📊 AMTM Key Takeaways
Is Amentum Holdings, Inc. (AMTM) a Good Investment?
Amentum demonstrated strong 71.6% revenue growth but net income grew only 11.9%, signaling significant operational inefficiency or integration challenges from acquisition. Very low margins (1.5% net, 4.3% operating), poor returns on capital (ROE 2.1%, ROA 0.9%), and substantial debt burden (3.9B) relative to modest FCF generation (78M) raise concerns about growth quality and capital deployment despite positive earnings and cash flow.
Amentum shows strong top-line expansion and positive operating profitability, but the quality of that growth is questionable given very low net margins and materially negative operating and free cash flow. The balance sheet is not distressed, with adequate liquidity and manageable debt relative to equity, yet weak returns on assets and equity suggest the business is not currently converting scale into strong shareholder earnings power.
Amentum Holdings, Inc. Key Strengths (AMTM)
- Strong top-line revenue growth of 71.6% YoY demonstrates market demand or successful acquisition
- Positive free cash flow of 78M with adequate operating cash flow of 89M shows business generates liquidity
- Moderate leverage ratio of 0.85x Debt/Equity indicates balanced capital structure without excessive debt burden
- Profitable with 98M net income and growing earnings per share (+130% EPS growth)
- Revenue growth is very strong at 71.6% year over year, indicating significant business expansion
- The company remains profitable at the operating and net income level, with diluted EPS growing faster than net income
- Liquidity appears adequate with a 1.42x current and quick ratio, while debt-to-equity of 0.86x is elevated but not extreme
AMTM Stock Risks: Amentum Holdings, Inc. Investment Risks
- Severe margin compression: revenue up 71.6% but net income up only 11.9%, indicating poor operational leverage or acquisition integration failure
- Extremely low profitability ratios: 1.5% net margin and 4.3% operating margin suggest structurally low-margin business or temporary cost pressures
- Abysmal returns on capital: 2.1% ROE and 0.9% ROA indicate capital is not efficiently deployed and shareholders receive minimal returns
- High debt load relative to cash generation: 3.9B long-term debt against 78M annual FCF creates refinancing risk and limits financial flexibility
- Low liquidity: 428M cash on 11.2B asset base and current ratio of 1.48x provide limited cushion for operational disruptions
- Net margin of 1.4% and operating margin of 4.3% leave little room for execution errors or contract pressure
- Operating cash flow of negative $136 million and free cash flow of negative $142 million indicate weak cash conversion
- ROE of 1.0% and ROA of 0.4% point to low underlying efficiency and limited fundamental earnings power
Key Metrics to Watch
- Net margin expansion trajectory - critical to verify if low margins are temporary post-acquisition or structural
- Free cash flow growth - must track if FCF generation accelerates with revenue or continues at 1.2% of sales
- Debt reduction progress - monitor long-term debt paydown relative to FCF to assess deleveraging timeline
- Return metrics - watch for ROE and ROA improvement to indicate successful operational integration
- Operating margin sustainability - assess whether 4.3% operating margin is competitive for business model
- Operating cash flow and free cash flow trend
- Operating margin and net margin improvement
Amentum Holdings, Inc. (AMTM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.2% FCF margin may limit capital allocation flexibility.
AMTM Profit Margin, ROE & Profitability Analysis
AMTM vs Services Sector: How Amentum Holdings, Inc. Compares
How Amentum Holdings, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Amentum Holdings, Inc. Stock Overvalued? AMTM Valuation Analysis 2026
Based on fundamental analysis, Amentum Holdings, Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Amentum Holdings, Inc. Balance Sheet: AMTM Debt, Cash & Liquidity
AMTM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Amentum Holdings, Inc.'s revenue has grown significantly by 72% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.49 indicates the company is currently unprofitable.
AMTM Revenue Growth, EPS Growth & YoY Performance
AMTM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $3.5B | $4.0M | $0.02 |
| Q1 2026 | $3.2B | $12.0M | $0.05 |
| Q3 2025 | $2.1B | $10.0M | $0.04 |
| Q2 2025 | $2.1B | $4.0M | $0.02 |
| Q1 2025 | $2.0B | $12.0M | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Amentum Holdings, Inc. Dividends, Buybacks & Capital Allocation
AMTM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Amentum Holdings, Inc. (CIK: 0002011286)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AMTM
What is the AI rating for AMTM?
Amentum Holdings, Inc. (AMTM) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 56% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AMTM's key strengths?
Claude: Strong top-line revenue growth of 71.6% YoY demonstrates market demand or successful acquisition. Positive free cash flow of 78M with adequate operating cash flow of 89M shows business generates liquidity. ChatGPT: Revenue growth is very strong at 71.6% year over year, indicating significant business expansion. The company remains profitable at the operating and net income level, with diluted EPS growing faster than net income.
What are the risks of investing in AMTM?
Claude: Severe margin compression: revenue up 71.6% but net income up only 11.9%, indicating poor operational leverage or acquisition integration failure. Extremely low profitability ratios: 1.5% net margin and 4.3% operating margin suggest structurally low-margin business or temporary cost pressures. ChatGPT: Net margin of 1.4% and operating margin of 4.3% leave little room for execution errors or contract pressure. Operating cash flow of negative $136 million and free cash flow of negative $142 million indicate weak cash conversion.
What is AMTM's revenue and growth?
Amentum Holdings, Inc. reported revenue of $6.7B.
Does AMTM pay dividends?
Amentum Holdings, Inc. does not currently pay dividends.
Where can I find AMTM SEC filings?
Official SEC filings for Amentum Holdings, Inc. (CIK: 0002011286) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AMTM's EPS?
Amentum Holdings, Inc. has a diluted EPS of $0.40.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AMTM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Amentum Holdings, Inc. has a B grade with 56% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AMTM stock overvalued or undervalued?
Valuation metrics for AMTM: ROE of 2.1% (sector avg: 16%), net margin of 1.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is AMTM's AI grade for 2026?
Our dual AI analysis gives Amentum Holdings, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AMTM's free cash flow?
Amentum Holdings, Inc.'s operating cash flow is $89.0M, with capital expenditures of $11.0M. FCF margin is 1.2%.
How does AMTM compare to other Services stocks?
Vs Services sector averages: Net margin 1.5% (avg: 10%), ROE 2.1% (avg: 16%), current ratio 1.48 (avg: 1.5).