Booz Allen Hamilton presents a mixed investment picture as discounted valuation and improving cash generation are offset by weak Civil revenues and modest near-term growth. The stock trades at 10.91 times forward earnings with a PEG ratio of 0.73 and a price-to-sales ratio of 0.72, each below consulting-industry and broader-market benchmarks. Fiscal first-quarter revenues declined 4.2% year over year to $2.8 billion, while adjusted earnings rose 22.3% to $1.81 per share, driven by margin improvement and contract execution. National Security revenues edged up 1.3% to $2.03 billion, but Civil and Commercial revenues fell 16.4% to $772 million. Total backlog reached $39.48 billion with a quarterly book-to-bill ratio of 1.5 times, and free cash flow surged 171.9% to $261 million, though debt of $3.94 billion and a net leverage ratio of 2.7 limit flexibility. Management maintained fiscal 2027 revenue guidance of $11.2 billion to $11.7 billion, implying 0% to 4% growth, with adjusted earnings of $6.00 to $6.35 per share. The stock carries a Zacks Rank #3 (Hold), suggesting patience until revenue execution becomes clearer.
Booz Allen Hamilton HoldingMixed results: revenue decline and weak Civil offset by earnings growth and low valuation.
