CluenexBooz Allen Hamilton BAH
Booz Allen Hamilton scores weak on business quality (4.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Booz Allen Hamilton does
Booz Allen Hamilton provides management and technology consulting, analytics, and engineering services primarily to United States defense, intelligence, and civil government agencies. The firm generates revenue through mission-critical contracts that support national security and digital transformation initiatives across federal agencies.
- What it does best
Booz Allen dominates federal defense and intelligence consulting, anchoring its edge in deep cleared-personnel relationships and classified IT architectures. With an operating margin of 9.5%, it outperforms peers like Leidos at 11.8% in specialized cyber tasks, creating massive switching costs for government clients.
- The main risk
Heavy reliance on federal defense budgets exposes the firm to spending shifts and procurement delays. Government clients account for the vast majority of its $11.1B revenue, leaving top-line growth vulnerable to shifting legislative priorities.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 9.5% with an FCF margin near 10%, reflecting stable cash conversion from consulting fees. Profitability remains constrained by high labor delivery costs rather than expanding freely with scale.
Deep government relationships and classified security clearances lock in federal enterprise clients. Its gross margin ranks in the top quartile of its sector at 53.1%, making rapid replication by rivals nearly impossible.
Revenue contracted 6.4% to $11.1B, a sharp reversal from historical annual gains where top-line expansion regularly cleared $10B. The growth engine is actively fading compared to its own prior trajectory.
Debt-to-equity sits at 3.6 alongside $3.2B of net debt, leaving the balance sheet heavily leveraged. Free cash flow reached $1.1B, but structural debt obligations mean the financial foundation is softening.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $37K outside pre-planned sales.
Our sealed record on BAH
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Booz Allen Hamilton scores weak on the Cluenex quality check (4.3 of 10), measured against its own industry. Profitability is fair, moat strong, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 1 sold $37K outside pre-planned sales.
Oct 23, 2026.
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Cite this page: Cluenex, “Booz Allen Hamilton (BAH)”, https://cluenex.com/stocks/bah/, data as of Oct 10, 2026.