Kratos Defense & Security Solutions Inc (KTOS) Stock Analysis

Kratos Defense & Security Solutions Inc (KTOS) Financial Summary

Kratos Defense & Security Solutions Inc (KTOS) is a Industrials company in the Aerospace & Defense industry, listed on NASDAQ. The stock currently trades at $54.67 with a market capitalization of $9.31B.

Key valuation metrics include a P/E ratio of 316.73, price-to-book ratio of 4.66, and EPS of $0.13. The company reports a profit margin of 2.1% and return on equity of 1.5%.

KTOS Key Financial Metrics

KTOS Revenue & Earnings History

Kratos Defense & Security Solutions Inc (KTOS) Valuation

Based on GoodMoat's DCF model, Kratos Defense & Security Solutions Inc has a fair value estimate of $7.08. At the current price of $54.67, the stock appears 672.2% overvalued relative to our intrinsic value estimate.

KTOS Quality Indicators

Kratos Defense & Security Solutions Inc maintains a profit margin of 2.1% and an operating margin of 1.9%. Return on equity stands at 1.5%. The current ratio is 4.06. Debt-to-equity ratio is 0.07.

About Kratos Defense & Security Solutions Inc

Kratos Defense & Security Solutions, Inc. is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers' mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos' approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low-cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos' comfort level. Kratos' primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, advanced vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter.

KTOS Free Cash Flow

Kratos Defense & Security Solutions Inc generated $-137.40M in trailing twelve-month free cash flow, representing an FCF yield of -1.48%. This low FCF yield may reflect heavy reinvestment or growth spending.

KTOS Shares Outstanding

Kratos Defense & Security Solutions Inc has 0.17 billion shares outstanding at a share price of $54.67, giving it a market capitalization of $9.31B.