Kratos Defense and Security Solutions Inc
NASDAQ:KTOS

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Kratos Defense and Security Solutions Inc Logo
Kratos Defense and Security Solutions Inc
NASDAQ:KTOS
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Price: 26.63 USD 1.49% Market Closed
Market Cap: 4B USD
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Intrinsic Value

The intrinsic value of one KTOS stock under the Base Case scenario is 17.12 USD. Compared to the current market price of 26.63 USD, Kratos Defense and Security Solutions Inc is Overvalued by 36%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

KTOS Intrinsic Value
17.12 USD
Overvaluation 36%
Intrinsic Value
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Kratos Defense and Security Solutions Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
Kratos Defense and Security Solutions Inc

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Financials
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Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Kratos Defense and Security Solutions Inc

Current Assets 838.4m
Cash & Short-Term Investments 301.5m
Receivables 319.1m
Other Current Assets 217.8m
Non-Current Assets 1.1B
PP&E 320.4m
Intangibles 624.8m
Other Non-Current Assets 128.8m
Current Liabilities 260.5m
Accounts Payable 61m
Accrued Liabilities 113.3m
Other Current Liabilities 86.2m
Non-Current Liabilities 309m
Long-Term Debt 243.2m
Other Non-Current Liabilities 65.8m
Efficiency

Earnings Waterfall
Kratos Defense and Security Solutions Inc

Revenue
1.1B USD
Cost of Revenue
-837.7m USD
Gross Profit
289.3m USD
Operating Expenses
-251m USD
Operating Income
38.3m USD
Other Expenses
-23.5m USD
Net Income
14.8m USD

Free Cash Flow Analysis
Kratos Defense and Security Solutions Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q3, Kratos Defense reported revenues of $275.9 million, surpassing expectations, driven by robust growth across unmanned systems and other technologies. With a significant backlog and expanding opportunities, the company is optimistic about achieving a 10% revenue growth in 2025. Kratos is also investing heavily in new programs, including tactical drones anticipated to begin contributing in 2025. While certain sectors, like commercial satellites, faced setbacks amounting to a projected $30-35 million revenue drop, overall performance across other divisions continues to thrive, reflecting a solid operational foundation for the future.

What is Earnings Call?
Fundamental Scores

KTOS Profitability Score
Profitability Due Diligence

Kratos Defense and Security Solutions Inc's profitability score is 41/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive 3-Years Revenue Growth
Positive Revenue Growth Forecast
Positive 1-Year Revenue Growth
41/100
Profitability
Score

Kratos Defense and Security Solutions Inc's profitability score is 41/100. The higher the profitability score, the more profitable the company is.

KTOS Solvency Score
Solvency Due Diligence

Kratos Defense and Security Solutions Inc's solvency score is 74/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Low D/E
Long-Term Solvency
Short-Term Solvency
74/100
Solvency
Score

Kratos Defense and Security Solutions Inc's solvency score is 74/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

KTOS Price Targets Summary
Kratos Defense and Security Solutions Inc

Wall Street analysts forecast KTOS stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for KTOS is 27.63 USD with a low forecast of 20.2 USD and a high forecast of 36.75 USD.

Lowest
Price Target
20.2 USD
24% Downside
Average
Price Target
27.63 USD
4% Upside
Highest
Price Target
36.75 USD
38% Upside
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Dividends

Kratos Defense and Security Solutions Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for KTOS is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
No dividends
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Debt Paydown Yield
Lowest
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Ownership

KTOS Insider Trading
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Profile

Kratos Defense and Security Solutions Inc Logo
Kratos Defense and Security Solutions Inc

Country

United States of America

Industry

Aerospace & Defense

Market Cap

4B USD

Dividend Yield

0%

Description

Kratos Defense & Security Solutions, Inc. provides mission critical products, services and solutions for United States national security priorities. The company is headquartered in San Diego, California and currently employs 3,300 full-time employees. The firm operates through two segments: The Kratos Government Solutions (KGS) and Unmanned Systems (US). The KGS segment includes microwave electronic products, space and satellite communications, training and cybersecurity, intelligence surveillance and reconnaissance (C5ISR)/modular systems, turbine technologies and defense and rocket support services operating segments. The US segment consists of the Company’s unmanned aerial, unmanned ground, unmanned seaborne and command, control and communications system business. The KGS and US segments provide products, solutions and services for mission critical national security programs. KGS and US customers primarily includes national security related agencies, the United States Department of Defense (DoD), intelligence agencies and classified agencies.

Contact

CALIFORNIA
San Diego
10680 Treena St Ste 600
+18588127300.0
www.kratosdefense.com

IPO

1999-11-05

Employees

3 300

Officers

CEO, President & Director
Mr. Eric M. DeMarco
Executive VP, CFO & Director
Ms. Deanna Hom Lund
President of Space, Training, & Cyber Division
Mr. Phillip Carrai
President of Microwave Electronics Division
Mr. Yonah Adelman
President of Unmanned Systems Division
Mr. Steven S. Fendley
VP, Corporate Controller & Principal Accounting Officer
Ms. Maria Cervantes de Burgreen
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Chief Information Officer
Mr. Kevin Walden
Senior VP, General Counsel & Secretary
Ms. Marie C. Mendoza
Senior Vice President of Corporate Development & Government Affairs
Mr. Benjamin Goodwin
President of Defense & Rocket Support Services Division
Mr. David Carter
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See Also

Discover More
What is the Intrinsic Value of one KTOS stock?

The intrinsic value of one KTOS stock under the Base Case scenario is 17.12 USD.

Is KTOS stock undervalued or overvalued?

Compared to the current market price of 26.63 USD, Kratos Defense and Security Solutions Inc is Overvalued by 36%.

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