Is the business good?
How good a business is BAH?
Booz Allen Hamilton Holding Corporation earns 19% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
19%
Return on invested capital · cost of capital 9.0% · 9.9 points above what the capital costs: growth creates value
- Operating margin
- 9.2%
Operating margin · Consulting Services median 10% · 12 months to Q4 2026
- Cash conversion
- 1.12×
Cash conversion · 0.97× a year ago · every dollar of reported profit arrived as cash, and more
- Gross margin
- 53%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 9.6% |
| FY2022 | 8.2% |
| FY2023 | 4.8% |
| FY2024 | 9.5% |
| FY2025 | 11% |
| FY2026 | 9.2% |
Details›
- Gross margin12 months to Q4 2026
- 53%
- Operating margin12 months to Q4 2026
- 9.2%
- Net margin12 months to Q4 2026
- 7.6%
- Free cash flow margin
- 8.5%
- Revenue, trailing twelve months
- $11.2B
- Free cash flow, trailing twelve months
- $951M
- Net income, trailing twelve months
- $851M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 19%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Consulting Services
Ranks #2 of 6 by Smart Score