Amentum Holdings, Inc. (AMTM) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Amentum Holdings, Inc. (AMTM) Industrial Operations Profile

Amentum Holdings, Inc. provides mission-critical, technology-driven services to government and commercial markets, operating through its Critical Mission Solutions and Cyber & Intelligence segments. The company distinguishes itself through specialized services in missile defense, cyber training, and data analytics, catering to both defense and national security clients.

What Is the Investment Thesis for AMTM?

The company's two operating segments, Critical Mission Solutions and Cyber & Intelligence, cater to both government and commercial clients, providing a diversified revenue stream. With a market capitalization of $4.77B and a P/E ratio of 23.57, Amentum's financial metrics reflect its growth potential. Key value drivers include the increasing demand for cyber security solutions and the continued need for mission-critical services in the defense sector. However, the company's relatively low profit margin of 0.7% and gross margin of 10.4% present challenges that need to be addressed to improve profitability. Amentum's beta of 0.24 suggests lower volatility compared to the market, which may appeal to risk-averse investors.

Based on FMP financials and quantitative analysis

AMTM Key Highlights

Market capitalization of $4.77B indicates substantial investor confidence in Amentum's market position.

• P/E ratio of 23.57 reflects investor expectations of future earnings growth.
• Amentum's beta of 0.24 suggests lower volatility compared to the market, potentially attracting risk-averse investors.
• The company operates through two segments: Critical Mission Solutions and Cyber & Intelligence, providing diversification.
• Amentum has 53,000 employees, indicating a significant operational scale.

Who Are AMTM's Competitors?

AMTM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are AMTM's Key Strengths?

Strong presence in government and commercial markets.

• Diversified service offerings across multiple sectors.
• Expertise in mission-critical and technology-driven solutions.
• Experienced leadership team.

What Are AMTM's Weaknesses?

Relatively low profit margin of 0.7%.

• Gross margin of 10.4% is lower than some competitors.
• Dependence on government contracts can create revenue volatility.
• Limited brand recognition compared to larger competitors.

What Could Drive AMTM Stock Higher?

Continued government spending on defense and national security programs.

• Potential new contracts in the space sector.
• Increasing demand for cyber security services.
• Expansion of data analytics and intelligence solutions.

What Are the Key Risks for AMTM?

Cuts in government spending on defense and related programs.

• Economic downturns could reduce demand for commercial services.
• Intense competition from larger aerospace and defense companies.
• Technological advancements could render some services obsolete.
• Dependence on government contracts can create revenue volatility.

What Are the Growth Opportunities for AMTM?

• Expansion of Cyber Security Services: The increasing frequency and sophistication of cyber threats create a significant growth opportunity for Amentum. The global cyber security market is projected to reach $345.4 billion by 2026, growing at a CAGR of 9.7%. Amentum can capitalize on this trend by expanding its cyber training and data analytics services, targeting both government and commercial clients. Investing in advanced technologies and skilled personnel will be crucial to maintaining a competitive edge in this rapidly evolving market.
• Increased Government Spending on Defense: Ongoing geopolitical tensions and conflicts are driving increased government spending on defense and national security. Amentum can leverage its expertise in missile defense systems, IT services, and engineering to secure additional government contracts. The U.S. defense budget, for example, is expected to continue to grow, providing a stable and expanding market for Amentum's services. Building strong relationships with government agencies and demonstrating a track record of successful project execution will be key to winning these contracts.
• Growth in Space Sector Services: The space sector is experiencing a resurgence, driven by both government and commercial initiatives. Amentum can expand its services in this area, providing IT and engineering support for space missions, satellite operations, and related infrastructure. The global space economy is projected to reach $1 trillion by 2040. Amentum's technological solutions and expertise in highly technical consulting make it well-positioned to capture a share of this growing market.
• Environmental Remediation and Decommissioning: The need for environmental remediation and decommissioning services in the energy sector presents another growth opportunity for Amentum. As aging infrastructure is retired and environmental regulations become stricter, the demand for these services will increase. Amentum's expertise in installations, decommissioning, and environmental remediation positions it to capitalize on this trend. Focusing on innovative and cost-effective solutions will be crucial to winning contracts in this market.
• Data Analytics and Intelligence Solutions: The increasing volume and complexity of data create a growing need for advanced data analytics and intelligence solutions. Amentum can expand its offerings in this area, providing data analytics services to government and commercial clients. The global data analytics market is projected to reach $105 billion by 2026. Amentum's expertise in cyber training and data analytics for government professionals provides a strong foundation for growth in this market. Investing in cutting-edge technologies and skilled data scientists will be essential to delivering valuable insights to clients.

