.10%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DLHC has declined.
Looking at the Gross Margin, with a value of 20.20%, DLHC is doing worse than 75.61% of the companies in the same industry.
In the last couple of years the Gross Margin of DLHC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.1% | ||
| PM (TTM) | 1.64% | ||
| GM | 20.2% |
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.
Compared to 1 year ago, DLHC has more shares outstanding
Compared to 5 years ago, DLHC has more shares outstanding
DLHC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that DLHC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.70, DLHC is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
The Debt to FCF ratio of DLHC is 17.00, which is on the high side as it means it would take DLHC, 17.00 years of fcf income to pay off all of its debts.
DLHC has a worse Debt to FCF ratio (17.00) than 60.98% of its industry peers.
A Debt/Equity ratio of 1.21 is on the high side and indicates that DLHC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.21, DLHC is doing worse than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 17 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.69
WACC10.44%
2.3 Liquidity
DLHC has a Current Ratio of 1.04. 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 1.04, DLHC is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
A Quick Ratio of 1.04 indicates that DLHC should not have too much problems paying its short term obligations.
DLHC has a worse Quick ratio (1.04) than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
DLHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.91%.
DLHC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.22% yearly.
The Revenue has been growing slightly by 5.34% in the past year.
The Revenue has been growing by 19.81% on average over the past years. This is quite good.
EPS 1Y (TTM)-30.91%
EPS 3Y-11.67%
EPS 5Y1.22%
EPS Q2Q%-50%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y17.18%
Revenue growth 5Y19.81%
Sales Q2Q%-11.68%
3.2 Future
The Earnings Per Share is expected to decrease by -50.33% on average over the next years. This is quite bad
Based on estimates for the next years, DLHC will show a very negative growth in Revenue. The Revenue will decrease by -17.14% on average per year.
EPS Next Y-126%
EPS Next 2Y-50.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-19.91%
Revenue Next 2Y-17.14%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.26 indicates a correct valuation of DLHC.
78.05% 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 25.82, 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 | 13.26 | ||
| Fwd PE | N/A |
4.2 Price Multiples
89.02% of the companies in the same industry are more expensive than DLHC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DLHC is valued cheaper than 93.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.6 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
A cheap valuation may be justified as DLHC's earnings are expected to decrease with -50.33% in the coming years.
PEG (NY)N/A
PEG (5Y)10.87
EPS Next 2Y-50.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DLHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.04
+0.03 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners76.45%
Inst Owner Change-1.8%
Ins Owners13.55%
Ins Owner Change4.38%
Market Cap72.53M
Analysts82.86
Price Target15.3 (203.57%)
Short Float %2.56%
Short Ratio4.63
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)2
Avg EPS beat(2)27.32%
Min EPS beat(2)12.04%
Max EPS beat(2)42.6%
EPS beat(4)2
Avg EPS beat(4)0.29%
Min EPS beat(4)-43.98%
Max EPS beat(4)42.6%
EPS beat(8)5
Avg EPS beat(8)-0.15%
EPS beat(12)8
Avg EPS beat(12)9.62%
EPS beat(16)10
Avg EPS beat(16)5.62%
Revenue beat(2)0
Avg Revenue beat(2)-7.34%
Min Revenue beat(2)-8.25%
Max Revenue beat(2)-6.44%
Revenue beat(4)1
Avg Revenue beat(4)-4.7%
Min Revenue beat(4)-8.25%
Max Revenue beat(4)0.03%
Revenue beat(8)1
Avg Revenue beat(8)-4.41%
Revenue beat(12)2
Avg Revenue beat(12)-3.02%
Revenue beat(16)4
Avg Revenue beat(16)-2.42%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | N/A | ||
| P/S | 0.19 | ||
| P/FCF | 7.6 | ||
| P/OCF | 6.74 | ||
| P/B | 0.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.73 |
EPS(TTM)0.38
EY7.54%
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)0.66
FCFY13.16%
OCF(TTM)0.75
OCFY14.83%
SpS27.02
BVpS7.74
TBVpS-9.1
PEG (NY)N/A
PEG (5Y)10.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 5.71% | ||
| ROCE | 9.11% | ||
| ROIC | 7.2% | ||
| ROICexc | 7.21% | ||
| ROICexgc | 107.06% | ||
| OM | 6.1% | ||
| PM (TTM) | 1.64% | ||
| GM | 20.2% | ||
| FCFM | 2.45% |
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 | 1.21 | ||
| Debt/FCF | 17 | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 7.1% | ||
| Cap/Sales | 0.31% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 26.35% | ||
| Profit Quality | 150.02% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.7 |
F-Score7
WACC10.44%
ROIC/WACC0.69
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)-30.91%
EPS 3Y-11.67%
EPS 5Y1.22%
EPS Q2Q%-50%
EPS Next Y-126%
EPS Next 2Y-50.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.34%
Revenue growth 3Y17.18%
Revenue growth 5Y19.81%
Sales Q2Q%-11.68%
Revenue Next Year-19.91%
Revenue Next 2Y-17.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-14.44%
EBIT growth 3Y10.79%
EBIT growth 5Y16.91%
EBIT Next Year31.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-60.43%
FCF growth 3Y-16.5%
FCF growth 5Y8.52%
OCF growth 1Y-57.6%
OCF growth 3Y-15.69%
OCF growth 5Y8.69%