Wednesday, July 10, 2019

DLH Holdings Corp. (DLHC)

An Early Look at the Combined DLH and Social & Scientific Systems

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offer services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of defense and other government agencies.    

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Management Call. DLH management recently held a conference call to provide additional detail of the June 10th announcement of the Social & Scientific Systems (SSS) acquisition. The $70 million purchase, $63 million net of tax benefits, valued SSS at roughly 1x sales and 11x EBITDA. These multiples are in-line with industry metrics.
• Acquisition Begins VA COMP De-Risking.. SSS significantly de-risks the potential loss of the VA-COMP business, in our view. SSS provides diversification for DLH, both on a revenue and end customer basis, and will broaden and... 

*Analyst certification and important disclosures included in full report.  NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.