📊 AMTM Key Takeaways
Is Amentum Holdings, Inc. (AMTM) a Good Investment?
Amentum demonstrates strong revenue growth of 71.6% YoY, but profitability is severely constrained with a net margin of only 1.4% and operating margin of 4.3%. Most critically, the company is burning cash with negative operating cash flow of -$136M and negative free cash flow of -$142M, indicating the growth is not translating into sustainable business economics.
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.
Why Buy Amentum Holdings, Inc. Stock? AMTM Key Strengths
- Strong revenue growth of 71.6% YoY ($3.2B) demonstrates significant market demand and business expansion
- Solid liquidity position with current ratio of 1.42x and $247M in cash equivalents
- Reasonable leverage at 0.86x debt-to-equity ratio provides financial flexibility
- 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 cash flow deterioration with negative operating cash flow of -$136M and negative free cash flow of -$142M, suggesting growth is unprofitable
- Extremely low profitability with net margin of 1.4% and operating margin of 4.3%, indicating operational inefficiency or low-margin business model
- Very poor returns on equity (1.0%) and assets (0.4%) suggest capital is not being deployed efficiently to generate returns
- High long-term debt of $3.9B combined with cash burn raises sustainability concerns about servicing debt
- 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
- Operating cash flow trend - must turn positive to validate business model sustainability
- Operating margin expansion - needs significant improvement from current 4.3% levels
- Debt servicing capacity relative to operating cash generation as interest coverage is unavailable
- 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
Amentum Holdings, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| 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
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772744785.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772658730.xml | View → |
| Feb 18, 2026 | 4 | xslF345X05/wk-form4_1771453809.xml | View → |
| Feb 10, 2026 | 4 | xslF345X05/wk-form4_1770757912.xml | View → |
| Feb 10, 2026 | 4 | xslF345X05/wk-form4_1770757878.xml | View → |
❓ Frequently Asked Questions about AMTM
What is the AI rating for AMTM?
Amentum Holdings, Inc. (AMTM) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AMTM's key strengths?
Claude: Strong revenue growth of 71.6% YoY ($3.2B) demonstrates significant market demand and business expansion. Solid liquidity position with current ratio of 1.42x and $247M in cash equivalents. 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 cash flow deterioration with negative operating cash flow of -$136M and negative free cash flow of -$142M, suggesting growth is unprofitable. Extremely low profitability with net margin of 1.4% and operating margin of 4.3%, indicating operational inefficiency or low-margin business model. 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 $3.2B.
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 $0.18.
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 rating reflects both perspectives for balanced insights.
Is AMTM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Amentum Holdings, Inc. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AMTM stock overvalued or undervalued?
Valuation metrics for AMTM: ROE of 1.0% (sector avg: 16%), net margin of 1.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy AMTM stock in 2026?
Our dual AI analysis gives Amentum Holdings, Inc. a combined SELL rating 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 $-136.0M, with capital expenditures of $6.0M. FCF margin is -4.4%.
How does AMTM compare to other Services stocks?
Vs Services sector averages: Net margin 1.4% (avg: 10%), ROE 1.0% (avg: 16%), current ratio 1.42 (avg: 1.5).