Amentum Holdings, Inc. (AMTM) AI Stock Analysis

• Market Cap: $5.78B
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 111.2
• Beta (1Y): 1.18
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 53,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.56
• Shares Outstanding: 243,328,640
• 10 Day Avg. Volume: 1,281,475
• 30 Day Avg. Volume: 1,500,967
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 10.88
• Enterprise Value/Ebitda: 11.32
• 1Y Price Target: $27.14
• Price Target Upside: 13.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 57 Neutral
• Price Target: $26.00 ▲(8.56% Upside)

Amentum Holdings, Inc. has a mixed financial performance with strong revenue growth but challenges in profitability and leverage. The technical analysis shows positive momentum, while the high P/E ratio suggests overvaluation. The earnings call provided a positive outlook with strong growth and strategic wins, which significantly boosts the overall score.

Positive Factors

Strong Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategies, enhancing long-term financial stability and market position.

Significant Contract Wins

Securing major contracts like the Space Force Range enhances Amentum's revenue visibility and strengthens its position in the defense sector, supporting sustained growth.

Positive Cash Flow Generation

Improved cash flow generation enhances financial flexibility, allowing for strategic investments and debt reduction, supporting long-term financial health.

Negative Factors

High Leverage

Significant leverage can increase financial risk and limit strategic flexibility, potentially impacting the company's ability to invest in growth opportunities.

Profitability Challenges

Ongoing profitability issues may hinder the company's ability to reinvest in its business and compete effectively, affecting long-term growth prospects.

Contract Protest Impact

The protest on a major contract could delay revenue recognition and impact backlog calculations, posing risks to near-term financial performance and strategic execution.

Amentum Holdings, Inc. Business Overview & Revenue Model

Company Description

Amentum Holdings, Inc. is a global technical and engineering services firm that provides a wide range of solutions to government and commercial clients. The company operates in sectors including defense, energy, environment, and mission support services. Amentum offers services such as infrastructure management, engineering design, logistics, and IT support, catering primarily to the needs of military, government, and industrial customers.

How the Company Makes Money

Amentum makes money primarily through contracts with government agencies and commercial clients. The company secures long-term contracts to provide technical and engineering services, which include maintenance, logistics, training, and support for complex systems and infrastructures. Key revenue streams include defense and government services, where Amentum provides mission-critical support and operational services. Significant partnerships with government entities and adherence to contractual obligations play a crucial role in its earnings. The company's revenue model is heavily reliant on its ability to win competitive bids and renew existing contracts, ensuring a steady flow of income.

Amentum Holdings, Inc. Financial Statement Overview

Summary

Amentum Holdings, Inc. demonstrates strong revenue growth but faces challenges in profitability and leverage. The company's high debt levels and negative return on equity raise concerns about financial stability. While cash flow generation shows improvement, the overall financial health is mixed, with significant room for enhancing profitability and reducing leverage.

Income Statement

Amentum Holdings, Inc. shows a strong revenue growth rate of 17.61% in the TTM period, indicating robust top-line expansion. However, the company struggles with profitability, as evidenced by a negative net profit margin of -1.11% and declining gross profit margins over time. The EBIT and EBITDA margins are relatively low, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.06 in the TTM period, indicating significant leverage. Return on equity is negative, highlighting profitability challenges. The equity ratio is not provided, but the overall leverage and negative ROE suggest potential financial instability.

Cash Flow

The cash flow statement shows a positive free cash flow growth rate of 35.85% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.03, reflecting limited cash flow relative to net income. The free cash flow to net income ratio is relatively strong at 0.80, suggesting some efficiency in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	12.68B	8.39B	7.86B	7.68B
Gross Profit	880.00M	570.00M	483.35M	498.55M
EBITDA	846.00M	566.00M	381.74M	380.80M
Net Income	52.00M	-82.00M	-313.70M	-84.42M
Balance Sheet
Total Assets	11.81B	11.97B	6.41B	4.22B
Cash, Cash Equivalents and Short-Term Investments	738.00M	452.00M	305.00M	207.00M
Total Debt	43.00M	4.94B	4.33B	121.00M
Total Liabilities	7.22B	7.42B	6.00B	919.00M
Stockholders Equity	4.46B	4.46B	374.24M	3.26B
Cash Flow
Free Cash Flow	72.00M	36.00M	55.00M	108.00M
Operating Cash Flow	73.00M	47.00M	67.39M	126.02M
Investing Cash Flow	719.39M	475.00M	-4.23M	-1.79B
Financing Cash Flow	-423.73M	-382.00M	-125.13M	1.72B

Amentum Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.95
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMTM, the sentiment is Neutral. The current price of 23.95 is below the 20-day moving average (MA) of 24.65, below the 50-day MA of 24.77, and above the 200-day MA of 21.96, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 41.81 is Neutral, neither overbought nor oversold. The STOCH value of 14.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMTM.

Amentum Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOG.A	78 Outperform	$6.39B	29.91	11.32%	0.57%	4.77%	4.50%
HXL	74 Outperform	$4.93B	57.49	5.63%	1.07%	1.92%	-15.47%
LOAR	71 Outperform	$7.44B	169.15	4.70%	―	26.15%	251.10%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
MRCY	63 Neutral	$4.30B	―	-2.57%	―	9.19%	72.88%
AMTM	57 Neutral	$5.78B	111.18	2.20%	―	―	―
SPR	51 Neutral	$4.76B	―	81.63%	―	-2.60%	-94.76%