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Kratos Defense & Security Solutions

Nasdaq:KTOS
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KTOS
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Kratos Defense & Security Solutions, Inc. The last earnings update was 70 days ago. More info.


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  • Kratos Defense & Security Solutions has significant price volatility in the past 3 months.
KTOS Share Price and Events
7 Day Returns
0.2%
NasdaqGS:KTOS
1.4%
US Aerospace & Defense
1.1%
US Market
1 Year Returns
84.4%
NasdaqGS:KTOS
5.5%
US Aerospace & Defense
4.7%
US Market
KTOS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kratos Defense & Security Solutions (KTOS) 0.2% 14.8% 64.4% 84.4% 431.9% 211.6%
US Aerospace & Defense 1.4% 4.9% 8% 5.5% 44.7% 72.1%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • KTOS outperformed the Aerospace & Defense industry which returned 5.5% over the past year.
  • KTOS outperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
KTOS
Industry
5yr Volatility vs Market

KTOS Value

 Is Kratos Defense & Security Solutions undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kratos Defense & Security Solutions to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kratos Defense & Security Solutions.

NasdaqGS:KTOS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:KTOS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.88 (1 + (1- 21%) (13.25%))
0.981
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.981 * 5.96%)
8.58%

Discounted Cash Flow Calculation for NasdaqGS:KTOS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kratos Defense & Security Solutions is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:KTOS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.58%)
2020 43.77 Analyst x6 40.32
2021 65.64 Analyst x3 55.68
2022 88.00 Analyst x1 68.75
2023 106.67 Est @ 21.21% 76.75
2024 123.38 Est @ 15.67% 81.76
2025 137.92 Est @ 11.79% 84.18
2026 150.43 Est @ 9.07% 84.56
2027 161.21 Est @ 7.17% 83.46
2028 170.62 Est @ 5.84% 81.36
2029 178.99 Est @ 4.9% 78.61
Present value of next 10 years cash flows $735.42
NasdaqGS:KTOS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $178.99 × (1 + 2.73%) ÷ (8.58% – 2.73%)
$3,144.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,144.85 ÷ (1 + 8.58%)10
$1,381.10
NasdaqGS:KTOS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $735.42 + $1,381.10
$2,116.52
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,116.52 / 105.91
$19.98
NasdaqGS:KTOS Discount to Share Price
Calculation Result
Value per share (USD) From above. $19.98
Current discount Discount to share price of $24.15
= -1 x ($24.15 - $19.98) / $19.98
-20.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Kratos Defense & Security Solutions is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kratos Defense & Security Solutions's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kratos Defense & Security Solutions's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:KTOS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.06
NasdaqGS:KTOS Share Price ** NasdaqGS (2019-07-16) in USD $24.15
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 38 Publicly-Listed Aerospace & Defense Companies 22.84x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kratos Defense & Security Solutions.

NasdaqGS:KTOS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:KTOS Share Price ÷ EPS (both in USD)

= 24.15 ÷ 0.06

386.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kratos Defense & Security Solutions is overvalued based on earnings compared to the US Aerospace & Defense industry average.
  • Kratos Defense & Security Solutions is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Kratos Defense & Security Solutions's expected growth come at a high price?
Raw Data
NasdaqGS:KTOS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 386.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
46.4%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 33 Publicly-Listed Aerospace & Defense Companies 2.06x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NasdaqGS:KTOS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 386.78x ÷ 46.4%

8.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kratos Defense & Security Solutions is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Kratos Defense & Security Solutions's assets?
Raw Data
NasdaqGS:KTOS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.22
NasdaqGS:KTOS Share Price * NasdaqGS (2019-07-16) in USD $24.15
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 55 Publicly-Listed Aerospace & Defense Companies 2.71x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGS:KTOS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:KTOS Share Price ÷ Book Value per Share (both in USD)

= 24.15 ÷ 5.22

4.62x

* Primary Listing of Kratos Defense & Security Solutions.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kratos Defense & Security Solutions is overvalued based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Kratos Defense & Security Solutions's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Kratos Defense & Security Solutions has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KTOS Future Performance

