Kratos Defense & Security Solutions, Inc.

Guided Missiles & Space Vehicles & Parts

KTOSStrong5 of 10 basics passed

$42.50

+1.36%

Market cap $7.98B

$42.50

+1.36%

Market cap $7.98B

Kratos Defense & Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems.

It is a $7.98B industrial company. Revenue grew 25.5% over the last year, it keeps 2¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 257.3× earnings — in the cheapest third of its own history.

Website: kratosdefense.com
Location: San Diego, CA
Employees: 4 300
Sector: Industrials

Share price · 3 years

$17.26 → $42.50+146.2%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $1.52B
Profit: keeps 2¢ of every $1 sold; $30.9M
Free cash flow: cash left after running the business; -$129M
Net cash: more cash than debt; $561M
P/E: years of profit in the price; 257.3
EPS: earnings per share, TTM; $0.19
Shares: up 169% since 2016 — dilution; 165.2M
Volatility: beta vs the market — under 1 swings less; 1.17

Revenue, last 10 years

52-week range

Low $41.93$42.50High $130.72

Today's price is 1% of the way from the year's low to its high.

P/E vs its history5y

257.3×median 314.8×

Higher than 26% of past days — in the cheapest third of its own history.

Valuation vs own history

P/E

257.3×

75%

P/S

5.2×

27%

EV/EBITDA

317.9×

35%

P/B

2.3×

61%

FCF yield

0.2%

31%

Share of the last ~5 years that was pricier than today (in line with its own history). Based on the daily valuation record.

Insider activity · 90 days

-$4.43Mnet selling

Purchases$0

Sales$4.43M

Insiders trading, last 14d0 buy · 0 sell

Standing in Industrials

Size$7.98Btop 91%
Revenue growth+14%top 10%
Net margin2%top 92%
Return on equity1%top 95%
P/E257.3×top 98%

Ranked against 130 Industrials companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong health; Valuation, Growth, Profitability, Quality and Moat lag behind.

Valuation32

P/E vs own history26th pct · 20/25
FCF yield-1.6% · 0/25
P/S5.2x · 12/25
EV/EBITDA81.0x · 0/25

Growth45

Revenue CAGR13.5% · 20/25
Net income CAGRn/a · 0/25
EPS CAGR ~5Y-27.6% · 0/25
Fwd implied growth466.1% · 25/25

Profitability21

ROIC1.5% · 5/25
ROE1.1% · 5/25
Net margin2.0% · 6/25
Operating margin1.2% · 5/25

Health93

Altman Z7.67 · 25/25
Current ratio5.54 · 25/25
Interest coverage9.8x · 18/25
Net cash / debtNet cash · 25/25

Quality46

Piotroski F5/9 · 15/25
Beneish M-1.66 · 6/25
FCF conversion-417% · 0/25
Margin stabilityσ 2.6% · 25/25

Moat6

ROIC >12% years0/10 yrs · 0/25
Median gross margin26.1% · 6/25
FCF-positive years1/5 yrs · 0/25
Worst-year net marginworst -9.0% · 0/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2023Financial
Revenue crossed $1B
$1.04B for the year
FY2020Financial
Became debt-free
cash now exceeds total debt
FY2020Financial
Best year on record
$79.6M net income
FY2019Financial
Turned profitable
$12.5M net income after a loss year

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$18 673 today — price return only

$1.3B revenue in FY2025

Revenue up 25.5% year over year

4 300 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

Revenue growing 25.5% year over year
Net cash position after subtracting debt from cash
Interest covered 9.8× by operating earnings
Altman Z-Score 7.67 — low bankruptcy-risk zone

Watch-outs

Negative free cash flow (-$128.9M)
Loss-making in 6 of the recent years

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

5 of 10 checks passed

Revenue growing — the company sells more than a year ago+25.5% YoY
Profitable — makes more than it spends$30.9M TTM
Profit growing — earnings are higher than last year-27.6% YoY
Generates cash — cash left after running and investing-$129M TTM
Debt under control — could handle its obligationsmore cash than debt
Established company — not a micro-cap — lower blow-up risk$7.98B market cap
Not printing shares — share count not ballooning — you keep your slice+39.2% shares over ~5y
Proven track record — years of profitability behind it4/10 profitable years
Financially stable — balance sheet not near distressAltman Z 7.7 — safe
Pays a dividend — returns cash to shareholdersno data
Valuation not extreme — price not wildly above earningsP/E 257.3

Peer comparisonKratos Defense & Security Solutions, Inc. vs 6 largest industrials peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
KTOS this company	$8.0B	257.3	+25.5%	2.0%	Strong
LRCX Lam Research Corp	$399.2B	54.9	+26.0%	31.3%	Strong
CAT Caterpillar Inc.	$368.0B	33.9	+18.4%	14.5%	Solid
RTX RTX Corporation	$251.3B	32.4	+11.8%	8.3%	Strained
DE Deere & Company	$167.7B	34.4	+8.3%	10.2%	Solid
ETN Eaton Corporation, plc	$167.2B	43.6	+15.5%	12.8%	Mixed
UNP Union Pacific Corp.	$166.8B	22.6	+4.2%	28.8%	Strained

Head-to-head: KTOS vs LRCX · KTOS vs CAT · KTOS vs RTX

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 10Buy 16Hold 3

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $1.52B · net income $30.9M (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$1.52B

YoY 25.5%

Net income (TTM)

$30.9M

Margin 2.0%

Gross margin

23.0%

Operating margin

1.2%

P/E ratio

257.3

Income statement — full detail

Figures in USD billions · EPS in USD

	2020	2021	2022	2023	2024	2025
Revenue	0.7	0.8	0.9	1.0	1.1	1.3
Gross profit	0.2	0.2	0.2	0.3	0.3	0.3
Operating income (EBIT)	0.0	0.0	0.0	0.0	0.0	0.0
Net income	0.1	-0.0	-0.0	-0.0	0.0	0.0
EPS (diluted)	0.67	-0.02	-0.29	-0.07	0.11	0.13

Cash flowFree cash flow -$129M · operating cash flow -$39.6M (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

-$129M

Margin -8.5%

Operating cash flow (TTM)

-$39.6M

FCF margin

-8.5%

Cash flow statement — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Operating cash flow	0.0	0.0	-0.0	0.1	0.0	-0.0
Capital expenditure	—	-0.0	-0.0	-0.1	-0.1	-0.1
Free cash flow	0.0	-0.0	-0.1	0.0	-0.0	-0.1
FCF margin	6.0%	-1.4%	-7.9%	1.2%	-0.7%	-10.2%

Balance sheetAssets $2.47B · net cash $561M (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $2.47B of assets is financed

19%

81%

Liabilities $471M — borrowed moneyEquity $2.00B — owners' stake

Altman Z-Score

7.67

Safe zone

Debt repayment

Not needed

Cash already covers all debt

Interest coverage

9.8x

EBIT ÷ interest expense

ROE

1.1%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Cash & equivalents	0.4	0.3	0.1	0.1	0.3	0.6
Total assets	1.6	1.6	1.6	1.6	2.0	2.5
Total liabilities	0.6	0.6	0.6	0.6	0.6	0.5
Total debt	0.3	0.3	0.3	0.2	0.2	0.0
Equity	0.9	0.9	0.9	1.0	1.4	2.0
Net debt	-0.1	-0.1	0.2	0.1	-0.2	-0.6

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of KTOS on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $42.50 · market cap $7.98B.