Important note

This AI stock analysis for Booz Allen Hamilton is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Booz Allen Hamilton - AI Stock Analysis

Analysis generated March 20, 2025

Booz Allen Hamilton Holding Corporation (NYSE: BAH) is a leading provider of management and technology consulting services to the U.S. government in defense, intelligence, and civil markets. The company leverages its expertise in advanced analytics, digital solutions, engineering, and cybersecurity to help clients achieve their strategic objectives. This combination of traditional consulting and high-end technology services positions Booz Allen Hamilton uniquely in its industry.

Fundamental Analysis

Revenue for the last quarter was $3.15 billion. This represents an increase of 6.95% compared to the previous quarter and a significant increase of 20.02% compared to the same quarter last year. The revenue growth is a strong indicator of the company’s growing market presence and effective execution of its business strategy.

The net income for the last quarter stood at $390 million. This marks an impressive increase of 136.10% from the previous quarter and a year-over-year increase of 128.51%. The robust growth in net income indicates the company's effective cost management and increasing profitability.

EBITDA for the last quarter was $557 million, up by 116.78% from the previous quarter and by 78.77% on a year-over-year basis. The escalating EBITDA suggests a strong operational efficiency and a healthy cash flow scenario.

The current Price/Earnings (P/E) ratio is 16.82. This P/E ratio is within a normal range and suggests that the stock is reasonably valued relative to its earnings. Overall, the fundamental indicators suggest a solid financial performance.

Technical Analysis

Today’s stock price is $103.58, which shows a decrease of 8.84% compared to a month ago. Over the longer term, the stock price has declined by 29.08% compared to a year ago. This persistent downtrend could be concerning for prospective investors, although it may also present a buying opportunity if the underlying fundamentals remain strong.

The current Simple Moving Average (SMA10) is 111.78, slightly lower than the previous SMA10 of 112.69, indicating a bearish outlook ahead in the near term. Furthermore, the Relative Strength Index (RSI) stands at 40.1, which indicates a neutral condition but it is edging closer to the oversold territory.

These technical parameters suggest that while the stock is currently facing downward pressure, it may not be far from a potential reversal if market sentiment changes favorably.

Alternative Data Analysis

Booz Allen Hamilton’s alternative data points provide promising signals. The company’s webpage has received an estimated 640,000 visitors recently, which is a 68% increase over the last couple of months. This uptick in web traffic could be indicative of an increase in customer interest and potential acquisition, suggesting a bullish outlook.

Additionally, AltIndex's AI score for Booz Allen Hamilton is 65, which is typically considered a buy signal. The AI model leverages a multitude of data points, including fundamental, technical, and alternative metrics, to arrive at this conclusion.

Conclusion and Recommendation

Booz Allen Hamilton presents a compelling case for investment based on its robust fundamental performance, indicated by substantial growth in revenue, net income, and EBITDA. The company appears to be reasonably valued with a P/E ratio of 16.82, fitting well within normal market ranges.

The technical analysis indicates a current bearish trend and a downtrend in stock price over both the short and long term, suggesting caution in the immediate future. However, the neutral RSI indicates that the stock is not oversold, potentially leading to a reversal.

The alternative data analysis offers a fresh perspective with increased web traffic and a positive AI score, reflecting bullish sentiment in non-traditional data points.

Considering the strong fundamental growth, reasonable valuation metrics, and positive signals from alternative data, Booz Allen Hamilton could be a prudent addition to a diversified investment portfolio. However, prospective investors should closely monitor the ongoing technical trends and market conditions before making a commitment.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.