 How is Kratos Defense & Security Solutions expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
46.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kratos Defense & Security Solutions expected to grow at an attractive rate?
  • Kratos Defense & Security Solutions's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Kratos Defense & Security Solutions's earnings growth is expected to exceed the United States of America market average.
  • Kratos Defense & Security Solutions's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:KTOS Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:KTOS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 46.4%
NasdaqGS:KTOS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 14.8%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:KTOS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:KTOS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,074 63 1
2021-12-31 1,011 71 61 6
2020-12-31 857 69 39 9
2019-12-31 740 47 22 9
NasdaqGS:KTOS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 635 23 7
2018-12-30 618 10 4
2018-09-30 769 -1 -21
2018-07-01 766 -19 -28
2018-04-01 614 -15 -36
2017-12-31 603 -28 -47
2017-10-01 619 -21 -27
2017-06-25 627 -12 -45
2017-03-26 648 -10 -48
2016-12-25 542 -13 -58
2016-09-25 664 -14 -63
2016-06-26 661 -28 -35

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kratos Defense & Security Solutions's earnings are expected to grow significantly at over 20% yearly.
  • Kratos Defense & Security Solutions's revenue is expected to grow by 14.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:KTOS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Kratos Defense & Security Solutions Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:KTOS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.56 0.80 0.31 4.00
2020-12-31 0.37 0.48 0.25 7.00
2019-12-31 0.22 0.25 0.18 6.00
NasdaqGS:KTOS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.06
2018-12-30 0.04
2018-09-30 -0.20
2018-07-01 -0.28
2018-04-01 -0.37
2017-12-31 -0.52
2017-10-01 -0.34
2017-06-25 -0.62
2017-03-26 -0.73
2016-12-25 -0.94
2016-09-25 -1.05
2016-06-26 -0.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kratos Defense & Security Solutions is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kratos Defense & Security Solutions's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kratos Defense & Security Solutions has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KTOS Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kratos Defense & Security Solutions's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kratos Defense & Security Solutions has delivered over 20% year on year earnings growth in the past 5 years.
  • Kratos Defense & Security Solutions has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Kratos Defense & Security Solutions has become profitable in the last year making it difficult to compare the US Aerospace & Defense industry average.
Earnings and Revenue History
Kratos Defense & Security Solutions's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kratos Defense & Security Solutions Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:KTOS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 635.40 6.50 121.50 15.90
2018-12-30 618.00 4.10 119.80 15.60
2018-09-30 768.50 -20.80 155.20 16.70
2018-07-01 766.20 -28.10 158.60 16.50
2018-04-01 614.30 -35.50 127.10 17.00
2017-12-31 603.30 -46.90 127.30 17.80
2017-10-01 619.10 -27.30 131.50 16.50
2017-06-25 627.40 -44.90 134.10 15.50
2017-03-26 647.70 -48.30 138.60 15.40
2016-12-25 541.90 -57.60 114.60 13.90
2016-09-25 664.10 -63.00 147.70 14.60
2016-06-26 660.90 -35.30 147.10 14.90
2016-03-27 653.00 -40.90 151.00 15.20
2015-12-27 657.10 -33.20 150.70 16.20
2015-09-27 671.70 -29.00 146.90 16.70
2015-06-28 700.30 -44.50 152.40 18.10
2015-03-29 746.30 -76.80 152.40 18.40
2014-12-28 763.00 -75.70 153.60 18.60
2014-09-28 806.60 -79.80 167.40 20.50
2014-06-29 842.20 -78.00 174.80 20.40
2014-03-30 871.60 -37.10 182.40 20.60
2013-12-29 844.10 -29.50 172.80 19.70
2013-09-29 978.50 -116.10 197.10 19.40
2013-06-30 1,028.40 -111.00 203.80 19.10
2013-03-31 1,012.50 -118.60 198.10 19.10
2012-12-30 969.20 -112.90 193.10 17.80
2012-09-30 919.00 -29.00 185.80 16.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kratos Defense & Security Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kratos Defense & Security Solutions used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • Kratos Defense & Security Solutions has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Kratos Defense & Security Solutions's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kratos Defense & Security Solutions has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KTOS Health

 How is Kratos Defense & Security Solutions's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kratos Defense & Security Solutions's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kratos Defense & Security Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kratos Defense & Security Solutions's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kratos Defense & Security Solutions's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kratos Defense & Security Solutions Company Filings, last reported 3 months ago.

