DLH Holdings Corp.
Find Ratings Reports
0.12 |
0.86%
DLH HOLDINGS CORP's gross profit margin for the third quarter of its fiscal year 2021 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. DLH HOLDINGS CORP has weak liquidity. Currently, the Quick Ratio is 0.85 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 20.39% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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| Income Statement | Q3 FY21 | Q3 FY20 |
|---|---|---|
| Net Sales ($mil) | 61.56 | 51.46 |
| EBITDA ($mil) | 6.95 | 5.52 |
| EBIT ($mil) | 4.94 | 3.8 |
| Net Income ($mil) | 2.88 | 2.12 |
| Balance Sheet | Q3 FY21 | Q3 FY20 |
|---|---|---|
| Cash & Equiv. ($mil) | 0.74 | 0.66 |
| Total Assets ($mil) | 178.75 | 151.44 |
| Total Debt ($mil) | 73.67 | 66.0 |
| Equity ($mil) | 62.25 | 51.7 |
| Profitability | Q3 FY21 | Q3 FY20 |
|---|---|---|
| Gross Profit Margin | 21.43 | 23.02 |
| EBITDA Margin | 11.29 | 10.73 |
| Operating Margin | 8.02 | 7.39 |
| Sales Turnover | 1.3 | 1.4 |
| Return on Assets | 4.82 | 4.83 |
| Return on Equity | 13.85 | 14.15 |
| Debt | Q3 FY21 | Q3 FY20 |
|---|---|---|
| Current Ratio | 0.91 | 0.96 |
| Debt/Capital | 0.54 | 0.56 |
| Interest Expense | 0.89 | 0.81 |
| Interest Coverage | 5.53 | 4.68 |
| Share Data | Q3 FY21 | Q3 FY20 |
|---|---|---|
| Shares outstanding (mil) | 12.55 | 12.35 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.21 | 0.16 |
| Book value / share | 4.96 | 4.19 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 13713.0 | 16340.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 25.43 for the Ambulatory Health Care Services subsector and a discount compared to the S&P 500 average of 27.71. For additional comparison, its price-to-book ratio of 2.48 indicates a significant discount versus the S&P 500 average of 4.43 and a significant discount versus the subsector average of 8.10. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, DLH HOLDINGS CORP proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DLHC 19.54 | Peers 45.99 | DLHC 6.38 | Peers 34.34 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. DLHC is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. DLHC is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| DLHC 11.29 | Peers 45.49 | DLHC 0.48 | Peers 0.94 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. DLHC is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. DLHC trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| DLHC 2.48 | Peers 8.10 | DLHC 12.50 | Peers 71.19 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. DLHC is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, DLHC is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| DLHC 0.67 | Peers 7.34 | DLHC 8.89 | Peers 16.35 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. DLHC is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. DLHC significantly trails its peers on the basis of sales growth. |
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