75.39 USD
+3.99 (+5.59%)
75.39 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KTOS. KTOS was compared to 71 industry peers in the Aerospace & Defense industry. While KTOS seems to be doing ok healthwise, there are quite some concerns on its profitability. KTOS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
KTOS had positive earnings in the past year.
KTOS had a negative operating cash flow in the past year.
In multiple years KTOS reported negative net income over the last 5 years.
KTOS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KTOS has a Return On Assets (0.83%) which is in line with its industry peers.
KTOS has a Return On Equity of 1.01%. This is comparable to the rest of the industry: KTOS outperforms 45.07% of its industry peers.
KTOS has a Return On Invested Capital of 0.90%. This is comparable to the rest of the industry: KTOS outperforms 42.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KTOS is significantly below the industry average of 8.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 1.01% | ||
| ROIC | 0.9% |
ROA(3y)-0.7%
ROA(5y)0.58%
ROE(3y)-1.22%
ROE(5y)0.95%
ROIC(3y)1.26%
ROIC(5y)1.46%
1.3 Margins
Looking at the Profit Margin, with a value of 1.56%, KTOS is in line with its industry, outperforming 47.89% of the companies in the same industry.
KTOS's Profit Margin has declined in the last couple of years.
KTOS's Operating Margin of 1.89% is in line compared to the rest of the industry. KTOS outperforms 40.85% of its industry peers.
In the last couple of years the Operating Margin of KTOS has declined.
With a Gross Margin value of 22.91%, KTOS perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
In the last couple of years the Gross Margin of KTOS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.89% | ||
| PM (TTM) | 1.56% | ||
| GM | 22.91% |
OM growth 3Y-7.51%
OM growth 5Y-12.8%
PM growth 3YN/A
PM growth 5Y-3.81%
GM growth 3Y-3.05%
GM growth 5Y-0.93%
2. Health
2.1 Basic Checks
KTOS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KTOS has been increased compared to 1 year ago.
KTOS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KTOS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 17.03 indicates that KTOS is not in any danger for bankruptcy at the moment.
The Altman-Z score of KTOS (17.03) is better than 95.77% of its industry peers.
KTOS has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.04, KTOS belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 17.03 |
ROIC/WACC0.09
WACC9.99%
2.3 Liquidity
KTOS has a Current Ratio of 4.30. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
KTOS has a Current ratio of 4.30. This is in the better half of the industry: KTOS outperforms 78.87% of its industry peers.
A Quick Ratio of 3.68 indicates that KTOS has no problem at all paying its short term obligations.
KTOS's Quick ratio of 3.68 is amongst the best of the industry. KTOS outperforms 85.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.3 | ||
| Quick Ratio | 3.68 |
3. Growth
3.1 Past
KTOS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.17%.
Measured over the past 5 years, KTOS shows a small growth in Earnings Per Share. The EPS has been growing by 7.58% on average per year.
KTOS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.00%.
Measured over the past years, KTOS shows a quite strong growth in Revenue. The Revenue has been growing by 9.63% on average per year.
EPS 1Y (TTM)4.17%
EPS 3Y15.26%
EPS 5Y7.58%
EPS Q2Q%27.27%
Revenue 1Y (TTM)14%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%25.99%
3.2 Future
The Earnings Per Share is expected to grow by 30.95% on average over the next years. This is a very strong growth
KTOS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.43% yearly.
EPS Next Y11.04%
EPS Next 2Y25.66%
EPS Next 3Y30.91%
EPS Next 5Y30.95%
Revenue Next Year16.41%
Revenue Next 2Y18.26%
Revenue Next 3Y19.55%
Revenue Next 5Y17.43%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 150.78 indicates a quite expensive valuation of KTOS.
KTOS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.38. KTOS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 97.43, which means the current valuation is very expensive for KTOS.
The rest of the industry has a similar Price/Forward Earnings ratio as KTOS.
KTOS is valuated expensively when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 150.78 | ||
| Fwd PE | 97.43 |
4.2 Price Multiples
KTOS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KTOS is more expensive than 66.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 168.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KTOS does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as KTOS's earnings are expected to grow with 30.91% in the coming years.
