Booz Allen (BAH) AI Stock Analysis

• Market Cap: $12.76B
• Dividend Yield: 2.11%
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.57
• Revenue Growth: 12.36%
• EPS Growth: 58.08%
• Country: US
• Employees: 35,900
• Sector: Industrials
• Sector Strength: 88
• Industry: Consulting Services
• EPS (TTM): 1.61
• Shares Outstanding: 124,081,856
• 10 Day Avg. Volume: 2,196,382
• 30 Day Avg. Volume: 2,307,468
• PEG Ratio: -1.18
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.34
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.57
• Enterprise Value/Ebitda: 2.25
• 1Y Price Target: $128.27
• Price Target Upside: 19.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $114.00 ▲(6.23%Upside)

Booz Allen's strong financial performance and favorable valuation are key strengths, positioning the company well for future growth. However, bearish technical trends and challenges in the civil sector pose risks. Strategic initiatives and a robust pipeline provide optimism for overcoming these challenges.

Positive Factors

AI Business Growth

Booz Allen Hamilton's AI business grew significantly, with expectations of accelerated growth as contracts transition to higher-volume, higher-margin production.

Defense and Intelligence Growth

Defense/Intel is expected to post strong organic growth as BAH noted that it is well positioned in areas of importance for the current administration.

Technical Expertise and Mission Intimacy

The robust combination of technical expertise and mission intimacy makes Booz Allen Hamilton the partner of choice to operationalize commercial tech to the government.

Negative Factors

Civilian Business Restructuring

The stock was negatively affected by the surprising restructuring of the Civilian business despite a core outlook above expectations.

Limited Revenue and Earnings Growth

The stock of Booz Allen Hamilton has been downgraded to Sell from Neutral due to limited revenue and earnings growth expected.

Revenue Decline in Civilian Agencies

The Civilian agencies, making up about a third of Booz Allen Hamilton's revenues, are expected to decline in the upcoming fiscal year due to restructuring and adjustments for soft awards and lower run rates.

Booz Allen Business Overview & Revenue Model

Company Description

Booz Allen Hamilton Holding Corporation (BAH) is a leading management and technology consulting firm headquartered in McLean, Virginia. The company operates primarily in the United States and offers a wide range of services, including cybersecurity, analytics, digital solutions, engineering, and consulting. Booz Allen serves various sectors, including defense, intelligence, civil, and health, providing innovative solutions to government agencies, corporations, and not-for-profit organizations.

How the Company Makes Money

Booz Allen Hamilton generates revenue through its consulting and professional services, primarily by securing contracts with government agencies and commercial clients. The company's key revenue streams include providing management consulting, technology integration, engineering services, and cybersecurity solutions. Booz Allen's financial performance is significantly influenced by its ability to win and maintain government contracts, particularly within the defense and intelligence sectors. The company also engages in strategic partnerships and invests in technology and innovation to enhance its service offerings and maintain competitive advantage.

Booz Allen Financial Statement Overview

Summary

Booz Allen shows strong financial health with robust revenue growth and improving profitability margins. The balance sheet indicates better leverage management, though reliance on debt remains a concern. Strong cash flow generation further underscores its solid financial position.

Income Statement

Booz Allen has shown robust revenue growth over the years, with a noticeable increase from $7.46 billion in 2020 to $11.98 billion in 2025. The gross profit margin has been strong, hovering above 50%, which indicates effective cost management. The net profit margin has improved over the years, with a significant jump in net income in 2025, reflecting operational efficiency. However, EBIT and EBITDA margins showed some volatility, suggesting areas for operational improvement.

Balance Sheet

The company's debt-to-equity ratio has been decreasing, reflecting improved financial leverage management, with total debt dropping significantly from 2024 to 2025. The return on equity (ROE) has improved, driven by rising net income. Despite this, the equity ratio remains relatively low, indicating a higher reliance on debt financing, which could pose risks in volatile markets.

