KRMN

2026-09-10 · Steve's Investing Blog


J Capital Research published on Karman Holdings (NYSE: KRMN — $5.3 billion), a defense and space parts roll-up. J Capital notes that Karman books strong revenue growth and steady profits while generating no positive operating cash flow. The report expresses doubt that Karman’s backlog converts to cash anywhere near the rate implied by its 70 times forward earnings valuation. J Capital Research writes: > “That concern is compounded by Karman’s habitual debt-fueled acquisitions of companies frequently disclosed as ‘not material’ to the results of its operations despite big-ticket payments, in some cases even after a period of time. Ongoing weak internal controls at Karman, given difficult accounting challenges for defense products, increase our concern.”
#analyst/j-capital-research

J Capital Research published on Karman Holdings (NYSE: KRMN — $5.3 billion), a defense and space parts roll-up. J Capital notes that Karman books strong revenue growth and steady profits while generating no positive operating cash flow. The report expresses doubt that Karman’s backlog converts to cash anywhere near the rate implied by its 70 times forward earnings valuation. J Capital Research writes:

> “That concern is compounded by Karman’s habitual debt-fueled acquisitions of companies frequently disclosed as ‘not material’ to the results of its operations despite big-ticket payments, in some cases even after a period of time. Ongoing weak internal controls at Karman, given difficult accounting challenges for defense products, increase our concern.”

#analyst/j-capital-research