NasdaqGS:KTOS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 567.90 294.40 178.40
2018-12-30 519.30 294.20 182.70
2018-09-30 511.90 294.00 187.20
2018-07-01 506.50 293.80 182.80
2018-04-01 512.50 293.60 127.80
2017-12-31 511.50 293.50 130.50
2017-10-01 531.90 369.70 239.20
2017-06-25 347.00 369.50 63.30
2017-03-26 351.40 369.30 73.40
2016-12-25 276.40 432.00 69.10
2016-09-25 204.10 445.00 20.50
2016-06-26 225.60 444.70 17.60
2016-03-27 234.70 444.40 20.10
2015-12-27 254.20 445.10 28.50
2015-09-27 257.60 448.50 35.80
2015-06-28 198.70 663.00 22.20
2015-03-29 211.50 663.00 34.40
2014-12-28 224.30 656.40 33.50
2014-09-28 231.00 662.90 16.20
2014-06-29 237.10 662.90 26.90
2014-03-30 284.10 642.00 53.60
2013-12-29 295.80 644.30 55.70
2013-09-29 301.70 644.60 49.80
2013-06-30 308.10 645.90 49.70
2013-03-31 315.60 647.20 51.60
2012-12-30 324.10 649.40 49.00
2012-09-30 412.60 649.70 37.60
  • Kratos Defense & Security Solutions's level of debt (51.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (227% vs 51.8% today).
  • Debt is not well covered by operating cash flow (7.9%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Kratos Defense & Security Solutions's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kratos Defense & Security Solutions has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KTOS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Kratos Defense & Security Solutions dividends. Estimated to be 0% next year.
If you bought $2,000 of Kratos Defense & Security Solutions shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Kratos Defense & Security Solutions's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Kratos Defense & Security Solutions's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:KTOS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:KTOS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Kratos Defense & Security Solutions has not reported any payouts.
  • Unable to verify if Kratos Defense & Security Solutions's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Kratos Defense & Security Solutions's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Kratos Defense & Security Solutions has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Kratos Defense & Security Solutions's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Kratos Defense & Security Solutions's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kratos Defense & Security Solutions afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kratos Defense & Security Solutions has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KTOS Management

 What is the CEO of Kratos Defense & Security Solutions's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Eric DeMarco
COMPENSATION $5,514,184
AGE 55
TENURE AS CEO 15.3 years
CEO Bio

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, 2003. Mr. DeMarco has been the President of Kratos Government Solutions, Inc. since December 2009. Mr. DeMarco served as the Chief Executive Officer and President of Integral Systems Inc. since July 27, 2011. He served as an Executive Vice President of Cayenta Inc. since September 1997. He served as Cayenta Inc.'s Chief Financial Officer from September 1997 to December 1999. He served as Chief Financial Officer, Executive Vice President and Treasurer of Engility Corporation (formerly L-3 Communications Titan Group) since September 1998. He served as the Chief Operating Officer of Kratos Defense & Security Solutions, Inc. from November 24, 2003 to April 1, 2004. He served as Chief Financial Officer and Executive Vice President of AverStar, Inc. Mr. DeMarco served as the President and Chief Operating Officer of The Titan Corporation. He served as the Chief Financial Officer and Senior Vice President of Titan Corporation from January 1997 to August 1998 and served as Executive Vice President since August 1998. Mr. DeMarco joined Titan in January 1997. From June 1986 to January 1997, he held various positions at Arthur Andersen LLP, as a Senior Manager. He was employed at SureBeam Corp. He has been Director of Henry Bros. Electronics, Inc. since December 15, 2010. He served as a Director of nLIGHT, Inc. Mr. DeMarco has been a Director of Kratos Defense & Security Solutions, Inc. 2003. He serves as Director of Wavestream Corporation and Cellular Telecommunications & Internet Association. He served as a Director of Integral Systems Inc. since July 27, 2011 and Herley Industries, Inc. since March 2011. He served as a Director of AverStar, Inc. Mr. DeMarco holds a Bachelor of Science in Business Administration and Finance, Summa Cum Laude, from the University of New Hampshire.

