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Booz Allen
(NYSE:BAH)
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Rating:70Outperform
Price Target:
$78.00
â–²(7.54% Upside)
Action:Upgraded
Date:08/05/26
BAH scores well on fundamentals and shareholder return support, led by strong free cash flow and solid profitability, plus an attractive P/E and dividend yield. The main constraints are leverage and near-term top-line pressure (especially Civil), with mixed longer-term technicals and execution risks (DSO and hiring) keeping the overall score in the low-70 range.
Positive Factors
Cash generation
Booz Allen consistently converts earnings into cash, with TTM operating cash flow and free cash flow near $1.1–1.2B and FCF roughly 91% of net income. Durable cash generation supports reinvestment in cyber/defense, M&A, dividends and debt service, enhancing long‑term financial resilience.
Negative Factors
Elevated leverage
The company's capital structure is meaningfully levered versus peers, with debt amplifying returns but reducing financial flexibility. Higher leverage increases interest and refinancing risk, constrains maneuverability for opportunistic investments, and makes the firm more sensitive to revenue or margin shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Booz Allen consistently converts earnings into cash, with TTM operating cash flow and free cash flow near $1.1–1.2B and FCF roughly 91% of net income. Durable cash generation supports reinvestment in cyber/defense, M&A, dividends and debt service, enhancing long‑term financial resilience.
Read all positive factors
Booz Allen Key Performance Indicators (KPIs)
Any
Revenue by Customer Type
Breaks revenue into customer groups (federal defense, civilian agencies, commercial), highlighting dependence on government budgets or diversification into the private sector. High concentration in a single customer type can mean stable, recurring contracts but also vulnerability to policy and budget shifts.
Breaks revenue into customer groups (federal defense, civilian agencies, commercial), highlighting dependence on government budgets or diversification into the private sector. High concentration in a single customer type can mean stable, recurring contracts but also vulnerability to policy and budget shifts.
Data provided by:
The Fly
The FlyBooz Allen (BAH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.39B
Dividend Yield3.27%
Average Volume (3M)2.54M
Price to Earnings (P/E)10.9
Beta (1Y)0.40
Revenue Growth-7.27%
EPS Growth-22.00%
CountryUS
Employees31,500
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)6.39
Shares Outstanding120,284,970
10 Day Avg. Volume2,378,238
30 Day Avg. Volume2,544,416
Financial Highlights & Ratios
PEG Ratio-2.22
Price to Book (P/B)8.70
Price to Sales (P/S)0.86
P/FCF Ratio10.11
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$85.33Price Target Upside17.65% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)6.38
Revenue Forecast (FY)$11.38B
Booz Allen Business Overview & Revenue Model
Company Description
Booz Allen Hamilton Holding Corporation (BAH) operates as a prominent consulting and technology firm, offering a diverse range of services to governmental bodies, commercial enterprises, and non-profit organizations both domestically and internati...
How the Company Makes Money
Booz Allen makes money primarily by providing professional services to government clients under contract. Its revenue model is largely project- and program-based: agencies procure Booz Allen’s consulting, engineering, cybersecurity, analytics, and...
Booz Allen Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced, cautiously optimistic tone: the company reported strong profitability, cash flow, booked demand and funded backlog gains while investing heavily in cyber, defense tech and other strategic areas. However, revenue headwinds driven by the Civil portfolio, expected near‑term sequential declines and margin pressure in Q2, elevated DSO and hiring constraints temper the outlook. Management reaffirmed guidance and emphasized execution, transformation and a balanced capital deployment approach.Positive Updates
Solid Profitability Improvement
Adjusted EBITDA of $334 million with an adjusted EBITDA margin of 11.9%, up 130 basis points year‑over‑year; adjusted diluted EPS rose 22% year‑over‑year to $1.81 (includes a $19 million pretax unrealized gain).
Negative Updates
Overall Revenue Decline
First quarter revenue declined 4.2% year‑over‑year to $2.8 billion (revenue ex billable expenses down 3.8% YoY), reflecting bifurcated market dynamics and near‑term headwinds.
Read all updates
Q1-2027 Updates
Positive
Negative
Solid Profitability Improvement
Adjusted EBITDA of $334 million with an adjusted EBITDA margin of 11.9%, up 130 basis points year‑over‑year; adjusted diluted EPS rose 22% year‑over‑year to $1.81 (includes a $19 million pretax unrealized gain).
