KRATOS DEFENSE & SECURITY (KTOS)
US50077B2079 - Common Stock
Taking everything into account, KTOS scores 4 out of 10 in our fundamental rating. KTOS was compared to 63 industry peers in the Aerospace & Defense industry. KTOS has only an average score on both its financial health and profitability. While showing a medium growth rate, KTOS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year KTOS was profitable.
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
Looking at the Return On Assets, with a value of -0.55%, KTOS is in line with its industry, outperforming 47.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.91%, KTOS is in line with its industry, outperforming 50.79% of the companies in the same industry.
KTOS's Return On Invested Capital of 1.91% is in line compared to the rest of the industry. KTOS outperforms 44.44% 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 8.72%.
The last Return On Invested Capital (1.91%) for KTOS is above the 3 year average (1.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.55% | ||
| ROE | -0.91% | ||
| ROIC | 1.91% |
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 of 3.12%. This is comparable to the rest of the industry: KTOS outperforms 44.44% of its industry peers.
In the last couple of years the Operating Margin of KTOS has declined.
KTOS's Gross Margin of 25.90% is fine compared to the rest of the industry. KTOS outperforms 60.32% of its industry peers.
In the last couple of years the Gross Margin of KTOS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.12% | ||
| PM (TTM) | N/A | ||
| GM | 25.9% |
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
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
An Altman-Z score of 2.76 indicates that KTOS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.76, KTOS perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
The Debt to FCF ratio of KTOS is 21.21, which is on the high side as it means it would take KTOS, 21.21 years of fcf income to pay off all of its debts.
KTOS has a Debt to FCF ratio (21.21) which is in line with its industry peers.
A Debt/Equity ratio of 0.28 indicates that KTOS is not too dependend on debt financing.
KTOS has a Debt to Equity ratio of 0.28. This is in the better half of the industry: KTOS outperforms 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 21.21 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.21
WACC9.12%
2.3 Liquidity
A Current Ratio of 2.03 indicates that KTOS has no problem at all paying its short term obligations.
KTOS's Current ratio of 2.03 is in line compared to the rest of the industry. KTOS outperforms 53.97% of its industry peers.
A Quick Ratio of 1.50 indicates that KTOS should not have too much problems paying its short term obligations.
KTOS has a Quick ratio of 1.50. This is in the better half of the industry: KTOS outperforms 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.44% 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 15.45% 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)44.44%
EPS 3Y0%
EPS 5Y10.2%
EPS growth Q2Q50%
Revenue 1Y (TTM)15.45%
Revenue growth 3Y11.52%
Revenue growth 5Y10.91%
Revenue growth Q2Q9.83%
3.2 Future
The Earnings Per Share is expected to grow by 17.01% on average over the next years. This is quite good.
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 5YN/A
Revenue Next Year11.95%
Revenue Next 2Y11%
Revenue Next 3Y10.46%
Revenue Next 5Y6.83%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 47.54 indicates a quite expensive valuation of KTOS.
KTOS's Price/Earnings is on the same level as the industry average.
KTOS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.28.
A Price/Forward Earnings ratio of 42.81 indicates a quite expensive valuation of KTOS.
KTOS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.88. KTOS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.54 | ||
| Fwd PE | 42.81 |
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.
KTOS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 212.43 | ||
| EV/EBITDA | 43.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KTOS's earnings are expected to grow with 17.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.31
PEG (5Y)4.66
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 (5/3/2024, 7:02:38 PM)
After market: 18.54 0 (0%)18.54
+0.45 (+2.49%)
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 Cap2.72B
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 | 47.54 | ||
| Fwd PE | 42.81 | ||
| 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)4.31
PEG (5Y)4.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.55% | ||
| ROE | -0.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.12% | ||
| PM (TTM) | N/A | ||
| GM | 25.9% | ||
| 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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.5 | ||
| 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)44.44%
EPS 3Y0%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.45%
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