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

-0.7%

BAH

1.6%

US IT

2.3%

US Market


1 Year Return

46.1%

BAH

23.3%

US IT

5.6%

US Market

Return vs Industry: BAH exceeded the US IT industry which returned 23.3% over the past year.

Return vs Market: BAH exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

BAHIndustryMarket
7 Day-0.7%1.6%2.3%
30 Day-2.6%-0.08%-1.0%
90 Day6.5%-2.6%-0.7%
1 Year48.2%46.1%24.6%23.3%7.9%5.6%
3 Year146.8%134.4%97.9%89.8%45.6%36.3%
5 Year206.8%180.3%155.5%132.0%65.8%47.6%

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 compared to its fair value and its price relative to the market?

23.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BAH ($70.99) is trading above our estimate of fair value ($64.47)

Significantly Undervalued: BAH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BAH is good value based on its PE Ratio (23.3x) compared to the IT industry average (36.4x).

PE vs Market: BAH is poor value based on its PE Ratio (23.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BAH is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: BAH is overvalued based on its PB Ratio (13.3x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Booz Allen Hamilton Holding forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAH's forecast earnings growth (7.5% per year) is above the savings rate (2.7%).

Earnings vs Market: BAH's earnings (7.5% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: BAH's earnings are forecast to grow, but not significantly.

Revenue vs Market: BAH's revenue (6.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BAH's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BAH's Return on Equity is forecast to be very high in 3 years time (103%).


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

Earnings Trend: BAH's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: BAH's earnings growth over the past year (29%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: BAH earnings growth over the past year (29%) exceeded the IT industry 8.4%.


Return on Equity

High ROE: Whilst BAH's Return on Equity (57.65%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: BAH has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: BAH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Booz Allen Hamilton Holding's financial position?


Financial Position Analysis

Short Term Liabilities: BAH's short term assets ($2.1B) exceeds its short term liabilities ($1.2B)

Long Term Liabilities: BAH's short term assets (2.1B) do not cover its long term liabilities (2.6B)


Debt to Equity History and Analysis

Debt Level: BAH's debt to equity ratio (289%) is considered high

Reducing Debt: BAH's debt to equity ratio has reduced from 748.6% to 289% over the past 5 years.

Debt Coverage: BAH's debt is well covered by operating cash flow (26.7%).

Interest Coverage: BAH's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

Inventory Level: BAH has a low level of unsold assets or inventory.

Debt Coverage by Assets: BAH's debt is not 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?

1.30%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BAH's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BAH's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: BAH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BAH's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.6%), BAH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAH's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).


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?

3.7yrs

Average management tenure


CEO

Horacio Rozanski (51yo)

4.8yrs

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

Compensation vs. Market: Horacio's total compensation ($USD7.45M) is below average for companies of similar size in the US market ($USD11.23M).

Compensation vs Earnings: Horacio's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

Experienced Management: BAH's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BAH's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

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


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: 3.3yrs
    • Compensation: US$3.82m
  • Joe Mahaffee (61yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.63m
  • Horacio Rozanski (51yo)

    CEO, President & Director

    • Tenure: 4.8yrs
    • Compensation: US$7.45m
  • Nancy Laben (57yo)

    Executive VP

    • Tenure: 3.7yrs
    • 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: 8yrs
  • Nick Veasey

    Director of Investor Relations

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

    Chief Accounting Officer

    • Tenure: 3.3yrs
  • 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: 6.4yrs
    • Compensation: US$250.01k
  • Ralph Shrader (74yo)

    Independent Chairman

    • Tenure: 11.8yrs
    • Compensation: US$450.04k
  • Arthur Johnson (72yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$250.04k
  • Charles Rossotti (78yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$250.01k
  • Ian Fujiyama (46yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$250.01k
  • Joan Lordi Amble (66yo)

    Independent Director

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

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$250.04k
  • Gretchen McClain (57yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$257.60k
  • Horacio Rozanski (51yo)

    CEO, President & Director

    • Tenure: 4.8yrs
    • Compensation: US$7.45m
  • Mark Gaumond (68yo)

    Independent Director

    • Tenure: 8.8yrs
    • 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$9.954b
  • 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 Analysis2019/10/17 00:14
End of Day Share Price2019/10/16 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.