PEG (NY)13.66
PEG (5Y)19.88
EPS Next 2Y25.66%
EPS Next 3Y30.91%
5. Dividend
5.1 Amount
KTOS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
75.39
+3.99 (+5.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners93.99%
Inst Owner Change-9.6%
Ins Owners1.49%
Ins Owner Change-10.03%
Market Cap12.73B
Revenue(TTM)1.28B
Net Income(TTM)20.00M
Analysts83.48
Price Target100.19 (32.9%)
Short Float %5.57%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.02%
Min EPS beat(2)10.18%
Max EPS beat(2)15.86%
EPS beat(4)4
Avg EPS beat(4)19.67%
Min EPS beat(4)10.18%
Max EPS beat(4)26.87%
EPS beat(8)8
Avg EPS beat(8)39.86%
EPS beat(12)12
Avg EPS beat(12)35.51%
EPS beat(16)16
Avg EPS beat(16)42.04%
Revenue beat(2)2
Avg Revenue beat(2)9.21%
Min Revenue beat(2)5.74%
Max Revenue beat(2)12.68%
Revenue beat(4)3
Avg Revenue beat(4)4.11%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)12.68%
Revenue beat(8)6
Avg Revenue beat(8)4.32%
Revenue beat(12)10
Avg Revenue beat(12)4.27%
Revenue beat(16)11
Avg Revenue beat(16)3.21%
PT rev (1m)4.53%
PT rev (3m)36.21%
EPS NQ rev (1m)-5.12%
EPS NQ rev (3m)-6.26%
EPS NY rev (1m)1.81%
EPS NY rev (3m)3.08%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 150.78 | ||
| Fwd PE | 97.43 | ||
| P/S | 9.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.42 | ||
| P/tB | 9.58 | ||
| EV/EBITDA | 168.53 |
EPS(TTM)0.5
EY0.66%
EPS(NY)0.77
Fwd EY1.03%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)-0.05
OCFYN/A
SpS7.61
BVpS11.74
TBVpS7.87
PEG (NY)13.66
PEG (5Y)19.88
Graham Number11.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 1.01% | ||
| ROCE | 1.14% | ||
| ROIC | 0.9% | ||
| ROICexc | 1.22% | ||
| ROICexgc | 2.09% | ||
| OM | 1.89% | ||
| PM (TTM) | 1.56% | ||
| GM | 22.91% | ||
| FCFM | N/A |
ROA(3y)-0.7%
ROA(5y)0.58%
ROE(3y)-1.22%
ROE(5y)0.95%
ROIC(3y)1.26%
ROIC(5y)1.46%
ROICexc(3y)1.43%
ROICexc(5y)1.83%
ROICexgc(3y)2.78%
ROICexgc(5y)3.74%
ROCE(3y)1.59%
ROCE(5y)1.85%
ROICexgc growth 3Y-8.73%
ROICexgc growth 5Y-17.52%
ROICexc growth 3Y-5.2%
ROICexc growth 5Y-12.92%
OM growth 3Y-7.51%
OM growth 5Y-12.8%
PM growth 3YN/A
PM growth 5Y-3.81%
GM growth 3Y-3.05%
GM growth 5Y-0.93%
F-Score4
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 190.77% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.3 | ||
| Quick Ratio | 3.68 | ||
| Altman-Z | 17.03 |
F-Score4
WACC9.99%
ROIC/WACC0.09
Cap/Depr(3y)150.37%
Cap/Depr(5y)155.59%
Cap/Sales(3y)5.08%
Cap/Sales(5y)5.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.17%
EPS 3Y15.26%
EPS 5Y7.58%
EPS Q2Q%27.27%
EPS Next Y11.04%
EPS Next 2Y25.66%
EPS Next 3Y30.91%
EPS Next 5Y30.95%
Revenue 1Y (TTM)14%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%25.99%
Revenue Next Year16.41%
Revenue Next 2Y18.26%
Revenue Next 3Y19.55%
Revenue Next 5Y17.43%
EBIT growth 1Y-36.55%
EBIT growth 3Y3.47%
EBIT growth 5Y-4.4%
EBIT Next Year288.37%
EBIT Next 3Y94.44%
EBIT Next 5Y59.75%
FCF growth 1Y-139.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-282.98%
OCF growth 3Y17.29%
OCF growth 5Y10.62%
KRATOS DEFENSE & SECURITY / KTOS FAQ
Can you provide the ChartMill fundamental rating for KRATOS DEFENSE & SECURITY?
ChartMill assigns a fundamental rating of 4 / 10 to KTOS.
Can you provide the valuation status for KRATOS DEFENSE & SECURITY?
ChartMill assigns a valuation rating of 1 / 10 to KRATOS DEFENSE & SECURITY (KTOS). This can be considered as Overvalued.
What is the profitability of KTOS stock?
KRATOS DEFENSE & SECURITY (KTOS) has a profitability rating of 3 / 10.
How financially healthy is KRATOS DEFENSE & SECURITY?
The financial health rating of KRATOS DEFENSE & SECURITY (KTOS) is 6 / 10.