BAH Stock Analysis — Booz Allen Hamilton
Sector: Consulting/Defense IT
AI Verdict
BAH is cheap for a reason — you’re getting a low price for slow growth, but the moat is real if you want stability over upside.
Competitive Moat
Booz Allen Hamilton delivers consulting and IT services to U.S. government agencies, with entrenched client relationships and security clearances that create high switching costs. Its deep expertise in defense and intelligence, plus access to sensitive contracts, makes it hard for new entrants to displace.
Summary
BAH stands out for its sticky government contracts and security-cleared workforce.
Where It Stands
BAH trades at 10.0x next year's earnings, well below the typical 20x for industrials, but with just 2.4% forward EPS growth and a -6.4% revenue decline in the last year.
Key Metrics
- Trailing P/E: 10.2x
- Forward P/E: 10.0x
- PEG Ratio: 4.26
- Earnings Growth: +0.0%
- Revenue Growth: -0.1%
- Dividend Yield: 0.04%
- 52-Week High: $120.05
- 52-Week Low: $59.50
Analyst Consensus
3 Buy · 11 Hold · 9 Sell (23 analysts)
Bull Case
The 10.0x forward P/E is cheap versus the sector median, reflecting a discount for its stable, recurring government business.
Bear Case
With a trailing PEG of 4.26 and only 2.4% expected EPS growth, any P/E compression to 8x would cut the stock by 20%.
Catalyst to Watch
Watch for new contract wins or major government budget changes, as these could meaningfully shift growth expectations.