Castellum (CTM) AI Stock Analysis

• Market Cap: $100.80M
• Dividend Yield: N/A
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -3.32%
• EPS Growth: 66.41%
• Country: US
• Employees: 238
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 0.00
• Shares Outstanding: 90,814,090
• 10 Day Avg. Volume: 1,685,782
• 30 Day Avg. Volume: 1,916,520
• PEG Ratio: -4.47
• Price to Book (P/B): 3.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -56.02
• Enterprise Value/Market Cap: 0.15
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.83
• Enterprise Value/Ebitda: -0.47
• 1Y Price Target: $3.00
• Price Target Upside: 170.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $1.00 ▼(-9.91%Downside)

Castellum's overall stock score is primarily hampered by its poor financial performance, marked by negative profitability and cash flow issues. While corporate events are strategically positive, they have yet to translate into financial improvements. The technical analysis indicates neutral market sentiment, and valuation metrics reflect the company's unprofitability.

Positive Factors

Contract Wins

The company's scheduled contract backlog totaled $203.4M, up 114% year-over-year.

Financial Stability

A strong balance sheet with recent capital raises and debt paydown should provide sufficient capital to fund operations.

Revenue Growth

The company secured a 5½-year, $103.3M contract, the largest in its history, which is expected to drive double-digit revenue growth without a significant increase in expenses.

Negative Factors

Capital Requirements

A recent capital raise and debt paydown are believed to provide sufficient capital to fund operations, although M&A activities may require additional capital.

M&A Activity

M&A activities may require additional capital despite recent capital raises and debt paydown.

Valuation Concerns

CTM trades at a premium valuation, justified by its operating leverage, growth targets, and advantages as a prime contractor.

Castellum Business Overview & Revenue Model

Company Description

Castellum, Inc. (CTM) is a technology company that operates in the cybersecurity and information technology sectors. The company specializes in providing advanced cybersecurity solutions, software development, and engineering services to government and commercial clients. Castellum is committed to protecting critical infrastructure and data assets through its suite of innovative products and services, designed to meet the evolving needs of its diverse clientele.

How the Company Makes Money

Castellum generates revenue primarily through the provision of its cybersecurity and IT services to both government and commercial sectors. The company's key revenue streams include contracts for cybersecurity solutions, software development projects, and engineering services. Castellum capitalizes on its expertise in cybersecurity to secure contracts and partnerships with government agencies and private enterprises, ensuring a steady flow of income through long-term service agreements and project-based engagements. Additionally, its focus on innovation and compliance with regulatory standards enhances its competitive advantage, contributing to sustained earnings.

Castellum Financial Statement Overview

Summary

Castellum is growing its revenue base, but consistent negative profitability and cash flow issues indicate underlying operational challenges. Improved leverage management is a positive sign, yet the company must enhance operational efficiency and profitability to achieve financial stability.

Income Statement

The company has been experiencing consistent revenue growth with a 6.88% increase from 2020 to 2021 and a significant jump in 2022. However, profitability remains a challenge as reflected by negative net profit margins across the periods, reaching -15.61% in the TTM. Gross profit margins are moderately stable, but negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate level of equity, with a debt-to-equity ratio decreasing from 4.50 in 2020 to 0.35 in the TTM, indicating improved leverage management. However, the equity ratio is below ideal levels, and consistent net losses erode equity value, affecting return on equity.

Cash Flow

The company faces challenges in generating positive operating cash flow, with negative free cash flow in the TTM. Despite some improvements in cash flow from financing activities, reliance on external funding could pose risks if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.09M	44.77M	45.24M	42.19M	25.07M	13.34M
Gross Profit	18.31M	18.27M	18.68M	17.60M	11.07M	6.18M
EBITDA	-4.90M	-6.53M	-13.28M	-8.06M	-5.80M	362.29K
Net Income	-7.04M	-9.98M	-17.80M	-14.91M	-7.55M	-2.71M
Balance Sheet
Total Assets	41.11M	37.84M	30.11M	33.04M	30.76M	10.61M
Cash, Cash Equivalents and Short-Term Investments	13.29M	12.01M	1.83M	4.64M	2.02M	2.41M
Total Debt	9.15M	11.49M	11.96M	10.11M	11.73M	5.87M
Total Liabilities	15.01M	17.41M	17.16M	15.51M	15.43M	8.01M
Stockholders Equity	26.10M	20.43M	12.95M	17.53M	15.32M	2.61M
Cash Flow
Free Cash Flow	-1.41M	1.12M	-2.28M	900.88K	-1.36M	1.00M
Operating Cash Flow	-1.41M	1.12M	-2.26M	990.16K	-1.35M	1.01M
Investing Cash Flow	653.52K	221.36K	-440.99K	-339.28K	808.83K	-5.45K
Financing Cash Flow	12.22M	9.08M	-104.62K	1.97M	146.84K	109.00K

Castellum Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.11 is below the 20-day moving average (MA) of 1.14, above the 50-day MA of 1.05, and above the 200-day MA of 0.77, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 55.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTM.