CEO Compensation
  • Eric's compensation has increased in line with Kratos Defense & Security Solutions recently becoming profitable.
  • Eric's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Kratos Defense & Security Solutions management team in years:

5.9
Average Tenure
56
Average Age
  • The average tenure for the Kratos Defense & Security Solutions management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Eric DeMarco

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
55
TENURE
15.3 yrs

Deanna Lund

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
51
TENURE
15.3 yrs

Phil Carrai

TITLE
President of Technology & Training Solutions Division
COMPENSATION
$2M
AGE
57
TENURE
9.6 yrs

Jonah Adelman

TITLE
President of Microwave Electronics Division
COMPENSATION
$952K
AGE
68
TENURE
3.9 yrs

Maria de Burgreen

TITLE
VP & Corporate Controller
AGE
44
TENURE
3.2 yrs

Kevin Walden

TITLE
Chief Information Officer
TENURE
2.6 yrs

Marie Mendoza

TITLE
VP, General Counsel & Secretary
AGE
46
TENURE
3.6 yrs

Dave Carter

TITLE
President of Defense & Rocket Support Services Division
COMPENSATION
$503K
AGE
61
TENURE
11.6 yrs

Jennifer Price

TITLE
Senior Vice President of Engineering Services - Madison Research

Tom Mills

TITLE
President of Modular Systems Division
AGE
59
TENURE
5.9 yrs
Board of Directors Tenure

Average tenure and age of the Kratos Defense & Security Solutions board of directors in years:

13.5
Average Tenure
59.5
Average Age
  • The average tenure for the Kratos Defense & Security Solutions board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

William Hoglund

TITLE
Chairman
COMPENSATION
$213K
AGE
65
TENURE
10.1 yrs

Eric DeMarco

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
55
TENURE
16.5 yrs

Scott Anderson

TITLE
Independent Director
COMPENSATION
$186K
AGE
60
TENURE
22.3 yrs

Scot Jarvis

TITLE
Independent Director
COMPENSATION
$192K
AGE
59
TENURE
22.4 yrs

Amy Zegart

TITLE
Independent Director
COMPENSATION
$181K
AGE
52
TENURE
4.8 yrs

Bandel Carano

TITLE
Independent Director
COMPENSATION
$56K
AGE
57
TENURE
17.8 yrs

Sam Liberatore

TITLE
Independent Director
COMPENSATION
$171K
AGE
82
TENURE
10.5 yrs

Jane Judd

TITLE
Independent Director
COMPENSATION
$177K
AGE
72
TENURE
8.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Aug 18 Sell Thomas Mills Individual 09. Aug 18 09. Aug 18 -73,372 $13.19 $-967,879
08. Aug 18 Buy Bandel Carano Individual 07. Aug 18 07. Aug 18 10,000 $12.70 $126,957
08. Aug 18 Buy Eric DeMarco Individual 07. Aug 18 07. Aug 18 10,000 $12.69 $126,900
X
Management checks
We assess Kratos Defense & Security Solutions's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kratos Defense & Security Solutions has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KTOS News

Simply Wall St News

Here's Why Kratos Defense & Security Solutions (NASDAQ:KTOS) Can Manage Its Debt Responsibly

NasdaqGS:KTOS Historical Debt, July 10th 2019 How Healthy Is Kratos Defense & Security Solutions's Balance Sheet? … Since Kratos Defense & Security Solutions does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … But it is future earnings, more than anything, that will determine Kratos Defense & Security Solutions's ability to maintain a healthy balance sheet going forward.

