Booz Allen Hamilton Holding Corp (BAH) stock analysis

P/E below its 5-year median

Booz Allen Hamilton's P/E of 13.5 is below its own 5-year median of 23.3.

P/E below the industry

Booz Allen Hamilton's P/E of 13.5 is below the Management and Public Relations Services median of 21.9.

EV/EBITDA below its 5-year median

Booz Allen Hamilton's EV/EBITDA of 12.0 is below its 5-year median of 16.4.

P/B above the industry

Booz Allen Hamilton's price-to-book of 8.28 is above the Management and Public Relations Services median of 2.31.

Trading below fair value

The share price of $86.89 is below our fair value estimate of $120.98.

Margin of safety over 20%

The price is 28.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 50.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -5.1% over the last twelve months, against a 5-year average of 6.9% a year.

Growing slower than the industry

Revenue grew -6.2% over the last twelve months; the Management and Public Relations Services median is 7.2%.

Guidance lowered

Booz Allen Hamilton lowered its UPDATED FISCAL 2026 GUIDANCE Revenue outlook on Jan 23, 2026.

Gross margin slipping

Gross margin was 52.5% over the last twelve months, against 53.5% a year earlier.

Return on equity over 15%

Return on equity was 70.0% over the last twelve months and averaged 60.4% over five years.

Return on capital over 10%

Return on invested capital was 19.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Booz Allen Hamilton's return on equity of 70.0% is above the Management and Public Relations Services median of 0.4%.

Earnings grew over 5 years

Net income grew 6.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 7.1% over the last twelve months, against a 5-year average of 5.9%.

Net margin above the industry

Booz Allen Hamilton's net margin of 7.1% is above the Management and Public Relations Services median of 0.2%.

High debt

Debt is 355% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 220% five years ago to 355%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 24.4% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.43 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.38; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Booz Allen Hamilton paid dividends worth 2.7% of the share price over the last twelve months.

Yield below Treasuries

The 2.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Booz Allen Hamilton yields 2.7%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 36.1% of net income.

Covered by free cash flow

Dividends take 28.8% of free cash flow.