Booz Allen Hamilton Holding Corp (NYSE: BAH)

Sector: Industrials Industry: Consulting Services CIK: 0001443646
Market Cap 9.48 Bn
P/B 9.25
P/E 11.30
P/S 0.83
ROIC (Qtr) 21.66
Div Yield % 0.00
Rev 1y % (Qtr) -10.18
Total Debt (Qtr) 4.14 Bn
Debt/Equity (Qtr) 4.04
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About

Booz Allen Hamilton Holding Corp, commonly known by its stock symbol BAH, is a company with a rich history spanning over a century. It operates in the management consulting and technology services industry, offering a range of services to its clients that include strategy, operations, and technology consulting, as well as cybersecurity, data analytics, and artificial intelligence. The company's operations extend across various sectors, including government agencies, commercial clients, and non-profit organizations. Booz Allen's services are designed...

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Investment thesis

Bull case

  • Healthy cash reserves of 882M provide 7.11x coverage of short-term debt 124M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 1.02B provides strong 13.57x coverage of stock compensation 75.17M, indicating sustainable incentive practices.
  • Robust free cash flow of 933.44M exceeds capital expenditure of 86.57M by 10.78x, indicating strong organic growth funding capability.
  • Strong free cash flow of 933.44M provides 24.88x coverage of acquisition spending 37.52M, indicating disciplined M&A strategy.
  • Cash reserves of 882M provide ample 23.50x coverage of acquisition spending 37.52M, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of 1.02B barely covers its investment activities of (86.23M), with a coverage ratio of -11.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.02B provides thin coverage of dividend payments of (274.56M) with a -3.72 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 1.02B is outpaced by equity issuance of (790.74M) (-1.29 ratio), indicating concerning reliance on equity markets for funding operations.
  • Retained earnings of 3.51B provide limited buffer against comprehensive income items of (31M), which is -113.26x, indicating elevated exposure to market risks.
  • R&D investment of 0 represents just 0x of SG&A expenses of 1.30B, indicating potential underinvestment in innovation relative to administrative overhead.

Customer Breakdown of Revenue (2025)

Contract with Customer, Basis of Pricing Breakdown of Revenue (2025)

Peer comparison

Companies in the Consulting Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRSK Verisk Analytics, Inc. 28.99 Bn 59.50 10.85 4.89 Bn
2 EFX Equifax Inc 23.01 Bn 48.18 7.65 4.81 Bn
3 BAH Booz Allen Hamilton Holding Corp 9.48 Bn 11.30 0.83 4.14 Bn
4 FCN Fti Consulting, Inc 5.36 Bn 20.13 1.45 0.74 Bn
5 HURN Huron Consulting Group Inc. 2.29 Bn 21.14 1.38 0.65 Bn
6 ICFI ICF International, Inc. 1.43 Bn 22.60 0.96 0.62 Bn
7 CRAI Cra International, Inc. 1.10 Bn 25.41 1.63 0.19 Bn
8 SBC SBC Medical Group Holdings Inc 0.48 Bn 11.17 2.71 0.03 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.82 1.96
EV to Cash from Ops. EV/CFO 12.57 5.36
EV to Debt EV to Debt 3.10 58.47
EV to EBIT EV/EBIT 12.25 18.59
EV to EBITDA EV/EBITDA 10.21 20.71
EV to Free Cash Flow [EV/FCF] EV/FCF 13.74 11.61
EV to Market Cap EV to Market Cap 1.35 -835.88
EV to Revenue EV/Rev 1.12 5.73
Price to Book Value [P/B] P/B 9.25 3.44
Price to Earnings [P/E] P/E 11.30 22.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.05 0.70
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.40
Interest Coverage Int. cover (Qtr) 6.22 92.47
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 3.24 -330.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 94.47 126.66
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2.32 -18.91
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -20.31 -12.32
EBIT Growth (1y) % EBIT 1y % (Qtr) -21.91 -132.53
EBT Growth (1y) % EBT 1y % (Qtr) -26.45 -937.51
EPS Growth (1y) % EPS 1y % (Qtr) 0.45 -76.24
FCF Growth (1y) % FCF 1y % (Qtr) 10.54 -11.33
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -10.04 12.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.62 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.25 0.09
Cash Ratio Cash Ratio (Qtr) 0.52 2.02
Current Ratio Curr Ratio (Qtr) 1.81 4.88
Debt to Equity Ratio Debt/Equity (Qtr) 4.04 0.55
Interest Cover Ratio Int Coverage (Qtr) 6.22 92.47
Times Interest Earned Times Interest Earned (Qtr) 6.22 92.47
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.00 -16.97
EBIT Margin % EBIT Margin % (Qtr) 9.18 -96.24
EBT Margin % EBT Margin % (Qtr) 7.70 -22.60
Gross Margin % Gross Margin % (Qtr) 22.00 54.26
Net Profit Margin % Net Margin % (Qtr) 7.40 -25.32