Stocks breaking to new annual highs
S&P 500 oversold value screener
Relative strength momentum leaders
Upcoming earnings dates & reports
Filter and sort all 500 stocks
Continuous multi-factor scoring & catalyst forensics
Today's biggest gainers and losers
DLH Holdings provides health and human services technology solutions primarily to federal government agencies, with core focus on Veterans Affairs, Department of Defense, and HHS. The company operates as a government contractor delivering digital modernization, public health program support, and healthcare IT services with revenue concentration in multi-year federal contracts. Stock performance is driven by contract wins/renewals, federal budget cycles, and execution on existing task orders.
DLH generates revenue through cost-plus-fixed-fee and firm-fixed-price contracts with federal agencies, typically multi-year task orders under IDIQ vehicles. Margins depend on labor utilization rates, subcontractor management, and contract mix. Competitive advantages include established relationships with VA/DoD program offices, active security clearances for personnel, and domain expertise in healthcare IT modernization. Pricing power is limited by competitive procurement processes and federal acquisition regulations, though incumbency on existing programs provides some advantage in recompetes.
Federal contract awards and recompete wins, particularly large IDIQ task orders from VA or DoD
Federal budget appropriations and continuing resolutions affecting agency spending authority
Organic revenue growth vs. industry peers in government health IT sector
Margin performance relative to contract mix shifts between cost-plus and fixed-price work
M&A activity in fragmented government services market
Federal budget constraints and potential defense/discretionary spending cuts reducing contract opportunities
Shift toward insourcing by federal agencies or preference for large prime contractors over mid-tier players
Cybersecurity threats and data breach liability given handling of sensitive government health information
Intense competition from larger diversified contractors (Leidos, CACI, Booz Allen) and specialized health IT firms for recompetes
Loss of key personnel with security clearances to competitors in tight labor market
Pricing pressure from small business set-asides and lowest-price-technically-acceptable procurement strategies
Elevated leverage (1.34x D/E) with minimal cash generation ($0.0B operating cash flow) limiting financial flexibility
Current ratio below 1.0 indicates potential working capital strain and reliance on credit facilities
Negative ROE (-1.0%) and ROA (-1.9%) suggest recent profitability challenges requiring operational turnaround
low - Revenue is largely insulated from GDP fluctuations due to multi-year federal contracts with mandatory appropriations for healthcare services. However, discretionary federal spending can be affected by fiscal policy debates and deficit concerns. The -13% revenue decline reflects contract-specific issues or recompete losses rather than economic cycle sensitivity.
Rising rates moderately pressure valuation multiples for low-growth government contractors and increase financing costs on the company's debt (1.34x D/E ratio). However, core operations are minimally affected as federal contracts typically include escalation clauses for labor costs. The primary rate impact is through cost of capital for M&A activity and working capital financing.
Minimal direct credit exposure as primary customer is US federal government with negligible default risk. However, government shutdowns or extended continuing resolutions can delay contract awards and payments, temporarily pressuring working capital. The 0.97 current ratio suggests tight liquidity that could be strained by payment delays.
value - The 0.3x P/S and 0.8x P/B ratuation suggests deep value investors betting on operational turnaround and margin recovery. The 27.1% FCF yield appears anomalous given $0.0B reported FCF, likely indicating data quality issues. Investors are likely focused on stabilization of revenue base, contract recompete success, and return to historical profitability levels rather than growth.
moderate-to-high - Small-cap government contractors exhibit elevated volatility due to binary contract award outcomes, quarterly revenue lumpiness from project timing, and limited trading liquidity. The -81.6% net income decline demonstrates earnings volatility from contract transitions or operational issues.