What Are AMTM's Competitive Advantages?

• Specialized Expertise: Amentum possesses specialized expertise in mission-critical and technology-driven services.
• Government Relationships: Strong relationships with government agencies provide a competitive advantage.
• Diversified Service Offerings: Amentum offers a broad range of services, catering to diverse client needs.

What Does AMTM Do?

Amentum Holdings, Inc., founded on November 26, 2019, and headquartered in Chantilly, VA, provides mission-critical, technology-driven services to government and commercial markets. The company operates through two primary segments: Critical Mission Solutions and Cyber & Intelligence. The Critical Mission Solutions segment offers a range of services, including test, training, and operations for missile defense systems, IT and engineering services for defense clients and the space sector, and technological solutions like installations, decommissioning, and environmental remediation for energy clients. This segment also provides highly technical consulting solutions. The Cyber & Intelligence segment focuses on advanced cyber training and data analytics for government professionals, advanced communication systems, and aerial mapping technologies for national security clients. It delivers technical services to United States defense and intelligence clients. Amentum's services are designed to meet the evolving needs of its clients, providing support in areas critical to national security and infrastructure. With a workforce of 53,000 employees, Amentum has established itself as a key player in the aerospace and defense industry, offering specialized solutions and expertise to its diverse client base.

What Products and Services Does AMTM Offer?

• Provides test, training, and operations services for missile defense systems.
• Offers IT and engineering services to defense clients and the space sector.
• Delivers technological solutions, including installations, decommissioning, and environmental remediation to energy clients.
• Provides advanced cyber training and data analytics for government professionals.
• Offers advanced communication systems and aerial mapping technologies to national security clients.
• Provides technical services for United States defense and intelligence clients.

How Does AMTM Make Money?

• Amentum generates revenue through contracts with government and commercial clients.
• The company provides a range of services, including engineering, IT, and technical support.
• Amentum operates through two segments: Critical Mission Solutions and Cyber & Intelligence.

What Industry Does AMTM Operate In?

Amentum Holdings, Inc. operates within the aerospace and defense industry, a sector characterized by technological innovation, government contracts, and high barriers to entry. The industry is experiencing growth driven by increasing global security concerns and the need for advanced technological solutions. Amentum's focus on mission-critical and cyber security services aligns with these trends. Competitors like Moog Inc. (MOG-A), The Timken Company (TKR), and Hexcel Corporation (HXL) also operate in this space, each with their own specializations. Amentum differentiates itself through its integrated service offerings and focus on both government and commercial markets.

Who Are AMTM's Key Customers?

• Government agencies, including defense and intelligence clients.
• Commercial clients in the energy sector.
• Organizations requiring cyber security and data analytics solutions.

Amentum Holdings, Inc. Financial Trajectory

Amentum Holdings, Inc. (AMTM) reported $3.49B in revenue for Q3 FY2026, reflecting 0.3% growth compared to the prior quarter. The company recorded net income of $66.0M, with diluted EPS of $0.27. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Industrials company. Across the four most recent quarters, AMTM averaged $0.21 in diluted EPS.

Company Profile

Amentum Holdings, Inc. operates in the Aerospace & Defense industry within the Industrials sector. It is headquartered in Chantilly, US. The company is led by CEO John E. Heller. AMTM has traded publicly since 2024.

How Amentum Holdings, Inc. Is Valued

Amentum Holdings, Inc. carries a market capitalization of $4.77B, placing it in the mid-cap category. Analyst price targets span from $24.00 to $35.00, with a consensus of $27.17. At the current price of $19.56, that implies approximately 39% upside potential. Relative to its peer group, AMTM's quantitative score of 62/100 is roughly in line with the peer average of 54/100.

Return on equity for Amentum Holdings, Inc. stands at 3.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.3%, showing how much profit it generates from its asset base. AMTM trades at a trailing price-to-earnings ratio of 23.57, below the Industrials sector average of ~28.00x. Its free cash flow yield is 7.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.48 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.6%, the inverse of the P/E and a quick read on earnings relative to price.

Amentum Holdings, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.93 places it in the grey zone, a middle ground that warrants monitoring.

Amentum Holdings, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 17.1% above estimates on average.

Over the past six months, Amentum Holdings, Inc. insiders filed 15 SEC Form 4 transactions — 10 sales and 5 purchases. On net that is roughly 21K shares disposed (about $525K), a signal worth weighing alongside the fundamentals.

AMTM Financials

AMTM Latest News

AMTM Analyst Consensus

AMTM MoonshotScore

What Investors Ask About Amentum Holdings, Inc. (AMTM) — Industrials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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