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Castellum, Inc. (CTM)
:CTM
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Castellum (CTM) AI Stock Analysis

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CTM

Castellum

(NYSE MKT:CTM)

Rating:51Neutral
Price Target:
$1.50
▲(13.64%Upside)
Castellum's overall stock score is primarily constrained by poor financial performance and valuation concerns. While technical analysis shows positive momentum, reliance on speculative growth and negative profitability weigh heavily on the score. Positive corporate events and strategic initiatives provide some optimism for future improvement.
Positive Factors
Contract Wins
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.
Financial Performance
A strong balance sheet with recent capital raises and debt paydown should provide sufficient capital to fund operations.
Revenue Growth
Management introduced revenue guidance that was ahead of estimates, supported by the company's $203M backlog and $194M active opportunity pipeline.
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.
Valuation Concerns
CTM trades at a premium valuation, justified by its operating leverage, growth targets, and advantages as a prime contractor.

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

Castellum Business Overview & Revenue Model

Company DescriptionCastellum, 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 MoneyCastellum 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
Despite revenue growth, Castellum faces negative net profit margins and cash flow challenges. The balance sheet shows improved leverage, but consistent net losses undermine equity.
Income Statement
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue44.77M45.24M42.19M25.07M13.34M
Gross Profit18.27M18.68M17.60M11.07M6.18M
EBITDA-6.53M-13.28M-8.06M-5.80M362.29K
Net Income-9.98M-17.80M-14.91M-7.55M-2.71M
Balance Sheet
Total Assets37.84M30.11M33.04M30.76M10.61M
Cash, Cash Equivalents and Short-Term Investments12.01M1.83M4.64M2.02M2.41M
Total Debt11.49M11.96M10.11M11.73M5.87M
Total Liabilities17.41M17.16M15.51M15.43M8.01M
Stockholders Equity20.43M12.95M17.53M15.32M2.61M
Cash Flow
Free Cash Flow1.12M-2.28M900.88K-1.36M1.00M
Operating Cash Flow1.12M-2.26M990.16K-1.35M1.01M
Investing Cash Flow221.36K-440.99K-339.28K808.83K-5.45K
Financing Cash Flow9.08M-104.62K1.97M146.84K109.00K

Castellum Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.32
Price Trends
50DMA
1.15
Positive
100DMA
1.10
Positive
200DMA
0.85
Positive
Market Momentum
MACD
0.06
Positive
RSI
55.57
Neutral
STOCH
33.54
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 1.32 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.15, and above the 200-day MA of 0.85, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 55.57 is Neutral, neither overbought nor oversold. The STOCH value of 33.54 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$61.91M0.4236.45%53.82%68.04%
57
Neutral
HK$14.36B5.83-5.77%4.76%9.65%-43.80%
56
Neutral
$123.25M14.84-44.27%-13.18%4.83%
53
Neutral
$114.75M-36.39%
51
Neutral
$119.87M-36.17%-3.32%66.41%
51
Neutral
$62.14M-161.18%63.08%96.46%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CTM
Castellum
1.32
1.17
780.00%
DVLT
Datavault AI
0.69
-1.55
-69.20%
NOTE
FiscalNote Holdings
0.78
-0.94
-54.65%
SAIH
SAIHEAT Limited
10.74
-2.53
-19.07%
GMM
Global Mofy Metaverse Ltd.
2.68
-10.97
-80.37%

Castellum Corporate Events

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Castellum Marks CEO’s One-Year Anniversary
Positive
Jul 14, 2025

On July 14, 2025, Castellum, Inc. released a letter to shareholders marking the one-year anniversary of CEO Glen Ives’s leadership. Over the past year, the company transitioned from a start-up phase to focusing on organic growth, raising over $16 million, reducing long-term debt, and securing a $103.3 million contract. Castellum has strengthened its leadership, established joint ventures, and improved its proposal quality, positioning itself as a competitive technology services provider committed to national security. The company’s strategic moves aim to enhance shareholder value and solidify its standing as a premier defense company.

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Castellum Announces Reseller Agreement with AmpliTech
Positive
Jul 8, 2025

On July 8, 2025, Castellum, Inc. announced a reseller agreement with AmpliTech Group, Inc. through its newly formed subsidiary, Castellum Advanced Technology Products, Inc. This partnership allows Castellum to resell AmpliTech’s products, such as low noise amplifiers, to its clients, enhancing its product offerings. The collaboration aims to leverage Castellum’s C5ISR capabilities with AmpliTech’s products to penetrate the government market more effectively, potentially strengthening both companies’ positions in the next-generation communications technology sector.

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Castellum Launches New Advanced Technology Subsidiary
Positive
Jun 24, 2025

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.

Private Placements and Financing
Castellum Closes $5 Million Public Offering
Positive
Jun 17, 2025

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.

Private Placements and Financing
Castellum Raises $5 Million in Public Offering
Neutral
Jun 13, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Castellum Reduces Debt with Promissory Note Retirement
Positive
Jun 6, 2025

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.

Business Operations and Strategy
Castellum to Participate in 2025 Virtual Tech Conference
Neutral
Jun 2, 2025

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.

Shareholder Meetings
Castellum Holds Annual Stockholders Meeting on May 28
Neutral
May 28, 2025

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.

Shareholder Meetings
Castellum Announces 2025 Annual Stockholders Meeting
Neutral
May 27, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 22, 2025