Booz Allen Hamilton Holding Corporation
Booz Allen Hamilton Holding Corporation Fundamental Analysis
Booz Allen Hamilton Holding Corporation (BAH) shows strong financial fundamentals with a PE ratio of 11.10, profit margin of 7.33%, and ROE of 81.85%. The company generates $11.4B in annual revenue with strong year-over-year growth of 12.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BAH's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBAH demonstrates superior asset utilization.
Valuation Score
ModerateBAH shows balanced valuation metrics.
Growth Score
ExcellentBAH delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBAH maintains a strong and stable balance sheet.
Profitability Score
ModerateBAH maintains healthy but balanced margins.
Key Financial Metrics
Is BAH Expensive or Cheap?
P/E Ratio
BAH trades at 11.10 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BAH's PEG of 4.05 indicates potential overvaluation.
Price to Book
The market values Booz Allen Hamilton Holding Corporation at 9.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.73 times EBITDA. This is generally considered low.
How Well Does BAH Make Money?
Net Profit Margin
For every $100 in sales, Booz Allen Hamilton Holding Corporation keeps $7.33 as profit after all expenses.
Operating Margin
Core operations generate 9.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $81.85 in profit for every $100 of shareholder equity.
ROA
Booz Allen Hamilton Holding Corporation generates $11.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Booz Allen Hamilton Holding Corporation generates limited operating cash flow of $1.02B, signaling weaker underlying cash strength.
Free Cash Flow
Booz Allen Hamilton Holding Corporation produces free cash flow of $933.51M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.57 in free cash annually.
FCF Yield
BAH converts 10.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.82
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How BAH Stacks Against Its Sector Peers
| Metric | BAH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.10 | 26.71 | Better (Cheaper) |
| ROE | 81.85% | 1311.00% | Weak |
| Net Margin | 7.33% | -29317.00% (disorted) | Weak |
| Debt/Equity | 0.27 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.81 | 10.53 | Neutral |
| ROA | 11.87% | -1537638.00% (disorted) | Strong |
BAH outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Booz Allen Hamilton Holding Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.96%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
112.39%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
100.59%
Industry Style: Cyclical, Value, Infrastructure
High Growth