KTOS Stock Analysis: Kratos Defense & Security | NASDAQ
Aerospace & Defense | NASDAQ, USA | Market Cap: 10.141m USD | 12M Return: 6.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 251M
EPS Trend: 81.6%
Qual. Beats: 13
Rev. Trend: 98.1%
Qual. Beats: 5
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Kratos Defense & Security Solutions (NASDAQ: KTOS) is a U.S.-based defense technology company founded in 1994 and headquartered in San Diego, California. Originally named Wireless Facilities, Inc., the company adopted its current name in August 1999. Kratos operates through two business segments-Kratos Government Solutions and Unmanned Systems-serving defense, national security, and commercial customers across the United States, North America, Asia Pacific, the Middle East, Europe, and other international markets.
The companys product portfolio spans a wide range of defense-related technologies, including virtualized ground systems for satellite command and control, jet-powered unmanned aerial drone systems, hypersonic vehicles, rocket and propulsion systems, microwave electronic products, counter-unmanned aircraft systems (C-UAS), directed energy systems, and virtual/augmented reality training solutions for warfighters. Its customer base is anchored by the U.S. Department of Defense, intelligence and classified agencies, international government agencies, and select commercial clients.
As a large-cap company in the Industrials sector (Aerospace & Defense sub-industry), Kratos operates within a U.S. defense industry that is characterized by long procurement cycles, multi-year government contracts, and primary reliance on DoD and allied-nation spending. Kratos is particularly notable in the unmanned aerial target drone niche, where it supplies high-performance jet-powered drones used by the U.S. military and allied forces for weapons testing and combat training exercises.
- Unmanned drone demand drives segment revenue growth
- Hypersonic and directed energy program awards accelerate
- Unmanned Systems margins pressured by production scaling costs
| Net Income: 29.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA -1.10 > 1.0 |
| NWC/Revenue: 134.2% < 20% (prev 48.16%; Δ 86.07% < -1%) |
| CFO/TA -0.01 > 3% & CFO -41.4m > Net Income 29.4m |
| Net Debt (-1.28b) to EBITDA (109.0m): -11.73 < 3 |
| Current Ratio: 5.63 > 1.5 & < 3 |
| Outstanding Shares: last quarter (179.4m) vs 12m ago 14.85% < -2% |
| Gross Margin: 21.80% > 18% (prev 24.95%; Δ -3.15% > 0.5%) |
| Asset Turnover: 46.80% > 50% (prev 57.94%; Δ -11.14% > 0%) |
| Interest Coverage Ratio: 3.06 > 6 (EBIT TTM 42.9m / Interest Expense TTM 14.0m) |
| A: 0.47 (Total Current Assets 2.31b - Total Current Liabilities 410.7m) / Total Assets 4.04b |
| B: -0.16 (Retained Earnings -630.0m / Total Assets 4.04b) |
| C: 0.01 (EBIT TTM 42.9m / Avg Total Assets 3.02b) |
| D: 5.39 (Book Value of Equity 3.41b / Total Liabilities 632.7m) |
| Altman-Z'' = 8.33 = AAA |
| DSRI: 1.20 (Receivables 528.6m/362.5m, Revenue 1.42b/1.16b) |
| GMI: 1.14 (GM 24.95% / 21.80%) |
| AQI: 0.79 (AQ_t 0.31 / AQ_t-1 0.40) |
| SGI: 1.22 (Revenue 1.42b / 1.16b) |
| TATA: 0.02 (NI 29.4m - CFO -41.4m) / TA 4.04b) |
| Beneish M = -2.70 (Cap -4..+1) = A |
As of July 10, 2026, the stock is trading at USD 48.85 with a total of 3,102,869 shares traded. Over the past week, the price has changed by -7.90%, over one month by -13.06%, over three months by -28.51% and over the past year by +6.15%.
Current recommended Stop Loss: 44.20 (which is 9.5% or 1.3 ATR below the current price).
Kratos Defense & Security has received a consensus analysts rating of 4.42. Therefore, it is recommended to buy KTOS.
