Karman Holdings Inc. (KRMN) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E above the industry

Karman's P/E of 114.6 is above the Aircraft and Parts median of 27.6.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Karman's price-to-book of 13.41 is above the Aircraft and Parts median of 2.88.

Trading above fair value

The share price of $44.69 is above our fair value estimate of $12.60.

Margin of safety under 20%

The price is 255% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 27.7% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 56.3% over the last twelve months; the Aircraft and Parts median is 16.9%.

Guidance raised

Karman raised its full fiscal year 2026 total revenue outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 42.1% over the last twelve months, against 40.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 10.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Karman's return on equity of 12.4% is above the Aircraft and Parts median of 9.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 7.5% over the last twelve months, against a 5-year average of 0.7%.

Net margin above the industry

Karman's net margin of 7.5% is above the Aircraft and Parts median of 5.5%.

High debt

Debt is 194% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 3.8% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.9 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 3.10 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.85; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Karman has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.