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DLH Holdings (DLHC)
NASDAQ:DLHC
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DLH Holdings
(NASDAQ:DLHC)
60Neutral
DLH Holdings (DLHC) vs. S&P 500 (SPY)
Market Cap
$64.16M
Dividend YieldN/A
Average Volume (3M)46.79K
Price to Earnings (P/E)10.3
Beta (1Y)1.10
Revenue Growth-3.02%
EPS Growth201.62%
CountryUS
Employees2,800
SectorIndustrials
Sector Strength67
IndustryCorporate Services
Share Statistics
EPS (TTM)0.43
Shares Outstanding14,386,468
10 Day Avg. Volume37,889
30 Day Avg. Volume46,788
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)N/A
Price to Sales (P/S)0.17
Price to Cash Flow (P/CF)-1.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.00Price Target Upside236.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
DLH Holdings Business Overview & Revenue Model
Company DescriptionDLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States. The company offers defense and veterans' health solutions, including healthcare, technology, and logistics solutions to the VA, Defense Health Agency, Tele-medicine and Advanced Technology Research Center, Navy Bureau of Medicine and Surgery, and the Army Medical Research and Material Command. It also provides a range of human services and solutions, which consists of monitoring and evaluation, electronic medical records migration, data collection and management, and nutritional and social health assessments; and IT system architecture design, migration plan, and ongoing maintenance services. In addition, the company offers public health and life sciences services, such as clinical trials, epidemiology studies, and disease prevention; and health promotion to underserved and at-risk communities through development of strategic communication campaigns, research on emerging trends, health informatics analyses, and application of best practices. It primarily serves the federal health services market. The company was formerly known as TeamStaff, Inc. and changed its name to DLH Holdings Corp. in June 2012. DLH Holdings Corp. was incorporated in 1969 and is headquartered in Atlanta, Georgia.
How the Company Makes MoneyDLH Holdings makes money by securing contracts with various U.S. government agencies, primarily within the healthcare and public health sectors. The company's revenue streams are largely derived from long-term service contracts and task orders that encompass a range of services, including health IT solutions, logistics and readiness support, and professional services. Key factors contributing to DLHC's earnings include its ability to maintain strong relationships with government clients, its expertise in navigating federal procurement processes, and its focus on specialized services that align with government priorities. Additionally, DLHC may engage in strategic partnerships and acquisitions to expand its service offerings and enhance its competitive position in the market.
DLH Holdings Financial Statement Overview
Summary
DLH Holdings presents a stable financial outlook with strengths in cost management and cash flow efficiency. The income statement reflects stable revenue and profitability margins, while the balance sheet highlights moderate leverage and asset management. Cash flow analysis confirms effective liquidity management. However, areas for improvement include enhancing net profit margins and optimizing capital structure to maximize shareholder returns.Income Statement
DLH Holdings demonstrates moderate financial performance with a consistent revenue stream. The TTM (Trailing-Twelve-Months) gross profit margin stands at 36.6%, indicating efficient cost management. However, the net profit margin of 1.6% suggests potential challenges in translating revenue into profit. The EBIT and EBITDA margins are commendable at 6.1% and 10.4%, respectively. Revenue growth is relatively flat, indicating stability but limited expansion.65
Positive
Balance Sheet
The balance sheet reveals a balanced financial position with a debt-to-equity ratio of 1.6, reflecting moderate leverage. The equity ratio is 34.3%, suggesting a decent level of asset financing through equity, though improvements can be made. Return on equity (ROE) is low at 5.7%, showing limited profitability relative to shareholder equity. Overall, the balance sheet is stable but could benefit from optimized capital structure.60
Neutral
Cash Flow
DLH Holdings shows robust cash flow management with a strong operating cash flow to net income ratio of 1.69, indicating effective cash conversion. Free cash flow to net income ratio is 1.59, further highlighting efficient cash usage. Despite a decline in operating cash flow compared to the previous year, the company maintains positive free cash flow growth, showcasing solid liquidity management.70
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 388.87M | 395.94M | 375.87M | 395.17M | 246.09M | 209.19M | Gross Profit |
| 70.03M | 78.91M | 79.86M | 72.29M | 51.48M | 45.59M | EBIT |
| 23.72M | 24.90M | 17.09M | 33.28M | 17.22M | 13.46M | EBITDA |
| 39.98M | 40.15M | 32.65M | 40.94M | 25.34M | 21.39M | Net Income Common Stockholders |
| 6.36M | 7.40M | 1.46M | 23.29M | 10.14M | 7.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 451.00K | 342.00K | 215.00K | 228.00K | 24.05M | 1.36M | Total Assets |
| 325.01M | 314.38M | 339.84M | 169.01M | 197.17M | 183.56M | Total Debt |
| 178.32M | 164.81M | 191.71M | 39.11M | 66.27M | 90.94M | Net Debt |
| 177.87M | 164.47M | 191.49M | 38.88M | 42.22M | 89.58M | Total Liabilities |
| 213.57M | 204.25M | 237.40M | 76.95M | 131.56M | 130.13M | Stockholders Equity |
| 111.44M | 110.13M | 102.44M | 92.06M | 65.61M | 53.44M |
| Cash Flow | Free Cash Flow | ||||
| 10.10M | 27.37M | 30.41M | 371.00K | 45.56M | 19.30M | Operating Cash Flow |
| 10.76M | 27.37M | 31.03M | 1.24M | 45.66M | 19.45M | Investing Cash Flow |
| -1.21M | -836.00K | -181.20M | -872.00K | -44.00K | -32.83M | Financing Cash Flow |
| -9.22M | -26.40M | 150.15M | -24.19M | -22.93M | 12.95M |
DLH Holdings Technical Analysis
Negative
4.46
Price Trends
5.94
Negative
7.05
Negative
8.61
Negative
Market Momentum
-0.35
Negative
28.74
Positive
12.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLHC, the sentiment is Negative. The current price of 4.46 is below the 20-day moving average (MA) of 4.76, below the 50-day MA of 5.94, and below the 200-day MA of 8.61, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 28.74 is Positive, neither overbought nor oversold. The STOCH value of 12.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLHC.
