DLH Holdings (NasdaqCM:DLHC) - Share price, News & Analysis

DLHC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	6/6
Financial Health	5/6
Dividends	0/6

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.

Rewards

Trading at 64.1% below our estimate of its fair value

Earnings grew by 163.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 20.1% per year for the next 3 years

Has a high level of debt

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

DLH Holdings Competitors

UnitedHealth Group

NYSE:UNH

US$455.7b

Leidos Holdings

NYSE:LDOS

US$13.7b

Booz Allen Hamilton Holding

NYSE:BAH

US$10.4b

CACI International

NYSE:CACI

US$6.2b

Price History & Performance

Summary of all time highs, changes and price drops for DLH Holdings
Historical stock prices
Current Share Price	US$15.76
52 Week High	US$21.49
52 Week Low	US$10.21
Beta	1.33
1 Month Change	-3.14%
3 Month Change	-2.35%
1 Year Change	49.95%
3 Year Change	199.83%
5 Year Change	197.36%
Change since IPO	63.75%

Recent News & Updates

Apr 25

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

	DLHC	US Professional Services	US Market
7D	-2.7%	-1.3%	-2.7%
1Y	50.0%	-16.4%	-12.9%

Return vs Industry: DLHC exceeded the US Professional Services industry which returned -16.4% over the past year.

Return vs Market: DLHC exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is DLHC's price volatile compared to industry and market?
DLHC volatility
DLHC Average Weekly Movement	7.9%
Professional Services Industry Average Movement	6.9%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

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

Founded	Employees	CEO	Website
1969	2,300	Zach Parker	https://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 Cap	US$201.68m
Earnings (TTM)	US$20.75m
Revenue (TTM)	US$388.24m

9.7x

P/E Ratio

0.5x

P/S Ratio

Is DLHC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DLHC income statement (TTM)
Revenue	US$388.24m
Cost of Revenue	US$321.40m
Gross Profit	US$66.83m
Other Expenses	US$46.09m
Earnings	US$20.75m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.62
Gross Margin	17.21%
Net Profit Margin	5.34%
Debt/Equity Ratio	43.3%

How did DLHC perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: DLHC ($15.76) is trading below our estimate of fair value ($43.88)

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 (9.7x) compared to the US Professional Services industry average (16.5x).

PE vs Market: DLHC is good value based on its PE Ratio (9.7x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: DLHC's PB Ratio (2.4x) is in line with the US Professional Services industry average.

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

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 32.6%.

Return on Equity

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

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

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.

Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure

CEO

Zach Parker (64 yo)

12.25yrs

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 ($USD1.19M) is about average for companies of similar size in the US market ($USD1.67M).

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 (2.3 years average tenure).

Board Members

Experienced Board: DLHC's board of directors are considered experienced (8.5 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: DLHC insiders have only sold shares 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%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30