KTOS Stock Analysis: Kratos Defense & Security | NASDAQ

Unmanned Drones, Hypersonic Vehicles, Microwave Electronics, Virtual Training

Total Rating 29

Safety 75

Buy Signal -0.51

Aerospace & Defense
Industry Rotation: -1.0

Market Cap: 11.6B
Avg Turnover: 211M

Risk 3d forecast

Volatility74.3%

VaR 5^th Pctl12.6%

VaR vs Median3.18%

Reward TTM

Sharpe Ratio-0.03

Rel. Str. IBD4.3

Rel. Str. Peer Group9.8

Character TTM

Beta1.759

Beta Downside1.277

Hurst Exponent0.575

Drawdowns 3y

Max DD66.43%

CAGR/Max DD0.76

CAGR/Mean DD3.15

EPS (Earnings per Share)

EPS CAGR: 14.96%
EPS Trend: 81.8%

Last SUE: 4.00
Qual. Beats: 14

Revenue

Rev. CAGR: 14.56%
Rev. Trend: 97.2%

Last SUE: 2.90
Qual. Beats: 6

Warnings

P/E Ratio 364.6

Strong Share Dilution

Below Avwap Earnings

Below Sma 200d

Tailwinds

Pead

Seasonality 11.6 years of data

Jan +3.9% 18

Feb +1.1% 8

Mar -6.3% 17

Apr -3.3% 31

May +3.6% 18

Jun +3.2% 19

Jul +5.7% 20

Aug -0.1% 5

Sep -2.9% 37

Oct -3.6% 35

Nov -1.4% 2

Dec +0.0% 0

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.

Description: KTOS Kratos Defense & Security

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.

Headlines to Watch Out For

Unmanned drone demand drives segment revenue growth
Hypersonic and directed energy program awards accelerate
Unmanned Systems margins pressured by production scaling costs

Piotroski VR-10 (Strict) 1.0

Net Income: 30.9m TTM > 0 and > 6% of Revenue
FCF/TA: -0.03 > 0.02 and ΔFCF/TA -0.78 > 1.0
NWC/Revenue: 126.8% < 20% (prev 91.21%; Δ 35.63% < -1%)
CFO/TA -0.01 > 3% & CFO -39.6m > Net Income 30.9m
Net Debt (-1.24b) to EBITDA (118.5m): -10.50 < 3
Current Ratio: 5.54 > 1.5 & < 3
Outstanding Shares: last quarter (190.1m) vs 12m ago 20.78% < -2%
Gross Margin: 21.99% > 18% (prev 23.61%; Δ -1.62% > 0.5%)
Asset Turnover: 45.61% > 50% (prev 46.92%; Δ -1.30% > 0%)
Interest Coverage Ratio: 2.68 > 6 (EBIT TTM 28.1m / Interest Expense TTM 10.5m)

Altman Z'' 8.08

A: 0.47 (Total Current Assets 2.36b - Total Current Liabilities 425.3m) / Total Assets 4.09b
B: -0.15 (Retained Earnings -625.6m / Total Assets 4.09b)
C: 0.01 (EBIT TTM 28.1m / Avg Total Assets 3.34b)
D: 5.17 (Book Value of Equity 3.43b / Total Liabilities 663.0m)
Altman-Z'' = 8.08 = AAA

Beneish M -2.65

DSRI: 1.15 (Receivables 576.7m/398.8m, Revenue 1.52b/1.21b)
GMI: 1.07 (GM 23.61% / 21.99%)
AQI: 0.99 (AQ_t 0.31 / AQ_t-1 0.31)
SGI: 1.26 (Revenue 1.52b / 1.21b)
TATA: 0.02 (NI 30.9m - CFO -39.6m) / TA 4.09b)
Beneish M = -2.65 (Cap -4..+1) = A

What is the price of KTOS shares?

As of August 26, 2026, the stock is trading at USD 52.64 with a total of 2,329,473 shares traded. Over the past week, the price has changed by -15.08%, over one month by +6.45%, over three months by -7.32% and over the past year by -21.32%.

Current recommended Stop Loss: 47.80 (which is 9.2% or 1.3 ATR below the current price).

