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Booz Allen Hamilton Holding Corp. (BAH)
NYSE:BAH
Top Page
Booz Allen
(NYSE:BAH)75Outperform
Positive Factors
Financial Health
BAH has a $1 billion buyback in place, indicating strong financial health and confidence in its stock.
Partnerships and Collaborations
BAH's partnerships with Palantir, Nvidia, and Amazon Web Services position it favorably as a 'bridge' between commercial technologies and the government.
Negative Factors
Contract Award Slowdown
BAH expects a slowdown in contract award pace given friction from the Administration change among other factors.
Booz Allen (BAH) vs. S&P 500 (SPY)
Market Cap
$13.43B
Dividend Yield2.02%
Average Volume (3M)2.56M
Price to Earnings (P/E)15.8
Beta (1Y)0.98
Revenue Growth14.07%
EPS Growth116.33%
CountryUS
Employees34,200
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)6.71
Shares Outstanding126,645,610
10 Day Avg. Volume3,238,614
30 Day Avg. Volume2,561,433
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)N/A
Price to Sales (P/S)1.14
Price to Cash Flow (P/CF)22.30
P/FCF Ratio22.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$154.55Price Target Upside46.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Booz Allen Business Overview & Revenue Model
Company DescriptionBooz Allen Hamilton Holding Corp. engages in the provision of management and technology consulting services. It offers analytics, digital solutions, engineering, and cyber expertise. The company was founded by Edwin Booz in 1914 and is headquartered in McLean, VA.
How the Company Makes MoneyBooz Allen Hamilton generates revenue primarily through consulting contracts with government and commercial clients. The company's key revenue streams include consulting services in areas such as strategy, operations, information technology, systems engineering, and analytics. A significant portion of its revenue is derived from contracts with U.S. government agencies, including the Department of Defense, intelligence agencies, and civil government organizations. Booz Allen's business model relies heavily on securing contracts through competitive bidding processes and maintaining long-term relationships with its clients. Additionally, the company benefits from strategic partnerships and alliances that enhance its service offerings and expand its market reach. Booz Allen's ability to adapt to changing government priorities and leverage its technological expertise also plays a crucial role in its revenue generation.
Booz Allen Financial Statement Overview
Summary
Booz Allen exhibits strong financial health with consistent revenue and profit growth, strong margins, and effective cash flow management. The company efficiently utilizes equity, but the relatively low equity ratio suggests a potential risk if leverage increases. Overall, Booz Allen is well-positioned financially with opportunities for further optimization in cost management.Income Statement
Booz Allen shows strong revenue growth with a TTM increase from $10.66 billion to $11.78 billion. The gross profit margin is robust at 39.15%, and the net profit margin is healthy at 7.39%. The company’s EBIT margin stands at 11.61% and the EBITDA margin is 12.15%, indicating good profitability. However, the net profit margin suggests room for improvement in cost management.85
Very Positive
Balance Sheet
The debt-to-equity ratio is 0.25, which indicates a manageable level of leverage. Return on equity (ROE) is strong at 71.94%, showing efficient use of equity to generate profits. However, the equity ratio of 17.74% reflects a lower proportion of equity financing, which might pose risks if debt levels increase.75
Positive
Cash Flow
Operating cash flow to net income ratio is strong at 1.07, indicating solid cash generation relative to net income. Free cash flow has grown significantly, with a growth rate from $192 million to $844 million, demonstrating improved cash management. The free cash flow to net income ratio is excellent at 0.97, reflecting good cash flow relative to earnings.80
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 11.78B | 10.66B | 9.26B | 8.36B | 7.86B | 7.46B | Gross Profit |
| 4.61B | 2.46B | 4.95B | 4.46B | 4.20B | 4.08B | EBIT |
| 1.37B | 1.01B | 446.85M | 685.18M | 754.37M | 669.20M | EBITDA |
| 1.52B | 1.20B | 958.15M | 826.87M | 834.45M | 745.42M | Net Income Common Stockholders |
| 870.25M | 605.71M | 271.79M | 466.74M | 608.96M | 482.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 554.26M | 554.26M | 404.86M | 695.91M | 990.96M | 741.90M | Total Assets |
| 6.56B | 6.56B | 6.55B | 6.03B | 5.50B | 4.79B | Total Debt |
| 3.64B | 3.64B | 3.06B | 3.10B | 2.67B | 2.51B | Net Debt |
| 3.08B | 3.08B | 2.66B | 2.40B | 1.68B | 1.76B | Total Liabilities |
| 5.52B | 5.52B | 5.56B | 4.98B | 4.43B | 3.94B | Stockholders Equity |
| 1.05B | 1.05B | 992.00M | 1.05B | 1.07B | 856.36M |
| Cash Flow | Free Cash Flow | ||||
| 844.17M | 192.14M | 526.69M | 656.56M | 631.47M | 423.35M | Operating Cash Flow |
| 933.76M | 258.84M | 602.82M | 736.53M | 718.68M | 551.43M | Investing Cash Flow |
| -206.15M | -90.64M | -468.02M | -867.73M | -158.28M | -128.08M | Financing Cash Flow |
| -875.88M | -18.80M | -425.85M | -163.85M | -311.35M | 34.56M |
Booz Allen Technical Analysis
Negative
105.79
Price Trends
126.03
Negative
142.10
Negative
147.03
Negative
Market Momentum
-6.44
Positive
28.20
Positive
14.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAH, the sentiment is Negative. The current price of 105.79 is below the 20-day moving average (MA) of 117.64, below the 50-day MA of 126.03, and below the 200-day MA of 147.03, indicating a bearish trend. The MACD of -6.44 indicates Positive momentum. The RSI at 28.20 is Positive, neither overbought nor oversold. The STOCH value of 14.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAH.
