+ Watch BAH
on My Watchlist
They continue to grow and change with the times.
I picked this up as a Magic Formula stock in my real-money portfolio last year. Since then, they've paid a surprising amount in special divdends.It's still a MFI stock, and management that is willing to give money back to investors piques my interest. I'm in.
They are squeezing profits from employee salaries, benefits and retention programs...sort of the Home Depot strategy of hiring cheaper people, then expecting the same customer satisfaction. Until they are strategic about something that is actually forward looking in terms of retaining their best and brightest, they will NOT be in a good position.
Can't keep their employees happy, much less their customers ;-)
Booz Allen is going through very challenging times. They have just instituted significant pay cuts for mid level management and most of the talented folks they have are looking to leave as soon as they can find another position. The ones that are left are demoralized and only going through the motions. This will have a serious effect on growth in the coming years as these are the people who are counted on to win new business. Carlyle, who is the majority owner, is busy sucking the cash of of BAH as witnessed by the $6.50 and $1.50 a share special cash dividends issued last year. This combined with the fact that the government consulting market is shrinking and Booz has been unable to gain traction in the commercial market means that they are on a long term downward trend and possibly a death spiral.
Magic Formula 11-29-12
prior yr Q revenue improved GAAP earnings per share increased significatlymargins grew across the board sales 3% higher than prior yr
Booz is going through a transition during a time when most of its clients (US Federal Govt/DOD) are going through budget constraints. They are not position well right now to compete against firms with smaller margins in a cost constrained environment. This last quarter they benefited from streamlining leadership, which actually masked the fact they are executing their backlog at a lower historical rate.
U.S. increasingly relying on contractors.
BAH management has shown that it is dedicated to improving it's balance sheet by increasing free cash flow and reducing debt levels. Doing so will increase the likelihood of a future dividend or stock buyback. This line simply makes any investor salivate. On the horizon, BAH will be able to offer its services beyond the federal government, thereby significantly increasing earnings growth in the coming quarters. Looking 6-12 months from now BAH is very cheap.
Helping the government cut costs is a great benifit for us all, not to mention are personal bottom line.
BOOZ ALLEN HAMILTONThis prestigious management consulting firm works mainly for the government giving advice on how to to do more with less money. There IPO in November 2010 was not successful. The good new is that the group will be extending its business to the private sector and be will continue aiding Homeland Security.
close to 52 wk low after initial IPO hype died down. Fundamentals look good but P/E ratio a bit high.
Although Booz has faced uncertainty regarding government contracting under current administration, this is a solid, stable company, well-led and with key talent across many domains. BAH has built its business around human capital.
This company is one of the oldest government consultancy firms in the business. They will post solid profits year over year and currently have low P/E ratio and high EPS. This is a great buy, and is probably only low because it is new to the market and it is not a big name outside the beltway.
look at the growth Booz, Allen has experienced over the past 5 years. Smack dab in the middle of a terrible resession.
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ratings and Key Statistics provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions