Amentum Holdings, Inc.

Valuation Analysis

About the Company

Amentum Holdings, Inc. engages in the provision of engineering and technology solutions in the United States and internationally. It operates through two segments, Digital Solutions and Global Engineering Solutions. The company offers digital and data-driven solutions, including intelligence analytics, space system development, cybersecurity, and IT to the federal government and commercial clients. It also provides large-scale environmental remediation, nuclear power solutions, platform engineering, sustainment, and supply chain management for the U.S. government and allied nations. The company was incorporated in 2023 and is headquartered in Chantilly, Virginia.

Amentum Holdings, Inc. Stock at a Glance

Amentum Holdings, Inc. (AMTM) is currently trading at $22.86 with a market capitalization of $5.6B. The trailing P/E ratio stands at 38.1x, with a forward P/E of 8.24x. The 52-week range spans from $21.11 to $38.11; the current price is 40% below the yearly high. Year-over-year revenue growth stands at -0.4%. The net profit margin stands at 1.04%.

💰 Dividend

Amentum Holdings, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

12 analysts rate Amentum Holdings, Inc. (AMTM) on consensus: Buy. The average price target is $33.50, implying +46.54% from the current price. Analyst price targets range from $22.00 to $40.00.

Amentum Holdings, Inc.: The Investment Case in Detail

Amentum Holdings, Inc. (AMTM) operates in the Industrials — specifically Specialty Business Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 1236.6% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Wall Street consensus sits at Buy with an average price target implying roughly 46.54% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

Revenue is contracting at -0.4% year-over-year — until that trend reverses, valuation is exposed to further downgrades. With a net margin of just 1.04%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The EV/EBITDA multiple of 9.2x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 8.24x is meaningfully below the trailing 38.1x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 46.54% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to elevated short interest (9.01%).

Trading Data

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