DLH HOLDINGS CORP (DLHC) Stock Fundamental Analysis
NASDAQ:DLHC - Nasdaq - US23335Q1004 - Common Stock - Currency: USD
DLHC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DLHC was profitable.
DLHC had a positive operating cash flow in the past year.
DLHC had positive earnings in each of the past 5 years.
In the past 5 years DLHC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.77%, DLHC is in line with its industry, outperforming 44.44% of the companies in the same industry.
DLHC has a Return On Equity (4.81%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.05%, DLHC is in line with its industry, outperforming 51.85% of the companies in the same industry.
DLHC had an Average Return On Invested Capital over the past 3 years of 11.89%. This is in line with the industry average of 12.53%.
The 3 year average ROIC (11.89%) for DLHC is well above the current ROIC(7.05%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 4.81% | ||
| ROIC | 7.05% |
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 (1.44%) which is in line with its industry peers.
In the last couple of years the Profit Margin of DLHC has declined.
DLHC has a Operating Margin (6.07%) which is comparable to the rest of the industry.
DLHC's Operating Margin has declined in the last couple of years.
DLHC has a worse Gross Margin (19.80%) than 74.07% of its industry peers.
DLHC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.07% | ||
| PM (TTM) | 1.44% | ||
| GM | 19.8% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DLHC 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 1.80, we must say that DLHC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DLHC (1.80) is worse than 66.67% of its industry peers.
The Debt to FCF ratio of DLHC is 7.49, which is on the high side as it means it would take DLHC, 7.49 years of fcf income to pay off all of its debts.
DLHC has a Debt to FCF ratio of 7.49. This is comparable to the rest of the industry: DLHC outperforms 41.98% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that DLHC has dependencies on debt financing.
DLHC has a Debt to Equity ratio of 1.15. This is in the lower half of the industry: DLHC underperforms 75.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 7.49 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.68
WACC10.3%
2.3 Liquidity
DLHC has a Current Ratio of 1.10. 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 1.10, DLHC is not doing good in the industry: 67.90% of the companies in the same industry are doing better.
DLHC has a Quick Ratio of 1.10. 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 Quick ratio value of 1.10, DLHC is not doing good in the industry: 67.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for DLHC have decreased strongly by -30.91% in the last year.
The Earnings Per Share has been growing slightly by 1.22% on average over the past years.
The Revenue has decreased by -6.34% in the past 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)-30.91%
EPS 3Y-11.67%
EPS 5Y1.22%
EPS Q2Q%-50%
Revenue 1Y (TTM)-6.34%
Revenue growth 3Y17.18%
Revenue growth 5Y19.81%
Sales Q2Q%-11.68%
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 -44.22% yearly.
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-56%
EPS Next 2Y-44.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.37%
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
Based on the Price/Earnings ratio of 15.18, the valuation of DLHC can be described as correct.
72.84% of the companies in the same industry are more expensive than DLHC, based on the Price/Earnings ratio.
DLHC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.98.
The Forward Price/Earnings Ratio is negative for DLHC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | N/A |
4.2 Price Multiples
DLHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DLHC is cheaper than 95.06% of the companies in the same industry.
98.77% 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 | 4.22 | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
DLHC's earnings are expected to decrease with -44.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)12.45
EPS Next 2Y-44.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DLHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:DLHC (6/30/2025, 12:41:02 PM)
5.77
+0.27 (+4.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners70.95%
Inst Owner Change-1.47%
Ins Owners13.55%
Ins Owner Change0%
Market Cap83.03M
Analysts82.86
Price Target10.2 (76.78%)
Short Float %2.66%
Short Ratio4.61
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)1
Avg EPS beat(2)-1.96%
Min EPS beat(2)-15.97%
Max EPS beat(2)12.04%
EPS beat(4)2
Avg EPS beat(4)-1.32%
Min EPS beat(4)-43.98%
Max EPS beat(4)42.6%
EPS beat(8)5
Avg EPS beat(8)5.76%
EPS beat(12)7
Avg EPS beat(12)4.24%
EPS beat(16)9
Avg EPS beat(16)2.55%
Revenue beat(2)0
Avg Revenue beat(2)-5.53%
Min Revenue beat(2)-8.25%
Max Revenue beat(2)-2.82%
Revenue beat(4)0
Avg Revenue beat(4)-5.41%
Min Revenue beat(4)-8.25%
Max Revenue beat(4)-2.82%
Revenue beat(8)1
Avg Revenue beat(8)-3.97%
Revenue beat(12)1
Avg Revenue beat(12)-4.25%
Revenue beat(16)3
Avg Revenue beat(16)-2.85%
PT rev (1m)-33.33%
PT rev (3m)-33.33%
EPS NQ rev (1m)136.36%
EPS NQ rev (3m)136.36%
EPS NY rev (1m)269.23%
EPS NY rev (3m)269.23%
Revenue NQ rev (1m)12.16%
Revenue NQ rev (3m)12.16%
Revenue NY rev (1m)8.17%
Revenue NY rev (3m)8.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | N/A | ||
| P/S | 0.22 | ||
| P/FCF | 4.22 | ||
| P/OCF | 4.15 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.65 |
EPS(TTM)0.38
EY6.59%
EPS(NY)-0.04
Fwd EYN/A
FCF(TTM)1.37
FCFY23.68%
OCF(TTM)1.39
OCFY24.12%
SpS26.2
BVpS7.84
TBVpS-8.71
PEG (NY)N/A
PEG (5Y)12.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 4.81% | ||
| ROCE | 8.92% | ||
| ROIC | 7.05% | ||
| ROICexc | 7.05% | ||
| ROICexgc | 99.15% | ||
| OM | 6.07% | ||
| PM (TTM) | 1.44% | ||
| GM | 19.8% | ||
| FCFM | 5.21% |
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 Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 7.49 | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 2.17% | ||
| Cap/Sales | 0.1% | ||
| Interest Coverage | 1.49 | ||
| Cash Conversion | 50.05% | ||
| Profit Quality | 362.24% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.8 |
F-Score7
WACC10.3%
ROIC/WACC0.68
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-56%
EPS Next 2Y-44.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.34%
Revenue growth 3Y17.18%
Revenue growth 5Y19.81%
Sales Q2Q%-11.68%
Revenue Next Year-13.37%
Revenue Next 2Y-17.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-17.39%
EBIT growth 3Y10.79%
EBIT growth 5Y16.91%
EBIT Next Year31.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-9.3%
FCF growth 3Y-16.5%
FCF growth 5Y8.52%
OCF growth 1Y-12.61%
OCF growth 3Y-15.69%
OCF growth 5Y8.69%