KRATOS DEFENSE & SECURITY (1KTOS.MI) Stock Fundamental Analysis
BIT:1KTOS - Euronext Milan - US50077B2079 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1KTOS. 1KTOS was compared to 45 industry peers in the Aerospace & Defense industry. 1KTOS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 1KTOS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
1KTOS had positive earnings in the past year.
In the past year 1KTOS had a positive cash flow from operations.
In multiple years 1KTOS reported negative net income over the last 5 years.
1KTOS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
1KTOS has a worse Return On Assets (0.97%) than 66.67% of its industry peers.
1KTOS has a worse Return On Equity (1.41%) than 71.11% of its industry peers.
The Return On Invested Capital of 1KTOS (1.43%) is worse than 80.00% of its industry peers.
1KTOS had an Average Return On Invested Capital over the past 3 years of 1.19%. This is significantly below the industry average of 8.98%.
The last Return On Invested Capital (1.43%) for 1KTOS is above the 3 year average (1.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 1.41% | ||
| ROIC | 1.43% |
ROA(3y)-0.7%
ROA(5y)0.58%
ROE(3y)-1.22%
ROE(5y)0.95%
ROIC(3y)1.19%
ROIC(5y)1.39%
1.3 Margins
1KTOS has a worse Profit Margin (1.68%) than 68.89% of its industry peers.
In the last couple of years the Profit Margin of 1KTOS has declined.
1KTOS has a Operating Margin of 2.80%. This is in the lower half of the industry: 1KTOS underperforms 73.33% of its industry peers.
In the last couple of years the Operating Margin of 1KTOS has declined.
The Gross Margin of 1KTOS (24.95%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1KTOS has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1KTOS is destroying value.
Compared to 1 year ago, 1KTOS has more shares outstanding
Compared to 5 years ago, 1KTOS has more shares outstanding
1KTOS has a better debt/assets ratio than last year.
2.2 Solvency
1KTOS has an Altman-Z score of 9.06. This indicates that 1KTOS is financially healthy and has little risk of bankruptcy at the moment.
1KTOS has a Altman-Z score of 9.06. This is amongst the best in the industry. 1KTOS outperforms 88.89% of its industry peers.
1KTOS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
1KTOS has a better Debt to Equity ratio (0.17) than 91.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 9.06 |
ROIC/WACC0.13
WACC10.64%
2.3 Liquidity
A Current Ratio of 2.84 indicates that 1KTOS has no problem at all paying its short term obligations.
1KTOS has a better Current ratio (2.84) than 91.11% of its industry peers.
A Quick Ratio of 2.26 indicates that 1KTOS has no problem at all paying its short term obligations.
1KTOS's Quick ratio of 2.26 is amongst the best of the industry. 1KTOS outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
1KTOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.64%, which is quite good.
1KTOS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.58% yearly.
1KTOS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.32%.
The Revenue has been growing by 9.63% on average over the past years. This is quite good.
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
Based on estimates for the next years, 1KTOS will show a very strong growth in Earnings Per Share. The EPS will grow by 25.15% on average per year.
The Revenue is expected to grow by 13.74% on average over the next years. This is quite good.
EPS Next Y5.99%
EPS Next 2Y20.51%
EPS Next 3Y22.93%
EPS Next 5Y25.15%
Revenue Next Year12.63%
Revenue Next 2Y14.5%
Revenue Next 3Y15.25%
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
1KTOS is valuated quite expensively with a Price/Earnings ratio of 114.98.
Compared to the rest of the industry, the Price/Earnings ratio of 1KTOS indicates a slightly more expensive valuation: 1KTOS is more expensive than 68.89% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.48. 1KTOS is valued rather expensively when compared to this.
1KTOS is valuated quite expensively with a Price/Forward Earnings ratio of 80.60.
Based on the Price/Forward Earnings ratio, 1KTOS is valued more expensive than 82.22% of the companies in the same industry.
1KTOS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 36.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.98 | ||
| Fwd PE | 80.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1KTOS is valued expensively inside the industry as 82.22% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 118.74 |
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 1KTOS's earnings are expected to grow with 22.93% in the coming years.
PEG (NY)19.19
PEG (5Y)15.16
EPS Next 2Y20.51%
EPS Next 3Y22.93%
5. Dividend
5.1 Amount
1KTOS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1KTOS (7/17/2025, 7:00:00 PM)
49.44
+5.73 (+13.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners104.86%
Inst Owner ChangeN/A
Ins Owners1.76%
Ins Owner ChangeN/A
Market Cap8.32B
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)2.39%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.55%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.98 | ||
| Fwd PE | 80.6 | ||
| P/S | 8.31 | ||
| P/FCF | N/A | ||
| P/OCF | 487.8 | ||
| P/B | 6.96 | ||
| P/tB | 13.26 | ||
| EV/EBITDA | 118.74 |
EPS(TTM)0.43
EY0.87%
EPS(NY)0.61
Fwd EY1.24%
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)0.1
OCFY0.21%
SpS5.95
BVpS7.1
TBVpS3.73
PEG (NY)19.19
PEG (5Y)15.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 1.41% | ||
| ROCE | 1.91% | ||
| ROIC | 1.43% | ||
| ROICexc | 1.7% | ||
| ROICexgc | 3.14% | ||
| 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)1.19%
ROIC(5y)1.39%
ROICexc(3y)1.36%
ROICexc(5y)1.74%
ROICexgc(3y)2.64%
ROICexgc(5y)3.55%
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 | 9.06 |
F-Score6
WACC10.64%
ROIC/WACC0.13
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 Y5.99%
EPS Next 2Y20.51%
EPS Next 3Y22.93%
EPS Next 5Y25.15%
Revenue 1Y (TTM)7.32%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%9.16%
Revenue Next Year12.63%
Revenue Next 2Y14.5%
Revenue Next 3Y15.25%
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%