Latest Ratios: P/E Ratio 266.8x · EV/EBITDA 44.5x · ROE 6.0%. (2022–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Market Cap | $4.6B | $9.7B | — | — | — |
| Enterprise Value | $5.1B | $10.2B | — | — | — |
| P/E Ratio → | 266.77 | 562.85 | — | — | — |
| P/S Ratio | 9.75 | 20.53 | — | — | — |
| P/B Ratio | 11.99 | 25.30 | — | — | — |
| P/FCF | — | — | — | — | — |
| P/OCF | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| EV / Revenue | — | 21.71 | — | — | — |
| EV / EBITDA | 44.51 | 88.48 | — | — | — |
| EV / EBIT | 70.60 | 132.77 | — | — | — |
| EV / FCF | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Gross Margin | 40.3% | 40.3% | 38.3% | 37.6% | 35.8% |
| Operating Margin | 15.5% | 15.5% | 18.4% | 17.3% | 9.0% |
| Net Profit Margin | 3.7% | 3.7% | 3.7% | 1.6% | -6.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| ROE | 6.0% | 6.0% | 6.7% | 2.4% | -7.9% |
| ROA | 1.8% | 1.8% | 1.7% | 0.6% | -2.1% |
| ROIC | 7.0% | 7.0% | 7.8% | 6.3% | 2.7% |
| ROCE | 8.5% | 8.5% | 9.9% | 7.8% | 3.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Debt / Equity | 1.53 | 1.53 | 2.29 | 2.24 | 2.27 |
| Debt / EBITDA | 5.08 | 5.08 | 4.65 | 5.41 | 7.28 |
| Net Debt / Equity | — | 1.45 | 2.23 | 2.21 | 2.24 |
| Net Debt / EBITDA | 4.78 | 4.78 | 4.53 | 5.34 | 7.16 |
| Debt / FCF | — | — | 38.30 | 113.73 | — |
| Interest Coverage | 1.73 | 1.73 | 1.28 | 1.02 | 0.54 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Current Ratio | 3.29 | 3.29 | 1.76 | 1.81 | 2.05 |
| Quick Ratio | 3.17 | 3.17 | 1.67 | 1.70 | 2.01 |
| Cash Ratio | 0.38 | 0.38 | 0.10 | 0.06 | 0.11 |
| Asset Turnover | — | 0.41 | 0.45 | 0.39 | 0.33 |
| Inventory Turnover | 26.40 | 26.40 | 21.57 | 17.80 | 64.09 |
| Days Sales Outstanding | — | 181.93 | 171.73 | 181.76 | 175.66 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — |
| Payout Ratio | — | — | 1.2% | 18.1% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Earnings Yield | 0.4% | 0.2% | — | — | — |
| FCF Yield | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $132M | $132M | $132M | $132M |
Includes 30+ ratios · 4 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying KRMN stock.
Karman Holdings Inc.'s current P/E ratio is 266.8x. This places it at the 50th percentile of its historical range.
Karman Holdings Inc.'s current EV/EBITDA is 44.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 88.5x.
Karman Holdings Inc.'s return on equity (ROE) is 6.0%. The historical average is 1.8%.
Based on historical data, Karman Holdings Inc. is trading at a P/E of 266.8x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Karman Holdings Inc. has 40.3% gross margin and 15.5% operating margin. Operating margin between 10-20% is typical for established companies.
Karman Holdings Inc.'s Debt/EBITDA ratio is 5.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
High valuation and program concentration
Metrics are mathematically derived from official filings.
Premium Pricing for Hypergrowth
KRMN trades at 477x trailing earnings and 75.8x EV/EBITDA, per recent filings, implying the market expects sustained hypergrowth. This premium appears justified only if the 36.6% revenue growth persists.