Castellum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMM	63 Neutral	$60.99M	0.41	36.45%	―	53.82%	68.04%
Sector *	56 Neutral	$7.08B	5.28	-5.20%	5.56%	8.18%	-38.45%
SAIH	52 Neutral	$87.82M	―	-36.39%	―	―	―
DVLT	51 Neutral	$48.38M	―	-161.18%	―	63.08%	96.46%
NOTE	49 Neutral	$118.66M	14.84	-44.27%	―	-13.18%	4.83%
CTM	45 Neutral	$100.80M	―	-36.17%	―	-3.32%	66.41%

Castellum Corporate Events

Castellum Launches New Advanced Technology Subsidiary

On June 24, 2025, Castellum, Inc. announced the creation of a new subsidiary, Castellum Advanced Technology Products, Inc. (CATP), to focus on advanced technology products. This strategic move aims to broaden Castellum’s support for the Department of Defense by teaming with leading-edge technology companies and developing technology internally, potentially increasing revenue and operating margins while enhancing organic growth capabilities.

The most recent analyst rating on (CTM) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Castellum stock, see the CTM Stock Forecast page.

Castellum Closes $5 Million Public Offering

On June 16, 2025, Castellum, Inc. announced the successful closing of its $5 million public offering of common stock and warrants. The proceeds from this offering are intended for working capital and general corporate purposes, potentially impacting the company’s operational capabilities and market positioning.

The most recent analyst rating on (CTM) stock is a Sell with a $120.00 price target. To see the full list of analyst forecasts on Castellum stock, see the CTM Stock Forecast page.

Castellum Raises $5 Million in Public Offering

On June 12, 2025, Castellum, Inc. entered into a securities purchase agreement to sell 4,166,667 units, each consisting of one share of common stock and one warrant, in a public offering priced at $1.20 per unit, raising approximately $5 million before expenses. The offering, which closed on June 13, 2025, is expected to provide Castellum with funds for working capital and general corporate purposes, potentially impacting its operational capacity and market positioning.

The most recent analyst rating on (CTM) stock is a Sell with a $120.00 price target. To see the full list of analyst forecasts on Castellum stock, see the CTM Stock Forecast page.

Castellum Reduces Debt with Promissory Note Retirement

On June 5, 2025, Castellum, Inc. announced the early retirement of a promissory note with the Buckhout Charitable Remainder Trust, initially issued in November 2019 for the acquisition of Corvus Consulting, LLC. This move significantly reduces the company’s long-term debt from over $12 million in December 2023 to less than $5 million, strengthening its balance sheet and enabling a continued focus on business growth and customer service.

The most recent analyst rating on (CTM) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Castellum stock, see the CTM Stock Forecast page.

Castellum to Participate in 2025 Virtual Tech Conference

On June 2, 2025, Castellum, Inc. announced its participation in the ‘2025 Virtual Tech Conference: Discover the Innovations Reshaping Tomorrow,’ which will be held from June 3rd to June 5th. The conference, presented by Maxim Group LLC, will explore the impact of emerging technologies like Quantum Computing and Artificial Intelligence across various industries, providing Castellum an opportunity to discuss its strategic positioning and technological advancements.

The most recent analyst rating on (CTM) stock is a Sell with a $120.00 price target. To see the full list of analyst forecasts on Castellum stock, see the CTM Stock Forecast page.

Castellum Holds Annual Stockholders Meeting on May 28

On May 28, 2025, Castellum held its annual stockholders meeting where four proposals were presented and voted on. Stockholders elected six directors, ratified the appointment of RSM US LLP as the independent accounting firm, approved an amendment to the stock incentive plan to increase shares to 9 million, and adopted the 2025 Employee Stock Purchase Plan.

The most recent analyst rating on (CTM) stock is a Sell with a $120.00 price target. To see the full list of analyst forecasts on Castellum stock, see the CTM Stock Forecast page.

Castellum Announces 2025 Annual Stockholders Meeting

On May 27, 2025, Castellum, Inc. announced details regarding its 2025 Annual Stockholders Meeting scheduled for May 28, 2025. The meeting will be held both in person and virtually, allowing stockholders to participate via live audio conference. Following the meeting, Castellum’s management will conduct an informal presentation and Q&A session, with presentation materials available on the company’s website. This announcement underscores Castellum’s commitment to transparency and engagement with its stakeholders, potentially impacting its operations and industry positioning.

The most recent analyst rating on (CTM) stock is a Sell with a $120.00 price target. To see the full list of analyst forecasts on Castellum stock, see the CTM Stock Forecast page.