Amentum Holdings Inc (AMTM) Stock Analysis
Verdict: WATCH (do not buy)
Strong FCF yield and NASA contract wins are overshadowed by razor-thin 1% margins and heavy debt, creating a value trap near 52-week lows.
Investment score: 48/100
Analysis as of
Is Amentum Holdings Inc stock worth reviewing? AI model thesis
Amentum offers significant scale and a strong contract backlog, but its high leverage and recent price momentum warrant caution. The model identifies a potential floor near $19.80, but lacks immediate catalysts for a breakout.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 70/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 55/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
Amentum Holdings Inc opportunities and risks
What speaks for AMTM
- Robust Free Cash Flow Generation
What speaks against AMTM
- High Debt Leverage Profile
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| AMTM | 24.8x | 0.4x | 8.8x | 8.7% | 1.4% | 9.6% |
| ANDG | 4.7x | 6.2x | n/a | 34.7% | 3.7% | 3.0% |
| SAIC | 14.1x | 0.7x | 10.8x | 12.5% | 5.6% | 11.3% |
| PSN | 31.3x | 0.8x | 15.9x | 21.5% | 2.5% | 6.3% |
| KBR | 11.4x | 0.6x | 8.6x | 14.5% | 5.5% | 7.3% |
| FCN | 18.7x | 1.1x | 12.6x | 31.8% | 6.4% | 9.8% |
| Peer median | 14.1x | 0.8x | 10.8x | 21.5% | 5.5% | 7.3% |
Frequently asked questions about Amentum Holdings Inc (AMTM)
Is AMTM stock a good investment?
The cached TradeMates AI model rates Amentum Holdings Inc as WATCH (do not buy) with an investment score of 48/100. Amentum offers significant scale and a strong contract backlog, but its high leverage and recent price momentum warrant caution. The model identifies a potential floor near $19.80, but lacks immediate catalysts for a breakout. This is algorithmic model output, not personal investment advice.
Is AMTM stock a buy?
The TradeMates model verdict for AMTM is WATCH (do not buy) with an investment score of 48/100. Treat this as a model signal to review, not a personal buy recommendation.