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Castellum (CTM)
:CTM
US Market

Castellum (CTM) AI Stock Analysis

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Castellum

(NYSE MKT:CTM)

42Neutral
Castellum's score reflects its potential for growth, supported by revenue and cash flow improvements, but is hindered by ongoing operational inefficiencies and high leverage. The technical indicators show mixed momentum, and the negative P/E ratio highlights profitability concerns, making the stock less attractive despite its growth potential.

Castellum (CTM) vs. S&P 500 (SPY)

Castellum Business Overview & Revenue Model

Company DescriptionCastellum, Inc. provides services in the areas of cybersecurity, information technology, electronic warfare, information warfare, and information operations. The company offers intelligence analysis, software development, software engineering, program management, strategic and mission planning, information assurance, cybersecurity and policy support, and data analytics services. It serves customers in the Federal government, financial services, healthcare, and other data application sectors. The company was incorporated in 2010 and is based in Bethesda, Maryland.
How the Company Makes MoneyCastellum, Inc. generates revenue primarily through contracts with government agencies and commercial enterprises for its cybersecurity and IT services. The company earns money by offering consulting and managed services, custom software development, and systems integration solutions. Revenue streams are bolstered by strategic partnerships with technology vendors and defense contractors, enabling Castellum to expand its service offerings and market reach. Additionally, the company may engage in long-term contracts and recurring service agreements, which provide a stable source of income.

Castellum Financial Statement Overview

Summary
Castellum shows promising revenue growth and improvements in cash flow and balance sheet strength. However, persistent losses and high leverage remain key concerns. The company needs to address operational inefficiencies to achieve profitability and sustain its growth trajectory.
Income Statement
35
Negative
Castellum has shown significant revenue growth over the years, but consistently negative EBIT and net income indicate ongoing operational challenges. Gross margins are healthy, yet net profit margins remain negative, suggesting high operational costs and inefficiencies.
Balance Sheet
45
Neutral
The balance sheet shows improvement in equity and a reduction in debt levels, indicating a stronger financial position. However, the company still has a relatively high debt-to-equity ratio, which could pose risks if not managed properly. The equity ratio has improved, reflecting better asset utilization.
Cash Flow
50
Neutral
Free cash flow has improved over the years, moving from negative to positive, indicating better cash generation capabilities. The operating cash flow to net income ratio shows improvement, suggesting better cash conversion despite negative net income.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
44.76M45.24M42.19M25.07M13.34M
Gross Profit
18.27M18.68M17.60M11.07M6.18M
EBIT
-7.24M-9.84M-9.41M-7.73M-1.47M
EBITDA
-6.53M-13.28M-8.06M-5.80M362.29K
Net Income Common Stockholders
-9.98M-17.80M-14.91M-7.55M-2.71M
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.01M1.83M4.64M2.02M2.41M
Total Assets
37.84M30.11M33.04M30.76M10.61M
Total Debt
9.34M11.96M10.11M11.73M5.87M
Net Debt
-2.66M10.13M5.47M9.71M3.46M
Total Liabilities
17.41M17.16M15.51M15.43M8.01M
Stockholders Equity
20.43M12.95M17.53M15.32M2.61M
Cash FlowFree Cash Flow
1.12M-2.28M900.88K-1.36M1.00M
Operating Cash Flow
1.12M-2.26M990.16K-1.35M1.01M
Investing Cash Flow
221.36K-440.99K-339.28K808.83K-5.45K
Financing Cash Flow
9.08M-104.62K1.97M146.84K109.00K

Castellum Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.96
Price Trends
50DMA
1.06
Negative
100DMA
0.94
Positive
200DMA
0.55
Positive
Market Momentum
MACD
-0.04
Negative
RSI
50.23
Neutral
STOCH
49.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTM, the sentiment is Positive. The current price of 0.96 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 1.06, and above the 200-day MA of 0.55, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 49.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTM.

Castellum Risk Analysis

Castellum disclosed 43 risk factors in its most recent earnings report. Castellum reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Castellum Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GMGMM
67
Neutral
$38.02M5.5636.45%53.82%68.03%
59
Neutral
$10.59B10.09-6.37%3.05%7.44%-10.67%
44
Neutral
$90.22M13.5813.47%-9.33%
CTCTM
42
Neutral
$76.36M-60.25%-1.06%52.73%
38
Underperform
$51.64M-127.22%28.37%95.91%
32
Underperform
$47.01M-36.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CTM
Castellum
1.00
0.75
300.00%
DVLT
Datavault AI
0.79
-5.38
-87.20%
NOTE
FiscalNote Holdings
0.65
-0.62
-48.82%
VEEA
Veea
1.67
-9.45
-84.98%
SAIH
SAIHEAT Limited
5.40
-6.30
-53.85%
GMM
Global Mofy Metaverse Ltd.
2.47
-10.73
-81.29%

Castellum Corporate Events

Executive/Board Changes
Castellum Extends CEO Glen R. Ives’ Contract
Neutral
Apr 4, 2025

On March 31, 2025, Castellum, Inc. extended the employment agreement of its Executive Vice President Strategy and General Counsel, Jay O. Wright, until December 31, 2025, maintaining all other terms. On April 3, 2025, the company also extended the employment agreement of its President and CEO, Glen R. Ives, until June 30, 2026, with a salary increase effective July 1, 2025. Both agreements include severance terms and confidentiality clauses. Additionally, Castellum entered into an at-will employment arrangement with CFO David T. Bell, effective May 1, 2025.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.