Overview:
Booz Allen Hamilton, a strategy and technology consulting firm, is a provider of management and technology consulting services to the U.S. government in the defense, intelligence and civil markets.
From 10-K…
"We are a leading provider of management and technology consulting services to the U.S. government in the defense, intelligence and civil markets. We are a well-known, trusted and long-term partner to our clients, who seek our expertise and objective advice to address their most important and complex problems. Leveraging our 97-year consulting heritage and a talent base of approximately 25,000 people, we deploy our deep domain knowledge, functional expertise, and experience to help our clients achieve their objectives. We have a collaborative culture, supported by our operating model, which helps our professionals identify and respond to emerging trends across the markets we serve and deliver enduring results for our clients.
We were founded in 1914 by Edwin Booz, one of the pioneers of management consulting. In 1940, we began serving the U.S. government by advising the Secretary of the Navy in preparation for World War II. As the needs of our clients have grown more complex, we have expanded beyond our management consulting foundation to develop deep expertise in technology, engineering, and analytics. Today, we serve substantially all of the cabinet-level departments of the U.S. government. Our major clients include the Department of Defense, all branches of the U.S. military, the U.S. Intelligence Community, and civil agencies such as the Department of Homeland Security, the Department of Energy, the Department of Health and Human Services, the Department of the Treasury, and the Environmental Protection Agency. We support these clients in addressing complex and pressing challenges such as combating global terrorism, improving cyber capabilities, transforming the healthcare system, improving efficiency and managing change within the government, and protecting the environment. We also provide cyber-security services to numerous clients in the commercial market.
We have strong and longstanding relationships with a diverse group of clients at all levels of the U.S. government. During fiscal 2011, we derived 97% of our revenue from services provided to nearly 800 of the more than 1,300 client organizations across the U.S. government under more than 3,600 contracts and task orders. The single largest entity that we served in fiscal 2011 was the U.S. Army, which represented 15% of our revenue in that period. Further, we have served our top ten clients, or their predecessor organizations, for an average of over 20 years. We derived 89% of our revenue in fiscal 2011 from engagements for which we acted as the prime contractor. Also during fiscal 2011, we achieved an overall win rate of 56% on new contracts and task orders for which we competed and a win rate of more than 95% on re-competed contracts and task orders for existing or related business. As of March 31, 2011, our total backlog, including funded, unfunded, and priced options, was $10.9 billion, an increase of 21% over March 31, 2010."
Business Model:
- Longterm Contracts
- Longterm Client Relationships
Selected Long-Term Client Relationships (Client) (Years):
U.S. Navy 70
U.S. Army 60
National Security Agency 25+
Department of Homeland Security 20+
U.S. Air Force 20+
National Reconnaissance Office 15+
A U.S. intelligence agency 15+
Department of Energy 15+
Federal Bureau of Investigation 15+
Internal Revenue Service 15+
Valuation:
| p/iv |
roi |
roe |
croic |
ticker |
| 0.58 |
0.23 |
0.21 |
0.1 |
bah |
Insider ownership: ~77%!
Conclusion:
As everyone talks about cuts in government spending, one can now buy the leading management service company
with strong competitive advantages due to their long dating relationships at a forward p/e of 10 ;-)
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