KRATOS DEFENSE & SECURITY (KTOS) Stock Fundamental Analysis
USA - NASDAQ:KTOS - US50077B2079 - Common Stock
83.115 USD
-5.51 (-6.21%)
We assign a fundamental rating of 4 out of 10 to KTOS. KTOS was compared to 69 industry peers in the Aerospace & Defense industry. While KTOS seems to be doing ok healthwise, there are quite some concerns on its profitability. KTOS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
KTOS had positive earnings in the past year.
In the past year KTOS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KTOS reported negative net income in multiple years.
Of the past 5 years KTOS 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.56%, KTOS perfoms like the industry average, outperforming 42.03% of the companies in the same industry.
KTOS has a Return On Equity of 0.74%. This is comparable to the rest of the industry: KTOS outperforms 43.48% of its industry peers.
KTOS has a Return On Invested Capital of 0.83%. This is comparable to the rest of the industry: KTOS outperforms 42.03% of its industry peers.
KTOS had an Average Return On Invested Capital over the past 3 years of 1.26%. This is significantly below the industry average of 8.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 0.74% | ||
| ROIC | 0.83% |
ROA(3y)-0.7%
ROA(5y)0.58%
ROE(3y)-1.22%
ROE(5y)0.95%
ROIC(3y)1.26%
ROIC(5y)1.46%
1.3 Margins
The Profit Margin of KTOS (1.20%) is comparable to the rest of the industry.
KTOS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 1.95%, KTOS is in line with its industry, outperforming 42.03% of the companies in the same industry.
KTOS's Operating Margin has declined in the last couple of years.
The Gross Margin of KTOS (23.61%) is comparable to the rest of the industry.
KTOS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.95% | ||
| PM (TTM) | 1.2% | ||
| GM | 23.61% |
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
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
The number of shares outstanding for KTOS has been increased compared to 5 years ago.
KTOS has a better debt/assets ratio than last year.
2.2 Solvency
KTOS has an Altman-Z score of 15.00. This indicates that KTOS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KTOS (15.00) is better than 91.30% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that KTOS is not too dependend on debt financing.
KTOS has a Debt to Equity ratio of 0.12. This is in the better half of the industry: KTOS outperforms 79.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 15 |
ROIC/WACC0.09
WACC9.66%
2.3 Liquidity
A Current Ratio of 4.43 indicates that KTOS has no problem at all paying its short term obligations.
KTOS has a better Current ratio (4.43) than 89.86% of its industry peers.
A Quick Ratio of 3.88 indicates that KTOS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.88, KTOS belongs to the top of the industry, outperforming 92.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
KTOS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.08%.
The Earnings Per Share has been growing slightly by 7.58% on average over the past years.
KTOS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.76%.
Measured over the past years, KTOS shows a quite strong growth in Revenue. The Revenue has been growing by 9.63% on average per year.
EPS 1Y (TTM)-4.08%
EPS 3Y15.26%
EPS 5Y7.58%
EPS Q2Q%-21.43%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%17.13%
3.2 Future
Based on estimates for the next years, KTOS will show a very strong growth in Earnings Per Share. The EPS will grow by 28.76% on average per year.
Based on estimates for the next years, KTOS will show a quite strong growth in Revenue. The Revenue will grow by 14.97% on average per year.
EPS Next Y8.41%
EPS Next 2Y25.1%
EPS Next 3Y27.1%
EPS Next 5Y28.76%
Revenue Next Year14.86%
Revenue Next 2Y16.47%
Revenue Next 3Y16.91%
Revenue Next 5Y14.97%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 176.84, which means the current valuation is very expensive for KTOS.
Compared to the rest of the industry, the Price/Earnings ratio of KTOS is on the same level as its industry peers.
KTOS is valuated expensively when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 108.38, KTOS can be considered very expensive at the moment.
KTOS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. KTOS is more expensive than 63.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, KTOS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 176.84 | ||
| Fwd PE | 108.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KTOS indicates a slightly more expensive valuation: KTOS is more expensive than 65.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 216.69 |
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 27.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)21.04
PEG (5Y)23.32
EPS Next 2Y25.1%
EPS Next 3Y27.1%
5. Dividend
5.1 Amount
No dividends for KTOS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:KTOS (10/17/2025, 1:30:01 PM)
83.115
-5.51 (-6.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners102.94%
Inst Owner Change-0.22%
Ins Owners1.56%
Ins Owner Change-7.45%
Market Cap14.03B
Analysts84.55
Price Target74.79 (-10.02%)
Short Float %6.89%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)21.37%
Min EPS beat(2)15.86%
Max EPS beat(2)26.87%
EPS beat(4)4
Avg EPS beat(4)24.42%
Min EPS beat(4)15.86%
Max EPS beat(4)29.15%
EPS beat(8)8
Avg EPS beat(8)43.12%
EPS beat(12)12
Avg EPS beat(12)35.93%
EPS beat(16)16
Avg EPS beat(16)43.15%
Revenue beat(2)2
Avg Revenue beat(2)6.98%
Min Revenue beat(2)1.28%
Max Revenue beat(2)12.68%
Revenue beat(4)2
Avg Revenue beat(4)2.07%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)12.68%
Revenue beat(8)6
Avg Revenue beat(8)4.48%
Revenue beat(12)9
Avg Revenue beat(12)3.68%
Revenue beat(16)10
Avg Revenue beat(16)2.63%
PT rev (1m)3.5%
PT rev (3m)92.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.05%
EPS NY rev (1m)0.63%
EPS NY rev (3m)2.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 176.84 | ||
| Fwd PE | 108.38 | ||
| P/S | 11.56 | ||
| P/FCF | N/A | ||
| P/OCF | 1298.98 | ||
| P/B | 7.16 | ||
| P/tB | 10.77 | ||
| EV/EBITDA | 216.69 |
EPS(TTM)0.47
EY0.57%
EPS(NY)0.77
Fwd EY0.92%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)0.06
OCFY0.08%
SpS7.19
BVpS11.61
TBVpS7.72
PEG (NY)21.04
PEG (5Y)23.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 0.74% | ||
| ROCE | 1.05% | ||
| ROIC | 0.83% | ||
| ROICexc | 1.27% | ||
| ROICexgc | 2.28% | ||
| OM | 1.95% | ||
| PM (TTM) | 1.2% | ||
| GM | 23.61% | ||
| FCFM | N/A |
ROA(3y)-0.7%
ROA(5y)0.58%
ROE(3y)-1.22%
ROE(5y)0.95%
ROIC(3y)1.26%
ROIC(5y)1.46%
ROICexc(3y)1.43%
ROICexc(5y)1.83%
ROICexgc(3y)2.78%
ROICexgc(5y)3.74%
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-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.51 | ||
| Cap/Depr | 168.22% | ||
| Cap/Sales | 5.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 16.24% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.43 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | 15 |
F-Score5
WACC9.66%
ROIC/WACC0.09
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)-4.08%
EPS 3Y15.26%
EPS 5Y7.58%
EPS Q2Q%-21.43%
EPS Next Y8.41%
EPS Next 2Y25.1%
EPS Next 3Y27.1%
EPS Next 5Y28.76%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%17.13%
Revenue Next Year14.86%
Revenue Next 2Y16.47%
Revenue Next 3Y16.91%
Revenue Next 5Y14.97%
EBIT growth 1Y-45.89%
EBIT growth 3Y3.47%
EBIT growth 5Y-4.4%
EBIT Next Year280.75%
EBIT Next 3Y88.96%
EBIT Next 5Y55.27%
FCF growth 1Y-51.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y440%
OCF growth 3Y17.29%
OCF growth 5Y10.62%