Stock Analysis
Kratos Defense & Security Solutions, Inc.KTOS
P/E 245.56×· not meaningful — TTM earnings temporarily depressed
Sector: Industrials · Industry: Guided Missiles & Space Vehicles & Parts
AnalystsStrong Buy29 analystsPrice is 1% of the way from the year's low to its high.
Cash covers 743% of debt · Q2 2026.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Financial Health93
Risks
- Profitability21
- Growth45
Mixed picture — no clear quality or value edge.
Bull Case
- ✓Altman Z 7.3 — safe-zone balance sheet
- ✓Revenue CAGR 13.5% — durable top-line growth
- ✓Interest coverage 9.8× — debt well covered
What's happening with KTOS
Profile
Strong financial health; moat, profitability, valuation, growth and earnings quality lag behind.
How is each axis scored?
- Valuation40/100 · Weak
- P/E vs own history (22th pct)20/25
- FCF yield (-1.7%)0/25
- P/S (5.0x)20/25
- EV/EBIT (342.2x)0/25
- Growth45/100 · Weak
- Revenue CAGR (13.5%)20/25
- Net income CAGR (n/a)0/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (436.9%)25/25
- Profitability21/100 · Weak
- ROIC (0.7%)5/25
- ROE (0.9%)5/25
- Net margin (2.0%)6/25
- Operating margin (1.2%)5/25
- Financial Health93/100 · Strong
- Altman Z (7.28)25/25
- Current ratio (5.54)25/25
- Interest coverage (9.8x)18/25
- Net cash / debt (Net cash)25/25
- Quality46/100 · Weak
- Piotroski F (5/9)15/25
- Beneish M (-1.66)6/25
- FCF conversion (-417%)0/25
- Margin stability (σ 2.6%)25/25
- Moat6/100 · Weak
- ROIC >12% years (0/10 yrs)0/25
- Median gross margin (26.1%)6/25
- FCF-positive years (1/5 yrs)0/25
- Worst-year net margin (worst -9.0%)0/25
Risk Flags
- ⚠Beneish M -1.66 — earnings-manipulation flag
- ⚠Negative FCF margin (-0.1%) — burning cash
- ⚠6 loss-making years in recent history
About Kratos Defense & Security Solutions, Inc.
Kratos Defense & Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems. Show more
The company has two segments; The Kratos Government Solutions (KGS) segment is comprised of an aggregation of KGS operating segments, including its microwave electronic products, space, training, and cybersecurity, C5ISR/modular systems, turbine technologies, and defense and rocket support services operating segments and The Unmanned Systems segment consists of unmanned aerial, unmanned ground, unmanned seaborne and related command, control, and communications system businesses. The company derives a majority of its revenue from the Kratos Government Solutions segment.
Headquarters: SAN DIEGO, CA · Employees: 4,300 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
40D+P/E (TTM)244xC
Grade C: DistortedTTM earnings are temporarily depressed — this multiple overstates expensiveness. Forward P/E is a better guide — vs own 5Y history: 24.5x–1079.7x · 22nd pct
P/FCF226.9xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield-1.7%D
Grade D: NegativeTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -6.4%–1.2% · 30th pct
P/S (TTM)4.95xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 1.3x–16.8x · 73rd pct
EV/EBIT342.2xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 60.8x–1031.1x · 67th pct
EV/Sales3.9xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E45.5xD
Grade D: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio2.20xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.71C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
21EROIC0.7%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE0.9%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA0.9%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin2.0%D
Grade D: LowNet Income / Revenue
Operating Margin1.2%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin23.0%D
Grade D: LowGross Profit / Revenue
FCF Margin-8.5%D
Grade D: LowFCF / Revenue
True FCF Margin-11.7%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
45D+Revenue CAGR13.5%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR—
Compound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)—
Compound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth436.9%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+46.9%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income160.2%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue3.3%C
Grade C: MedTTM stock-based comp / TTM Revenue
Financial Health
93A+Altman Z-Score7.28A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio5.54xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio4.93xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage9.8xC
Grade C: OkEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.06xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt7.43xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
46D+Piotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-1.66D
Grade D: RiskyEarnings manipulation risk. < -2.22 Safe
FCF Conversion-417.2%D
Grade D: PoorFCF / Net Income
Margin Stability2.6%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue5.9%C
Grade C: AverageTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.47xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Lund Deanna H Filed | Lund Deanna H | SellOpen market sale | -2900 | |
