(KTOS) Kratos Defense & Security - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NASDAQ (USA) | Market Cap: 10.467m USD | Total Return: 47.4% in 12m
Avg Turnover: 215M
EPS Trend: 90.6%
Qual. Beats: 0
Rev. Trend: 98.1%
Qual. Beats: 5
Warnings
P/E ratio 328.4
Tailwinds
No distinct edge detected
Kratos Defense & Security Solutions (KTOS) is a technology-focused defense contractor specializing in unmanned systems, satellite communications, and propulsion technologies. The company operates through two primary segments: Kratos Government Solutions and Unmanned Systems. Its portfolio includes jet-powered aerial drones, hypersonic vehicles, virtualized ground systems for space vehicles, and microwave electronics for missile defense and radar applications.
The company operates within the high-growth aerospace and defense sector, where business models often rely on long-term government contracts and high barriers to entry due to specialized intellectual property. Unlike traditional defense primes, Kratos emphasizes rapid prototyping and the development of low-cost, attritable unmanned aerial vehicles designed for high-threat environments. Its customer base spans the U.S. Department of Defense, intelligence agencies, and international government entities.
Investors may find additional insights on company valuation and performance metrics by exploring ValueRay. Headquartered in San Diego, Kratos has evolved from its origins in wireless infrastructure to become a diversified provider of hardware and software solutions for modern electronic warfare and national security requirements.
- U.S. Air Force collaborative combat aircraft contract awards drive long-term revenue growth
- Virtualized satellite ground system adoption expands software margins and recurring revenue
- Rising global demand for high-performance target drones increases hardware production volume
- Hypersonic vehicle and propulsion system testing milestones influence major defense procurement
- Pentagon budget allocation shifts toward unmanned systems affect annual contract backlog values
| 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 (101.5m): -12.60 < 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 0.25%; Δ 2.15k% > 0.5%) |
| Asset Turnover: 46.80% > 50% (prev 57.94%; Δ -11.14% > 0%) |
| Interest Coverage Ratio: 2.53 > 6 (EBITDA TTM 101.5m / 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 35.4m / Avg Total Assets 3.02b) |
| D: -0.99 (Book Value of Equity -628.7m / Total Liabilities 632.7m) |
| Altman-Z'' = 1.61 = BB |
| DSRI: 1.20 (Receivables 528.6m/362.5m, Revenue 1.42b/1.16b) |
| GMI: 1.14 (GM 21.80% / 24.95%) |
| 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 = -2.68 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 56.18 with a total of 2,938,100 shares traded.
Over the past week, the price has changed by +7.85%,
over one month by -11.05%,
over three months by -36.33% and
over the past year by +47.38%.
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 | 112 | 99.3% |
P/E Trailing = 328.3529
P/E Forward = 138.8889
P/S = 7.3964
P/B = 2.9401
P/EG = 34.1186
Revenue TTM = 1.42b USD
EBIT TTM = 35.4m USD
EBITDA TTM = 101.5m 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 = 9.19b USD (10.5b + Debt 185.4m - CCE 1.46b)
Interest Coverage Ratio = 2.53 (Ebit TTM 35.4m / Interest Expense TTM 14.0m)
EV/FCF = -68.57x (Enterprise Value 9.19b / FCF TTM -134.0m)
FCF Yield = -1.46% (FCF TTM -134.0m / Enterprise Value 9.19b)
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 = 2.27 (Enterprise Value 9.19b / Total Assets 4.04b)
Interest Expense / Debt = 7.55% (Interest Expense 14.0m / Debt 185.4m)
Taxrate = 35.29% (12.0m / 34.0m)
NOPAT = 22.9m (EBIT 35.4m * (1 - 35.29%))
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 = -12.60 (Net Debt -1.28b / EBITDA 101.5m)
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 = 0.99% (Net Income TTM 29.4m / Total Stockholder Equity 2.97b)
RoCE = 1.13% (EBIT 35.4m / Capital Employed (Equity 2.97b + L.T.Debt 166.7m))
RoIC = 0.64% (NOPAT 22.9m / Invested Capital 3.57b)
WACC = 9.93% (E(10.5b)/V(10.7b) * Re(10.02%) + D(185.4m)/V(10.7b) * Rd(7.55%) * (1-Tc(0.35)))
Discount Rate = 10.02% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 13.70%
[DCF] Fair Price = unknown (Cash Flow -134.0m)
EPS Correlation: 90.55 | EPS CAGR: 20.44% | SUE: 0.22 | # QB: 0
Revenue Correlation: 98.10 | Revenue CAGR: 13.31% | SUE: 1.56 | # QB: 5
EPS current Quarter (2026-06-30): EPS=0.14 | Chg30d=-22.52% | Revisions=-47% | Analysts=13
EPS next Quarter (2026-09-30): EPS=0.20 | Chg30d=-5.25% | Revisions=+0% | Analysts=13
EPS current Year (2026-12-31): EPS=0.76 | Chg30d=-1.37% | Revisions=+11% | GrowthEPS=+38.3% | GrowthRev=+29.4%
EPS next Year (2027-12-31): EPS=1.07 | Chg30d=+0.51% | Revisions=+38% | GrowthEPS=+41.2% | GrowthRev=+24.2%
[Analyst] Revisions Ratio: -47%