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KTOS

Kratos Defense & Security SolutionsNasdaqGS:KTOS Stock Report

Market Cap

US$2.8b

7D

0%

1Y

4.1%

Updated

24 Oct, 2021

Data

Company Financials +
KTOS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
Financial Health4/6
Dividends0/6

KTOS Overview

Kratos Defense & Security Solutions, Inc.

Kratos Defense & Security Solutions Competitors

Raytheon Technologies

NYSE:RTX

US$137.7b

Boeing

NYSE:BA

US$124.8b

Lockheed Martin

NYSE:LMT

US$103.7b

Northrop Grumman

NYSE:NOC

US$65.0b

Price History & Performance

Summary of all time highs, changes and price drops for Kratos Defense & Security Solutions
Historical stock prices
Current Share PriceUS$22.48
52 Week HighUS$18.22
52 Week LowUS$34.11
Beta0.82
1 Month Change-1.23%
3 Month Change-17.66%
1 Year Change4.07%
3 Year Change78.70%
5 Year Change295.78%
Change since IPO-96.37%

Recent News & Updates

Oct 15
Here's Why We Think Kratos Defense & Security Solutions (NASDAQ:KTOS) Is Well Worth Watching

Here's Why We Think Kratos Defense & Security Solutions (NASDAQ:KTOS) Is Well Worth Watching

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Sep 28
Kratos Defense & Security Solutions (NASDAQ:KTOS) Has A Pretty Healthy Balance Sheet

Kratos Defense & Security Solutions (NASDAQ:KTOS) Has A Pretty Healthy Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

KTOSUS Aerospace & DefenseUS Market
7D0%1.4%1.7%
1Y4.1%31.0%30.3%

Return vs Industry: KTOS underperformed the US Aerospace & Defense industry which returned 31% over the past year.

Return vs Market: KTOS underperformed the US Market which returned 30.3% over the past year.

Price Volatility

Is KTOS's price volatile compared to industry and market?
KTOS volatility
KTOS Beta0.82
Industry Beta1.03
Market Beta1

Stable Share Price: KTOS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KTOS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19943,200Eric DeMarcohttps://www.kratosdefense.com

Kratos Defense & Security Solutions, Inc. operates as a government contractor of the U.S. Department of Defense. The company operates through two segments, Kratos Government Solutions and Unmanned Systems.

Kratos Defense & Security Solutions Fundamentals Summary

How do Kratos Defense & Security Solutions's earnings and revenue compare to its market cap?
KTOS fundamental statistics
Market CapUS$2.79b
Earnings (TTM)US$84.10m
Revenue (TTM)US$807.70m

33.1x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KTOS income statement (TTM)
RevenueUS$807.70m
Cost of RevenueUS$593.30m
Gross ProfitUS$214.40m
ExpensesUS$130.30m
EarningsUS$84.10m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.68
Gross Margin26.54%
Net Profit Margin10.41%
Debt/Equity Ratio31.6%

How did KTOS perform over the long term?

See historical performance and comparison

Valuation

Is Kratos Defense & Security Solutions undervalued compared to its fair value and its price relative to the market?

26.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KTOS ($22.48) is trading below our estimate of fair value ($30.73)

Significantly Below Fair Value: KTOS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KTOS is poor value based on its PE Ratio (33.1x) compared to the US Aerospace & Defense industry average (20.6x).

PE vs Market: KTOS is poor value based on its PE Ratio (33.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: KTOS is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: KTOS's PB Ratio (3x) is in line with the US Aerospace & Defense industry average.


Future Growth

How is Kratos Defense & Security Solutions forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

26.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KTOS's forecast earnings growth (26.7% per year) is above the savings rate (2%).

Earnings vs Market: KTOS's earnings (26.7% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KTOS's revenue (11.5% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: KTOS's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KTOS's Return on Equity is forecast to be low in 3 years time (6.5%).


Past Performance

How has Kratos Defense & Security Solutions performed over the past 5 years?

74.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KTOS has high quality earnings.

Growing Profit Margin: KTOS's current net profit margins (10.4%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: KTOS has become profitable over the past 5 years, growing earnings by 74.3% per year.

Accelerating Growth: KTOS's earnings growth over the past year (1321.7%) exceeds its 5-year average (74.3% per year).

Earnings vs Industry: KTOS earnings growth over the past year (1321.7%) exceeded the Aerospace & Defense industry 1.8%.


Return on Equity

High ROE: KTOS's Return on Equity (8.8%) is considered low.


Financial Health

How is Kratos Defense & Security Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: KTOS's short term assets ($768.7M) exceed its short term liabilities ($202.1M).

Long Term Liabilities: KTOS's short term assets ($768.7M) exceed its long term liabilities ($409.7M).


Debt to Equity History and Analysis

Debt Level: KTOS's debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: KTOS's debt to equity ratio has reduced from 195.3% to 31.6% over the past 5 years.

Debt Coverage: KTOS's debt is not well covered by operating cash flow (18.4%).

Interest Coverage: KTOS's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Dividend

What is Kratos Defense & Security Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KTOS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KTOS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KTOS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KTOS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KTOS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Eric DeMarco (57 yo)

17.5yrs

Tenure

US$8,236,370

Compensation

Mr. Eric M. DeMarco has been the Chief Executive Officer of Kratos Defense & Security Solutions, Inc. (alternatively, Wireless Facilities Inc.) since April 1, 2004 and as its President since November 24, 2...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD8.24M) is above average for companies of similar size in the US market ($USD5.18M).

Compensation vs Earnings: Eric's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: KTOS's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: KTOS's board of directors are seasoned and experienced ( 12.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kratos Defense & Security Solutions, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Kratos Defense & Security Solutions, Inc.
  • Ticker: KTOS
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$2.787b
  • Shares outstanding: 123.96m
  • Website: https://www.kratosdefense.com

Number of Employees


Location

  • Kratos Defense & Security Solutions, Inc.
  • 10680 Treena Street
  • Suite 600
  • San Diego
  • California
  • 92131
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 22:16
End of Day Share Price2021/10/22 00:00
Earnings2021/06/27
Annual Earnings2020/12/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.