Kratos Defense & Security Solutions, Inc.
Reasonable growth potential with acceptable track record.
Share Price & News
How has Kratos Defense & Security Solutions's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KTOS has not had significant price volatility in the past 3 months.
7 Day Return
US Aerospace & Defense
1 Year Return
US Aerospace & Defense
Return vs Industry: KTOS underperformed the US Aerospace & Defense industry which returned 25.8% over the past year.
Return vs Market: KTOS matched the US Market which returned 20.1% over the past year.
Price Volatility Vs. Market
How volatile is Kratos Defense & Security Solutions's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StExamining Kratos Defense & Security Solutions, Inc.’s (NASDAQ:KTOS) Weak Return On Capital Employed
3 weeks ago | Simply Wall StDoes Market Volatility Impact Kratos Defense & Security Solutions, Inc.'s (NASDAQ:KTOS) Share Price?
1 month ago | Simply Wall StDid You Miss Kratos Defense & Security Solutions's (NASDAQ:KTOS) Whopping 305% Share Price Gain?
Is Kratos Defense & Security Solutions undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KTOS ($20.42) is trading below our estimate of fair value ($26.82)
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 (174.8x) compared to the Aerospace & Defense industry average (20.7x).
PE vs Market: KTOS is poor value based on its PE Ratio (174.8x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: KTOS is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: KTOS is overvalued based on its PB Ratio (3.8x) compared to the US Aerospace & Defense industry average (2.8x).
How is Kratos Defense & Security Solutions forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KTOS's forecast earnings growth (49.4% per year) is above the savings rate (1.7%).
Earnings vs Market: KTOS's earnings (49.4% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: KTOS's revenue (13.2% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: KTOS's revenue (13.2% 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 (10.4%).
How has Kratos Defense & Security Solutions performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KTOS has high quality earnings.
Growing Profit Margin: KTOS became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: KTOS has become profitable over the past 5 years, growing earnings by 36.8% per year.
Accelerating Growth: KTOS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: KTOS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (10.8%).
Return on Equity
High ROE: KTOS's Return on Equity (2.2%) is considered low.
Return on Assets
Return on Capital Employed
How is Kratos Defense & Security Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: KTOS's short term assets ($515.6M) exceed its short term liabilities ($181.5M).
Long Term Liabilities: KTOS's short term assets ($515.6M) exceed its long term liabilities ($414.6M).
Debt to Equity History and Analysis
Debt Level: KTOS's debt to equity ratio (50.6%) is considered high.
Reducing Debt: KTOS's debt to equity ratio has reduced from 282.6% to 50.6% over the past 5 years.
Inventory Level: KTOS has a low level of unsold assets or inventory.
Debt Coverage by Assets: KTOS's debt is covered by short term assets (assets are 1.7x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: KTOS is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: KTOS is profitable, therefore cash runway is not a concern.
What is Kratos Defense & Security Solutions's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate KTOS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate KTOS's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Eric DeMarco (55yo)
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 ($USD5.51M) is above average for companies of similar size in the US market ($USD3.76M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
|CEO, President & Director||15.8yrs||US$5.51m||0.54% $11.7m|
|Executive VP & CFO||15.8yrs||US$2.53m||0.26% $5.7m|
|President of Space||0.3yrs||US$1.88m||0.14% $2.9m|
|President of Microwave Electronics Division||4.5yrs||US$951.70k||0.043% $922.9k|
|VP & Corporate Controller||3.8yrs||no data||0.0063% $135.6k|
|Chief Information Officer||3.2yrs||no data||no data|
|VP, General Counsel & Secretary||4.2yrs||no data||0.010% $224.6k|
|President of Defense & Rocket Support Services Division||12.2yrs||US$503.17k||0.070% $1.5m|
|Senior Vice President of Engineering Services - Madison Research||0yrs||no data||no data|
|President of C5ISR Modular Systems Division||6.5yrs||no data||0.025% $543.4k|
Experienced Management: KTOS's management team is considered experienced (4.5 years average tenure).
|CEO, President & Director||15.8yrs||US$5.51m||0.54% $11.7m|
|Independent Director||23yrs||US$192.00k||0.099% $2.1m|
|Independent Director||22.9yrs||US$186.00k||0.10% $2.2m|
|Independent Chairman||10.7yrs||US$213.00k||0.38% $8.2m|
|Independent Director||11.1yrs||US$171.00k||0.0012% $25.6k|
|Independent Director||9.1yrs||US$177.00k||0.028% $618.0k|
|Independent Director||5.4yrs||US$181.00k||no data|
Experienced Board: KTOS's board of directors are seasoned and experienced ( 11.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: KTOS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Kratos Defense & Security Solutions, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Kratos Defense & Security Solutions, Inc.
- Ticker: KTOS
- Exchange: NasdaqGS
- Founded: 1994
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$2.170b
- Shares outstanding: 106.27m
- Website: https://www.kratosdefense.com
Number of Employees
- Kratos Defense & Security Solutions, Inc.
- 10680 Treena Street
- Suite 600
- San Diego
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|WF5A||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Nov 1999|
|KTOS||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Nov 1999|
|0JS0||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Nov 1999|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/17 00:22|
|End of Day Share Price||2020/02/14 00:00|
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.