KRATOS DEFENSE & SECURITY (KTOS)
US50077B2079 - Common Stock
Overall KTOS gets a fundamental rating of 4 out of 10. We evaluated KTOS against 65 industry peers in the Aerospace & Defense industry. KTOS has a great financial health rating, but its profitability evaluates not so good. While showing a medium growth rate, KTOS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
KTOS had positive earnings in the past year.
KTOS had a positive operating cash flow in the past year.
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
The Return On Assets of KTOS (-0.03%) is comparable to the rest of the industry.
KTOS's Return On Equity of -0.05% is in line compared to the rest of the industry. KTOS outperforms 50.77% of its industry peers.
KTOS has a Return On Invested Capital of 1.85%. This is comparable to the rest of the industry: KTOS outperforms 43.08% 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 8.65%.
The last Return On Invested Capital (1.85%) for KTOS is above the 3 year average (1.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.03% | ||
| ROE | -0.05% | ||
| ROIC | 1.85% |
ROA(3y)-1.02%
ROA(5y)0.62%
ROE(3y)-1.69%
ROE(5y)1.14%
ROIC(3y)1.31%
ROIC(5y)1.8%
1.3 Margins
KTOS has a Operating Margin (3.51%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KTOS has declined.
KTOS has a Gross Margin of 25.88%. This is comparable to the rest of the industry: KTOS outperforms 58.46% of its industry peers.
KTOS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.51% | ||
| PM (TTM) | N/A | ||
| GM | 25.88% |
OM growth 3Y-9.68%
OM growth 5Y-10.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.59%
GM growth 5Y-1.16%
2. Health
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.
Compared to 1 year ago, KTOS has more shares outstanding
Compared to 5 years ago, KTOS has more shares outstanding
The debt/assets ratio for KTOS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.61 indicates that KTOS is not in any danger for bankruptcy at the moment.
The Altman-Z score of KTOS (3.61) is better than 61.54% of its industry peers.
KTOS has a debt to FCF ratio of 7.65. This is a slightly negative value and a sign of low solvency as KTOS would need 7.65 years to pay back of all of its debts.
KTOS has a Debt to FCF ratio of 7.65. This is in the better half of the industry: KTOS outperforms 61.54% of its industry peers.
KTOS has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
KTOS has a Debt to Equity ratio of 0.18. This is in the better half of the industry: KTOS outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 7.65 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.21
WACC8.97%
2.3 Liquidity
KTOS has a Current Ratio of 3.02. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.02, KTOS is in the better half of the industry, outperforming 73.85% of the companies in the same industry.
A Quick Ratio of 2.47 indicates that KTOS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.47, KTOS belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.72% over the past year.
Measured over the past years, KTOS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.20% on average per year.
The Revenue has grown by 15.91% 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 10.91% yearly.
EPS 1Y (TTM)51.72%
EPS 3Y0%
EPS 5Y10.2%
EPS growth Q2Q83.33%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y11.52%
Revenue growth 5Y10.91%
Revenue growth Q2Q19.59%
3.2 Future
KTOS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.73% yearly.
Based on estimates for the next years, KTOS will show a small growth in Revenue. The Revenue will grow by 6.83% on average per year.
EPS Next Y11.04%
EPS Next 2Y19.54%
EPS Next 3Y17.01%
EPS Next 5Y28.73%
Revenue Next Year11.95%
Revenue Next 2Y11%
Revenue Next 3Y10.46%
Revenue Next 5Y6.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 47.80, KTOS can be considered very expensive at the moment.
KTOS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.60. KTOS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 37.74, which means the current valuation is very expensive for KTOS.
The rest of the industry has a similar Price/Forward Earnings ratio as KTOS.
KTOS is valuated expensively when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.8 | ||
| Fwd PE | 37.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KTOS is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as KTOS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.07 | ||
| EV/EBITDA | 41.96 |
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 17.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.33
PEG (5Y)4.69
EPS Next 2Y19.54%
EPS Next 3Y17.01%
5. Dividend
5.1 Amount
KTOS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
KRATOS DEFENSE & SECURITY
NASDAQ:KTOS (5/17/2024, 7:09:47 PM)
After market: 20.9001 -0.13 (-0.62%)21.03
+0.44 (+2.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.8 | ||
| Fwd PE | 37.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.33
PEG (5Y)4.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.03% | ||
| ROE | -0.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.51% | ||
| PM (TTM) | N/A | ||
| GM | 25.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)51.72%
EPS 3Y0%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.91%
Revenue growth 3Y11.52%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y