DLH Holdings (DLHC) AI Stock Analysis

• Market Cap: $52.51M
• Dividend Yield: N/A
• Average Volume (3M): 81.19K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.01
• Revenue Growth: -3.02%
• EPS Growth: 201.62%
• Country: US
• Employees: 2,800
• Sector: Industrials
• Sector Strength: 66
• Industry: Specialty Business Services
• EPS (TTM): 0.43
• Shares Outstanding: 14,386,468
• 10 Day Avg. Volume: 151,480
• 30 Day Avg. Volume: 81,195
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.17
• Price to Cash Flow (P/CF): -1.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.00
• Price Target Upside: 308.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

DLH Holdings scores a 63, reflecting a stable but challenging financial environment. The company's strengths lie in its cost management and cash flow efficiency, but it faces hurdles with its modest net profit margins and leverage. Technical analysis indicates a bearish trend, while the valuation suggests potential undervaluation. The earnings call highlighted both growth opportunities and risks, balancing the score slightly above average.

DLH Holdings Business Overview & Revenue Model

Company Description

DLH 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 Money

DLH 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.

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.

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.

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
594.00K	342.00K	215.00K	228.00K	24.05M	1.36M
	Total Assets
25.52M	314.38M	339.84M	169.01M	197.17M	183.56M
	Total Debt
1.52M	164.81M	191.71M	39.11M	66.27M	90.94M
	Net Debt
927.00K	164.47M	191.49M	38.88M	42.22M	89.58M
	Total Liabilities
17.41M	204.25M	237.40M	76.95M	131.56M	130.13M
	Stockholders Equity
8.12M	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

• Technical Analysis Sentiment: Negative
• Last Price: 3.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.67 is above the 20-day moving average (MA) of 3.60, below the 50-day MA of 4.51, and below the 200-day MA of 7.95, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 80.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLHC.

DLH Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLHC	63 Neutral	$52.51M	8.44	5.88%	―	-3.02%	201.62%
Sector *	63 Neutral	$4.14B	11.23	5.47%	215.40%	4.10%	-8.63%
KODK	61 Neutral	$494.29M	6.93	10.20%	―	-6.62%	37.82%
TISI	55 Neutral	$91.31M	―	-161.69%	―	-1.20%	50.12%
ACTG	47 Neutral	$281.53M	7.73	-6.66%	―	-2.23%	-180.29%
QUAD	44 Neutral	$260.37M	―	-60.09%	4.35%	-9.65%	6.43%
OMEX	41 Neutral	$13.31M	―		―	-4.37%	―

DLH Holdings Corporate Events

DLH Holdings Approves New 2025 Equity Incentive Plan

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.