Is KTOS a buy, sell or hold?

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

What are the forecasts/targets for the KTOS price?

Analysts Target Price	105.6	100.6%

Kratos Defense & Security (KTOS) - Fundamental Data Overview as of 20 August 2026

Market Cap USD = 11.6b (11.6b USD * 1.0 USD.USD)
P/E Trailing = 364.6471
P/E Forward = 97.0874
P/S = 7.6432
P/B = 3.467
P/EG = 34.1186
Revenue TTM = 1.52b USD
EBIT TTM = 28.1m USD
EBITDA TTM = 118.5m USD
Long Term Debt = 174.7m USD (estimated: total debt 193.6m - short term 18.9m)
Short Term Debt = 18.9m USD (from shortTermDebt, last quarter)
Debt = 193.6m USD (from shortLongTermDebtTotal, last quarter) (leases 193.6m already included)
Net Debt = -1.24b USD (calculated: Debt 193.6m - CCE 1.44b)
Enterprise Value = 10.4b USD (11.6b + Debt 193.6m - CCE 1.44b)
Interest Coverage Ratio = 2.68 (Ebit TTM 28.1m / Interest Expense TTM 10.5m)
EV/FCF = -80.63x (Enterprise Value 10.4b / FCF TTM -128.9m)
FCF Yield = -1.24% (FCF TTM -128.9m / Enterprise Value 10.4b)
FCF Margin = -8.47% (FCF TTM -128.9m / Revenue TTM 1.52b)
Net Margin = 2.03% (Net Income TTM 30.9m / Revenue TTM 1.52b)
Gross Margin = 21.99% ((Revenue TTM 1.52b - Cost of Revenue TTM 1.19b) / Revenue TTM)
Gross Margin QoQ = 21.82% (prev 22.59%)
Tobins Q-Ratio = 2.54 (Enterprise Value 10.4b / Total Assets 4.09b)
Interest Expense / Debt = 5.42% (Interest Expense 10.5m / Debt 193.6m)
Taxrate = 24.26% (9.90m / 40.8m)
NOPAT = 21.3m (EBIT 28.1m * (1 - 24.26%))
Current Ratio = 5.54 (Total Current Assets 2.36b / Total Current Liabilities 425.3m)
Debt / Equity = 0.06 (Debt 193.6m / totalStockholderEquity, last quarter 3.43b)
Debt / EBITDA = -10.50 (Net Debt -1.24b / EBITDA 118.5m)
Debt / FCF = 9.65 (negative FCF - burning cash) (Net Debt -1.24b / FCF TTM -128.9m)
Total Stockholder Equity = 2.70b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.93% (Net Income 30.9m / Total Assets 4.09b)
RoE = 1.14% (Net Income TTM 30.9m / Total Stockholder Equity 2.70b)
RoCE = 0.98% (EBIT 28.1m / Capital Employed (Equity 2.70b + L.T.Debt 174.7m))
RoIC = 0.59% (NOPAT 21.3m / Invested Capital 3.61b)
WACC = 12.04% (E(11.6b)/V(11.8b) * Re(12.17%) + D(193.6m)/V(11.8b) * Rd(5.42%) * (1-Tc(0.24)))
Discount Rate = 12.17% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.19 | Cagr: 14.02%
[DCF] Fair Price = unknown (Cash Flow -128.9m)
EPS Correlation: 81.85 | EPS CAGR: 14.96% | SUE: 4.0 | # QB: 14
Revenue Correlation: 97.22 | Revenue CAGR: 14.56% | SUE: 2.90 | # QB: 6
EPS current Quarter (2026-09-30): EPS=0.20 | Chg30d=-1.22% | Revisions=+8% | Analysts=15
EPS current Year (2026-12-31): EPS=0.82 | Chg30d=+5.25% | Revisions=+44% | GrowthEPS=+48.6% | GrowthRev=+33.2%
EPS next Year (2027-12-31): EPS=1.12 | Chg30d=+2.40% | Revisions=+31% | GrowthEPS=+36.7% | GrowthRev=+23.5%
[Analyst] Revisions Ratio: +34% (up=22, down=10)