Education
About Us
Working with TipRanks
Follow Us
DLH Holdings (DLHC)
NASDAQ:DLHC
Top Page
DLH Holdings
(NASDAQ:DLHC)
Select Model
Select Model
Rating:63Neutral
Price Target:
$6.00
▲(8.89% Upside)
DLH Holdings' overall stock score reflects a mixed financial performance with strong cash flow management but high leverage. The technical analysis suggests limited momentum, and the valuation is moderate. The earnings call indicates cautious optimism with effective debt reduction and strategic alignment with government initiatives, but revenue declines pose challenges.
DLH Holdings (DLHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$79.13M
Dividend YieldN/A
Average Volume (3M)16.07K
Price to Earnings (P/E)17.4
Beta (1Y)1.29
Revenue Growth-10.30%
EPS Growth86.44%
CountryUS
Employees2,400
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.02
Shares Outstanding14,386,468
10 Day Avg. Volume8,341
30 Day Avg. Volume16,074
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.03
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit3.57
Enterprise Value/Ebitda6.52
Forecast
1Y Price Target
$8.00Price Target Upside45.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
DLH Holdings Business Overview & Revenue Model
Company DescriptionDLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States. The company offers defense and veterans' health solutions, including healthcare, technology, and logistics solutions to the VA, Defense Health Agency, Tele-medicine and Advanced Technology Research Center, Navy Bureau of Medicine and Surgery, and the Army Medical Research and Material Command. It also provides a range of human services and solutions, which consists of monitoring and evaluation, electronic medical records migration, data collection and management, and nutritional and social health assessments; and IT system architecture design, migration plan, and ongoing maintenance services. In addition, the company offers public health and life sciences services, such as clinical trials, epidemiology studies, and disease prevention; and health promotion to underserved and at-risk communities through development of strategic communication campaigns, research on emerging trends, health informatics analyses, and application of best practices. It primarily serves the federal health services market. The company was formerly known as TeamStaff, Inc. and changed its name to DLH Holdings Corp. in June 2012. DLH Holdings Corp. was incorporated in 1969 and is headquartered in Atlanta, Georgia.
How the Company Makes MoneyDLH Holdings generates revenue primarily through government contracts and service agreements. The company secures contracts with federal agencies, particularly in defense and healthcare sectors, which are awarded based on competitive bidding processes. Key revenue streams include healthcare staffing, logistics support, IT services, and program management. Additionally, DLH benefits from strategic partnerships and alliances with other companies and organizations to enhance its service offerings and expand its market reach. The stability and growth of its earnings are closely tied to the federal budget allocations for defense and healthcare services.
DLH Holdings Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Dec 08, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with effective debt reduction and alignment with government priorities being positive, but offset by revenue declines and challenges in pipeline conversion due to administrative and workforce issues. The sentiment is cautious with optimism for future recovery.Q3-2025 Updates
Positive Updates
Effective Debt Reduction
DLH reduced debt by $9.4 million compared to the previous quarter, bringing total debt to $142.3 million. The company is a year ahead on mandatory debt payments and plans to continue aggressive debt repayment.
Strong Cash Flow Management
The company generated approximately $9.5 million in operating cash during the quarter, with a reduction in days sales outstanding from 52 to 46 days.
Alignment with Federal Initiatives
DLH's capabilities continue to align with federal government demands, particularly in technology integration, cybersecurity, AI, and ML, which are likely to provide growth opportunities.
Negative Updates
Revenue Decline
DLH reported a decrease in revenue to $83.3 million from $100.7 million in the prior year period, attributed to the conversion of certain VA and DoD programs to small business contractors and government efficiency initiatives.
Slow Pipeline Conversion
The company experienced a slowdown in proposal submissions and contract awards, resulting in a stalled flow of new business growth due to additional layers of funding review and approval cycles by the new administration.
Impact of Government Workforce Cuts
Cuts in government contract acquisition personnel have slowed the issuance and evaluation of RFPs and the awarding of contracts, impacting DLH's pipeline and growth prospects.
