KRATOS DEFENSE & SECURITY (KTOS) Stock Fundamental Analysis
USA - NASDAQ:KTOS - US50077B2079 - Common Stock
67.305 USD
-3.36 (-4.76%)
66.65 USD
-0.66 (-0.97%)
Taking everything into account, KTOS scores 4 out of 10 in our fundamental rating. KTOS was compared to 71 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 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 has reported a negative 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
KTOS's Return On Assets of 0.83% is in line compared to the rest of the industry. KTOS outperforms 46.48% of its industry peers.
The Return On Equity of KTOS (1.01%) is comparable to the rest of the industry.
KTOS's Return On Invested Capital of 0.90% is in line compared to the rest of the industry. KTOS outperforms 43.66% 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 8.47%.
| Industry Rank | Sector 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%
1.3 Margins
KTOS has a Profit Margin (1.56%) which is in line with its industry peers.
KTOS's Profit Margin has declined in the last couple of years.
KTOS has a Operating Margin of 1.89%. This is comparable to the rest of the industry: KTOS outperforms 42.25% of its industry peers.
KTOS's Operating Margin has declined in the last couple of years.
KTOS has a Gross Margin (22.91%) which 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 | 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%
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 16.86 indicates that KTOS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 16.86, KTOS belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that KTOS is not too dependend on debt financing.
KTOS has a better Debt to Equity ratio (0.09) than 78.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 16.86 |
ROIC/WACC0.09
WACC9.67%
2.3 Liquidity
KTOS has a Current Ratio of 4.30. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
KTOS has a better Current ratio (4.30) than 84.51% of its industry peers.
KTOS has a Quick Ratio of 3.68. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
KTOS has a Quick ratio of 3.68. This is amongst the best in the industry. KTOS outperforms 88.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.3 | ||
| Quick Ratio | 3.68 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.17% over the past year.
The Earnings Per Share has been growing slightly by 7.58% on average over the past years.
The Revenue has grown by 14.00% 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)14%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%25.99%
3.2 Future
KTOS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.76% yearly.
KTOS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.97% yearly.
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
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
With a Price/Earnings ratio of 134.61, KTOS can be considered very expensive at the moment.
KTOS's Price/Earnings is on the same level as the industry average.
KTOS is valuated expensively when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 87.14, KTOS can be considered very expensive at the moment.
KTOS's Price/Forward Earnings ratio is in line with the industry average.
KTOS is valuated expensively when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.61 | ||
| Fwd PE | 87.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KTOS is valued a bit more expensive than the industry average as 64.79% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 168.02 |
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)14.86
PEG (5Y)17.75
EPS Next 2Y25.55%
EPS Next 3Y28.05%
5. Dividend
5.1 Amount
No dividends for KTOS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
67.305
-3.36 (-4.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners102.94%
Inst Owner Change-8.94%
Ins Owners1.56%
Ins Owner Change-8.74%
Market Cap11.36B
Revenue(TTM)1.28B
Net Income(TTM)20.00M
Analysts83.64
Price Target95.85 (42.41%)
Short Float %5.84%
Short Ratio2.1
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)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)28.15%
PT rev (3m)64.14%
EPS NQ rev (1m)-1.2%
EPS NQ rev (3m)6.47%
EPS NY rev (1m)0.6%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 134.61 | ||
| Fwd PE | 87.14 | ||
| P/S | 8.84 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.73 | ||
| P/tB | 8.55 | ||
| EV/EBITDA | 168.02 |
EPS(TTM)0.5
EY0.74%
EPS(NY)0.77
Fwd EY1.15%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)-0.05
OCFYN/A
SpS7.61
BVpS11.74
TBVpS7.88
PEG (NY)14.86
PEG (5Y)17.75
Graham Number11.49
Profitability
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.5 | ||
| 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 | 16.86 |
F-Score4
WACC9.67%
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)14%
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-36.55%
EBIT growth 3Y3.47%
EBIT growth 5Y-4.4%
EBIT Next Year280.75%
EBIT Next 3Y88.96%
EBIT Next 5Y55.27%
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 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.