Amentum Holdings, Inc. (AMTM) AI Stock Analysis

• Market Cap: $8.38B
• Dividend Yield: N/A
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 126.3
• Beta (1Y): 1.25
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 53,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.63
• Shares Outstanding: 243,712,070
• 10 Day Avg. Volume: 1,554,596
• 30 Day Avg. Volume: 1,917,040
• PEG Ratio: -0.53
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 11.61
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 5.72
• Enterprise Value/Ebitda: 5.99
• 1Y Price Target: $35.44
• Price Target Upside: 3.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.4
• Revenue Forecast (FY): $14.17B

• Rating: 74 Outperform
• Price Target: $34.00 ▼(-0.87% Downside)

Amentum Holdings, Inc. demonstrates strong financial performance and positive technical indicators, supported by a successful earnings call. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth showcases Amentum's ability to expand its market reach and maintain strong client relationships, particularly in government contracts, which are a stable revenue source.

Contract Wins

Securing major contracts enhances Amentum's market position and provides long-term revenue visibility, reinforcing its leadership in defense and nuclear sectors.

Job Creation and Industry Growth

Expansion in the UK nuclear and defense sectors indicates strategic growth and alignment with global energy trends, supporting long-term business sustainability.

Negative Factors

Profitability Challenges

Persistent profitability issues could hinder Amentum's ability to reinvest in growth and innovation, affecting its competitive edge and financial health.

High Leverage

A high leverage ratio limits financial flexibility and increases risk, potentially impacting Amentum's ability to finance new projects or weather economic downturns.

Contract Protest

Contract protests can delay project execution and revenue recognition, creating uncertainty in financial projections and operational planning.

Amentum Holdings, Inc. Business Overview & Revenue Model

Company Description

Amentum Holdings, Inc. provides mission-critical, technology-driven services in government and commercial markets. It operates through two operating segments: Critical Mission Solutions and Cyber & Intelligence. The Critical Mission Solutions segment provides test, training, and operations services for missile defense systems, IT and engineering services to defense clients and the space sector, technological solutions, including installations, decommissioning, and environmental remediation to energy clients, and other highly technical consulting solutions. The Cyber & Intelligence segment provides advanced cyber training and data analytics for government professionals, advanced communication systems and aerial mapping technologies to national security clients, and other technical services for United States defense and intelligence clients. The company was founded on November 26, 2019 and is headquartered in Chantilly, VA.

How the Company Makes Money

Amentum generates revenue primarily through government contracts, which account for a significant portion of its earnings. The company engages in long-term contracts with various federal agencies, providing services such as logistics, maintenance, and technical support. Additionally, Amentum earns revenue from commercial contracts in energy and environmental sectors. Key revenue streams include contract awards, task orders, and performance-based incentives tied to project outcomes. Partnerships with government entities and private sector firms enhance its service offerings and create opportunities for further revenue generation, particularly in addressing complex engineering challenges and compliance requirements.

Amentum Holdings, Inc. Financial Statement Overview

Summary

Amentum Holdings, Inc. shows strong revenue growth and impressive cash flow generation, with a significant reduction in leverage. However, profitability remains a challenge, as indicated by low net profit margins.

Income Statement

Amentum Holdings, Inc. has shown strong revenue growth with a 13.51% increase in the latest year, indicating a positive trajectory. The gross profit margin improved slightly to 7.18%, reflecting better cost management. However, the net profit margin remains low at 0.46%, suggesting challenges in translating revenue growth into net income. The EBIT margin of 3.25% and EBITDA margin of 6.86% indicate moderate operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.009, showcasing a strong reduction in leverage. Return on equity is modest at 1.47%, reflecting limited profitability relative to shareholder equity. The equity ratio of 39.32% indicates a stable capital structure with a good proportion of assets financed by equity.

Cash Flow

Amentum Holdings, Inc. has demonstrated impressive free cash flow growth of 654.17%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.23 suggests that cash flows are well-aligned with reported earnings. The free cash flow to net income ratio of 1.0 indicates efficient conversion of earnings into cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	14.39B	8.39B	7.86B	7.68B
Gross Profit	1.03B	570.00M	483.35M	498.55M
EBITDA	987.00M	566.00M	381.74M	380.80M
Net Income	66.00M	-82.00M	-313.70M	-84.42M
Balance Sheet
Total Assets	11.46B	11.97B	6.41B	4.22B
Cash, Cash Equivalents and Short-Term Investments	437.00M	452.00M	305.00M	207.00M
Total Debt	42.00M	4.94B	4.33B	276.18M
Total Liabilities	6.84B	7.42B	6.00B	919.00M
Stockholders Equity	4.50B	4.46B	375.00M	3.26B
Cash Flow
Free Cash Flow	516.00M	36.00M	55.00M	108.00M
Operating Cash Flow	543.00M	47.00M	67.39M	126.02M
Investing Cash Flow	228.00M	475.00M	-4.23M	-1.79B
Financing Cash Flow	-790.00M	-382.00M	-125.13M	1.72B

Amentum Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMTM, the sentiment is Positive. The current price of 34.3 is above the 20-day moving average (MA) of 30.55, above the 50-day MA of 27.57, and above the 200-day MA of 23.93, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 76.33 is Negative, neither overbought nor oversold. The STOCH value of 95.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMTM.

Amentum Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMTM	74 Outperform	$8.38B	126.29	1.47%	―	―	―
HXL	73 Outperform	$6.54B	97.29	4.36%	0.89%	-0.37%	-34.97%
MOG.A	73 Outperform	$9.10B	37.22	12.09%	0.46%	7.11%	13.43%
LOAR	71 Outperform	$6.73B	108.89	6.56%	―	25.38%	237.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	62 Neutral	$5.83B	―	-2.24%	―	8.63%	72.72%