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DLHC

DLH Holdings NasdaqCM:DLHC Stock Report

Last Price

US$15.79

Market Cap

US$202.1m

7D

7.1%

1Y

36.1%

Updated

27 Jun, 2022

Data

Company Financials +
DLHC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends0/6

DLHC Stock Overview

DLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States.

DLH Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for DLH Holdings
Historical stock prices
Current Share PriceUS$15.79
52 Week HighUS$21.49
52 Week LowUS$10.21
Beta1.33
1 Month Change-2.23%
3 Month Change-18.23%
1 Year Change36.12%
3 Year Change212.67%
5 Year Change180.46%
Change since IPO64.06%

Recent News & Updates

Apr 25
DLH Holdings (NASDAQ:DLHC) Seems To Use Debt Quite Sensibly

DLH Holdings (NASDAQ:DLHC) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

DLHCUS Professional ServicesUS Market
7D7.1%7.2%6.3%
1Y36.1%-16.1%-18.8%

Return vs Industry: DLHC exceeded the US Professional Services industry which returned -17.3% over the past year.

Return vs Market: DLHC exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is DLHC's price volatile compared to industry and market?
DLHC volatility
DLHC Average Weekly Movement7.8%
Professional Services Industry Average Movement6.7%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: DLHC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: DLHC's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19692,300Zach Parkerhttps://www.dlhcorp.com

DLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States. The company offers defense and veterans’ health solutions, including healthcare, technology, and logistics solutions to the VA, Defense Health Agency, Tele-medicine and Advanced Technology Research Center, Navy Bureau of Medicine and Surgery, and the Army Medical Research and Material Command. It also provides a range of human services and solutions, which consists of monitoring and evaluation, electronic medical records migration, data collection and management, and nutritional and social health assessments; and IT system architecture design, migration plan, and ongoing maintenance services.

DLH Holdings Fundamentals Summary

How do DLH Holdings's earnings and revenue compare to its market cap?
DLHC fundamental statistics
Market CapUS$202.06m
Earnings (TTM)US$20.75m
Revenue (TTM)US$388.24m

9.7x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DLHC income statement (TTM)
RevenueUS$388.24m
Cost of RevenueUS$321.40m
Gross ProfitUS$66.83m
Other ExpensesUS$46.09m
EarningsUS$20.75m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.62
Gross Margin17.21%
Net Profit Margin5.34%
Debt/Equity Ratio43.3%

How did DLHC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is DLHC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DLHC?

Other financial metrics that can be useful for relative valuation.

DLHC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA6.5x
PEG Ratio-0.5x

Price to Earnings Ratio vs Peers

How does DLHC's PE Ratio compare to its peers?

DLHC PE Ratio vs Peers
The above table shows the PE ratio for DLHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15x
HQI HireQuest
22.3x16.5%US$193.5m
MHH Mastech Digital
13x24.7%US$174.2m
HSON Hudson Global
14x23.4%US$90.4m
BGSF BGSF
10.5x-2.5%US$133.1m
DLHC DLH Holdings
9.7x-20.1%US$202.1m

Price-To-Earnings vs Peers: DLHC is good value based on its Price-To-Earnings Ratio (9.7x) compared to the peer average (15x).


Price to Earnings Ratio vs Industry

How does DLHC's PE Ratio compare vs other companies in the US Professional Services Industry?

Price-To-Earnings vs Industry: DLHC is good value based on its Price-To-Earnings Ratio (9.7x) compared to the US Professional Services industry average (15.8x)


Price to Earnings Ratio vs Fair Ratio

What is DLHC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DLHC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.7x
Fair PE Ratio6.4x

Price-To-Earnings vs Fair Ratio: DLHC is expensive based on its Price-To-Earnings Ratio (9.7x) compared to the estimated Fair Price-To-Earnings Ratio (6.4x).


Share Price vs Fair Value

What is the Fair Price of DLHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DLHC ($15.79) is trading below our estimate of fair value ($44.13)

Significantly Below Fair Value: DLHC is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: DLHC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is DLH Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-20.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLHC's earnings are forecast to decline over the next 3 years (-20.1% per year).

Earnings vs Market: DLHC's earnings are forecast to decline over the next 3 years (-20.1% per year).

High Growth Earnings: DLHC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DLHC's revenue is expected to decline over the next 3 years (-21% per year).

High Growth Revenue: DLHC's revenue is forecast to decline over the next 3 years (-21% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DLHC's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has DLH Holdings performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


38.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DLHC has high quality earnings.

Growing Profit Margin: DLHC's current net profit margins (5.3%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: DLHC's earnings have grown significantly by 38.5% per year over the past 5 years.

Accelerating Growth: DLHC's earnings growth over the past year (163.7%) exceeds its 5-year average (38.5% per year).

Earnings vs Industry: DLHC earnings growth over the past year (163.7%) exceeded the Professional Services industry 33.1%.


Return on Equity

High ROE: DLHC's Return on Equity (25.2%) is considered high.


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Financial Health

How is DLH Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DLHC's short term assets ($66.1M) exceed its short term liabilities ($59.0M).

Long Term Liabilities: DLHC's short term assets ($66.1M) exceed its long term liabilities ($54.4M).


Debt to Equity History and Analysis

Debt Level: DLHC's net debt to equity ratio (42.8%) is considered high.

Reducing Debt: DLHC's debt to equity ratio has reduced from 60.8% to 43.3% over the past 5 years.

Debt Coverage: DLHC's debt is well covered by operating cash flow (69.4%).

Interest Coverage: DLHC's interest payments on its debt are well covered by EBIT (10.8x coverage).


Balance Sheet


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Dividend

What is DLH Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate DLHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DLHC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DLHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DLHC's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as DLHC has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Zach Parker (64 yo)

12.33yrs

Tenure

US$1,186,180

Compensation

Mr. Zachary C. Parker, also known as Zach, has been the Chief Executive Officer and President of DLH Holdings Corp., the parent company of TeamStaff Government Solutions, Inc. and DLH Solutions, Inc. since...


CEO Compensation Analysis

Compensation vs Market: Zach's total compensation ($USD1.19M) is about average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Zach's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DLHC's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: DLHC's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

Company Information

DLH Holdings Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: DLH Holdings Corp.
  • Ticker: DLHC
  • Exchange: NasdaqCM
  • Founded: 1969
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Implied Market Cap: US$202.063m
  • Shares outstanding: 12.80m
  • Website: https://www.dlhcorp.com

Number of Employees


Location

  • DLH Holdings Corp.
  • Building 3
  • Suite 700
  • Atlanta
  • Georgia
  • 30305
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.