Booz Allen Hamilton Holding Corporation
$78.50
-0.93%Booz Allen Hamilton Holding Corporation provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to governments, corporations, and not-for-profit organizations in the United States and internationally. The company offers consulting solutions for various domains, business strategies, human capital, and operations. It also provides analytics services, which focuses on delivering transformational solutions in the areas of artificial intelligence, such as machine learning and deep learning; data science, such as data engineering and predictive modeling; automation and decision analytics; and quantum computing. In addition, the company designs, develops, and implements solutions built on contemporary methodologies and modern architectures; delivers engineering services and solutions to define, develop, implement, sustain, and modernize complex physical systems; and provides cyber risk management solutions, such as prevention, detection, and cost effectiveness. Booz Allen Hamilton Holding Corporation was founded in 1914 and is headquartered in McLean, Virginia.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 11.3).
Valuation inputs: P/E 11.3, earnings yield +8.8%, momentum -0.9%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +77.0%, ROIC +18.5%).
Profitability stack: net margin +7.6%, ROE +77.0%, ROIC +18.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +84.5%, momentum -0.9%, net margin +7.6%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Booz Allen Hamilton Holding Corporation Market vs Earnings Trajectory
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Booz Allen Hamilton Holding Corporation Fair Value Envelope
Booz Allen Hamilton Holding Corporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Booz Allen Hamilton Holding Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Flat FCF growth. Stable but not expanding—monitor for signs of business maturity or temporary headwinds.
Working Capital Impact
Neutral working capital impact. Changes in current assets and liabilities balanced out.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Booz Allen Hamilton Holding Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Booz Allen Hamilton Holding Corporation Street Expectations Map
Wall Street analysts project that BAH stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 89.50, with estimates ranging from a low of 80.00 to a high of 110.00.
The consensus 1-year price target stands at 89.50, with estimates ranging from a low of 80.00 to a high of 110.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Booz Allen Hamilton Holding Corporation Insider Positioning
During the last 12 months, insiders have purchased $2.01M and sold $28K worth of BAH shares, resulting in $1.99M of net buying activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
350
27.51K
-28K
-$28K
6-9 Months
23.8K
2.01M
0
0.00
+2.0M
+$2.01M
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Rozanski Horacio
Director, Officer: President And Ceo
$2.01M
Top Sellers
Metzfield Dennis
Officer: Vp, Pao & Controller
$28K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $1.99M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Insider Participation
1 insider buyers and 1 sellers. Equal participation suggests mixed or neutral insider views.
bah Dividend History
Learning Layer
Related Guides
Build conviction on BAH by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.