Cash Flow

Operating cash flow has shown a substantial increase in 2025, indicating strong cash generation from core operations. Free cash flow has also grown significantly, suggesting effective capital expenditure management. The free cash flow to net income ratio is favorable, indicating that the company efficiently converts its profits into cash. The positive trajectory in cash flows supports the company's financial stability.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.98B	10.66B	9.26B	8.36B	7.86B
Gross Profit	6.56B	5.74B	4.95B	4.46B	4.20B
EBITDA	1.22B	1.20B	650.17M	819.99M	803.07M
Net Income	935.00M	605.71M	271.79M	466.74M	608.96M
Balance Sheet
Total Assets	7.31B	6.56B	6.55B	6.03B	5.50B
Cash, Cash Equivalents and Short-Term Investments	885.00M	554.26M	404.86M	695.91M	990.96M
Total Debt	304.00M	3.64B	3.06B	3.10B	2.67B
Total Liabilities	6.31B	5.52B	5.56B	4.98B	4.43B
Stockholders Equity	1.00B	1.05B	992.00M	1.05B	1.07B
Cash Flow
Free Cash Flow	911.00M	192.14M	526.69M	656.56M	631.47M
Operating Cash Flow	1.01B	258.84M	602.82M	736.53M	718.68M
Investing Cash Flow	-218.00M	-90.64M	-468.02M	-867.73M	-158.28M
Financing Cash Flow	-460.00M	-18.80M	-425.85M	-163.85M	-311.35M

Booz Allen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 107.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 107.31 is above the 20-day moving average (MA) of 102.21, below the 50-day MA of 112.00, and below the 200-day MA of 130.24, indicating a neutral trend. The MACD of -1.99 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 91.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAH.

Booz Allen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAH	76 Outperform	$12.76B	14.19	90.74%	2.11%	12.36%	58.08%
CRAI	76 Outperform	$1.27B	25.26	23.18%	1.05%	8.49%	21.06%
HURN	76 Outperform	$2.37B	20.60	24.88%	―	8.83%	92.48%
TRU	75 Outperform	$17.54B	48.16	8.68%	0.52%	8.85%	―
FCN	73 Outperform	$5.63B	22.44	12.46%	―	1.59%	-16.79%
ICFI	72 Outperform	$1.55B	14.46	11.64%	0.66%	1.95%	17.98%
Sector *	58 Neutral	$1.33B	4.20	-2.93%	7.45%	3.67%	-51.13%

Booz Allen Corporate Events

Booz Allen Expands Board, Appoints Robert C. O’Brien

On June 9, 2025, Booz Allen Hamilton expanded its Board of Directors from twelve to thirteen members, appointing Robert C. O’Brien, a former U.S. National Security Advisor, to the board. O’Brien’s extensive experience in national security and geopolitics is expected to enhance Booz Allen’s strategic capabilities, particularly in serving its stakeholders and advancing its mission in national security and defense.

The most recent analyst rating on (BAH) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Booz Allen stock, see the BAH Stock Forecast page.

Booz Allen Board Member Melody Barnes Retires

On May 27, 2025, Melody Barnes, a member of Booz Allen‘s Board of Directors, announced her decision to retire and not seek re-election. Her retirement will be effective following the company’s annual stockholders meeting on July 23, 2025.

The most recent analyst rating on (BAH) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Booz Allen stock, see the BAH Stock Forecast page.

Booz Allen Reports Strong FY25 Financial Results

On May 23, 2025, Booz Allen Hamilton announced its fourth quarter and full fiscal year 2025 results, showcasing strong financial performance. The company exceeded its targets for organic revenue growth and adjusted EBITDA, with a record Q4 backlog of $37 billion and a trailing 12-month book-to-bill ratio of 1.39x. Revenue for FY25 grew by 12.4% to $12.0 billion, while adjusted net income increased by 13.4% to $815 million. The company’s strategic momentum was driven by its VoLT (Velocity, Leadership, Technology) initiative, and it continues to leverage its leading positions in AI and advanced technology to support national priorities.

The most recent analyst rating on (BAH) stock is a Hold with a $160.00 price target. To see the full list of analyst forecasts on Booz Allen stock, see the BAH Stock Forecast page.