Amentum Holdings, Inc. (NYSE: AMTM)

Sector: Industrials Industry: Specialty Business Services CIK: 0002011286
Market Cap 7.36 Bn
P/B 1.62
P/E 75.12
P/S 0.52
ROIC (Qtr) 3.44
Div Yield % 0.00
Rev 1y % (Qtr) -5.24
Total Debt (Qtr) 3.94 Bn
Debt/Equity (Qtr) 0.86
Add ratio to table...

About

Investment thesis

Bull case

  • Healthy cash reserves of 247M provide 6.02x coverage of short-term debt 41M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 297M provides strong 11.88x coverage of stock compensation 25M, indicating sustainable incentive practices.
  • Tangible assets of 3.63B provide exceptional 17.90x coverage of deferred revenue 203M, showing strong service capability backing.
  • Robust free cash flow of 272M exceeds capital expenditure of 25M by 10.88x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 3.63B provides 4.17x coverage of working capital 872M, indicating strong operational backing.

Bear case

  • Cash reserves of 247M provide limited coverage of acquisition spending of 295M, which is 0.84x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 297M provides insufficient coverage of deferred revenue obligations of 203M, which is 1.46x, raising concerns about future service delivery capabilities.
  • Operating earnings of 490M show weak coverage of depreciation charges of 496M, with a 0.99 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 272M represents just -0.36x of debt issuance (766M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 496M relative to operating cash flow of 297M, which is 1.67x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Business Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CTAS Cintas Corp 120.08 Bn 556.91 33.85 3.24 Bn
2 RELX Relx Plc 56.19 Bn 20.01 4.34 9.82 Bn
3 TRI Thomson Reuters Corp /Can/ 37.42 Bn 24.91 5.00 2.44 Bn
4 CPRT Copart Inc 36.25 Bn 22.74 7.79 0.10 Bn
5 RBA Rb Global Inc. 19.20 Bn 49.09 4.24 4.21 Bn
6 ULS UL Solutions Inc. 14.12 Bn 43.32 4.92 0.74 Bn
7 GPN Global Payments Inc 11.52 Bn 284.78 8.66 16.20 Bn
8 ARMK Aramark 10.37 Bn 32.72 0.55 6.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.97 2.48
EV to Cash from Ops. EV/CFO 36.59 30.22
EV to Debt EV to Debt 2.76 31.08
EV to EBIT EV/EBIT 22.18 94.66
EV to EBITDA EV/EBITDA 11.81 18.37
EV to Free Cash Flow [EV/FCF] EV/FCF 39.96 -20.73
EV to Market Cap EV to Market Cap 1.48 178.66
EV to Revenue EV/Rev 0.76 8.12
Price to Book Value [P/B] P/B 1.62 5.37
Price to Earnings [P/E] P/E 75.12 65.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -15,800.59
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.14
Dividend per Basic Share Div per Share (Qtr) 0.00 0.35
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.65
Interest Coverage Int. cover (Qtr) 1.44 30.46
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -47.06 -178.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -52.68 155.14
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.38
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 83.47 -34.92
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 60.28 -86.28
EBIT Growth (1y) % EBIT 1y % (Qtr) 38.03 -22.62
EBT Growth (1y) % EBT 1y % (Qtr) 354.24 -287.35
EPS Growth (1y) % EPS 1y % (Qtr) 200.00 -118.47
FCF Growth (1y) % FCF 1y % (Qtr) 21.97 -146.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 53.16 2.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.27 0.84
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.03
Cash Ratio Cash Ratio (Qtr) 0.12 1.15
Current Ratio Curr Ratio (Qtr) 1.42 4.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.86 0.92
Interest Cover Ratio Int Coverage (Qtr) 1.44 30.46
Times Interest Earned Times Interest Earned (Qtr) 1.44 30.46
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 6.90 -33.89
EBIT Margin % EBIT Margin % (Qtr) 3.45 -43.32
EBT Margin % EBT Margin % (Qtr) 1.06 -44.88
Gross Margin % Gross Margin % (Qtr) 10.40 39.81
Net Profit Margin % Net Margin % (Qtr) 0.70 -41.60