Simply Wall St -

What You Must Know About Kratos Defense & Security Solutions, Inc.'s (NASDAQ:KTOS) Financial Strength

KTOS has built up its total debt levels in the last twelve months, from US$294m to US$339m , which includes long-term debt. … Moreover, KTOS has produced cash from operations of US$23m during the same period of time, leading to an operating cash to total debt ratio of 6.9%, indicating that KTOS’s current level of operating cash is not high enough to cover debt. … Next Steps: KTOS’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Is It Time To Consider Buying Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)?

Let’s take a look at Kratos Defense & Security Solutions’s outlook and value based on the most recent financial data to see if the opportunity still exists. … Since Kratos Defense & Security Solutions’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. … Can we expect growth from Kratos Defense & Security Solutions?

Simply Wall St -

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS): What Does Its Beta Value Mean For Your Portfolio?

See our latest analysis for Kratos Defense & Security Solutions What we can learn from KTOS's beta value Looking at the last five years, Kratos Defense & Security Solutions has a beta of 1.85. … Kratos Defense & Security Solutions is a reasonably big company, with a market capitalisation of US$2.2b. … What this means for you: Since Kratos Defense & Security Solutions has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St -

Why You Should Care About Kratos Defense & Security Solutions, Inc.’s (NASDAQ:KTOS) Low Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is Kratos Defense & Security Solutions, Inc.'s (NASDAQ:KTOS) Balance Sheet Strong Enough To Weather A Storm?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

Did You Miss Kratos Defense & Security Solutions's Whopping 344% Share Price Gain?

For example, the Kratos Defense & Security Solutions, Inc. … Given that Kratos Defense & Security Solutions only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. … Over the last three years Kratos Defense & Security Solutions has grown its revenue at 3.9% annually.

Simply Wall St -

How Much is Kratos Defense & Security Solutions, Inc.'s (NASDAQ:KTOS) CEO Getting Paid?

Eric DeMarco became the CEO of Kratos Defense & Security Solutions, Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Eric DeMarco's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Does The Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Share Price Tend To Follow The Market?

(NASDAQ:KTOS), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

Are Kratos Defense & Security Solutions, Inc.'s (NASDAQ:KTOS) Interest Costs Too High?

(NASDAQ:KTOS) with its market cap of US$1.4b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

KTOS Company Info

Description

Kratos Defense & Security Solutions, Inc. provides mission critical products, solutions, and services in the United States. The company operates through two segments, Kratos Government Solutions and Unmanned Systems. The Kratos Government Solutions segment offers microwave electronic products, satellite communications, training systems, modular systems, and defense and rocket support services. The Unmanned Systems segment provides unmanned aerial systems, and unmanned ground and seaborne systems. It serves national security related agencies, the department of defense, intelligence agencies, and classified agencies, as well as international government agencies and domestic and international commercial customers. The company has a strategic collaboration with AeroVironment, Inc. to develop and demonstrate integrated and operationally effective multi-domain unmanned system solutions for near-peer and denied environments. Kratos Defense & Security Solutions, Inc. was founded in 1994 and is headquartered in San Diego, California.

Details
Name: Kratos Defense & Security Solutions, Inc.
KTOS
Exchange: NasdaqGS
Founded: 1994
$2,557,806,001
105,913,292
Website: http://www.kratosdefense.com
Address: Kratos Defense & Security Solutions, Inc.
10680 Treena Street,
Suite 600,
San Diego,
California, 92131,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS KTOS Common Stock Nasdaq Global Select US USD 05. Nov 1999
DB WF5A Common Stock Deutsche Boerse AG DE EUR 05. Nov 1999
LSE 0JS0 Common Stock London Stock Exchange GB USD 05. Nov 1999
Number of employees
Current staff
Staff numbers
2,600
Kratos Defense & Security Solutions employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 00:09
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.