NasdaqGS:KTOS

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Kratos Defense & Security Solutions

Executive Summary

Kratos Defense & Security Solutions, Inc.


Snowflake Analysis

Reasonable growth potential with acceptable track record.


Similar Companies

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.2%

KTOS

2.4%

US Aerospace & Defense

4.0%

US Market


1 Year Return

-35.9%

KTOS

-27.4%

US Aerospace & Defense

5.0%

US Market

Return vs Industry: KTOS underperformed the US Aerospace & Defense industry which returned -27.4% over the past year.

Return vs Market: KTOS underperformed the US Market which returned 4.9% over the past year.


Shareholder returns

KTOSIndustryMarket
7 Day3.2%2.4%4.0%
30 Day-18.9%-12.7%-1.1%
90 Day9.2%2.7%21.1%
1 Year-35.9%-35.9%-13.0%-27.4%7.2%5.0%
3 Year26.7%26.7%9.7%-13.6%36.0%27.1%
5 Year145.5%145.5%48.9%9.7%65.3%46.9%

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

Valuation

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

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KTOS ($15.44) is trading below our estimate of fair value ($18.95)

Significantly Below Fair Value: KTOS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KTOS is poor value based on its PE Ratio (225.4x) compared to the Aerospace & Defense industry average (15.9x).

PE vs Market: KTOS is poor value based on its PE Ratio (225.4x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: KTOS is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: KTOS is overvalued based on its PB Ratio (2.8x) compared to the US Aerospace & Defense industry average (2.2x).


Next Steps

Future Growth

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

40.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KTOS's forecast earnings growth (40.6% per year) is above the savings rate (2.2%).

Earnings vs Market: KTOS's earnings (40.6% per year) are forecast to grow faster than the US market (22.8% per year).

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

Revenue vs Market: KTOS's revenue (10.7% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: KTOS's revenue (10.7% 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 (10.2%).


Next Steps

Past Performance

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

42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KTOS has high quality earnings.

Growing Profit Margin: KTOS's current net profit margins (1%) are lower than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: KTOS has become profitable over the past 5 years, growing earnings by 42.6% per year.

Accelerating Growth: KTOS's earnings growth over the past year (12.8%) is below its 5-year average (42.6% per year).

Earnings vs Industry: KTOS earnings growth over the past year (12.8%) exceeded the Aerospace & Defense industry 4.2%.


Return on Equity

High ROE: KTOS's Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: KTOS's short term assets ($510.3M) exceed its short term liabilities ($180.1M).

Long Term Liabilities: KTOS's short term assets ($510.3M) exceed its long term liabilities ($408.0M).


Debt to Equity History and Analysis

Debt Level: KTOS's debt to equity ratio (49.6%) is considered high.

Reducing Debt: KTOS's debt to equity ratio has reduced from 305.5% to 49.6% over the past 5 years.

Debt Coverage: KTOS's debt is not well covered by operating cash flow (6.4%).

Interest Coverage: KTOS's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

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?

4.6yrs

Average management tenure


CEO

Eric DeMarco (56yo)

16.25yrs

Tenure

US$5,673,715

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 ($USD5.67M) is about average for companies of similar size in the US market ($USD4.70M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric DeMarco
CEO, President & Director16.25yrsUS$5.67m0.44% $8.3m
Deanna Lund
Executive VP & CFO16.25yrsUS$2.89m0.20% $3.8m
Phillip Carrai
President of Space0.75yrUS$2.11m0.10% $2.0m
Yonah Adelman
President of Microwave Electronics Division4.92yrsUS$1.03mno data
Steven Fendley
President of Unmanned Systems Division3.5yrsUS$1.61m0.15% $2.8m
Maria de Burgreen
VP & Corporate Controller4.17yrsno data0.0070% $133.2k
Kevin Walden
Chief Information Officer3.58yrsno datano data
Marie Mendoza
Senior VP & General Counsel4.58yrsno data0.0090% $169.9k
Benjamin Goodwin
Senior Vice President of Corporate Development & Government Affairsno dataUS$790.00k0.020% $374.9k
David Carter
President of Defense & Rocket Support Services Division12.58yrsUS$503.17k0.042% $785.0k

4.6yrs

Average Tenure

56yo

Average Age

Experienced Management: KTOS's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric DeMarco
CEO, President & Director16.25yrsUS$5.67m0.44% $8.3m
Scot Jarvis
Independent Director23.42yrsUS$267.50k0.10% $1.9m
Scott Anderson
Independent Director23.33yrsUS$261.50k0.11% $2.0m
William Hoglund
Independent Chairman11.08yrsUS$288.50k0.33% $6.2m
Samuel Liberatore
Independent Director11.5yrsUS$246.50k0.0010% $19.3k
Jane Judd
Independent Director9.5yrsUS$254.00k0.025% $467.4k
Amy Zegart
Independent Director5.83yrsUS$256.50kno data

11.5yrs

Average Tenure

61yo

Average Age

Experienced Board: KTOS's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.7%.


Top Shareholders

Company Information

Kratos Defense & Security Solutions, Inc.'s company bio, 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$1.891b
  • Shares outstanding: 122.50m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WF5ADB (Deutsche Boerse AG)YesCommon StockDEEURNov 1999
KTOSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1999
0JS0LSE (London Stock Exchange)YesCommon StockGBUSDNov 1999

Biography

Kratos Defense & Security Solutions, Inc. provides mission critical products, solutions, and services in the United States and internationally. The company operates in two segments, Kratos Government Solutions and Unmanned Systems. The Kratos Government Solutions segment offers microwave electronic products; space, training, and cybersecurity products; C5ISR/modular systems; turbine technologies; and defense and rocket support services. It is also involved in engineering, developing, and testing of gas turbines, propulsion components, engines, and other systems for military and commercial applications, as well as focuses on development and production of jet engines for tactical weapon systems and jet unmanned aerial systems. The Unmanned Systems segment provides unmanned aerial systems, and unmanned ground and seaborne systems. The company serves the Department of Defense, intelligence agencies, and other national and homeland security related agencies; local, state, and foreign governments; and domestic and international commercial customers. Kratos Defense & Security Solutions, Inc. was founded in 1994 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 23:51
End of Day Share Price2020/07/02 00:00
Earnings2020/03/29
Annual Earnings2019/12/29


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.