The company is undervalued at 14.16 per share with modest projections ahead.
DLH Holdings has
performance score of 2 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.716, which means possible diversification benefits within a given portfolio. Let's try to break down what DLH Holdings's beta means in this case. As returns on the market increase, DLH Holdings returns are expected to increase less than the market. However, during the bear market, the loss on holding DLH Holdings will be expected to be smaller as well. Although it is extremely important to respect
DLH Holdings Corp historical returns, it is better to be realistic regarding the information on equity current trending patterns. The approach to predicting
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By examining
DLH Holdings Corp technical indicators, you can today evaluate if the expected return of 0.15% will be sustainable into the future.
DLH Holdings Corp now shows a risk of 3.75%. Please confirm DLH Holdings Corp
standard deviation,
value at risk,
kurtosis, as well as the
relationship between the
jensen alpha and
semi variance to decide if DLH Holdings Corp will be following its
price patterns.
The performance of DLH Holdings Corp in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence DLH Holdings'
stock prices. When investing in DLH Holdings, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, DLH Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as DLH Holdings carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is DLH Holdings's Liquidity
DLH Holdings
financial leverage refers to using borrowed capital as a funding source to finance DLH Holdings Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. DLH Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to DLH Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of DLH Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between DLH Holdings's total debt and its cash.
DLH Holdings Gross Profit
DLH Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing DLH Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show DLH Holdings Gross Profit growth over the last 10 years. Please check DLH Holdings'
gross profit and other
fundamental indicators for more details.
What is the case for DLH Holdings Investors
The
market capitalization of DLH Holdings Corp is $162.83 Million. Over half of DLH Holdings Corp outstanding shares are owned by
other corporate entities. These other corporate entities are typically referred to corporate investors that obtain positions in a given instrument to benefit from reduced trade commissions. Thus, these
institutions are subject to different rules and regulation than regular investors in DLH Holdings. Please watch out for any change in the
institutional holdings of DLH Holdings Corp as this could mean something significant has changed or about to change at the company. Note, that even with substantial
debt, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company in the future.
| 2018 | 2019 | 2020 | 2021 (projected) |
Interest Expense | 2.47 M | 3.44 M | 3.96 M | 4.27 M | Gross Profit | 35.84 M | 45.59 M | 52.43 M | 56.57 M |
Ownership Breakdown
| Retail Investors17.03% | Insiders18.97% | Institutions64.0% |
| Retail Investors | 17.03 |
| Insiders | 18.97 |
| Institutions | 64.0 |
Will DLH Holdings growth be real after the rise?
The downside deviation is down to 3.74 as of today. DLH Holdings Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect DLH Holdings Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of DLH Holdings future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure DLH Holdings' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact DLH Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
DLH Holdings Implied Volatility
DLH Holdings' implied volatility exposes the market's sentiment of DLH Holdings Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if DLH Holdings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that DLH Holdings stock will not fluctuate a lot when DLH Holdings' options are near their expiration.
Our Final Take On DLH Holdings
Whereas other companies within the specialty business services industry are still a little expensive, even after the recent corrections, DLH Holdings may offer a potential longer-term growth to investors. In closing, as of the 6th of December 2021, our actual 90 days buy-or-sell advice on the company is
Strong Buy. We believe DLH Holdings is
undervalued with
low odds of financial turmoil for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of DLH Holdings Corp. Please refer to our
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