DLH Holdings Risk Analysis
DLH Holdings disclosed 44 risk factors in its most recent earnings report. DLH Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DLH Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $8.43B | 17.63 | 13.79% | ― | 14.04% | 29.08% | |
78 Outperform | $74.38B | 17.90 | 27.75% | 1.59% | 4.44% | 110.33% | |
78 Outperform | $5.18B | 15.13 | 21.53% | 1.35% | 0.47% | -18.98% | |
75 Outperform | $13.46B | 15.85 | 75.34% | 1.96% | 14.07% | 116.33% | |
69 Neutral | $17.48B | 14.78 | 29.12% | 1.13% | 7.93% | 541.97% | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% | |
60 Neutral | $64.16M | 10.26 | 5.88% | ― | -3.02% | 201.62% |
* Industrials Sector Average
Performance Comparison
DLHC
DLH Holdings
4.46
-8.81
-66.39%
BAH
Booz Allen
105.86
-40.39
-27.62%
CACI
Caci International
375.99
-2.84
-0.75%
NOC
Northrop Grumman
513.82
43.25
9.19%
SAIC
Science Applications
111.36
-17.48
-13.57%
LDOS
Leidos Holdings
135.68
5.99
4.62%
DLH Holdings Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -38.23% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant achievements such as new contracts and a strong business pipeline, there were also notable challenges including revenue decline, debt increase, and cash flow issues due to small business set-asides and timing of services.Highlights
C6ISR and Advanced IT Services Award
DLH was awarded a contract to provide C6ISR and advanced IT services to the Navy, which expands their information warfare systems engineering portfolio.
Strong EBITDA Margin
Reported EBITDA of $9.9 million representing an EBITDA margin of 11% on revenue.
OASIS IDIQ Contract Win
DLH won the OASIS IDIQ contract, enabling them to prime new opportunities and replace gaps left by previous contracts.
Pipeline of New Business Opportunities
DLH has a pipeline of qualified new business opportunities valued at approximately $4 billion.
Lowlights
Revenue Decline
First quarter revenue decreased to $90.8 million from $97.9 million in the prior year period.
Impact of Small Business Set-Aside Conversions
Revenue contraction due to small business set-aside conversions within the DoD portfolio was around $5 million in the quarter.
Increased Debt
Total debt increased to $167 million from $154.6 million at the start of the fiscal year.
Operating Cash Use
Approximately $11.5 million of operating cash was used during the quarter versus cash generation of $5.1 million in the prior year.
Company Guidance
During the DLH Holdings Corp. Fiscal 2025 First Quarter Earnings Conference Call, the company reported revenue of $90.8 million and an EBITDA of $9.9 million, resulting in an EBITDA margin of 11%. The guidance highlighted a strategic focus on enhancing technology utilization and organic growth, despite challenges like small business set-aside contract conversions impacting revenue. The company's pipeline of qualified new business opportunities stands at approximately $4 billion, indicating strong future potential. DLH remains committed to leveraging its digital transformation and systems engineering capabilities to offset revenue losses from contract unbundling while maintaining financial flexibility with a total debt reduction strategy, aiming to use 50-55% of EBITDA for debt repayment. The management expressed confidence in the company's ability to adapt to industry changes and emphasized a positive outlook on the impact of the new administration on DLH's business landscape.DLH Holdings Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
DLH Holdings Approves New 2025 Equity Incentive Plan
Neutral
Mar 18, 2025
On March 13, 2025, DLH Holdings Corp. shareholders approved the 2025 Equity Incentive Plan at the Annual Meeting, replacing the 2016 Omnibus Equity Incentive Plan. This new plan, effective immediately, signifies a strategic shift in the company’s approach to equity incentives, potentially impacting its market positioning and stakeholder interests.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.