KRATOS DEFENSE & SECURITY (KTOS)
US50077B2079 - Common Stock
Taking everything into account, KTOS scores 5 out of 10 in our fundamental rating. KTOS was compared to 65 industry peers in the Aerospace & Defense industry. KTOS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. KTOS is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
KTOS had positive earnings in the past year.
In the past year KTOS had a positive cash flow from operations.
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
With a Return On Assets value of 0.77%, KTOS perfoms like the industry average, outperforming 43.08% of the companies in the same industry.
With a Return On Equity value of 1.10%, KTOS perfoms like the industry average, outperforming 44.62% of the companies in the same industry.
KTOS's Return On Invested Capital of 1.83% is on the low side compared to the rest of the industry. KTOS is outperformed by 60.00% of its industry peers.
KTOS had an Average Return On Invested Capital over the past 3 years of 1.31%. This is significantly below the industry average of 7.75%.
The last Return On Invested Capital (1.83%) for KTOS is above the 3 year average (1.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 1.1% | ||
| ROIC | 1.83% |
ROA(3y)-1.02%
ROA(5y)0.62%
ROE(3y)-1.69%
ROE(5y)1.14%
ROIC(3y)1.31%
ROIC(5y)1.8%
1.3 Margins
KTOS has a Profit Margin (1.31%) which is comparable to the rest of the industry.
With a Operating Margin value of 3.40%, KTOS perfoms like the industry average, outperforming 43.08% of the companies in the same industry.
In the last couple of years the Operating Margin of KTOS has declined.
The Gross Margin of KTOS (25.67%) is comparable to the rest of the 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 | 3.4% | ||
| PM (TTM) | 1.31% | ||
| GM | 25.67% |
OM growth 3Y-9.68%
OM growth 5Y-10.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.59%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KTOS is destroying value.
Compared to 1 year ago, KTOS has more shares outstanding
KTOS has more shares outstanding than it did 5 years ago.
KTOS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.75 indicates that KTOS is not in any danger for bankruptcy at the moment.
KTOS has a Altman-Z score of 4.75. This is in the better half of the industry: KTOS outperforms 69.23% of its industry peers.
The Debt to FCF ratio of KTOS is 32.24, which is on the high side as it means it would take KTOS, 32.24 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 32.24, KTOS perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that KTOS is not too dependend on debt financing.
KTOS has a Debt to Equity ratio of 0.18. This is in the better half of the industry: KTOS outperforms 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 32.24 | ||
| Altman-Z | 4.75 |
ROIC/WACC0.19
WACC9.64%
2.3 Liquidity
KTOS has a Current Ratio of 3.22. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.22, KTOS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 2.61 indicates that KTOS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.61, KTOS belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.61 |
3. Growth
3.1 Past
KTOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.14%, which is quite impressive.
KTOS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.20% yearly.
Looking at the last year, KTOS shows a quite strong growth in Revenue. The Revenue has grown by 11.30% in the last year.
The Revenue has been growing by 10.91% on average over the past years. This is quite good.
EPS 1Y (TTM)37.14%
EPS 3Y0%
EPS 5Y10.2%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y11.52%
Revenue growth 5Y10.91%
Sales Q2Q%0.47%
3.2 Future
The Earnings Per Share is expected to grow by 22.97% on average over the next years. This is a very strong growth
Based on estimates for the next years, KTOS will show a quite strong growth in Revenue. The Revenue will grow by 11.41% on average per year.
EPS Next Y22.07%
EPS Next 2Y24.08%
EPS Next 3Y23.41%
EPS Next 5Y22.97%
Revenue Next Year12.14%
Revenue Next 2Y11.74%
Revenue Next 3Y11.63%
Revenue Next 5Y11.41%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 54.79 indicates a quite expensive valuation of KTOS.
KTOS's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of KTOS to the average of the S&P500 Index (27.35), we can say KTOS is valued expensively.