Company Guidance
In the recent DLH Holdings Fiscal 2025 Third Quarter Earnings Conference Call, the company provided detailed guidance on various financial metrics and strategic outlooks. Despite a decrease in revenue to $83.3 million from $100.7 million in the prior year, primarily due to changes in contract awards and government efficiency initiatives, the company reported a robust EBITDA of $8.1 million, maintaining a strong margin of 9.7%. DLH successfully reduced its debt by $9.4 million, ending the quarter at $142.3 million, and is ahead by a year on mandatory debt payments. The company's strategic focus on operational agility and technology differentiation has positioned it well for future opportunities, aligning with federal technology initiatives such as AI and cybersecurity. They anticipate positive changes from acquisition reforms and government spending priorities that could benefit DLH in the coming quarters, despite short-term challenges in the procurement environment.DLH Holdings Financial Statement Overview
Summary
DLH Holdings shows stable operational efficiency with decent gross margins and strong cash flow management. However, challenges such as declining revenue and high leverage could impact financial stability. The balance sheet reflects significant reliance on debt, which might affect future growth prospects.Income Statement
DLH Holdings has shown a mixed performance in its income statement. The gross profit margin for TTM is approximately 18.7%, and the net profit margin is around 1.44%, indicating that while gross margins are reasonable, net margins are relatively low. The TTM revenue has decreased compared to the previous annual figure, indicating a negative revenue growth rate. However, the EBIT and EBITDA margins are stable, standing at 6.07% and 10.18% respectively, which shows operational efficiency but also room for improvement in profitability.65
Positive
Balance Sheet
DLH Holdings faces challenges in its balance sheet. The debt-to-equity ratio is roughly 1.44, suggesting a high leverage, which could pose financial risks. The return on equity (ROE) for TTM is about 4.81%, which is modest. The equity ratio stands at approximately 36.80%, indicating that a significant portion of assets is financed through equity, but the company still relies considerably on debt.58
Neutral
Cash Flow
The cash flow statement shows some positive aspects. The TTM operating cash flow to net income ratio is robust at about 3.69, indicating strong cash generation relative to net income. The free cash flow to net income ratio is an impressive 3.52, showcasing effective cash management. However, the free cash flow growth rate is negative compared to the previous year, pointing to potential volatility in cash flow generation.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 359.72M | 395.94M | 375.87M | 395.17M | 246.09M | 209.19M |
| Gross Profit | 67.22M | 78.91M | 79.86M | 72.29M | 51.48M | 45.59M |
| EBITDA | 36.81M | 40.15M | 32.65M | 40.94M | 25.34M | 21.39M |
| Net Income | 4.58M | 7.40M | 1.46M | 23.29M | 10.14M | 7.11M |
Balance Sheet | ||||||
| Total Assets | 299.34M | 314.38M | 339.84M | 169.01M | 197.17M | 183.56M |
| Cash, Cash Equivalents and Short-Term Investments | 194.00K | 342.00K | 215.00K | 228.00K | 24.05M | 1.36M |
| Total Debt | 155.89M | 164.81M | 191.71M | 39.11M | 66.27M | 90.94M |
| Total Liabilities | 185.64M | 204.25M | 237.40M | 76.95M | 131.56M | 130.13M |
| Stockholders Equity | 113.70M | 110.13M | 102.44M | 92.06M | 65.61M | 53.44M |
Cash Flow | ||||||
| Free Cash Flow | 24.76M | 26.53M | 30.41M | 371.00K | 45.56M | 19.30M |
| Operating Cash Flow | 24.97M | 27.37M | 31.03M | 1.24M | 45.66M | 19.45M |
| Investing Cash Flow | -422.00K | -836.00K | -181.20M | -872.00K | -44.00K | -32.83M |
| Financing Cash Flow | -24.78M | -26.40M | 150.15M | -24.19M | -22.93M | 12.95M |
DLH Holdings Technical Analysis
Positive
5.51
Price Trends
5.59
Positive
5.54
Positive
5.52
Positive
Market Momentum
-0.01
Positive
53.28
Neutral
16.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLHC, the sentiment is Positive. The current price of 5.51 is below the 20-day moving average (MA) of 5.58, below the 50-day MA of 5.59, and below the 200-day MA of 5.52, indicating a bullish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 16.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLHC.
DLH Holdings Risk Analysis
DLH Holdings disclosed 44 risk factors in its most recent earnings report. DLH Holdings 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
DLH Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $79.13M | 17.39 | 4.12% | ― | -10.30% | 86.44% | |
55 Neutral | $120.21M | ― | ― | ― | -18.53% | ― | |
51 Neutral | $67.62M | ― | -13.00% | ― | 2.52% | 45.76% | |
49 Neutral | $70.00M | ― | -9999.00% | ― | 2.55% | 6.88% | |
47 Neutral | $79.51M | ― | -84.85% | ― | -12.76% | 56.53% | |
45 Neutral | $24.40M | 2.10 | -47.70% | ― | -44.47% | -203.41% |
* Industrials Sector Average
DLHC
DLH Holdings
5.66
-3.10
-35.39%
OMEX
Odyssey Marine Exploration
2.97
2.32
356.92%
SGRP
Spar Group
1.05
-1.37
-56.61%
TISI
Team
15.07
-10.22
-40.41%
SST
System1
7.89
-2.91
-26.94%
PMEC
Primech Holdings Ltd.
1.68
0.98
140.00%
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.