NYSE:BAH

Stock Analysis Report

Booz Allen Hamilton Holding

Executive Summary

Booz Allen Hamilton Holding Corporation provides management and technology consulting, engineering, analytics, digital, mission operations, and cyber solutions to governments, corporations, and not-for-profit organizations in the United States and internationally.

Snowflake

Fundamentals

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Booz Allen Hamilton Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.8%

NYSE:BAH

1.1%

US IT

0.8%

US Market


1 Year Return

45.4%

NYSE:BAH

16.0%

US IT

1.9%

US Market

BAH outperformed the IT industry which returned 15.6% over the past year.

BAH outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

BAHIndustryMarket
7 Day4.8%1.1%0.8%
30 Day-0.9%0.03%3.4%
90 Day10.6%1.9%2.1%
1 Year47.5%45.4%17.2%16.0%4.2%1.9%
3 Year148.4%135.8%97.9%89.6%46.7%37.2%
5 Year242.5%212.8%143.3%118.7%62.3%44.5%

Price Volatility Vs. Market

How volatile is Booz Allen Hamilton Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Booz Allen Hamilton Holding undervalued based on future cash flows and its price relative to the stock market?

23.91x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Booz Allen Hamilton Holding's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Booz Allen Hamilton Holding's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Booz Allen Hamilton Holding is good value based on earnings compared to the US IT industry average.

Booz Allen Hamilton Holding is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Booz Allen Hamilton Holding is poor value based on expected growth next year.


Price Based on Value of Assets

Booz Allen Hamilton Holding is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Booz Allen Hamilton Holding expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Booz Allen Hamilton Holding's revenue is expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).

Booz Allen Hamilton Holding's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Booz Allen Hamilton Holding's revenue growth is positive but not above the United States of America market average.

Booz Allen Hamilton Holding's earnings growth is positive but not above the United States of America market average.

Booz Allen Hamilton Holding's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Booz Allen Hamilton Holding is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Booz Allen Hamilton Holding performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Booz Allen Hamilton Holding's year on year earnings growth rate has been positive over the past 5 years.

Booz Allen Hamilton Holding's 1-year earnings growth exceeds its 5-year average (29% vs 12.5%)

Booz Allen Hamilton Holding's earnings growth has exceeded the US IT industry average in the past year (29% vs 11.2%).


Return on Equity

Whilst Booz Allen Hamilton Holding made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Booz Allen Hamilton Holding used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Booz Allen Hamilton Holding's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Booz Allen Hamilton Holding's financial position?


Financial Position Analysis

Booz Allen Hamilton Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Booz Allen Hamilton Holding's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Booz Allen Hamilton Holding's level of debt (289%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (748.6% vs 289% today).

Debt is well covered by operating cash flow (26.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

What is Booz Allen Hamilton Holding's current dividend yield, its reliability and sustainability?

1.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Booz Allen Hamilton Holding's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Booz Allen Hamilton Holding's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Booz Allen Hamilton Holding has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Booz Allen Hamilton Holding only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).


Next Steps

Management

What is the CEO of Booz Allen Hamilton Holding's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Horacio Rozanski (51yo)

4.7yrs

Tenure

US$7,448,529

Compensation

Mr. Horacio D. Rozanski has been the Chief Executive Officer of Booz Allen Hamilton Holding Corporation since January 1, 2015 and also has been its President since January 1, 2014. Mr. Rozanski has been th ...


CEO Compensation Analysis

Horacio's remuneration is lower than average for companies of similar size in United States of America.

Horacio's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

56yo

Average Age

The tenure for the Booz Allen Hamilton Holding management team is about average.


Board Age and Tenure

7.5yrs

Average Tenure

61.5yo

Average Age

The tenure for the Booz Allen Hamilton Holding board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$51,19107 Jun 19
Laura Adams
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares780
Max PriceUS$65.63

Ownership Breakdown


Management Team

  • Lloyd Howell (52yo)

    Executive VP

    • Tenure: 3.2yrs
    • Compensation: US$3.82m
  • Joe Mahaffee (61yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 5.2yrs
    • Compensation: US$1.63m
  • Horacio Rozanski (51yo)

    CEO, President & Director

    • Tenure: 4.7yrs
    • Compensation: US$7.45m
  • Nancy Laben (57yo)

    Executive VP

    • Tenure: 3.6yrs
    • Compensation: US$2.43m
  • Karen Dahut (55yo)

    Executive VP & Global Defense Group Lead

    • Tenure: 0yrs
    • Compensation: US$3.85m
  • Betty Thompson (64yo)

    Chief People Officer & Executive VP

    • Tenure: 7.9yrs
  • Nick Veasey

    Director of Investor Relations

    • Tenure: 1.3yrs
  • Laura Adams (46yo)

    Chief Accounting Officer

    • Tenure: 3.2yrs
  • Susan Penfield (57yo)

    Executive VP & Chief Innovation Officer

    • Tenure: 0yrs
    • Compensation: US$2.37m
  • Hillary Stanley

    Chief Ethics & Compliance Officer

    • Tenure: 0yrs

Board Members

  • Peter Clare (54yo)

    Presiding Director

    • Tenure: 6.3yrs
    • Compensation: US$250.01k
  • Ralph Shrader (74yo)

    Chairman

    • Tenure: 11.7yrs
    • Compensation: US$450.04k
  • Arthur Johnson (72yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$250.04k
  • Charles Rossotti (78yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$250.01k
  • Ian Fujiyama (46yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$250.01k
  • Joan Lordi Amble (66yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$250.00k
  • Melody Barnes (55yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$250.04k
  • Gretchen McClain (57yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$257.60k
  • Horacio Rozanski (51yo)

    CEO, President & Director

    • Tenure: 4.7yrs
    • Compensation: US$7.45m
  • Mark Gaumond (68yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$310.03k

Company Information

Booz Allen Hamilton Holding Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Booz Allen Hamilton Holding Corporation
  • Ticker: BAH
  • Exchange: NYSE
  • Founded: 1914
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$10.215b
  • Shares outstanding: 140.22m
  • Website: https://www.boozallen.com

Number of Employees


Location

  • Booz Allen Hamilton Holding Corporation
  • 8283 Greensboro Drive
  • McLean
  • Virginia
  • 22102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BAHNYSE (New York Stock Exchange)YesClass A Common StockUSUSDNov 2010
BZ9DB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2010
0HOTLSE (London Stock Exchange)YesClass A Common StockGBUSDNov 2010

Biography

Booz Allen Hamilton Holding Corporation provides management and technology consulting, engineering, analytics, digital, mission operations, and cyber solutions to governments, corporations, and not-for-pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 00:45
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.