KRATOS DEFENSE & SECURITY (KTOS) Fundamental Analysis & Valuation

NASDAQ:KTOS • US50077B2079

Current stock price

71.141 USD
-3.32 (-4.46%)
Last:

This KTOS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. KTOS Profitability Analysis

1.1 Basic Checks

  • KTOS had positive earnings in the past year.
  • KTOS had a negative operating cash flow in the past year.
  • In multiple years KTOS reported negative net income over the last 5 years.
  • In multiple years KTOS reported negative operating cash flow during the last 5 years.
KTOS Yearly Net Income VS EBIT VS OCF VS FCFKTOS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M -100M

1.2 Ratios

  • The Return On Assets of KTOS (0.89%) is comparable to the rest of the industry.
  • KTOS's Return On Equity of 1.10% is in line compared to the rest of the industry. KTOS outperforms 45.00% of its industry peers.
  • With a Return On Invested Capital value of 0.82%, KTOS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
  • Measured over the past 3 years, the Average Return On Invested Capital for KTOS is significantly below the industry average of 9.21%.
Industry RankSector Rank
ROA 0.89%
ROE 1.1%
ROIC 0.82%
ROA(3y)0.39%
ROA(5y)-0.26%
ROE(3y)0.46%
ROE(5y)-0.55%
ROIC(3y)1.2%
ROIC(5y)1.04%
KTOS Yearly ROA, ROE, ROICKTOS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -10 -20

1.3 Margins

  • KTOS has a Profit Margin of 1.63%. This is comparable to the rest of the industry: KTOS outperforms 43.75% of its industry peers.
  • KTOS's Profit Margin has declined in the last couple of years.
  • KTOS has a Operating Margin (2.07%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of KTOS has declined.
  • The Gross Margin of KTOS (22.86%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of KTOS has declined.
Industry RankSector Rank
OM 2.07%
PM (TTM) 1.63%
GM 22.86%
OM growth 3Y55.64%
OM growth 5Y-13.47%
PM growth 3YN/A
PM growth 5Y-31.26%
GM growth 3Y-3.14%
GM growth 5Y-3.4%
KTOS Yearly Profit, Operating, Gross MarginsKTOS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

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6

2. KTOS Health Analysis

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.
KTOS Yearly Shares OutstandingKTOS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
KTOS Yearly Total Debt VS Total AssetsKTOS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • KTOS has an Altman-Z score of 18.40. This indicates that KTOS is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of KTOS (18.40) is better than 92.50% of its industry peers.
  • A Debt/Equity ratio of 0.05 indicates that KTOS is not too dependend on debt financing.
  • KTOS has a better Debt to Equity ratio (0.05) than 87.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Altman-Z 18.4
ROIC/WACC0.08
WACC9.68%
KTOS Yearly LT Debt VS Equity VS FCFKTOS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • KTOS has a Current Ratio of 4.06. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
  • KTOS's Current ratio of 4.06 is fine compared to the rest of the industry. KTOS outperforms 73.75% of its industry peers.
  • KTOS has a Quick Ratio of 3.46. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
  • KTOS has a Quick ratio of 3.46. This is amongst the best in the industry. KTOS outperforms 82.50% of its industry peers.
Industry RankSector Rank
Current Ratio 4.06
Quick Ratio 3.46
KTOS Yearly Current Assets VS Current LiabilitesKTOS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. KTOS Growth Analysis

3.1 Past

  • KTOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.24%, which is quite good.
  • Measured over the past 5 years, KTOS shows a small growth in Earnings Per Share. The EPS has been growing by 7.12% on average per year.
  • Looking at the last year, KTOS shows a quite strong growth in Revenue. The Revenue has grown by 18.53% in the last year.
  • Measured over the past years, KTOS shows a quite strong growth in Revenue. The Revenue has been growing by 12.49% on average per year.
EPS 1Y (TTM)12.24%
EPS 3Y26.77%
EPS 5Y7.12%
EPS Q2Q%38.46%
Revenue 1Y (TTM)18.53%
Revenue growth 3Y14.45%
Revenue growth 5Y12.49%
Sales Q2Q%21.9%

3.2 Future

  • KTOS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.52% yearly.
  • KTOS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.13% yearly.
EPS Next Y45%
EPS Next 2Y41.11%
EPS Next 3Y36.5%
EPS Next 5Y34.52%
Revenue Next Year25.17%
Revenue Next 2Y24.28%
Revenue Next 3Y22.39%
Revenue Next 5Y19.13%

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.
  • 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.
KTOS Yearly Revenue VS EstimatesKTOS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
KTOS Yearly EPS VS EstimatesKTOS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 2

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1

4. KTOS Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 129.35, which means the current valuation is very expensive for KTOS.
  • KTOS's Price/Earnings ratio is a bit more expensive when compared to the industry. KTOS is more expensive than 63.75% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, KTOS is valued quite expensively.
  • The Price/Forward Earnings ratio is 89.20, which means the current valuation is very expensive for KTOS.
  • KTOS's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of KTOS to the average of the S&P500 Index (23.69), we can say KTOS is valued expensively.
Industry RankSector Rank
PE 129.35
Fwd PE 89.2
KTOS Price Earnings VS Forward Price EarningsKTOS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • 65.00% of the companies in the same industry are cheaper than KTOS, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 179.26
KTOS Per share dataKTOS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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 36.50% in the coming years.
PEG (NY)2.87
PEG (5Y)18.17
EPS Next 2Y41.11%
EPS Next 3Y36.5%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. KTOS Dividend Analysis