The forward P/E of 107.45 suggests investors are pricing in significant earnings acceleration, yet the current net margin of 7.7% leaves little room for error. Compared to peers like ATRO (P/E 115) and KTOS (P/E 497), KRMN's multiple is not outlandish, but its P/S of 17.43 is far above the group, indicating the market is paying for top-line growth rather than current profitability. The PEG ratio is unavailable, but given the 58% YoY revenue growth in 2026Q2, the valuation may be supportable if margins expand as guidance implies.
Margin Gap Signals Acquisition Drag
Gross margin expanded to 43.0% in 2026Q2, but net margin lagged at 7.7%, per financial statements, suggesting non-cash amortization from acquisitions is suppressing bottom-line earnings. Operating margin of 19.1% indicates solid core profitability.
The 11.4 percentage point gap between operating and net margins is a classic sign of heavy intangible amortization from the roll-up strategy. This implies that cash-generating power is likely higher than reported net income suggests, but investors should monitor whether the gap narrows as acquisitions integrate. The improvement in gross margin from 40.9% a year ago to 43.0% indicates pricing power or mix shift, but the sustainability depends on program mix and input costs.
Returns Compressed by Capital Intensity
ROIC improved to 2.1% in 2026Q2 from 1.8% a year earlier, as per reported data, but remains low relative to the cost of capital. This suggests the company is still in an investment phase, with returns likely to scale as capacity utilization rises.
ROE of 3.4% and ROA of 1.0% are modest, reflecting the heavy asset base and thin equity cushion. The low returns are partly due to the recent acquisition spree, which has expanded the asset base faster than earnings. If the company can convert its 36.6% revenue growth into operating leverage, ROIC should improve, but the current trajectory suggests a multi-year journey to reach double-digit returns.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 120 days in 2026Q2, up from 124 days a year ago, as per quarterly data, driven by DSO of 142 days. This indicates significant capital tied up in receivables, likely due to government contract payment terms.
DSO has remained elevated around 142-155 days over the past year, which is typical for defense contractors but still strains cash flow. DPO of 37 days is relatively low, suggesting limited supplier leverage. The negative FCF margin of -9.7% in 2026Q2 highlights the working capital burden, which may ease as programs mature and collections improve.
Leverage Rising with Acquisition Spree
Debt-to-equity climbed to 2.08 in 2026Q2 from 1.53 in 2025Q4, as per balance sheet data, while interest coverage fell to 2.26x. This suggests increasing financial risk, though the current ratio of 3.56 provides a liquidity buffer.
The D/EBITDA ratio of 25.33 is extremely high, indicating that debt is substantial relative to EBITDA, but this is partly due to the low EBITDA base. Interest coverage of 2.26x is thin, meaning operating income covers interest only about twice, which could become a concern if rates rise or earnings dip. The company's ability to service debt depends on continued growth and margin expansion, as guided.
Liquidity Strong but Cash Volatile
Current ratio improved to 3.56 in 2026Q2, up from 2.86 a year ago, as per balance sheet data, indicating ample short-term assets. However, cash dropped to $51.7M from $113.7M in 2025Q1, reflecting heavy investment and acquisition outflows.
The quick ratio of 3.40 suggests that even without inventory, the company can cover current liabilities comfortably. However, the negative FCF margins and working capital build-up imply that liquidity could tighten if growth slows. The $210.2M acquisition outflow in 2026Q1 underscores the cash demands of the roll-up strategy, which may require additional debt or equity financing.
Misapplied P/E Obscures Cash Generation
The trailing P/E of 477x is misleading for KRMN, as per reported figures, because net income is heavily depressed by non-cash amortization from acquisitions. Investors should focus on EV/EBITDA or cash-based metrics to assess true earning power.
The gap between operating margin (19.1%) and net margin (7.7%) indicates that reported earnings understate the company's cash-generating ability. Adjusting for amortization, the effective P/E would be significantly lower, making the stock appear less expensive. Additionally, the negative FCF margin suggests that even EBITDA may overstate cash flow due to working capital needs, so a thorough analysis should incorporate cash conversion.