KRATOS DEFENSE & SECURITY (KTOS) Stock Fundamental Analysis
NASDAQ:KTOS - Nasdaq - US50077B2079 - Common Stock - Currency: USD
Overall KTOS gets a fundamental rating of 4 out of 10. We evaluated KTOS against 66 industry peers in the Aerospace & Defense industry. The financial health of KTOS is average, but there are quite some concerns on its profitability. KTOS is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year KTOS was profitable.
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 of 0.97%. This is in the lower half of the industry: KTOS underperforms 60.00% of its industry peers.
KTOS has a Return On Equity of 1.41%. This is comparable to the rest of the industry: KTOS outperforms 43.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.51%, KTOS is doing worse than 60.00% of the companies in the same industry.
KTOS had an Average Return On Invested Capital over the past 3 years of 1.26%. This is significantly below the industry average of 8.44%.
The last Return On Invested Capital (1.51%) for KTOS is above the 3 year average (1.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 1.41% | ||
| ROIC | 1.51% |
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
The Profit Margin of KTOS (1.68%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KTOS has declined.
With a Operating Margin value of 2.80%, KTOS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
KTOS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 24.95%, KTOS perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
KTOS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.8% | ||
| PM (TTM) | 1.68% | ||
| GM | 24.95% |
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.
KTOS has more shares outstanding than it did 1 year ago.
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 7.16 indicates that KTOS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 7.16, KTOS is doing good in the industry, outperforming 78.46% of the companies in the same industry.
KTOS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
KTOS has a Debt to Equity ratio of 0.17. This is in the better half of the industry: KTOS outperforms 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.16 |
ROIC/WACC0.15
WACC10.02%
2.3 Liquidity
KTOS has a Current Ratio of 2.84. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
KTOS has a better Current ratio (2.84) than 61.54% of its industry peers.
A Quick Ratio of 2.26 indicates that KTOS has no problem at all paying its short term obligations.
KTOS has a better Quick ratio (2.26) than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
KTOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.64%, which is quite good.
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 been growing slightly by 7.32% in the past year.
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)13.64%
EPS 3Y15.26%
EPS 5Y7.58%
EPS Q2Q%9.09%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%9.16%
3.2 Future
The Earnings Per Share is expected to grow by 25.15% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.74% on average over the next years. This is quite good.
EPS Next Y6.16%
EPS Next 2Y20.57%
EPS Next 3Y20.35%
EPS Next 5Y25.15%
Revenue Next Year12.71%
Revenue Next 2Y14.2%
Revenue Next 3Y14.23%
Revenue Next 5Y13.74%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 89.32 indicates a quite expensive valuation of KTOS.
Compared to the rest of the industry, the Price/Earnings ratio of KTOS is on the same level as its industry peers.
KTOS is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 62.70, the valuation of KTOS can be described as expensive.
Based on the Price/Forward Earnings ratio, KTOS is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, KTOS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.32 | ||
| Fwd PE | 62.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KTOS is valued a bit more expensive than the industry average as 63.08% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 92.29 |
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 20.35% in the coming years.
PEG (NY)14.49
PEG (5Y)11.78
EPS Next 2Y20.57%
EPS Next 3Y20.35%
5. Dividend
5.1 Amount
No dividends for KTOS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.66
+1.38 (+3.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners104.86%
Inst Owner Change18.64%
Ins Owners1.76%
Ins Owner Change4.12%
Market Cap6.85B
Analysts80
Price Target38.86 (-12.99%)
Short Float %6.98%
Short Ratio3.51
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)26.32%
Min EPS beat(2)25.78%
Max EPS beat(2)26.87%
EPS beat(4)4
Avg EPS beat(4)35.87%
Min EPS beat(4)25.78%
Max EPS beat(4)61.67%
EPS beat(8)8
Avg EPS beat(8)48.2%
EPS beat(12)12
Avg EPS beat(12)40.57%
EPS beat(16)15
Avg EPS beat(16)41.93%
Revenue beat(2)1
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-3.26%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)0.53%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)6.52%
Revenue beat(8)6
Avg Revenue beat(8)3.74%
Revenue beat(12)9
Avg Revenue beat(12)3%
Revenue beat(16)10
Avg Revenue beat(16)1.9%
PT rev (1m)8.86%
PT rev (3m)16.74%
EPS NQ rev (1m)-7.4%
EPS NQ rev (3m)-22.78%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.32 | ||
| Fwd PE | 62.7 | ||
| P/S | 5.89 | ||
| P/FCF | N/A | ||
| P/OCF | 345.75 | ||
| P/B | 4.93 | ||
| P/tB | 9.4 | ||
| EV/EBITDA | 92.29 |
EPS(TTM)0.5
EY1.12%
EPS(NY)0.71
Fwd EY1.59%
FCF(TTM)-0.29
FCFYN/A
OCF(TTM)0.13
OCFY0.29%
SpS7.58
BVpS9.05
TBVpS4.75
PEG (NY)14.49
PEG (5Y)11.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 1.41% | ||
| ROCE | 1.91% | ||
| ROIC | 1.51% | ||
| ROICexc | 1.79% | ||
| ROICexgc | 3.3% | ||
| OM | 2.8% | ||
| PM (TTM) | 1.68% | ||
| GM | 24.95% | ||
| 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-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.19 | ||
| Cap/Depr | 155.07% | ||
| Cap/Sales | 5.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 26.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 7.16 |
F-Score6
WACC10.02%
ROIC/WACC0.15
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)13.64%
EPS 3Y15.26%
EPS 5Y7.58%
EPS Q2Q%9.09%
EPS Next Y6.16%
EPS Next 2Y20.57%
EPS Next 3Y20.35%
EPS Next 5Y25.15%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%9.16%
Revenue Next Year12.71%
Revenue Next 2Y14.2%
Revenue Next 3Y14.23%
Revenue Next 5Y13.74%
EBIT growth 1Y-14.47%
EBIT growth 3Y3.47%
EBIT growth 5Y-4.4%
EBIT Next Year285.77%
EBIT Next 3Y79.26%
EBIT Next 5Y53.19%
FCF growth 1Y48.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y145.41%
OCF growth 3Y17.29%
OCF growth 5Y10.62%