- StrongBuy: 12
- Buy: 3
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 109.9 | 124.9% |
P/E Trailing = 318.1177
P/E Forward = 92.5926
P/S = 7.3341
P/B = 3.0438
P/EG = 36.4068
Revenue TTM = 1.42b USD
EBIT TTM = 42.9m USD
EBITDA TTM = 109.0m USD
Long Term Debt = 166.7m USD (estimated: total debt 185.4m - short term 18.7m)
Short Term Debt = 18.7m USD (from shortTermDebt, last quarter)
Debt = 185.4m USD (from shortLongTermDebtTotal, last quarter) (leases 185.4m already included)
Net Debt = -1.28b USD (calculated: Debt 185.4m - CCE 1.46b)
Enterprise Value = 8.86b USD (10.1b + Debt 185.4m - CCE 1.46b)
Interest Coverage Ratio = 3.06 (Ebit TTM 42.9m / Interest Expense TTM 14.0m)
EV/FCF = -66.14x (Enterprise Value 8.86b / FCF TTM -134.0m)
FCF Yield = -1.51% (FCF TTM -134.0m / Enterprise Value 8.86b)
FCF Margin = -9.47% (FCF TTM -134.0m / Revenue TTM 1.42b)
Net Margin = 2.08% (Net Income TTM 29.4m / Revenue TTM 1.42b)
Gross Margin = 21.80% ((Revenue TTM 1.42b - Cost of Revenue TTM 1.11b) / Revenue TTM)
Gross Margin QoQ = 22.59% (prev 21.39%)
Tobins Q-Ratio = 2.19 (Enterprise Value 8.86b / Total Assets 4.04b)
Interest Expense / Debt = 7.55% (Interest Expense 14.0m / Debt 185.4m)
Taxrate = 23.44% (9.00m / 38.4m)
NOPAT = 32.8m (EBIT 42.9m * (1 - 23.44%))
Current Ratio = 5.63 (Total Current Assets 2.31b / Total Current Liabilities 410.7m)
Debt / Equity = 0.05 (Debt 185.4m / totalStockholderEquity, last quarter 3.41b)
Debt / EBITDA = -11.73 (Net Debt -1.28b / EBITDA 109.0m)
Debt / FCF = 9.54 (negative FCF - burning cash) (Net Debt -1.28b / FCF TTM -134.0m)
Total Stockholder Equity = 2.34b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.97% (Net Income 29.4m / Total Assets 4.04b)
RoE = 1.26% (Net Income TTM 29.4m / Total Stockholder Equity 2.34b)
RoCE = 1.71% (EBIT 42.9m / Capital Employed (Equity 2.34b + L.T.Debt 166.7m))
RoIC = 0.92% (NOPAT 32.8m / Invested Capital 3.58b)
WACC = 10.47% (E(10.1b)/V(10.3b) * Re(10.56%) + D(185.4m)/V(10.3b) * Rd(7.55%) * (1-Tc(0.23)))
Discount Rate = 10.56% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 13.70%
[DCF] Fair Price = unknown (Cash Flow -134.0m)
EPS Correlation: 81.62 | EPS CAGR: 15.77% | SUE: 1.71 | # QB: 13
Revenue Correlation: 98.10 | Revenue CAGR: 13.31% | SUE: 1.56 | # QB: 5
EPS current Quarter (2026-06-30): EPS=0.14 | Chg30d=-0.28% | Revisions=+0% | Analysts=15
EPS next Quarter (2026-09-30): EPS=0.20 | Chg30d=+0.25% | Revisions=+0% | Analysts=15
EPS current Year (2026-12-31): EPS=0.76 | Chg30d=+0.53% | Revisions=+0% | GrowthEPS=+39.0% | GrowthRev=+29.5%
EPS next Year (2027-12-31): EPS=1.08 | Chg30d=+0.35% | Revisions=+0% | GrowthEPS=+40.9% | GrowthRev=+24.2%
[Analyst] Revisions Ratio: +0% (up=0, down=0)