📊 KRMN Key Takeaways
Is Karman Holdings Inc. (KRMN) a Good Investment?
Despite 36.7% net income growth, Karman Holdings exhibits critical fundamental deterioration with negative operating cash flow of -$22.1M and free cash flow of -$42.5M, indicating earnings growth is not sustainable or cash-backed. The combination of high leverage (1.32x debt/equity), weak interest coverage of 1.6x, flat revenue growth, and minimal cash reserves ($34M against $506.8M debt) creates significant financial distress risk.
Karman shows solid gross and operating margins and strong YoY EPS growth despite flat revenue, indicating operational improvements. However, heavy leverage with weak interest coverage and sustained negative operating/free cash flow suggest fragile earnings quality and constrained financial flexibility. Without clear top-line growth and improved cash generation, downside risk dominates.
Why Buy Karman Holdings Inc. Stock? KRMN Key Strengths
- Solid gross margin of 40.3% demonstrates pricing power and production efficiency
- Strong liquidity ratios (current 3.29x, quick 3.17x) provide near-term operational flexibility
- Net income and EPS growth of 36.7% and 62.5% respectively show cost management improvements
- Healthy gross and operating margins (40.3% and 15.5%)
- Strong liquidity with current and quick ratios >3x
- YoY profitability improvement (Net income +36.7%, EPS +62.5%)
KRMN Stock Risks: Karman Holdings Inc. Investment Risks
- Operating cash flow is negative at -$22.1M; company is burning cash operationally rather than generating it
- Free cash flow of -$42.5M is deeply concerning and indicates unsustainable business model given debt obligations
- Interest coverage ratio of 1.6x is dangerously weak with high debt burden of $506.8M; limited cushion for economic downturn
- Revenue is completely flat at 0% growth while cash burn accelerates, suggesting earnings growth is not real or sustainable
- Very low returns (ROE 4.5%, ROA 1.6%) indicate poor capital efficiency and value destruction
- Minimal cash position of $34M relative to debt and negative cash flow creates liquidity crisis risk
- High leverage with weak interest coverage (1.6x)
- Negative operating and free cash flow (FCF margin -9%)
- Flat revenue growth (0% YoY) and low ROE/ROA
Key Metrics to Watch
- Operating cash flow trajectory—must turn positive to validate earnings quality
- Interest coverage ratio improvement—1.6x is unsustainably low
- Revenue growth acceleration—0% growth with negative FCF is untenable
- Cash balance depletion rate given negative FCF burn of -$42.5M annually
- Debt refinancing needs and access to capital markets
- Interest coverage ratio
- Free cash flow
Karman Holdings Inc. (KRMN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.29x current ratio provides a solid financial cushion.
KRMN Profit Margin, ROE & Profitability Analysis
KRMN vs Automotive Sector: How Karman Holdings Inc. Compares
How Karman Holdings Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Karman Holdings Inc. Stock Overvalued? KRMN Valuation Analysis 2026
Based on fundamental analysis, Karman Holdings Inc. has mixed fundamental signals relative to the Automotive 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.
Karman Holdings Inc. Balance Sheet: KRMN Debt, Cash & Liquidity
KRMN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Karman Holdings Inc.'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.03 reflects profitable operations.
KRMN Revenue Growth, EPS Growth & YoY Performance
KRMN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $86.0M | $2.1M | $0.03 |
| Q2 2025 | $85.0M | $2.0M | $0.02 |
| Q1 2025 | $83.0M | $2.1M | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Karman Holdings Inc. Dividends, Buybacks & Capital Allocation
KRMN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Karman Holdings Inc. (CIK: 0002040127)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KRMN
What is the AI rating for KRMN?
Karman Holdings Inc. (KRMN) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KRMN's key strengths?
Claude: Solid gross margin of 40.3% demonstrates pricing power and production efficiency. Strong liquidity ratios (current 3.29x, quick 3.17x) provide near-term operational flexibility. ChatGPT: Healthy gross and operating margins (40.3% and 15.5%). Strong liquidity with current and quick ratios >3x.
What are the risks of investing in KRMN?
Claude: Operating cash flow is negative at -$22.1M; company is burning cash operationally rather than generating it. Free cash flow of -$42.5M is deeply concerning and indicates unsustainable business model given debt obligations. ChatGPT: High leverage with weak interest coverage (1.6x). Negative operating and free cash flow (FCF margin -9%).
What is KRMN's revenue and growth?
Karman Holdings Inc. reported revenue of $471.5M.
Does KRMN pay dividends?
Karman Holdings Inc. does not currently pay dividends.
Where can I find KRMN SEC filings?
Official SEC filings for Karman Holdings Inc. (CIK: 0002040127) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KRMN's EPS?
Karman Holdings Inc. has a diluted EPS of $0.13.
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 KRMN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Karman Holdings Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KRMN stock overvalued or undervalued?
Valuation metrics for KRMN: ROE of 4.5% (sector avg: 12%), net margin of 3.7% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy KRMN stock in 2026?
Our dual AI analysis gives Karman 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 KRMN's free cash flow?
Karman Holdings Inc.'s operating cash flow is $-22.1M, with capital expenditures of $20.3M. FCF margin is -9.0%.
How does KRMN compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 3.7% (avg: 6%), ROE 4.5% (avg: 12%), current ratio 3.29 (avg: 1.2).