KRATOS DEFENSE & SECURITY (KTOS) Fundamental Analysis & Valuation

NASDAQ:KTOS • US50077B2079

Current stock price

75.325 USD
-4.66 (-5.82%)
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

  • In the past year KTOS was profitable.
  • KTOS had a negative operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: KTOS reported negative net income in multiple years.
  • The reported operating cash flow has been mixed in the past 5 years: KTOS reported negative operating cash flow in multiple 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.
  • The Return On Equity of KTOS (1.10%) is comparable to the rest of the industry.
  • KTOS has a Return On Invested Capital (0.82%) which is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for KTOS is significantly below the industry average of 9.24%.
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's Profit Margin of 1.63% is in line compared to the rest of the industry. KTOS outperforms 43.04% of its industry peers.
  • In the last couple of years the Profit Margin of KTOS has declined.
  • KTOS has a Operating Margin of 2.07%. This is in the lower half of the industry: KTOS underperforms 60.76% of its industry peers.
  • KTOS's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 22.86%, KTOS is in line with its industry, outperforming 44.30% of the companies in the same industry.
  • KTOS's Gross Margin has declined in the last couple of years.
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

  • 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
  • Compared to 5 years ago, KTOS has more shares outstanding
  • Compared to 1 year ago, KTOS has an improved debt to assets ratio.
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

  • An Altman-Z score of 19.71 indicates that KTOS is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 19.71, KTOS belongs to the top of the industry, outperforming 94.94% of the companies in the same industry.
  • A Debt/Equity ratio of 0.05 indicates that KTOS is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.05, KTOS belongs to the top of the industry, outperforming 88.61% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Altman-Z 19.71
ROIC/WACC0.08
WACC10.11%
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 73.42% 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 better Quick ratio (3.46) than 83.54% 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

  • The Earnings Per Share has grown by an nice 12.24% over the past year.
  • The Earnings Per Share has been growing slightly by 7.12% on average over the past years.
  • The Revenue has grown by 18.53% in the past year. This is quite good.
  • The Revenue has been growing by 12.49% on average over the past years. This is quite good.
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.
  • Based on estimates for the next years, KTOS will show a quite strong growth in Revenue. The Revenue will grow by 19.13% on average per year.
EPS Next Y45%
EPS Next 2Y41.11%
EPS Next 3Y36.5%
EPS Next 5Y34.52%
Revenue Next Year24.87%
Revenue Next 2Y24.08%
Revenue Next 3Y22.12%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 136.95, which means the current valuation is very expensive for KTOS.
  • 63.29% of the companies in the same industry are cheaper than KTOS, based on the Price/Earnings ratio.
  • KTOS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.61.
  • Based on the Price/Forward Earnings ratio of 94.45, the valuation of KTOS can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of KTOS is on the same level as its industry peers.
  • KTOS is valuated expensively when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 136.95
Fwd PE 94.45
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

  • 65.82% 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 193.01
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 KTOS does not grow enough to justify the current Price/Earnings ratio.
  • KTOS's earnings are expected to grow with 36.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.04
PEG (5Y)19.24
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

  • No dividends for KTOS!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

KTOS Fundamentals: All Metrics, Ratios and Statistics

KRATOS DEFENSE & SECURITY

NASDAQ:KTOS (3/26/2026, 2:34:00 PM)

75.325

-4.66 (-5.82%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-23
Earnings (Next)05-05
Inst Owners92.68%
Inst Owner Change-1.93%
Ins Owners1.46%
Ins Owner Change-2.7%
Market Cap14.07B
Revenue(TTM)1.35B
Net Income(TTM)22.00M
Analysts81.48
Price Target118.93 (57.89%)
Short Float %4.28%
Short Ratio1.72
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)0%
PT rev (3m)18.71%
EPS NQ rev (1m)-11.53%
EPS NQ rev (3m)-8.59%
EPS NY rev (1m)1.92%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)-1.35%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)3.61%
Revenue NY rev (3m)3.93%
Valuation
Industry RankSector Rank
PE 136.95
Fwd PE 94.45
P/S 10.45
P/FCF N/A
P/OCF N/A
P/B 7.05
P/tB 10.45
EV/EBITDA 193.01
EPS(TTM)0.55
EY0.73%
EPS(NY)0.8
Fwd EY1.06%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)-0.23
OCFYN/A
SpS7.21
BVpS10.69
TBVpS7.21
PEG (NY)3.04
PEG (5Y)19.24
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 19.71
F-Score4
WACC10.11%
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 Year24.87%
Revenue Next 2Y24.08%
Revenue Next 3Y22.12%
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.


Can you provide the profitability details for KRATOS DEFENSE & SECURITY?

KRATOS DEFENSE & SECURITY (KTOS) has a profitability rating of 2 / 10.


What are the PE and PB ratios of KRATOS DEFENSE & SECURITY (KTOS) stock?

The Price/Earnings (PE) ratio for KRATOS DEFENSE & SECURITY (KTOS) is 136.95 and the Price/Book (PB) ratio is 7.05.


How financially healthy is KRATOS DEFENSE & SECURITY?

The financial health rating of KRATOS DEFENSE & SECURITY (KTOS) is 6 / 10.