Amentum Holdings, Inc. (AMTM) AI Stock Analysis

• Market Cap: $6.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 117.7
• Beta (1Y): 1.14
• 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: 2,011,453
• 30 Day Avg. Volume: 1,574,997
• 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: 1.56
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 10.88
• Enterprise Value/Ebitda: 11.32
• 1Y Price Target: $27.06
• Price Target Upside: 7.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 53 Neutral
• Price Target: $24.50 ▼(-2.62% Downside)

Amentum Holdings, Inc. shows strong revenue growth and positive earnings call sentiment with significant contract wins and improved guidance. However, challenges in profitability, high leverage, and a high P/E ratio suggest financial instability and potential overvaluation, impacting 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 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: Positive
• Last Price: 25.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 25.16 is above the 20-day moving average (MA) of 23.25, above the 50-day MA of 24.36, and above the 200-day MA of 21.88, indicating a bullish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 65.35 is Neutral, neither overbought nor oversold. The STOCH value of 86.20 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
MOG.A	78 Outperform	$6.60B	31.55	10.89%	0.55%	4.77%	4.50%
HXL	74 Outperform	$5.09B	58.23	5.66%	1.03%	1.92%	-15.47%
LOAR	71 Outperform	$7.43B	169.00	2.04%	―	26.15%	251.10%
MRCY	63 Neutral	$4.86B	-124.43	-2.57%	―	9.19%	72.88%
AMTM	53 Neutral	$6.12B	117.68	2.20%	―	―	―
SPR	41 Neutral	$4.52B	-1.92	81.63%	―	-2.60%	-94.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%