KTOS Stock Analysis: Kratos Defense & Security | NASDAQ

Unmanned Drones, Satellite Systems, Propulsion Systems, Electronic Warfare

Total Rating 30

Safety 78

Buy Signal -1.16

Aerospace & Defense
Industry Rotation: -5.1

Market Cap: 7.59B
Avg Turnover: 188M

Risk 3d forecast

Volatility47.0%

VaR 5^th Pctl7.92%

VaR vs Median2.33%

Reward TTM

Sharpe Ratio-0.91

Rel. Str. IBD2.5

Rel. Str. Peer Group3.9 pctl

Character TTM

Beta1.742

Beta Downside1.286

Hurst Exponent0.623

Choppyness71.3%

Drawdowns 3y

Max DD70.72%

CAGR/Max DD0.45

CAGR/Mean DD1.65

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 237.8

Strong Share Dilution

Fakeout

Below Avwap Earnings

Below Sma 200d

Tailwinds

No distinct edge detected

Seasonality 11.7 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 +0.0% 5

Sep -2.8% 40

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 (KTOS) is a U.S.-based technology company that designs and delivers hardware, software, and integrated systems for defense, national security, and commercial markets across North America, the Asia Pacific, the Middle East, Europe, and other international regions. The company is classified within the Industrials sector, specifically the Aerospace & Defense sub-industry, and operates as a mid-cap defense contractor.

The business is organized into two reporting segments: Kratos Government Solutions and Unmanned Systems. Its product portfolio spans virtualized ground systems for satellites and space vehicles, jet-powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion technologies for drones, missiles, and launch systems, microwave electronic products for radar and missile defense applications, counter-UAS and directed energy systems, and virtual/augmented reality training solutions for warfighters.

Kratos primarily serves U.S. national security agencies, the Department of Defense, intelligence and classified agencies, international government customers, and select commercial clients. Like most prime and sub-prime defense contractors, its revenue base is anchored by long-cycle government contracts, with unmanned systems and space-related technologies representing key growth areas tied to multi-year U.S. and allied modernization programs.

The company was incorporated in 1994 and is headquartered in San Diego, California. It was originally known as Wireless Facilities, Inc. before adopting its current name in August 1999.

Headlines to Watch Out For

Unmanned Systems segment revenue accelerates on rising DoD drone demand
DoD budget prioritizes autonomous systems and hypersonic weapons programs
International allied orders expand for Kratos tactical drone platforms

Piotroski VR-10 (Strict) 1.5

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 (118.7m): -10.48 < 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: 4.31 > 6 (EBIT TTM 45.3m / Interest Expense TTM 10.5m)

Altman Z'' 8.12

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 45.3m / Avg Total Assets 3.34b)
D: 5.17 (Book Value of Equity 3.43b / Total Liabilities 663.0m)
Altman-Z'' = 8.12 = 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 October 25, 2026, the stock is trading at USD 38.68 with a total of 4,198,308 shares traded. Over the past week, the price has changed by -4.30%, over one month by -16.20%, over three months by -21.76% and over the past year by -56.70%.

Current recommended Stop Loss: 36.00 (which is 6.9% 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 4.67. Therefore, it is recommended to buy KTOS.

StrongBuy: 17
Buy: 6
Hold: 1
Sell: 0
StrongSell: 0

What are the forecasts/targets for the KTOS price?

Analysts Target Price	98.3	154.2%

Kratos Defense & Security (KTOS) - Fundamental Data Overview as of 18 October 2026

Market Cap USD = 7.59b (7.59b USD * 1.0 USD.USD)
P/E Trailing = 237.7647
P/E Forward = 45.2489
P/S = 4.9784
P/B = 2.5287
P/EG = 34.1186
Revenue TTM = 1.52b USD
EBIT TTM = 45.3m USD
EBITDA TTM = 118.7m 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 = 6.34b USD (7.59b + Debt 193.6m - CCE 1.44b)
Interest Coverage Ratio = 4.31 (Ebit TTM 45.3m / Interest Expense TTM 10.5m)
EV/FCF = -49.21x (Enterprise Value 6.34b / FCF TTM -128.9m)
FCF Yield = -2.03% (FCF TTM -128.9m / Enterprise Value 6.34b)
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 = 1.55 (Enterprise Value 6.34b / Total Assets 4.09b)
Interest Expense / Debt = 5.42% (Interest Expense 10.5m / Debt 193.6m)
Taxrate = 24.26% (9.90m / 40.8m)
NOPAT = 34.3m (EBIT 45.3m * (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 = -10.48 (Net Debt -1.24b / EBITDA 118.7m)
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 = 1.57% (EBIT 45.3m / Capital Employed (Equity 2.70b + L.T.Debt 174.7m))
RoIC = 0.95% (NOPAT 34.3m / Invested Capital 3.61b)
WACC = 11.31% (E(7.59b)/V(7.78b) * Re(11.49%) + D(193.6m)/V(7.78b) * Rd(5.42%) * (1-Tc(0.24)))
Discount Rate = 11.49% (= 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=+0.70% | Revisions=-21% | Analysts=18
EPS current Year (2026-12-31): EPS=0.81 | Chg30d=+0.39% | Revisions=+47% | GrowthEPS=+48.1% | GrowthRev=+33.3%
EPS next Year (2027-12-31): EPS=1.11 | Chg30d=+1.13% | Revisions=+40% | GrowthEPS=+36.7% | GrowthRev=+23.8%
[Analyst] Revisions Ratio: +23% (up=17, down=10)