📊 BAH Key Takeaways
Is Booz Allen Hamilton Holding Corp (BAH) a Good Investment?
Booz Allen demonstrates strong cash generation with $951M free cash flow and resilient 9.2% operating margins, but faces revenue headwinds (-6.4% YoY) compounded by elevated leverage at 3.57x D/E ratio. The company's ability to sustain profitability depends on revenue stabilization and managing debt service through interest coverage of 4.9x.
Booz Allen Hamilton shows solid fundamental quality through double-digit revenue growth, healthy operating and net margins, and strong free cash flow generation. However, earnings quality is mixed because net income was flat despite a sharp EPS increase, while leverage remains elevated with high debt-to-equity and only moderate interest coverage. The business appears fundamentally durable, but balance sheet risk and limited bottom-line growth temper the outlook.
Booz Allen Hamilton Holding Corp Key Strengths (BAH)
- Exceptional free cash flow generation of $951M with 8.5% FCF margin providing debt service capacity
- Capital-light business model with CapEx at only 0.8% of revenue enabling high cash conversion
- Resilient operating margins of 9.2% and net margins of 7.6% despite revenue decline
- Solid liquidity position with 1.78x current ratio and $728M cash balance
- Revenue growth of 12.4% with positive operating leverage at a 9.1% operating margin
- Strong cash generation with $739.00M in free cash flow and an 8.8% FCF margin
- Healthy liquidity profile with $882.00M in cash and a 1.81x current ratio
BAH Stock Risks: Booz Allen Hamilton Holding Corp Investment Risks
- Revenue contracted 6.4% YoY signaling potential market share loss or end-market weakness in core defense/consulting services
- Debt-to-equity ratio of 3.57x represents elevated financial leverage creating vulnerability to revenue deterioration
- Interest coverage ratio of 4.9x is thin with minimal cushion if operating cash flow declines further
- Net income flat YoY despite lower revenue indicates margin compression masking operational challenges
- High leverage, including $3.94B of long-term debt and 3.84x debt-to-equity
- Interest coverage of 4.1x leaves less room if borrowing costs rise or margins compress
- Net income was flat year over year, suggesting EPS growth may not fully reflect core profit expansion
Key Metrics to Watch
- Revenue growth stabilization - critical inflection point determining leverage sustainability
- Operating cash flow trends - must remain above $1B to maintain 4.9x+ interest coverage
- Debt reduction trajectory - watch for deleveraging initiatives to reduce D/E below 3.0x
- Contract backlog and pipeline health - early indicators of revenue trajectory recovery
- Net income growth relative to EPS growth
- Debt reduction and interest coverage improvement
Booz Allen Hamilton Holding Corp (BAH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Booz Allen Hamilton Holding Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BAH Profit Margin, ROE & Profitability Analysis
BAH vs Services Sector: How Booz Allen Hamilton Holding Corp Compares
How Booz Allen Hamilton Holding Corp compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Booz Allen Hamilton Holding Corp Stock Overvalued? BAH Valuation Analysis 2026
Based on fundamental analysis, Booz Allen Hamilton Holding Corp has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Booz Allen Hamilton Holding Corp Balance Sheet: BAH Debt, Cash & Liquidity
BAH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Booz Allen Hamilton Holding Corp's revenue has grown significantly by 43% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.59 reflects profitable operations.
BAH Revenue Growth, EPS Growth & YoY Performance
BAH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $2.6B | $187.0M | $1.45 |
| Q2 2026 | $2.9B | $175.0M | $1.42 |
| Q1 2026 | $2.9B | $165.0M | $1.27 |
| Q3 2025 | $2.6B | $145.6M | $1.11 |
| Q2 2025 | $2.7B | $170.7M | $1.29 |
| Q1 2025 | $2.7B | $161.4M | $1.22 |
| Q3 2024 | $2.3B | $31.0M | $0.23 |
| Q2 2024 | $2.3B | $170.7M | $1.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Booz Allen Hamilton Holding Corp Dividends, Buybacks & Capital Allocation
BAH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Booz Allen Hamilton Holding Corp (CIK: 0001443646)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 28, 2026 | 4 | xslF345X06/wk-form4_1779999434.xml | View → |
| May 28, 2026 | 4 | xslF345X06/wk-form4_1779999428.xml | View → |
| May 28, 2026 | 4 | xslF345X06/wk-form4_1779999420.xml | View → |
| May 28, 2026 | 4 | xslF345X06/wk-form4_1779999406.xml | View → |
| May 28, 2026 | 4 | xslF345X06/wk-form4_1779999400.xml | View → |
❓ Frequently Asked Questions about BAH
What is the AI rating for BAH?
Booz Allen Hamilton Holding Corp (BAH) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BAH's key strengths?
Claude: Exceptional free cash flow generation of $951M with 8.5% FCF margin providing debt service capacity. Capital-light business model with CapEx at only 0.8% of revenue enabling high cash conversion. ChatGPT: Revenue growth of 12.4% with positive operating leverage at a 9.1% operating margin. Strong cash generation with $739.00M in free cash flow and an 8.8% FCF margin.
What are the risks of investing in BAH?
Claude: Revenue contracted 6.4% YoY signaling potential market share loss or end-market weakness in core defense/consulting services. Debt-to-equity ratio of 3.57x represents elevated financial leverage creating vulnerability to revenue deterioration. ChatGPT: High leverage, including $3.94B of long-term debt and 3.84x debt-to-equity. Interest coverage of 4.1x leaves less room if borrowing costs rise or margins compress.
What is BAH's revenue and growth?
Booz Allen Hamilton Holding Corp reported revenue of $11.2B.
Does BAH pay dividends?
Booz Allen Hamilton Holding Corp pays dividends, with $276.0M distributed to shareholders in the trailing twelve months.
Where can I find BAH SEC filings?
Official SEC filings for Booz Allen Hamilton Holding Corp (CIK: 0001443646) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BAH's EPS?
Booz Allen Hamilton Holding Corp has a diluted EPS of $6.90.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BAH's fundamental grade?
Based on our AI fundamental analysis in June 2026, Booz Allen Hamilton Holding Corp has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BAH stock overvalued or undervalued?
Valuation metrics for BAH: ROE of 77.0% (sector avg: 16%), net margin of 7.6% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
What is BAH's AI grade for 2026?
Our dual AI analysis gives Booz Allen Hamilton Holding Corp a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BAH's free cash flow?
Booz Allen Hamilton Holding Corp's operating cash flow is $1.0B, with capital expenditures of $90.0M. FCF margin is 8.5%.
How does BAH compare to other Services stocks?
Vs Services sector averages: Net margin 7.6% (avg: 10%), ROE 77.0% (avg: 16%), current ratio 1.78 (avg: 1.5).
Is Booz Allen Hamilton Holding Corp carrying too much debt?
BAH has a debt-to-equity ratio of 3.57x, which is above the Services sector average of 0.7x. However, the current ratio of 1.78 suggests adequate short-term liquidity.
Why is BAH's return on equity (ROE) so high?
Booz Allen Hamilton Holding Corp has a return on equity of 77.0%, significantly above the Services sector average of 16%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 7.6% net margin.