NasdaqCM:DLHC

Stock Analysis Report

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Market Cap

US$146.4m

Last Updated

2021/06/19 02:24 UTC

Data Sources

Company Financials +

Executive Summary

DLH Holdings Corp. provides healthcare and social services in the United States. More Details


Snowflake Analysis

Very undervalued with solid track record.


Similar Companies

Share Price & News

How has DLH Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DLHC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DLHC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.7%

DLHC

0.3%

US Professional Services

-0.2%

US Market


1 Year Return

51.6%

DLHC

33.5%

US Professional Services

39.4%

US Market

Return vs Industry: DLHC exceeded the US Professional Services industry which returned 33.5% over the past year.

Return vs Market: DLHC exceeded the US Market which returned 39.4% over the past year.


Shareholder returns

DLHCIndustryMarket
7 Day-4.7%0.3%-0.2%
30 Day11.2%-0.06%3.1%
90 Day9.3%8.9%5.6%
1 Year51.6%51.6%34.4%33.5%41.7%39.4%
3 Year110.3%110.3%62.3%58.0%59.7%49.9%
5 Year133.4%133.4%136.7%120.7%122.6%97.6%

Long-Term Price Volatility Vs. Market

How volatile is DLH Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DLH Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DLHC ($11.67) is trading below our estimate of fair value ($54.57)

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


Price To Earnings Ratio

PE vs Industry: DLHC is good value based on its PE Ratio (18.5x) compared to the US Professional Services industry average (29.3x).

PE vs Market: DLHC is good value based on its PE Ratio (18.5x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: DLHC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: DLHC is good value based on its PB Ratio (2.5x) compared to the US Professional Services industry average (3.1x).


Future Growth

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

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLHC's forecast earnings growth (21.6% per year) is above the savings rate (2%).

Earnings vs Market: DLHC's earnings (21.6% per year) are forecast to grow faster than the US market (15.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DLHC's revenue (7.2% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: DLHC's revenue (7.2% per year) is forecast to grow slower than 20% 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


Past Performance

How has DLH Holdings performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLHC has high quality earnings.

Growing Profit Margin: DLHC's current net profit margins (3.6%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: DLHC's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: DLHC's earnings growth over the past year (31.2%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: DLHC earnings growth over the past year (31.2%) exceeded the Professional Services industry 18.7%.


Return on Equity

High ROE: DLHC's Return on Equity (13.4%) is considered low.


Financial Health

How is DLH Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: DLHC's short term assets ($45.6M) do not cover its short term liabilities ($48.1M).

Long Term Liabilities: DLHC's short term assets ($45.6M) do not cover its long term liabilities ($79.2M).


Debt to Equity History and Analysis

Debt Level: DLHC's debt to equity ratio (102.4%) is considered high.

Reducing Debt: DLHC's debt to equity ratio has increased from 1.2% to 102.4% over the past 5 years.

Debt Coverage: DLHC's debt is well covered by operating cash flow (41.3%).

Interest Coverage: DLHC's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DLHC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Zach Parker (63 yo)

11.33yrs

Tenure

US$1,044,996

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 ($USD1.04M) is above average for companies of similar size in the US market ($USD528.84K).

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 (3.6 years average tenure).


Board Members

Experienced Board: DLHC's board of directors are considered experienced (7.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DLH Holdings Corp.'s company bio, 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
  • Market Cap: US$146.399m
  • Shares outstanding: 12.54m
  • Website: https://www.dlhcorp.com

Number of Employees


Location

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

Listings


Biography

DLH Holdings Corp. provides healthcare and social services in the United States. It offers defense and veterans’ health solutions, including case management, physical and behavioral health examinations, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 02:24
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.