Karman Holdings Inc. Common Stock (KRMN)

FairStock Score: 30/100 — RISKY

Key Financials

Strengths

• Altman Z-Score of 9.0 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 47.4% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($3) with negative 2579% margin of safety—limited downside protection

AI Analysis

Karman Holdings Inc. Common Stock is a mid-cap industrials company valued at $10.3 billion. The business generates $472 million in annual revenue with a 1.6% net margin. From a quality standpoint, Karman shows Altman Z-Score of 9.0 confirms fortress-level solvency and modest 6% ROE. On valuation, the stock is commanding a steep 589.2x multiple, with trades far above its Graham Number ($3) with no margin of safety. Growth dynamics show revenue growing at 47.4% and profit growth of 358.3%. Our composite FairStock Score of 30/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Karman's 47% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 589x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer