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Why Booz Allen Is Poised to Keep Plunging

Thursday - 4/4/2013, 10:45am  ET

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, management and technology consulting services specialist Booz Allen Hamilton  has received a distressing two-star ranking.

With that in mind, let's take a closer look at Booz Allen and see what CAPS investors are saying about the stock right now.

Booz Allen facts

Headquarters (founded)

McLean, Va. (1914)

Market Cap

$1.8 billion

Industry

IT consulting and other services

Trailing-12-Month Revenue

$5.8 billion

Management

Chairman/CEO Ralph Shrader

CFO Samuel Strickland

Trailing-12-Month Return on Equity

32.4%

Cash/Debt

$317.6 million / $1.7 billion

Dividend Yield

2.7%

Competitors

Accenture

Deloitte Consulting

SRA International

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 12% of the 66 members who have rated Booz Allen believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, ddttox, succinctly summed up the bear case for our community:

Booz Allen is going through very challenging times. They have just instituted significant pay cuts for mid level management and most of the talented folks they have are looking to leave as soon as they can find another position. ... This combined with the fact that the government consulting market is shrinking and Booz has been unable to gain traction in the commercial market means that they are on a long term downward trend and possibly a death spiral.

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This article was originally published as Why Booz Allen Is Poised to Keep Plungingon Fool.com

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