Lund Deanna H Filed | Lund Deanna H | SellOpen market sale | -4100 | |
Mendoza Marie Filed | Mendoza Marie | SellOpen market sale | -1000 | |
Carrai Phillip D Filed | Carrai Phillip D | SellOpen market sale | -420 | |
Carrai Phillip D Filed | Carrai Phillip D | SellOpen market sale | -3380 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Carrai Phillip D Filed | Carrai Phillip D | SellOpen market sale | -2700 | |
Fendley Steven S. Filed | Fendley Steven S. | SellOpen market sale | -7000 | |
Jarvis Scot B Filed | Jarvis Scot B | SellOpen market sale | -10000 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
6EROIC >12% Years0/10 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)26.1%D
Grade D: WeakMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years1/5 yrsD
Grade D: WeakShare of completed fiscal years with positive free cash flow
Net Margin Floor-9.0%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$0.16
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$7.66
Cash & short-term investments per share (Finnhub)
Book Value / Share$18.27
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$193.60M
Total debt obligations (short + long term)
Cash & Equiv.$1.44B
Cash and short-term investments
Net Debt$-1.24BA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$3.43B
Shareholders' equity (book value)
Asset / Liability6.17xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$7.54B
Current Market Capitalization
Beta1.17B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Kratos Defense & Security Solutions, Inc. (KTOS)
KTOS is down 0.79% at the last close. Piotroski F-Score of 5/9 indicates mixed fundamentals for Kratos Defense & Security Solutions, Inc.. Altman Z-Score of 7.28 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -1.66 is above the −1.78 flag threshold, a signal that reported earnings warrant closer scrutiny.
- Free-cash-flow margin is negative (-8%) — the business currently burns cash.
- Company is effectively debt-free after netting cash.
- Kratos Defense & Security Solutions, Inc. posted a net loss in 6 of 10 available completed fiscal years (2016–2025).
See how KTOS ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all KTOS moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 15 | After-hours | 40.76 | +3.64% | 2.09 |
| Oct 6 | Regular | 43.67 | +3.93% | 2.56 |
| Oct 6 | After-hours | 44.14 | +5.05% | 3.16 |
| Sep 21 | After-hours | 48.90 | +3.04% | 2.03 |
Frequently Asked Questions about KTOS
What is the current Kratos Defense & Security Solutions, Inc. (KTOS) stock price?
KTOS is trading at $40.42 at the last market close, down 0.79% on the session. PreMarketPrice tracks KTOS pre-market, intraday and after-hours prices.
Is KTOS stock a buy right now?
PreMarketPrice's quantitative model rates Kratos Defense & Security Solutions, Inc.'s financial health at 93/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is KTOS stock overvalued?
Kratos Defense & Security Solutions, Inc. trades at a trailing P/E of 244.1 and our valuation score rates it 40/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Kratos Defense & Security Solutions, Inc. report earnings?
No confirmed earnings date is currently scheduled for KTOS. The Earnings section lists recent reports and updates as dates are announced.
What sector does Kratos Defense & Security Solutions, Inc. operate in?
Kratos Defense & Security Solutions, Inc. operates in the Industrials sector, within the Guided Missiles & Space Vehicles & Parts industry. The Related Stocks section lists sector peers for comparison.
What does Kratos Defense & Security Solutions, Inc. do?
Kratos Defense & Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems.
About Kratos Defense & Security Solutions, Inc. (KTOS) Stock
Kratos Defense & Security Solutions, Inc. (KTOS) is a US-listed stock operating in the Industrials sector, specifically the Guided Missiles & Space Vehicles & Parts industry. As of the latest update, Kratos Defense & Security Solutions, Inc. is trading at $40.42, down 0.79% on the day with a market capitalization of $7.5 billion. The financial health score for KTOS is 93/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for KTOS stock.
KTOS Stock Analysis & Key Metrics
On PreMarketPrice, you can track Kratos Defense & Security Solutions, Inc. (KTOS) across multiple dimensions:
- Pre-market price & movement: Real-time KTOS stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for KTOS with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Kratos Defense & Security Solutions, Inc. across multiple reporting periods.
- Financial health score: A composite score of 93/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for KTOS.
- Sector peers: Compare KTOS against 5 other industrials stocks on key financial metrics.
Is KTOS a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Kratos Defense & Security Solutions, Inc. (KTOS) as an investment. The financial health score of 93/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Kratos Defense & Security Solutions, Inc. (KTOS) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.