Amentum Holdings, Inc.
Amentum Holdings, Inc. Fundamental Analysis
Amentum Holdings, Inc. (AMTM) shows weak financial fundamentals with a PE ratio of 37.80, profit margin of 1.04%, and ROE of 3.27%. The company generates $14.2B in annual revenue with strong year-over-year growth of 71.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AMTM's fundamental strength across five key dimensions:
Efficiency Score
WeakAMTM struggles to generate sufficient returns from assets.
Valuation Score
ModerateAMTM shows balanced valuation metrics.
Growth Score
ModerateAMTM shows steady but slowing expansion.
Financial Health Score
ExcellentAMTM maintains a strong and stable balance sheet.
Profitability Score
WeakAMTM struggles to sustain strong margins.
Key Financial Metrics
Is AMTM Expensive or Cheap?
P/E Ratio
AMTM trades at 37.80 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AMTM's PEG of 0.16 indicates potential undervaluation.
Price to Book
The market values Amentum Holdings, Inc. at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.11 times EBITDA. This is generally considered low.
How Well Does AMTM Make Money?
Net Profit Margin
For every $100 in sales, Amentum Holdings, Inc. keeps $1.04 as profit after all expenses.
Operating Margin
Core operations generate 3.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.27 in profit for every $100 of shareholder equity.
ROA
Amentum Holdings, Inc. generates $1.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Amentum Holdings, Inc. generates limited operating cash flow of $465.17M, signaling weaker underlying cash strength.
Free Cash Flow
Amentum Holdings, Inc. produces free cash flow of $450.17M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.84 in free cash annually.
FCF Yield
AMTM converts 8.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How AMTM Stacks Against Its Sector Peers
| Metric | AMTM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.80 | 26.09 | Worse (Expensive) |
| ROE | 3.27% | 1271.00% | Weak |
| Net Margin | 1.04% | -30278.00% (disorted) | Weak |
| Debt/Equity | 0.85 | 0.73 | Neutral |
| Current Ratio | 1.48 | 8.97 | Neutral |
| ROA | 1.32% | -1493581.00% (disorted) | Weak |
AMTM outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Amentum Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
4.69%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
-87.72%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-17.91%
Industry Style: Cyclical, Value, Infrastructure
Declining