KRATOS DEFENSE & SECURITY (1KTOS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1KTOS - US50077B2079 - Common Stock
95.64 EUR
+0.02 (+0.02%)
Taking everything into account, 1KTOS scores 4 out of 10 in our fundamental rating. 1KTOS was compared to 53 industry peers in the Aerospace & Defense industry. The financial health of 1KTOS is average, but there are quite some concerns on its profitability. 1KTOS is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- In the past year 1KTOS was profitable.
- 1KTOS had a negative operating cash flow in the past year.
- 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 (0.83%) than 70.91% of its industry peers.
- 1KTOS has a worse Return On Equity (1.01%) than 74.55% of its industry peers.
- 1KTOS's Return On Invested Capital of 0.85% is on the low side compared to the rest of the industry. 1KTOS is outperformed by 80.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1KTOS is significantly below the industry average of 9.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 1.01% | ||
| ROIC | 0.85% |
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's Profit Margin of 1.56% is on the low side compared to the rest of the industry. 1KTOS is outperformed by 70.91% of its industry peers.
- In the last couple of years the Profit Margin of 1KTOS has declined.
- The Operating Margin of 1KTOS (1.89%) is worse than 76.36% of its industry peers.
- 1KTOS's Operating Margin has declined in the last couple of years.
- 1KTOS's Gross Margin of 22.91% is on the low side compared to the rest of the industry. 1KTOS is outperformed by 61.82% of its industry peers.
- 1KTOS's Gross Margin has been stable in the last couple of years.
| 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), 1KTOS is destroying value.
- Compared to 1 year ago, 1KTOS has more shares outstanding
- Compared to 5 years ago, 1KTOS has more shares outstanding
- Compared to 1 year ago, 1KTOS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 26.41 indicates that 1KTOS is not in any danger for bankruptcy at the moment.
- 1KTOS's Altman-Z score of 26.41 is amongst the best of the industry. 1KTOS outperforms 96.36% of its industry peers.
- A Debt/Equity ratio of 0.04 indicates that 1KTOS is not too dependend on debt financing.
- 1KTOS's Debt to Equity ratio of 0.04 is amongst the best of the industry. 1KTOS outperforms 92.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 26.41 |
ROIC/WACC0.09
WACC9.81%
2.3 Liquidity
- A Current Ratio of 4.30 indicates that 1KTOS has no problem at all paying its short term obligations.
- 1KTOS has a Current ratio of 4.30. This is amongst the best in the industry. 1KTOS outperforms 96.36% of its industry peers.
- A Quick Ratio of 3.68 indicates that 1KTOS has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 3.68, 1KTOS belongs to the top of the industry, outperforming 96.36% of the companies in the same industry.
| 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.
- Measured over the past years, 1KTOS shows a quite strong growth in Revenue. The Revenue has been growing by 9.63% on average per year.
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
- The Earnings Per Share is expected to grow by 30.95% on average over the next years. This is a very strong growth
- Based on estimates for the next years, 1KTOS will show a quite strong growth in Revenue. The Revenue will grow by 17.43% on average per year.
EPS Next Y11.08%
EPS Next 2Y26.01%
EPS Next 3Y30.21%
EPS Next 5Y30.95%
Revenue Next Year16.41%
Revenue Next 2Y18.45%
Revenue Next 3Y19.55%
Revenue Next 5Y17.43%
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 222.42.
- Based on the Price/Earnings ratio, 1KTOS is valued a bit more expensive than the industry average as 74.55% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1KTOS is valued quite expensively.
- The Price/Forward Earnings ratio is 144.33, which means the current valuation is very expensive for 1KTOS.
- Based on the Price/Forward Earnings ratio, 1KTOS is valued more expensive than 83.64% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1KTOS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 222.42 | ||
| Fwd PE | 144.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1KTOS is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 269.05 |
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 30.21% in the coming years.
PEG (NY)20.07
PEG (5Y)29.33
EPS Next 2Y26.01%
EPS Next 3Y30.21%
5. Dividend
5.1 Amount
- 1KTOS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
KRATOS DEFENSE & SECURITY / 1KTOS.MI FAQ
What is the ChartMill fundamental rating of KRATOS DEFENSE & SECURITY (1KTOS.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1KTOS.MI.
What is the valuation status for 1KTOS stock?
ChartMill assigns a valuation rating of 1 / 10 to KRATOS DEFENSE & SECURITY (1KTOS.MI). This can be considered as Overvalued.
What is the profitability of 1KTOS stock?
KRATOS DEFENSE & SECURITY (1KTOS.MI) has a profitability rating of 1 / 10.
Can you provide the PE and PB ratios for 1KTOS stock?
The Price/Earnings (PE) ratio for KRATOS DEFENSE & SECURITY (1KTOS.MI) is 222.42 and the Price/Book (PB) ratio is 9.57.
What is the financial health of KRATOS DEFENSE & SECURITY (1KTOS.MI) stock?
The financial health rating of KRATOS DEFENSE & SECURITY (1KTOS.MI) is 6 / 10.