DLH Holdings (DLHC) AI Stock Analysis

• Market Cap: $81.74M
• Dividend Yield: N/A
• Average Volume (3M): 28.49K
• Price to Earnings (P/E): 60.4
• Beta (1Y): 1.25
• Revenue Growth: -12.99%
• EPS Growth: -81.86%
• Country: US
• Employees: 2,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.06
• Shares Outstanding: 14,493,035
• 10 Day Avg. Volume: 37,172
• 30 Day Avg. Volume: 28,494
• PEG Ratio: -0.73
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 3.54
• Enterprise Value/Market Cap: 2.77
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 4.71
• Enterprise Value/Ebitda: 6.82
• 1Y Price Target: $10.00
• Price Target Upside: 61.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.27
• Revenue Forecast (FY): $245.00M

• Rating: 53 Neutral
• Price Target: $5.50 ▼(-11.29% Downside)

DLH Holdings' overall stock score is primarily impacted by financial performance challenges, including declining revenue and profitability, and high leverage. Technical analysis indicates bearish momentum, while valuation suggests potential overvaluation. The earnings call provided some positive strategic outlooks, but current financial metrics remain a concern.

Positive Factors

Debt Reduction

Reducing debt enhances financial flexibility and reduces interest expenses, positioning DLH for more strategic investments and growth.

Pipeline Growth

A robust pipeline indicates potential future revenue streams, supporting long-term growth and market position in federal contracts.

Cybersecurity Certification

Certification enhances DLH's competitive edge, enabling access to high-value contracts in secure sectors, bolstering long-term business prospects.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining market share and could pressure profitability if not addressed through strategic initiatives.

EBITDA Decrease

A decrease in EBITDA reflects operational challenges and may affect cash flow generation, impacting long-term financial health.

Contract Transitions

Loss of contracts to small businesses can reduce revenue stability, necessitating new business development to offset declines.

DLH Holdings Business Overview & Revenue Model

Company Description

DLH Holdings Corp. (DLHC) is a provider of healthcare and technology-enabled solutions to government and commercial sectors. The company specializes in delivering solutions that support health and wellness, including medical logistics, health services, and technology consulting. DLH operates primarily in the federal healthcare market, serving clients such as the Department of Veterans Affairs and the Department of Defense, focusing on improving health outcomes through innovative and efficient service delivery.

How the Company Makes Money

DLH Holdings generates revenue primarily through government contracts and service agreements. Key revenue streams include providing healthcare services, logistics support, and technology solutions tailored to the needs of federal agencies. The company often engages in long-term contracts with governmental entities, which provide a steady revenue base. Additionally, DLH may benefit from partnerships with other contractors and technology firms, enhancing its service offerings and market reach. Factors contributing to its earnings include the increasing demand for healthcare services in the federal sector, ongoing government investments in health and wellness programs, and the company's expertise in managing complex service delivery models.

DLH Holdings Financial Statement Overview

Summary

DLH Holdings faces challenges in revenue growth and profitability, with declining margins and negative growth rates. The balance sheet shows high leverage, posing potential risks. Cash flow generation has weakened, raising liquidity concerns. Overall, financial pressures need addressing to improve stability.

Income Statement

DLH Holdings has experienced a decline in revenue growth, with a negative growth rate of -4.23% in the most recent year. The gross profit margin has decreased over the years, indicating pressure on profitability. The net profit margin has also declined significantly, suggesting challenges in cost management and operational efficiency. However, the company maintains a positive EBIT and EBITDA margin, reflecting some operational stability.

Balance Sheet

The company's debt-to-equity ratio has improved slightly but remains relatively high, indicating a leveraged position. Return on equity has decreased, reflecting reduced profitability relative to shareholder equity. The equity ratio is stable, showing a balanced asset structure. Overall, the balance sheet reflects moderate financial health with potential risks due to leverage.

Cash Flow

DLH Holdings has seen a decline in free cash flow growth, with a negative rate of -7.22%. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio has decreased, suggesting challenges in maintaining cash flow levels. The cash flow statement indicates potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	344.50M	344.50M	395.94M	375.87M	395.17M	246.09M
Gross Profit	47.98M	47.98M	78.91M	79.86M	72.29M	51.48M
EBITDA	33.14M	34.04M	40.15M	30.54M	40.30M	24.55M
Net Income	1.36M	1.36M	7.40M	1.46M	23.29M	10.14M
Balance Sheet
Total Assets	290.66M	290.66M	314.38M	339.84M	169.01M	197.17M
Cash, Cash Equivalents and Short-Term Investments	125.00K	125.00K	342.00K	215.00K	228.00K	24.05M
Total Debt	144.97M	144.97M	164.81M	191.71M	39.11M	66.27M
Total Liabilities	177.71M	177.71M	204.25M	237.40M	76.95M	131.56M
Stockholders Equity	112.96M	112.96M	110.13M	102.44M	92.06M	65.61M
Cash Flow
Free Cash Flow	23.19M	22.98M	26.53M	30.41M	371.00K	45.56M
Operating Cash Flow	23.22M	23.22M	27.37M	31.03M	1.24M	45.66M
Investing Cash Flow	-241.00K	-241.00K	-836.00K	-181.20M	-872.00K	-44.00K
Financing Cash Flow	-23.19M	-23.19M	-26.40M	150.15M	-24.19M	-22.93M

DLH Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLHC, the sentiment is Negative. The current price of 6.2 is above the 20-day moving average (MA) of 5.98, above the 50-day MA of 5.87, and above the 200-day MA of 5.26, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 41.64 is Neutral, neither overbought nor oversold. The STOCH value of 18.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLHC.

DLH Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DLHC	53 Neutral	$81.74M	60.39	1.22%	―	-12.99%	-81.86%
OMEX	46 Neutral	$120.95M	-2.26	―	―	-41.55%	-249.30%
PMEC	42 Neutral	$41.11M	-20.66	-13.00%	―	2.52%	45.76%
SST	41 Neutral	$45.49M	-0.53	-99.29%	―	-20.49%	25.95%
SGRP	40 Neutral	$18.68M	-0.85	-93.99%	―	-35.72%	-277.39%
TISI	38 Underperform	$65.10M	-1.21	-210.92%	―	3.73%	3.56%

DLH Holdings Corporate Events

DLH Holdings Secures $90M Contract with Veteran Affairs

DLH Holdings announced that its contract with the Office of Head Start, which accounted for 10.7% of its fiscal year revenue, will end on October 31, 2025, as the renewal was awarded to small businesses. The company plans to mitigate this impact by pursuing new business opportunities. Additionally, DLH has secured a sole-source IDIQ contract with the Department of Veteran Affairs for pharmacy and logistics services, valued at $90 million, effective October 28, 2025, with a performance period through April 2027.