KRATOS DEFENSE & SECURITY (KTOS) Stock Fundamental Analysis
USA - NASDAQ:KTOS - US50077B2079 - Common Stock
81.62 USD
+0.97 (+1.2%)
We assign a fundamental rating of 4 out of 10 to KTOS. KTOS was compared to 69 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
KTOS had positive earnings in the past year.
KTOS had a positive operating cash flow in the past year.
In multiple years KTOS reported negative net income over the last 5 years.
Of the past 5 years KTOS 4 years had a positive operating cash flow.
1.2 Ratios
KTOS has a Return On Assets of 0.56%. This is comparable to the rest of the industry: KTOS outperforms 43.48% of its industry peers.
KTOS's Return On Equity of 0.74% is in line compared to the rest of the industry. KTOS outperforms 43.48% of its industry peers.
KTOS has a Return On Invested Capital of 0.83%. This is comparable to the rest of the industry: KTOS outperforms 42.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KTOS is significantly below the industry average of 8.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 0.74% | ||
| ROIC | 0.83% |
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
KTOS has a Profit Margin (1.20%) which is in line with its industry peers.
KTOS's Profit Margin has declined in the last couple of years.
KTOS's Operating Margin of 1.95% is in line compared to the rest of the industry. KTOS outperforms 42.03% of its industry peers.
KTOS's Operating Margin has declined in the last couple of years.
KTOS has a Gross Margin of 23.61%. This is comparable to the rest of the industry: KTOS outperforms 46.38% of its industry peers.
KTOS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.95% | ||
| PM (TTM) | 1.2% | ||
| GM | 23.61% |
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.
The number of shares outstanding for KTOS has been increased compared to 5 years ago.
The debt/assets ratio for KTOS has been reduced compared to a year ago.
2.2 Solvency
KTOS has an Altman-Z score of 13.71. This indicates that KTOS is financially healthy and has little risk of bankruptcy at the moment.
KTOS has a Altman-Z score of 13.71. This is amongst the best in the industry. KTOS outperforms 94.20% of its industry peers.
KTOS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
KTOS has a better Debt to Equity ratio (0.12) than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 13.71 |
ROIC/WACC0.09
WACC9.69%
2.3 Liquidity
KTOS has a Current Ratio of 4.43. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.43, KTOS belongs to the best of the industry, outperforming 89.86% of the companies in the same industry.
A Quick Ratio of 3.88 indicates that KTOS has no problem at all paying its short term obligations.
KTOS's Quick ratio of 3.88 is amongst the best of the industry. KTOS outperforms 92.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
KTOS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.08%.
The Earnings Per Share has been growing slightly by 7.58% on average over the past years.
KTOS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.76%.
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)-4.08%
EPS 3Y15.26%
EPS 5Y7.58%
EPS Q2Q%-21.43%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%17.13%
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 26.81% on average per year.
Based on estimates for the next years, KTOS will show a quite strong growth in Revenue. The Revenue will grow by 14.66% on average per year.
EPS Next Y7.72%
EPS Next 2Y25.12%
EPS Next 3Y27.1%
EPS Next 5Y26.81%
Revenue Next Year14.86%
Revenue Next 2Y16.47%
Revenue Next 3Y16.85%
Revenue Next 5Y14.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 173.66, which means the current valuation is very expensive for KTOS.
The rest of the industry has a similar Price/Earnings ratio as KTOS.
When comparing the Price/Earnings ratio of KTOS to the average of the S&P500 Index (27.41), we can say KTOS is valued expensively.
KTOS is valuated quite expensively with a Price/Forward Earnings ratio of 106.41.
KTOS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. KTOS is more expensive than 63.77% of the companies in the same industry.
KTOS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 173.66 | ||
| Fwd PE | 106.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KTOS is valued a bit more expensive than the industry average as 62.32% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 155.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as KTOS's earnings are expected to grow with 27.10% in the coming years.
PEG (NY)22.48
PEG (5Y)22.9
EPS Next 2Y25.12%
EPS Next 3Y27.1%
5. Dividend
5.1 Amount
No dividends for KTOS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:KTOS (9/19/2025, 9:47:10 AM)
81.62
+0.97 (+1.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.63%
Inst Owner Change8.78%
Ins Owners1.59%
Ins Owner Change-6.88%
Market Cap13.78B
Analysts83
Price Target73.55 (-9.89%)
Short Float %6.36%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)21.37%
Min EPS beat(2)15.86%
Max EPS beat(2)26.87%
EPS beat(4)4
Avg EPS beat(4)24.42%
Min EPS beat(4)15.86%
Max EPS beat(4)29.15%
EPS beat(8)8
Avg EPS beat(8)43.12%
EPS beat(12)12
Avg EPS beat(12)35.93%
EPS beat(16)16
Avg EPS beat(16)43.15%
Revenue beat(2)2
Avg Revenue beat(2)6.98%
Min Revenue beat(2)1.28%
Max Revenue beat(2)12.68%
Revenue beat(4)2
Avg Revenue beat(4)2.07%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)12.68%
Revenue beat(8)6
Avg Revenue beat(8)4.48%
Revenue beat(12)9
Avg Revenue beat(12)3.68%
Revenue beat(16)10
Avg Revenue beat(16)2.63%
PT rev (1m)25.96%
PT rev (3m)92.3%
EPS NQ rev (1m)-1.27%
EPS NQ rev (3m)-9.32%
EPS NY rev (1m)1.64%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)1.91%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 173.66 | ||
| Fwd PE | 106.41 | ||
| P/S | 11.36 | ||
| P/FCF | N/A | ||
| P/OCF | 1275.62 | ||
| P/B | 7.03 | ||
| P/tB | 10.58 | ||
| EV/EBITDA | 155.34 |
EPS(TTM)0.47
EY0.58%
EPS(NY)0.77
Fwd EY0.94%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)0.06
OCFY0.08%
SpS7.19
BVpS11.61
TBVpS7.72
PEG (NY)22.48
PEG (5Y)22.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 0.74% | ||
| ROCE | 1.05% | ||
| ROIC | 0.83% | ||
| ROICexc | 1.27% | ||
| ROICexgc | 2.28% | ||
| OM | 1.95% | ||
| PM (TTM) | 1.2% | ||
| GM | 23.61% | ||
| 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%
ROICexcg growth 3Y-8.73%
ROICexcg 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-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.77 | ||
| Cap/Depr | 119.21% | ||
| Cap/Sales | 5.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 12.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.43 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | 13.71 |
F-Score5
WACC9.69%
ROIC/WACC0.09
Cap/Depr(3y)126.07%
Cap/Depr(5y)141.02%
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)-4.08%
EPS 3Y15.26%
EPS 5Y7.58%
EPS Q2Q%-21.43%
EPS Next Y7.72%
EPS Next 2Y25.12%
EPS Next 3Y27.1%
EPS Next 5Y26.81%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%17.13%
Revenue Next Year14.86%
Revenue Next 2Y16.47%
Revenue Next 3Y16.85%
Revenue Next 5Y14.66%
EBIT growth 1Y-45.89%
EBIT growth 3Y3.47%
EBIT growth 5Y-4.4%
EBIT Next Year285.86%
EBIT Next 3Y84.89%
EBIT Next 5Y55.27%
FCF growth 1Y-51.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y440%
OCF growth 3Y17.29%
OCF growth 5Y10.62%