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KRATOS DEFENSE & SECURITY (KTOS) Stock Fundamental Analysis

NASDAQ:KTOS - US50077B2079 - Common Stock

65.84 USD
-2.67 (-3.9%)
Last: 8/29/2025, 8:00:02 PM
66.5 USD
+0.66 (+1%)
After Hours: 8/29/2025, 8:00:02 PM
Fundamental Rating

4

KTOS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. While KTOS seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, KTOS is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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3

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.
KTOS Yearly Net Income VS EBIT VS OCF VS FCFKTOS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M 150M 200M

1.2 Ratios

KTOS has a Return On Assets (0.56%) which is in line with its industry peers.
KTOS's Return On Equity of 0.74% is in line compared to the rest of the industry. KTOS outperforms 42.03% 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 40.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KTOS is significantly below the industry average of 8.50%.
Industry RankSector 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%
KTOS Yearly ROA, ROE, ROICKTOS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -10 -20

1.3 Margins

KTOS's Profit Margin of 1.20% is in line compared to the rest of the industry. KTOS outperforms 43.48% of its industry peers.
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 40.58% of the companies in the same industry.
In the last couple of years the Operating Margin of KTOS has declined.
KTOS has a Gross Margin (23.61%) which is in line with its industry peers.
In the last couple of years the Gross Margin of KTOS has remained more or less at the same level.
Industry RankSector 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%
KTOS Yearly Profit, Operating, Gross MarginsKTOS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

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6

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.
KTOS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KTOS has more shares outstanding
Compared to 1 year ago, KTOS has an improved debt to assets ratio.
KTOS Yearly Shares OutstandingKTOS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
KTOS Yearly Total Debt VS Total AssetsKTOS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

KTOS has an Altman-Z score of 11.31. This indicates that KTOS is financially healthy and has little risk of bankruptcy at the moment.
KTOS has a better Altman-Z score (11.31) than 89.86% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that KTOS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, KTOS is in the better half of the industry, outperforming 76.81% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF N/A
Altman-Z 11.31
ROIC/WACC0.08
WACC9.93%
KTOS Yearly LT Debt VS Equity VS FCFKTOS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

KTOS has a Current Ratio of 4.43. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
KTOS has a Current ratio of 4.43. This is amongst the best in the industry. KTOS outperforms 91.30% of its industry peers.
A Quick Ratio of 3.88 indicates that KTOS has no problem at all paying its short term obligations.
KTOS's Quick ratio of 3.88 is amongst the best of the industry. KTOS outperforms 94.20% of its industry peers.
Industry RankSector Rank
Current Ratio 4.43
Quick Ratio 3.88
KTOS Yearly Current Assets VS Current LiabilitesKTOS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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6

3. Growth

3.1 Past

The earnings per share for KTOS have decreased by -4.08% in the last year.
Measured over the past 5 years, KTOS shows a small growth in Earnings Per Share. The EPS has been growing by 7.58% on average per year.
The Revenue has been growing slightly by 7.76% in the past year.
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 26.81% on average per year.
KTOS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.66% yearly.
EPS Next Y7.72%
EPS Next 2Y25.12%
EPS Next 3Y27.1%
EPS Next 5Y26.81%
Revenue Next Year14.95%
Revenue Next 2Y16.62%
Revenue Next 3Y16.85%
Revenue Next 5Y14.66%

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.
KTOS Yearly Revenue VS EstimatesKTOS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B 2.5B
KTOS Yearly EPS VS EstimatesKTOS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.5 -0.5 1 1.5

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 140.09, which means the current valuation is very expensive for KTOS.
The rest of the industry has a similar Price/Earnings ratio as KTOS.
The average S&P500 Price/Earnings ratio is at 27.08. KTOS is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 85.84, KTOS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, KTOS is valued a bit more expensive than 60.87% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.72. KTOS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 140.09
Fwd PE 85.84
KTOS Price Earnings VS Forward Price EarningsKTOS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, KTOS is valued a bit more expensive than the industry average as 63.77% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 125.62
KTOS Per share dataKTOS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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 27.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)18.14
PEG (5Y)18.47
EPS Next 2Y25.12%
EPS Next 3Y27.1%

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0

5. Dividend

5.1 Amount

No dividends for KTOS!.
Industry RankSector Rank
Dividend Yield N/A

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KRATOS DEFENSE & SECURITY

NASDAQ:KTOS (8/29/2025, 8:00:02 PM)

After market: 66.5 +0.66 (+1%)

65.84

-2.67 (-3.9%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-05 2025-11-05/amc
Inst Owners96.63%
Inst Owner Change8.78%
Ins Owners1.59%
Ins Owner Change-0.63%
Market Cap11.11B
Analysts81
Price Target72.26 (9.75%)
Short Float %6.02%
Short Ratio2.05
Dividend
Industry RankSector 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)42.21%
PT rev (3m)102.42%
EPS NQ rev (1m)-6.58%
EPS NQ rev (3m)-15.58%
EPS NY rev (1m)1.64%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)-1.38%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)2.06%
Valuation
Industry RankSector Rank
PE 140.09
Fwd PE 85.84
P/S 9.16
P/FCF N/A
P/OCF 1028.99
P/B 5.67
P/tB 8.53
EV/EBITDA 125.62
EPS(TTM)0.47
EY0.71%
EPS(NY)0.77
Fwd EY1.17%
FCF(TTM)-0.36
FCFYN/A
OCF(TTM)0.06
OCFY0.1%
SpS7.19
BVpS11.61
TBVpS7.72
PEG (NY)18.14
PEG (5Y)18.47
Profitability
Industry RankSector 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 RankSector Rank
Debt/Equity 0.12
Debt/FCF N/A
Debt/EBITDA 2.77
Cap/Depr 119.21%
Cap/Sales 5.94%
Interest Coverage 250
Cash Conversion 12.84%
Profit Quality N/A
Current Ratio 4.43
Quick Ratio 3.88
Altman-Z 11.31
F-Score5
WACC9.93%
ROIC/WACC0.08
Cap/Depr(3y)126.07%
Cap/Depr(5y)141.02%
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 Y7.72%
EPS Next 2Y25.12%
EPS Next 3Y27.1%
EPS Next 5Y26.81%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%17.13%
Revenue Next Year14.95%
Revenue Next 2Y16.62%
Revenue Next 3Y16.85%
Revenue Next 5Y14.66%
EBIT growth 1Y-45.89%
EBIT growth 3Y3.47%
EBIT growth 5Y-4.4%
EBIT Next Year285.86%
EBIT Next 3Y84.89%
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%