Booz Allen Risk Analysis
Booz Allen disclosed 58 risk factors in its most recent earnings report. Booz Allen reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Booz Allen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.51B | 15.45 | 12.88% | ― | 14.04% | 29.08% | |
75 Outperform | $13.43B | 15.81 | 71.93% | 2.02% | 14.07% | 116.33% | |
73 Outperform | $6.40B | 17.31 | 25.81% | 1.24% | 11.30% | ― | |
69 Neutral | $17.34B | 14.34 | 28.42% | 1.19% | 7.93% | 541.97% | |
66 Neutral | $4.83B | 16.66 | 18.80% | 1.54% | -3.87% | -37.31% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
49 Neutral | $54.02M | ― | -0.67% | 12.24% | -11.12% | -120.49% |
* Industrials Sector Average
Performance Comparison
BAH
Booz Allen
105.79
-41.20
-28.03%
CACI
Caci International
353.02
-23.99
-6.36%
KBR
KBR
49.34
-11.78
-19.27%
SAIC
Science Applications
101.03
-40.43
-28.58%
LDOS
Leidos Holdings
132.22
4.30
3.36%
BGSF
BGSF
4.52
-5.24
-53.69%
Booz Allen Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: -17.56% | Next Earnings Date: Jun 3, 2025
Earnings Call Sentiment Positive
Booz Allen Hamilton demonstrated strong financial performance and strategic positioning, particularly in AI and cybersecurity, despite potential short-term uncertainties in the procurement environment due to a new presidential administration. The company's robust backlog and strategic partnerships position it well for future growth.Highlights
Strong Financial Performance
Booz Allen Hamilton reported double-digit growth at both the top and bottom lines for the third quarter of fiscal year 2025, including about 14% revenue growth and 13% organic growth. The adjusted EBITDA was $332 million with an 11.4% margin.
Record Backlog and Book-to-Bill Ratio
The company maintained a trailing 12-month book-to-bill ratio of 1.41x, the highest at calendar year-end in the last 6 years, and reported a total backlog of $39 billion, up 15% year-over-year.
Largest AI Business in Federal Government
Booz Allen now has the largest AI business in the federal government and one of the largest cyber businesses in the world.
Strategic Partnerships
The company announced expanded partnerships with Palantir Technologies and Amazon Web Services to accelerate outcomes in areas like cloud migration, cybersecurity, and generative AI.
Lowlights
Procurement Environment Uncertainty
The company noted a potential short-term slowdown of funding and award activity as the new administration and Congress establish their agenda, which typically affects civilian agencies more.
Flat Headcount Growth
Client staff headcount remained roughly flat for the quarter, which could impact the ability to ramp up for new project demands quickly.
Company Guidance
During Booz Allen Hamilton's earnings call for the third quarter of fiscal year 2025, the company presented strong financial results including a 14% increase in revenue year-over-year, with organic growth accounting for about 13% of this increase. Adjusted EBITDA reached $332 million, reflecting a margin of 11.4%, while adjusted diluted earnings per share rose by 10% to $1.55. The company's backlog stood at an impressive $39 billion, with a trailing 12-month book-to-bill ratio of 1.41x, the highest in six years. Booz Allen also deployed nearly $150 million in share repurchases and increased its dividend by $0.04 per share. Headcount grew by 6% year-over-year, and the company is poised for continued double-digit growth for the fiscal year, with an updated guidance range for revenue growth of 12% to 13%.Booz Allen Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Booz Allen Announces Leadership Changes in Defense Sector
Positive
Dec 13, 2024
Booz Allen Hamilton announced the retirement of Judith H. Dotson, effective June 30, 2025, and the appointment of Andrea Inserra as President of the Global Defense Sector, effective April 1, 2025. Additionally, Steve Escaravage has been named President of the newly formed Defense Technology Group. These leadership changes align with Booz Allen’s growth strategy, VoLT, focusing on digital transformation and advanced technology innovation to better serve defense clients amid national security challenges. Inserra and Escaravage bring extensive experience in leading and scaling technological solutions, positioning Booz Allen for continued success and growth in the defense sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.