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KRMN

BEARISH
$70.3 Live
Karman Holdings Inc. · NYSE
Target $117.1 (+66.6%)
$33.73 52W Range $118.38

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AI Analysis

AI-powered fundamental assessment

Confidence
95%
KRMN exhibits a critical disconnect between its market price ($70.30) and its deterministic value, with a Piotroski F-Score of 2/9 indicating weak financial health. While the company shows explosive YoY earnings growth (482.9%), the valuation is unsustainable with a P/E ratio of 540.77 and a Graham Number of only $2.91. Heavy insider selling by the CEO and CFO, combined with a sharp recent technical decline, suggests that leadership views the current valuation as an exit opportunity. Despite bullish analyst price targets, the fundamental health and valuation metrics signal a high risk of a significant correction.

Key Strengths

Explosive YoY earnings growth of 482.90%
Strong revenue growth (47.40% YoY)
Healthy gross margins at 40.30%
Strong short-term liquidity (Current Ratio 3.29)
Significant 1-year price appreciation (+97.9%)

Key Risks

Extreme overvaluation (P/E 540.77, P/B 24.31)
Weak financial health as evidenced by Piotroski F-Score of 2/9
Aggressive insider selling totaling $41.17M
Severe divergence between market price and intrinsic value ($3.83)
Negative short-term price momentum (-14.3% in 1 week)
AI Fair Value Estimate
Based on comprehensive analysis
$4.5
-93.6% below current price

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