73.13 USD
-1.13 (-1.52%)
72.66 USD
-0.47 (-0.64%)
We assign a fundamental rating of 4 out of 10 to KTOS. KTOS was compared to 71 industry peers in the Aerospace & Defense industry. While KTOS seems to be doing ok healthwise, there are quite some concerns on its profitability. KTOS shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
KTOS had positive earnings in the past year.
KTOS had a negative operating cash flow in the past year.
In multiple years KTOS reported negative net income over the last 5 years.
KTOS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of KTOS (0.83%) is comparable to the rest of the industry.
KTOS has a Return On Equity (1.01%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 0.90%, KTOS is in line with its industry, outperforming 42.25% of the companies in the same industry.
KTOS had an Average Return On Invested Capital over the past 3 years of 1.26%. This is significantly below the industry average of 8.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 1.01% | ||
| ROIC | 0.9% |
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
KTOS has a Profit Margin of 1.56%. This is comparable to the rest of the industry: KTOS outperforms 47.89% of its industry peers.
In the last couple of years the Profit Margin of KTOS has declined.
KTOS has a Operating Margin of 1.89%. This is comparable to the rest of the industry: KTOS outperforms 40.85% of its industry peers.
In the last couple of years the Operating Margin of KTOS has declined.
KTOS has a Gross Margin of 22.91%. This is comparable to the rest of the industry: KTOS outperforms 42.25% of its industry peers.
KTOS'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
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.
KTOS has more shares outstanding than it did 5 years ago.
KTOS has a better debt/assets ratio than last year.
2.2 Solvency
KTOS has an Altman-Z score of 17.43. This indicates that KTOS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 17.43, KTOS belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that KTOS is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.04, KTOS belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 17.43 |
ROIC/WACC0.09
WACC10.07%
2.3 Liquidity
KTOS has a Current Ratio of 4.30. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 4.30, KTOS is doing good in the industry, outperforming 78.87% of the companies in the same industry.
KTOS has a Quick Ratio of 3.68. This indicates that KTOS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.68, KTOS belongs to the top of the industry, outperforming 85.92% 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.
Looking at the last year, KTOS shows a quite strong growth in Revenue. The Revenue has grown by 14.00% in the last 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)4.17%
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
Based on estimates for the next years, KTOS will show a very strong growth in Earnings Per Share. The EPS will grow by 30.95% on average per year.
KTOS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.43% yearly.
EPS Next Y11.04%
EPS Next 2Y25.66%
EPS Next 3Y30.91%
EPS Next 5Y30.95%
Revenue Next Year16.41%
Revenue Next 2Y18.26%
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.
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
KTOS is valuated quite expensively with a Price/Earnings ratio of 146.26.
KTOS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.43. KTOS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 94.51, which means the current valuation is very expensive for KTOS.
KTOS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.66. KTOS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 146.26 | ||
| Fwd PE | 94.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KTOS is valued a bit more expensive than 66.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 172.78 |
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.
A more expensive valuation may be justified as KTOS's earnings are expected to grow with 30.91% in the coming years.
PEG (NY)13.25
PEG (5Y)19.29
EPS Next 2Y25.66%
EPS Next 3Y30.91%
5. Dividend
5.1 Amount
No dividends for KTOS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
73.13
-1.13 (-1.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners93.99%
Inst Owner Change-9.6%
Ins Owners1.49%
Ins Owner Change-10.03%
Market Cap12.35B
Revenue(TTM)1.28B
Net Income(TTM)20.00M
Analysts83.48
Price Target100.19 (37%)
Short Float %5.57%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)13.02%
Min EPS beat(2)10.18%
Max EPS beat(2)15.86%
EPS beat(4)4
Avg EPS beat(4)19.67%
Min EPS beat(4)10.18%
Max EPS beat(4)26.87%
EPS beat(8)8
Avg EPS beat(8)39.86%
EPS beat(12)12
Avg EPS beat(12)35.51%
EPS beat(16)16
Avg EPS beat(16)42.04%
Revenue beat(2)2
Avg Revenue beat(2)9.21%
Min Revenue beat(2)5.74%
Max Revenue beat(2)12.68%
Revenue beat(4)3
Avg Revenue beat(4)4.11%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)12.68%
Revenue beat(8)6
Avg Revenue beat(8)4.32%
Revenue beat(12)10
Avg Revenue beat(12)4.27%
Revenue beat(16)11
Avg Revenue beat(16)3.21%
PT rev (1m)4.53%
PT rev (3m)36.21%
EPS NQ rev (1m)-5.12%
EPS NQ rev (3m)-6.26%
EPS NY rev (1m)1.81%
EPS NY rev (3m)3.08%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 146.26 | ||
| Fwd PE | 94.51 | ||
| P/S | 9.61 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.23 | ||
| P/tB | 9.29 | ||
| EV/EBITDA | 172.78 |
EPS(TTM)0.5
EY0.68%
EPS(NY)0.77
Fwd EY1.06%
FCF(TTM)-0.55
FCFYN/A
OCF(TTM)-0.05
OCFYN/A
SpS7.61
BVpS11.74
TBVpS7.87
PEG (NY)13.25
PEG (5Y)19.29
Graham Number11.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 1.01% | ||
| ROCE | 1.14% | ||
| ROIC | 0.9% | ||
| ROICexc | 1.22% | ||
| ROICexgc | 2.09% | ||
| OM | 1.89% | ||
| PM (TTM) | 1.56% | ||
| GM | 22.91% | ||
| 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%
ROICexgc growth 3Y-8.73%
ROICexgc 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-Score4
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 190.77% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.3 | ||
| Quick Ratio | 3.68 | ||
| Altman-Z | 17.43 |
F-Score4
WACC10.07%
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)4.17%
EPS 3Y15.26%
EPS 5Y7.58%
EPS Q2Q%27.27%
EPS Next Y11.04%
EPS Next 2Y25.66%
EPS Next 3Y30.91%
EPS Next 5Y30.95%
Revenue 1Y (TTM)14%
Revenue growth 3Y11.88%
Revenue growth 5Y9.63%
Sales Q2Q%25.99%
Revenue Next Year16.41%
Revenue Next 2Y18.26%
Revenue Next 3Y19.55%
Revenue Next 5Y17.43%
EBIT growth 1Y-36.55%
EBIT growth 3Y3.47%
EBIT growth 5Y-4.4%
EBIT Next Year288.37%
EBIT Next 3Y94.44%
EBIT Next 5Y59.75%
FCF growth 1Y-139.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-282.98%
OCF growth 3Y17.29%
OCF growth 5Y10.62%
KRATOS DEFENSE & SECURITY / KTOS FAQ
Can you provide the ChartMill fundamental rating for KRATOS DEFENSE & SECURITY?
ChartMill assigns a fundamental rating of 4 / 10 to KTOS.
Can you provide the valuation status for KRATOS DEFENSE & SECURITY?
ChartMill assigns a valuation rating of 1 / 10 to KRATOS DEFENSE & SECURITY (KTOS). This can be considered as Overvalued.
What is the profitability of KTOS stock?
KRATOS DEFENSE & SECURITY (KTOS) has a profitability rating of 3 / 10.
How financially healthy is KRATOS DEFENSE & SECURITY?
The financial health rating of KRATOS DEFENSE & SECURITY (KTOS) is 6 / 10.