KRATOS DEFENSE & SECURITY (KTOS) Stock Fundamental Analysis
USA - NASDAQ:KTOS - US50077B2079 - Common Stock
72.41 USD
-5 (-6.46%)
72.47 USD
+0.06 (+0.08%)
We assign a fundamental rating of 4 out of 10 to KTOS. KTOS was compared to 71 industry peers in the Aerospace & Defense industry. The financial health of KTOS is average, but 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.
In the past year KTOS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KTOS reported negative net income in multiple years.
KTOS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KTOS has a Return On Assets (0.56%) which is comparable to the rest of the industry.
The Return On Equity of KTOS (0.74%) is comparable to the rest of the industry.
KTOS has a Return On Invested Capital of 0.83%. This is comparable to the rest of the industry: KTOS outperforms 40.85% of its industry peers.
KTOS had an Average Return On Invested Capital over the past 3 years of 1.26%. This is significantly below the industry average of 8.48%.
| 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 of 1.20%. This is comparable to the rest of the industry: KTOS outperforms 45.07% of 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 40.85% of its industry peers.
In the last couple of years the Operating Margin of KTOS has declined.
KTOS has a Gross Margin (23.61%) which is in line with 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KTOS is destroying value.
Compared to 1 year ago, KTOS has more shares outstanding
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 13.19. This indicates that KTOS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 13.19, KTOS belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that KTOS is not too dependend on debt financing.
The Debt to Equity ratio of KTOS (0.12) is better than 80.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 13.19 |
ROIC/WACC0.09
WACC9.59%
2.3 Liquidity
A Current Ratio of 4.43 indicates that KTOS has no problem at all paying its short term obligations.
KTOS has a Current ratio of 4.43. This is amongst the best in the industry. KTOS outperforms 88.73% of its industry peers.
A Quick Ratio of 3.88 indicates that KTOS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.88, KTOS belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.17% over the past year.
KTOS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.58% yearly.
The Revenue has grown by 9.57% in the past year. This is quite good.
KTOS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.63% yearly.
EPS 1Y (TTM)4.17%
EPS 3Y15.26%
EPS 5Y7.58%
EPS Q2Q%27.27%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%25.99%
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 28.76% on average per year.
The Revenue is expected to grow by 14.97% on average over the next years. This is quite good.
EPS Next Y9.06%
EPS Next 2Y25.55%
EPS Next 3Y28.05%
EPS Next 5Y28.76%
Revenue Next Year14.86%
Revenue Next 2Y16.88%
Revenue Next 3Y17.08%
Revenue Next 5Y14.97%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KTOS is valuated quite expensively with a Price/Earnings ratio of 144.82.
Based on the Price/Earnings ratio, KTOS is valued a bit more expensive than 61.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of KTOS to the average of the S&P500 Index (25.67), we can say KTOS is valued expensively.
KTOS is valuated quite expensively with a Price/Forward Earnings ratio of 93.75.
61.97% of the companies in the same industry are cheaper than KTOS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 31.86. KTOS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 144.82 | ||
| Fwd PE | 93.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KTOS indicates a slightly more expensive valuation: KTOS is more expensive than 64.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 188.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KTOS's earnings are expected to grow with 28.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)15.98
PEG (5Y)19.1
EPS Next 2Y25.55%
EPS Next 3Y28.05%
5. Dividend
5.1 Amount
KTOS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
72.41
-5 (-6.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners102.94%
Inst Owner Change-2.32%
Ins Owners1.56%
Ins Owner Change-7.04%
Market Cap12.22B
Revenue(TTM)1.14B
Net Income(TTM)14.50M
Analysts83.64
Price Target95.85 (32.37%)
Short Float %6.51%
Short Ratio2.44
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)30.31%
PT rev (3m)88.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.55%
EPS NY rev (1m)0.6%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 144.82 | ||
| Fwd PE | 93.75 | ||
| P/S | 10.08 | ||
| P/FCF | N/A | ||
| P/OCF | 1131.68 | ||
| P/B | 6.24 | ||
| P/tB | 9.39 | ||
| EV/EBITDA | 188.24 |
EPS(TTM)0.5
EY0.69%
EPS(NY)0.77
Fwd EY1.07%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)0.06
OCFY0.09%
SpS7.19
BVpS11.61
TBVpS7.72
PEG (NY)15.98
PEG (5Y)19.1
Graham Number11.43
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%
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-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.51 | ||
| Cap/Depr | 168.22% | ||
| Cap/Sales | 5.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 16.24% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.43 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | 13.19 |
F-Score5
WACC9.59%
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 Y9.06%
EPS Next 2Y25.55%
EPS Next 3Y28.05%
EPS Next 5Y28.76%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%25.99%
Revenue Next Year14.86%
Revenue Next 2Y16.88%
Revenue Next 3Y17.08%
Revenue Next 5Y14.97%
EBIT growth 1Y-45.89%
EBIT growth 3Y3.47%
EBIT growth 5Y-4.4%
EBIT Next Year280.75%
EBIT Next 3Y88.96%
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%
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.