5.1 Amount

  • KTOS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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KTOS Fundamentals: All Metrics, Ratios and Statistics

KRATOS DEFENSE & SECURITY

NASDAQ:KTOS (4/9/2026, 10:57:43 AM)

71.141

-3.32 (-4.46%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-23
Earnings (Next)05-05
Inst Owners92.68%
Inst Owner Change0%
Ins Owners1.46%
Ins Owner Change-2.73%
Market Cap13.29B
Revenue(TTM)1.35B
Net Income(TTM)22.00M
Analysts81.48
Price Target121.46 (70.73%)
Short Float %4.98%
Short Ratio2.11
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)11.11%
Min EPS beat(2)10.18%
Max EPS beat(2)12.04%
EPS beat(4)4
Avg EPS beat(4)16.24%
Min EPS beat(4)10.18%
Max EPS beat(4)26.87%
EPS beat(8)8
Avg EPS beat(8)36.77%
EPS beat(12)12
Avg EPS beat(12)36.31%
EPS beat(16)16
Avg EPS beat(16)41.87%
Revenue beat(2)2
Avg Revenue beat(2)4.48%
Min Revenue beat(2)3.22%
Max Revenue beat(2)5.74%
Revenue beat(4)4
Avg Revenue beat(4)5.73%
Min Revenue beat(4)1.28%
Max Revenue beat(4)12.68%
Revenue beat(8)6
Avg Revenue beat(8)4.03%
Revenue beat(12)10
Avg Revenue beat(12)4.45%
Revenue beat(16)12
Avg Revenue beat(16)3.45%
PT rev (1m)2.13%
PT rev (3m)21.84%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-8.59%
EPS NY rev (1m)0%
EPS NY rev (3m)3.25%
Revenue NQ rev (1m)-1.69%
Revenue NQ rev (3m)-2.44%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)4.24%
Valuation
Industry RankSector Rank
PE 129.35
Fwd PE 89.2
P/S 9.87
P/FCF N/A
P/OCF N/A
P/B 6.66
P/tB 9.87
EV/EBITDA 179.26
EPS(TTM)0.55
EY0.77%
EPS(NY)0.8
Fwd EY1.12%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)-0.23
OCFYN/A
SpS7.21
BVpS10.69
TBVpS7.21
PEG (NY)2.87
PEG (5Y)18.17
Graham Number11.5
Profitability
Industry RankSector Rank
ROA 0.89%
ROE 1.1%
ROCE 1.29%
ROIC 0.82%
ROICexc 1.1%
ROICexgc 1.86%
OM 2.07%
PM (TTM) 1.63%
GM 22.86%
FCFM N/A
ROA(3y)0.39%
ROA(5y)-0.26%
ROE(3y)0.46%
ROE(5y)-0.55%
ROIC(3y)1.2%
ROIC(5y)1.04%
ROICexc(3y)1.43%
ROICexc(5y)1.27%
ROICexgc(3y)2.67%
ROICexgc(5y)2.48%
ROCE(3y)1.9%
ROCE(5y)1.65%
ROICexgc growth 3Y54.95%
ROICexgc growth 5Y-15.82%
ROICexc growth 3Y63.6%
ROICexc growth 5Y-11.62%
OM growth 3Y55.64%
OM growth 5Y-13.47%
PM growth 3YN/A
PM growth 5Y-31.26%
GM growth 3Y-3.14%
GM growth 5Y-3.4%
F-Score4
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Debt/EBITDA 1.28
Cap/Depr 202.34%
Cap/Sales 7.08%
Interest Coverage 4.43
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.06
Quick Ratio 3.46
Altman-Z 18.4
F-Score4
WACC9.68%
ROIC/WACC0.08
Cap/Depr(3y)168.2%
Cap/Depr(5y)166.87%
Cap/Sales(3y)5.75%
Cap/Sales(5y)5.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.24%
EPS 3Y26.77%
EPS 5Y7.12%
EPS Q2Q%38.46%
EPS Next Y45%
EPS Next 2Y41.11%
EPS Next 3Y36.5%
EPS Next 5Y34.52%
Revenue 1Y (TTM)18.53%
Revenue growth 3Y14.45%
Revenue growth 5Y12.49%
Sales Q2Q%21.9%
Revenue Next Year25.17%
Revenue Next 2Y24.28%
Revenue Next 3Y22.39%
Revenue Next 5Y19.13%
EBIT growth 1Y-15.2%
EBIT growth 3Y78.14%
EBIT growth 5Y-2.66%
EBIT Next Year493.42%
EBIT Next 3Y115.7%
EBIT Next 5Y72.71%
FCF growth 1Y-1516.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-184.71%
OCF growth 3YN/A
OCF growth 5YN/A

KRATOS DEFENSE & SECURITY / KTOS Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for KRATOS DEFENSE & SECURITY?

ChartMill assigns a fundamental rating of 4 / 10 to KTOS.


What is the valuation status for KTOS stock?

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 2 / 10.


Can you provide the expected EPS growth for KTOS stock?

The Earnings per Share (EPS) of KRATOS DEFENSE & SECURITY (KTOS) is expected to grow by 45% in the next year.