Karman Holdings Inc. (KRMN) Stock Analysis
Verdict: AVOID
Severe debt leverage and negative FCF outweigh 50%+ top-line growth, driving a 70%+ selloff exacerbated by short-seller scrutiny.
Investment score: 28/100
Analysis as of
Is Karman Holdings Inc. stock worth reviewing? AI model thesis
The model sees Karman Holdings as a high-risk turn/distress setup where rapid revenue expansion (+58% YoY in Q2 2026 to $182.06M) is negated by $875.27M in debt, negative FCF, CFO turnover, and short-seller accusations.
7-factor investment score
- Valuation: 20/100 (weight 20%)
- Financial Health: 35/100 (weight 15%)
- Technical Momentum: 10/100 (weight 15%)
- Earnings Quality: 30/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 25/100 (weight 15%)
Karman Holdings Inc. opportunities and risks
What speaks for KRMN
- Surging defense and space backlog providing revenue visibility
What speaks against KRMN
- Oversized debt burden and high interest coverage sensitivity
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| KRMN | 116.4x | 7.5x | 36.5x | 41.7% | 6.3% | -0.6% |
| VSEC | 65.1x | 3.7x | 33.7x | 14.0% | 5.5% | -0.0% |
| BETA | n/a | 110.8x | n/a | 46.3% | -1913.9% | -8.5% |
| MRCY | n/a | 5.1x | 69.1x | 26.7% | -3.0% | 1.3% |
| AIR | 23.9x | 1.4x | 14.1x | 18.8% | 5.7% | 1.1% |
| ACHR | n/a | 611.5x | n/a | -23.2% | -11589.9% | -15.6% |
| Peer median | n/a | 5.1x | 14.1x | 18.8% | -3.0% | -0.0% |
Frequently asked questions about Karman Holdings Inc. (KRMN)
Is KRMN stock a good investment?
The cached TradeMates AI model rates Karman Holdings Inc. as AVOID with an investment score of 28/100. The model sees Karman Holdings as a high-risk turn/distress setup where rapid revenue expansion (+58% YoY in Q2 2026 to $182.06M) is negated by $875.27M in debt, negative FCF, CFO turnover, and short-seller accusations. This is algorithmic model output, not personal investment advice.
Is KRMN stock a buy?
The TradeMates model verdict for KRMN is AVOID with an investment score of 28/100. Treat this as a model signal to review, not a personal buy recommendation.