The Price/Forward Earnings ratio is 43.80, which means the current valuation is very expensive for KTOS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KTOS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of KTOS to the average of the S&P500 Index (23.86), we can say KTOS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.79 | ||
| Fwd PE | 43.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KTOS is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as KTOS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 522.78 | ||
| EV/EBITDA | 50.97 |
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 23.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.48
PEG (5Y)5.37
EPS Next 2Y24.08%
EPS Next 3Y23.41%
5. Dividend
5.1 Amount
No dividends for KTOS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
KRATOS DEFENSE & SECURITY
NASDAQ:KTOS (12/30/2024, 11:42:22 AM)
26.3
-0.22 (-0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners88.08%
Inst Owner Change-0.07%
Ins Owners1.56%
Ins Owner Change-6.04%
Market Cap3.97B
Analysts77.89
Price Target28.1 (6.84%)
Short Float %2.33%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)45.41%
Min EPS beat(2)29.15%
Max EPS beat(2)61.67%
EPS beat(4)4
Avg EPS beat(4)60.05%
Min EPS beat(4)29.15%
Max EPS beat(4)112.58%
EPS beat(8)8
Avg EPS beat(8)43.43%
EPS beat(12)12
Avg EPS beat(12)49.5%
EPS beat(16)14
Avg EPS beat(16)38.63%
Revenue beat(2)1
Avg Revenue beat(2)2.05%
Min Revenue beat(2)-2.42%
Max Revenue beat(2)6.52%
Revenue beat(4)3
Avg Revenue beat(4)4.53%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)8.5%
Revenue beat(8)7
Avg Revenue beat(8)4.34%
Revenue beat(12)8
Avg Revenue beat(12)2.91%
Revenue beat(16)10
Avg Revenue beat(16)1.62%
PT rev (1m)1.68%
PT rev (3m)9.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.08%
EPS NY rev (1m)0%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.79 | ||
| Fwd PE | 43.8 | ||
| P/S | 3.53 | ||
| P/FCF | 522.78 | ||
| P/OCF | 55.57 | ||
| P/B | 2.96 | ||
| P/tB | 5.53 | ||
| EV/EBITDA | 50.97 |
EPS(TTM)0.48
EY1.83%
EPS(NY)0.6
Fwd EY2.28%
FCF(TTM)0.05
FCFY0.19%
OCF(TTM)0.47
OCFY1.8%
SpS7.46
BVpS8.89
TBVpS4.75
PEG (NY)2.48
PEG (5Y)5.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 1.1% | ||
| ROCE | 2.32% | ||
| ROIC | 1.83% | ||
| ROICexc | 2.24% | ||
| ROICexgc | 4.17% | ||
| OM | 3.4% | ||
| PM (TTM) | 1.31% | ||
| GM | 25.67% | ||
| FCFM | 0.67% |
ROA(3y)-1.02%
ROA(5y)0.62%
ROE(3y)-1.69%
ROE(5y)1.14%
ROIC(3y)1.31%
ROIC(5y)1.8%
ROICexc(3y)1.55%
ROICexc(5y)2.22%
ROICexgc(3y)3.17%
ROICexgc(5y)4.94%
ROCE(3y)1.65%
ROCE(5y)2.28%
ROICexcg growth 3Y-9.73%
ROICexcg growth 5Y-19.97%
ROICexc growth 3Y-7.4%
ROICexc growth 5Y-13.16%
OM growth 3Y-9.68%
OM growth 5Y-10.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.59%
GM growth 5Y-1.16%
F-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 32.24 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 163.01% | ||
| Cap/Sales | 5.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.26% | ||
| Profit Quality | 51.35% | ||
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.61 | ||
| Altman-Z | 4.75 |
F-Score7
WACC9.64%
ROIC/WACC0.19
Cap/Depr(3y)162.54%
Cap/Depr(5y)149.19%
Cap/Sales(3y)5.28%
Cap/Sales(5y)4.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.14%
EPS 3Y0%
EPS 5Y10.2%
EPS Q2Q%-8.33%
EPS Next Y22.07%
EPS Next 2Y24.08%
EPS Next 3Y23.41%
EPS Next 5Y22.97%
Revenue 1Y (TTM)11.3%
Revenue growth 3Y11.52%
Revenue growth 5Y10.91%
Sales Q2Q%0.47%
Revenue Next Year12.14%
Revenue Next 2Y11.74%
Revenue Next 3Y11.63%
Revenue Next 5Y11.41%
EBIT growth 1Y53.82%
EBIT growth 3Y0.73%
EBIT growth 5Y-1.13%
EBIT Next Year300.24%
EBIT Next 3Y76.97%
EBIT Next 5Y60.6%
FCF growth 1Y109.14%
FCF growth 3Y6.16%
FCF growth 5YN/A
OCF growth 1Y302.55%
OCF growth 3Y11.85%
OCF growth 5Y44.36%