KRATOS DEFENSE & SECURITY (KTOS) Stock Fundamental Analysis

NASDAQ:KTOS • US50077B2079

88.23 USD
-2.45 (-2.7%)
At close: Feb 25, 2026
88.7461 USD
+0.52 (+0.58%)
After Hours: 2/25/2026, 8:25:28 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Taking everything into account, KTOS scores 3 out of 10 in our fundamental rating. KTOS was compared to 74 industry peers in the Aerospace & Defense industry. While KTOS seems to be doing ok healthwise, there are quite some concerns on its profitability. KTOS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • KTOS had positive earnings in the past year.
  • In the past year KTOS has reported a negative cash flow from operations.
  • KTOS had negative earnings in 4 of the past 5 years.
  • In multiple years KTOS reported negative operating cash flow during the last 5 years.
KTOS Yearly Net Income VS EBIT VS OCF VS FCFKTOS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M

1.2 Ratios

  • KTOS has a Return On Assets of 0.83%. This is comparable to the rest of the industry: KTOS outperforms 47.30% of its industry peers.
  • KTOS has a Return On Equity (1.01%) which is in line with its industry peers.
  • The Return On Invested Capital of KTOS (0.90%) is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for KTOS is significantly below the industry average of 9.00%.
Industry RankSector 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%
KTOS Yearly ROA, ROE, ROICKTOS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -10 -20

1.3 Margins

  • KTOS's Profit Margin of 1.56% is in line compared to the rest of the industry. KTOS outperforms 47.30% of its industry peers.
  • KTOS's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 1.89%, KTOS is in line with its industry, outperforming 43.24% of the companies in the same industry.
  • KTOS's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 22.91%, KTOS perfoms like the industry average, outperforming 45.95% 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 RankSector 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%
KTOS Yearly Profit, Operating, Gross MarginsKTOS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KTOS is destroying value.
  • There is no outstanding debt for KTOS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
KTOS Yearly Shares OutstandingKTOS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
KTOS Yearly Total Debt VS Total AssetsKTOS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

  • KTOS has an Altman-Z score of 21.45. This indicates that KTOS is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 21.45, KTOS belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
  • A Debt/Equity ratio of 0.04 indicates that KTOS is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.04, KTOS belongs to the top of the industry, outperforming 85.14% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF N/A
Altman-Z 21.45
ROIC/WACC0.09
WACC9.63%
KTOS Yearly LT Debt VS Equity VS FCFKTOS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

  • A Current Ratio of 4.30 indicates that KTOS has no problem at all paying its short term obligations.
  • KTOS has a better Current ratio (4.30) than 77.03% of its industry peers.
  • A Quick Ratio of 3.68 indicates that KTOS has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 3.68, KTOS belongs to the top of the industry, outperforming 82.43% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.3
Quick Ratio 3.68
KTOS Yearly Current Assets VS Current LiabilitesKTOS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 12.24% over the past year.
  • The Earnings Per Share has been growing slightly by 7.12% on average over the past years.
EPS 1Y (TTM)12.24%
EPS 3Y26.77%
EPS 5Y7.12%
EPS Q2Q%38.46%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%21.9%

3.2 Future

  • Based on estimates for the next years, KTOS will show a very strong growth in Earnings Per Share. The EPS will grow by 33.66% on average per year.
  • The Revenue is expected to grow by 18.77% on average over the next years. This is quite good.
EPS Next Y42.27%
EPS Next 2Y39.53%
EPS Next 3Y36.89%
EPS Next 5Y33.66%
Revenue Next Year20.52%
Revenue Next 2Y21.16%
Revenue Next 3Y17.84%
Revenue Next 5Y18.77%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
KTOS Yearly Revenue VS EstimatesKTOS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
KTOS Yearly EPS VS EstimatesKTOS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.5 -0.5 1 1.5 2

More info and screens

Find the best growth stocksShow best growing peers

1

4. Valuation

4.1 Price/Earnings Ratio

  • KTOS is valuated quite expensively with a Price/Earnings ratio of 160.42.
  • KTOS's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.05, KTOS is valued quite expensively.
  • With a Price/Forward Earnings ratio of 112.76, KTOS can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of KTOS is on the same level as its industry peers.
  • KTOS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.03.
Industry RankSector Rank
PE 160.42
Fwd PE 112.76
KTOS Price Earnings VS Forward Price EarningsKTOS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

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 63.51% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 215.91
KTOS Per share dataKTOS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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.
  • KTOS's earnings are expected to grow with 36.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.8
PEG (5Y)22.54
EPS Next 2Y39.53%
EPS Next 3Y36.89%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • KTOS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

KRATOS DEFENSE & SECURITY

NASDAQ:KTOS (2/25/2026, 8:25:28 PM)

After market: 88.7461 +0.52 (+0.58%)

88.23

-2.45 (-2.7%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-23
Earnings (Next)05-05
Inst Owners94.19%
Inst Owner Change-1.93%
Ins Owners1.47%
Ins Owner Change-6.92%
Market Cap14.90B
Revenue(TTM)N/A
Net Income(TTM)20.00M
Analysts82.4
Price Target118.93 (34.8%)
Short Float %4.24%
Short Ratio2.18
Dividend
Industry RankSector 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)7.77%
PT rev (3m)17.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.61%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.35%
Valuation
Industry RankSector Rank
PE 160.42
Fwd PE 112.76
P/S 11.59
P/FCF N/A
P/OCF N/A
P/B 7.52
P/tB 11.21
EV/EBITDA 215.91
EPS(TTM)0.55
EY0.62%
EPS(NY)0.78
Fwd EY0.89%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)-0.05
OCFYN/A
SpS7.61
BVpS11.74
TBVpS7.87
PEG (NY)3.8
PEG (5Y)22.54
Graham Number12.05
Profitability
Industry RankSector 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 RankSector 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 21.45
F-Score4
WACC9.63%
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)12.24%
EPS 3Y26.77%
EPS 5Y7.12%
EPS Q2Q%38.46%
EPS Next Y42.27%
EPS Next 2Y39.53%
EPS Next 3Y36.89%
EPS Next 5Y33.66%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%21.9%
Revenue Next Year20.52%
Revenue Next 2Y21.16%
Revenue Next 3Y17.84%
Revenue Next 5Y18.77%
EBIT growth 1Y-36.55%
EBIT growth 3Y3.47%
EBIT growth 5Y-4.4%
EBIT Next Year273.29%
EBIT Next 3Y92.11%
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 3 / 10 to KTOS.


What is the valuation status for KTOS stock?

ChartMill assigns a valuation rating of 1 / 10 to KRATOS DEFENSE & SECURITY (KTOS). This can be considered as Overvalued.


Can you provide the profitability details for KRATOS DEFENSE & SECURITY?

KRATOS DEFENSE & SECURITY (KTOS) has a profitability rating of 2 / 10.


What are the PE and PB ratios of KRATOS DEFENSE & SECURITY (KTOS) stock?

The Price/Earnings (PE) ratio for KRATOS DEFENSE & SECURITY (KTOS) is 160.42 and the Price/Book (PB) ratio is 7.52.


How financially healthy is KRATOS DEFENSE & SECURITY?

The financial health rating of KRATOS DEFENSE & SECURITY (KTOS) is 6 / 10.