📊 KRMN Key Takeaways
Is Karman Holdings Inc. (KRMN) a Good Investment?
Karman Holdings shows bottom-line improvement but faces severe financial distress signals: interest coverage of 0.5x indicates inability to service $769.8M debt with operating earnings, negative free cash flow of -$7.2M is unsustainable, and zero revenue growth suggests stagnation. Despite improved net income (+36.7% YoY), the company's extremely low returns (1.9% ROE, 0.5% ROA) and 1.90x leverage create structural vulnerability.
Karman shows solid gross and operating margins and strong YoY EPS growth despite flat revenue, indicating operational improvements. However, heavy leverage with weak interest coverage and sustained negative operating/free cash flow suggest fragile earnings quality and constrained financial flexibility. Without clear top-line growth and improved cash generation, downside risk dominates.
Karman Holdings Inc. Key Strengths (KRMN)
- Net income up 36.7% YoY and EPS up 62.5% YoY shows recent profitability improvement
- Gross margin of 42.2% and operating margin of 14.2% are reasonable for aerospace parts manufacturing
- Strong liquidity with 3.53x current ratio and 3.38x quick ratio provide near-term cash cushion
- Healthy gross and operating margins (40.3% and 15.5%)
- Strong liquidity with current and quick ratios >3x
- YoY profitability improvement (Net income +36.7%, EPS +62.5%)
KRMN Stock Risks: Karman Holdings Inc. Investment Risks
- Critical: Interest coverage ratio of 0.5x - operating income insufficient to cover interest expense on $769.8M debt
- Negative free cash flow of -$7.2M is unsustainable and limits debt reduction capacity
- Zero YoY revenue growth indicates market stagnation despite sector presence; profitability gains may be cost-cutting rather than operational strength
- Extremely low returns: 1.9% ROE and 0.5% ROA suggest inefficient capital deployment and troubled asset base
- High leverage with weak interest coverage (1.6x)
- Negative operating and free cash flow (FCF margin -9%)
- Flat revenue growth (0% YoY) and low ROE/ROA
Key Metrics to Watch
- Interest coverage ratio trending and debt service capability
- Free cash flow turn positive and operating cash flow improvement
- Revenue growth acceleration to above 0% in next quarters
- Interest coverage ratio
- Free cash flow
Karman Holdings Inc. (KRMN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.53x current ratio provides a solid financial cushion.
KRMN Profit Margin, ROE & Profitability Analysis
KRMN vs Automotive Sector: How Karman Holdings Inc. Compares
How Karman Holdings Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Karman Holdings Inc. Stock Overvalued? KRMN Valuation Analysis 2026
Based on fundamental analysis, Karman Holdings Inc. shows some fundamental concerns relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Karman Holdings Inc. Balance Sheet: KRMN Debt, Cash & Liquidity
KRMN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Karman Holdings Inc.'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.03 reflects profitable operations.
KRMN Revenue Growth, EPS Growth & YoY Performance
KRMN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $100.1M | -$4.8M | $-0.04 |
| Q3 2025 | $86.0M | $2.1M | $0.03 |
| Q2 2025 | $85.0M | $2.0M | $0.02 |
| Q1 2025 | $83.0M | $2.1M | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Karman Holdings Inc. Dividends, Buybacks & Capital Allocation
KRMN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Karman Holdings Inc. (CIK: 0002040127)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KRMN
What is the AI rating for KRMN?
Karman Holdings Inc. (KRMN) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KRMN's key strengths?
Claude: Net income up 36.7% YoY and EPS up 62.5% YoY shows recent profitability improvement. Gross margin of 42.2% and operating margin of 14.2% are reasonable for aerospace parts manufacturing. ChatGPT: Healthy gross and operating margins (40.3% and 15.5%). Strong liquidity with current and quick ratios >3x.
What are the risks of investing in KRMN?
Claude: Critical: Interest coverage ratio of 0.5x - operating income insufficient to cover interest expense on $769.8M debt. Negative free cash flow of -$7.2M is unsustainable and limits debt reduction capacity. ChatGPT: High leverage with weak interest coverage (1.6x). Negative operating and free cash flow (FCF margin -9%).
What is KRMN's revenue and growth?
Karman Holdings Inc. reported revenue of $151.2M.
Does KRMN pay dividends?
Karman Holdings Inc. does not currently pay dividends.
Where can I find KRMN SEC filings?
Official SEC filings for Karman Holdings Inc. (CIK: 0002040127) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KRMN's EPS?
Karman Holdings Inc. has a diluted EPS of $0.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KRMN's fundamental grade?
Based on our AI fundamental analysis in May 2026, Karman Holdings Inc. has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KRMN stock overvalued or undervalued?
Valuation metrics for KRMN: ROE of 1.9% (sector avg: 12%), net margin of 5.2% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is KRMN's AI grade for 2026?
Our dual AI analysis gives Karman Holdings Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KRMN's free cash flow?
Karman Holdings Inc.'s operating cash flow is $209.0K, with capital expenditures of $7.4M. FCF margin is -4.7%.
How does KRMN compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 5.2% (avg: 6%), ROE 1.9% (avg: 12%), current ratio 3.53 (avg: 1.2).
Is Karman Holdings Inc. carrying too much debt?
KRMN has a debt-to-equity ratio of 1.90x, which is above the Automotive sector average of 1x. However, the current ratio of 3.53 suggests adequate short-term liquidity.