Castellum (CTM) AI Stock Analysis

• Market Cap: $103.57M
• Dividend Yield: N/A
• Average Volume (3M): 6.10M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• Revenue Growth: -1.06%
• EPS Growth: 52.73%
• Country: US
• Employees: 238
• Sector: Technology
• Sector Strength: 48
• Industry: Information Technology Services
• EPS (TTM): -0.18
• Shares Outstanding: 84,891,880
• 10 Day Avg. Volume: 4,963,128
• 30 Day Avg. Volume: 6,104,544
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.21
• Price to Cash Flow (P/CF): -62.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.96
• Price Target Upside: 880.33% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

Castellum's score is primarily driven by its financial performance, which shows growth potential but is held back by persistent losses and high leverage. The technical analysis suggests some positive short-term momentum. However, the negative valuation metrics indicate significant risks, especially given the lack of profitability and dividend yield.

Castellum Business Overview & Revenue Model

Company Description

Castellum, Inc. provides services in the areas of cybersecurity, information technology, electronic warfare, information warfare, and information operations. The company offers intelligence analysis, software development, software engineering, program management, strategic and mission planning, information assurance, cybersecurity and policy support, and data analytics services. It serves customers in the Federal government, financial services, healthcare, and other data application sectors. The company was incorporated in 2010 and is based in Bethesda, Maryland.

How the Company Makes Money

Castellum, Inc. generates revenue primarily through contracts with government agencies and commercial enterprises for its cybersecurity and IT services. The company earns money by offering consulting and managed services, custom software development, and systems integration solutions. Revenue streams are bolstered by strategic partnerships with technology vendors and defense contractors, enabling Castellum to expand its service offerings and market reach. Additionally, the company may engage in long-term contracts and recurring service agreements, which provide a stable source of income.

Castellum Financial Statement Overview

Summary

Castellum shows promising revenue growth and improvements in cash flow and balance sheet strength. However, persistent losses and high leverage remain key concerns. The company needs to address operational inefficiencies to achieve profitability and sustain its growth trajectory.

Income Statement

Castellum has shown significant revenue growth over the years, but consistently negative EBIT and net income indicate ongoing operational challenges. Gross margins are healthy, yet net profit margins remain negative, suggesting high operational costs and inefficiencies.

Balance Sheet

The balance sheet shows improvement in equity and a reduction in debt levels, indicating a stronger financial position. However, the company still has a relatively high debt-to-equity ratio, which could pose risks if not managed properly. The equity ratio has improved, reflecting better asset utilization.

Cash Flow

Free cash flow has improved over the years, moving from negative to positive, indicating better cash generation capabilities. The operating cash flow to net income ratio shows improvement, suggesting better cash conversion despite negative net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
44.76M	45.24M	42.19M	25.07M	13.34M
	Gross Profit
18.27M	18.68M	17.60M	11.07M	6.18M
	EBIT
-7.24M	-9.84M	-9.41M	-7.73M	-1.47M
	EBITDA
-6.53M	-13.28M	-8.06M	-5.80M	362.29K
	Net Income Common Stockholders
-9.98M	-17.80M	-14.91M	-7.55M	-2.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.01M	1.83M	4.64M	2.02M	2.41M
	Total Assets
37.84M	30.11M	33.04M	30.76M	10.61M
	Total Debt
9.34M	11.96M	10.11M	11.73M	5.87M
	Net Debt
-2.66M	10.13M	5.47M	9.71M	3.46M
	Total Liabilities
17.41M	17.16M	15.51M	15.43M	8.01M
	Stockholders Equity
20.43M	12.95M	17.53M	15.32M	2.61M
Cash Flow		Free Cash Flow
1.12M	-2.28M	900.88K	-1.36M	1.00M
	Operating Cash Flow
1.12M	-2.26M	990.16K	-1.35M	1.01M
	Investing Cash Flow
221.36K	-440.99K	-339.28K	808.83K	-5.45K
	Financing Cash Flow
9.08M	-104.62K	1.97M	146.84K	109.00K

Castellum Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTM, the sentiment is Positive. The current price of 1.22 is above the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.02, and above the 200-day MA of 0.47, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 63.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTM.

Castellum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
O	80 Outperform	$49.61B	57.33	2.40%	5.57%	29.49%	-22.38%
NNN	79 Outperform	$7.79B	19.24	9.32%	5.55%	4.97%	-0.26%
FRT	72 Outperform	$8.48B	27.80	9.58%	4.46%	6.21%	22.32%
WPC	72 Outperform	$13.49B	29.39	5.38%	5.68%	-9.09%	-36.58%
REG	71 Outperform	$13.17B	34.28	5.82%	3.75%	10.15%	3.36%
Sector *	58 Neutral	$22.44B	10.62	-18.43%	2.37%	4.68%	-25.09%
CTM	49 Neutral	$103.57M	―	-60.25%	―	-1.06%	52.73%