Read all positive updates
Company Guidance
Booz Allen reaffirmed its full-year guidance across all metrics while saying the year will be back‑half weighted: Q1 revenue was $2.8B (down 4.2% YoY; revenue ex‑billables down 3.8%), National Security grew 1% in Q1 and is expected to grow mid‑single digits for the year, Civil was down 16% in Q1 and is expected to be down high‑single digits for the year with a sequential double‑digit Civil decline expected in Q2; Q1 adjusted EBITDA was $334M (11.9% margin, +130 bps YoY), adjusted diluted EPS was $1.81 (+22% YoY), free cash flow was $261M, book‑to‑bill was 1.5x (trailing 12‑month 1.1x), total backlog was >$39B (+3% YoY) with funded backlog $4.7B (+15% YoY), funded awards/funding trends improved (funding +17% YoY), DSO was 80 days (up 7 days), the company deployed $447M (≈$324M M&A/VC and $123M shareholder returns), ended with $540M cash and $2B liquidity, net leverage 2.7x LTM EBITDA, expects ~11% margins for the year (implying a margin step‑down in 2Q), and expects the Ultra Mission Solutions acquisition to close in Q2.Booz Allen Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
54
Neutral
Cash Flow
80
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.09B | 11.22B | 11.98B | 10.66B | 9.26B | 8.36B |
| Gross Profit | 4.96B | 2.35B | 6.56B | 5.74B | 4.95B | 4.46B |
| EBITDA | 1.26B | 1.24B | 1.57B | 1.20B | 650.17M | 819.99M |
| Net Income | 778.00M | 851.00M | 935.00M | 605.71M | 271.79M | 466.74M |
Balance Sheet | ||||||
| Total Assets | 7.61B | 7.41B | 7.31B | 6.56B | 6.55B | 6.03B |
| Cash, Cash Equivalents and Short-Term Investments | 540.00M | 728.00M | 885.00M | 554.00M | 404.86M | 695.91M |
| Total Debt | 4.16B | 4.12B | 4.22B | 3.64B | 3.06B | 3.10B |
| Total Liabilities | 6.41B | 6.30B | 6.31B | 5.52B | 5.56B | 4.98B |
| Stockholders Equity | 1.20B | 1.10B | 1.00B | 1.05B | 992.00M | 1.05B |
Cash Flow | ||||||
| Free Cash Flow | 1.12B | 951.00M | 911.00M | 192.14M | 526.69M | 656.56M |
| Operating Cash Flow | 1.20B | 1.04B | 1.01B | 258.84M | 602.82M | 736.53M |
| Investing Cash Flow | -596.00M | -300.00M | -218.00M | -90.64M | -468.02M | -867.73M |
| Financing Cash Flow | -778.00M | -898.00M | -460.00M | -19.00M | -425.85M | -163.85M |
Booz Allen Technical Analysis
Positive
72.53
Price Trends
69.96
Positive
73.91
Negative
79.69
Negative
Market Momentum
0.85
Negative
57.62
Neutral
48.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAH, the sentiment is Positive. The current price of 72.53 is above the 20-day moving average (MA) of 66.59, above the 50-day MA of 69.96, and below the 200-day MA of 79.69, indicating a neutral trend. The MACD of 0.85 indicates Negative momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 48.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAH.
Booz Allen Risk Analysis
Booz Allen disclosed 52 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.41B | 22.25 | 25.53% | ― | 13.60% | 14.77% | |
72 Outperform | $4.40B | 19.46 | 15.61% | ― | 7.12% | 15.93% | |
70 Outperform | $8.39B | 10.91 | 71.90% | 3.14% | -7.27% | -22.00% | |
67 Neutral | $1.46B | 17.40 | 8.35% | 0.70% | -9.45% | -20.88% | |
65 Neutral | $1.16B | 24.59 | 23.64% | 1.30% | 10.50% | -3.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
48 Neutral | $150.52M | -3.63 | -21.44% | 7.43% | -18.02% | 79.32% |
* Industrials Sector Average
BAH
Booz Allen
71.15
-37.38
-34.44%
CRAI
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180.23
-3.66
-1.99%
FCN
FTI Consulting
158.40
-10.02
-5.95%
HURN
Huron Consulting
149.96
22.07
17.26%
ICFI
Icf International
84.12
-5.61
-6.26%
RGP
Resources Connection
4.45
0.08
1.95%
Booz Allen Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Booz Allen Strengthens Capital Structure with New Senior Notes
Positive
Aug 4, 2026
On August 4, 2026, Booz Allen Hamilton Inc. issued $700 million of 5.375% Senior Notes due 2030 and $500 million of 5.900% Senior Notes due 2034, both fully and unconditionally guaranteed on an unsecured, unsubordinated basis by Booz Allen Hamilto...
Executive/Board ChangesShareholder Meetings
Booz Allen Shareholders Back Board, Pay, and Auditor
Positive
Jul 24, 2026
At its Annual Meeting of Stockholders held on July 22, 2026, Booz Allen Hamilton shareholders elected all nominated directors, including CEO Horacio D. Rozanski and nine other board members, with strong majorities despite some opposition to certai...
Business Operations and StrategyDividendsFinancial Disclosures
Booz Allen Reports Mixed Q1 Results, Reaffirms Outlook
Neutral
Jul 24, 2026
On July 24, 2026, Booz Allen Hamilton reported first‑quarter fiscal 2027 results showing revenue of $2.8 billion, down 4.2% year over year, and net income of $198 million, down 26.9%, while adjusted net income rose 17.9% to $217 million and ...
Business Operations and StrategyM&A Transactions
Booz Allen to Acquire Ultra I&C Mission Solutions
Positive
Jun 22, 2026
On June 19, 2026, Booz Allen Hamilton Inc. agreed to acquire Ultra IC Mission Solutions, a defense technology business owned by Cobham Ultra Group, for $720 million, with closing targeted for the second quarter of Booz Allen’s fiscal 2027. U...
Business Operations and StrategyFinancial Disclosures
Booz Allen Posts Q4 Results With Strong Profitability
Positive
May 22, 2026
On May 22, 2026, Booz Allen reported fourth-quarter fiscal 2026 revenue of $2.8 billion, down 6.4% year over year, while net income rose 6.2% to $205 million and adjusted diluted EPS climbed 10.6%. The quarter closed with a record $38 billion back...
Business Operations and StrategyExecutive/Board Changes
Booz Allen Adds Ryan Nolan to Board, Audit Committee
Positive
May 12, 2026
On May 7, 2026, Booz Allen Hamilton’s board voted to expand its membership from 12 to 13 directors and appointed Ryan P. Nolan to the board, effective June 1, 2026, with his term running until the 2026 annual stockholders’ meeting. Nol...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.