# Kratos Defense & Security Solutions Inc. (KTOS) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Industrials / Aerospace & Defense. Price $47.82, market value $9.0 billion.

## Valuation
- **P/E (trailing): 281.3×** (5-yr avg 419.4×, 3-yr avg 419.4×). Kratos Defense & Security Solutions Inc. trades at 281.3× trailing earnings, well below its own five-year average of 419.4×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 42.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.35**. A PEG of 2.35 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 5.9×**. Each dollar of revenue is priced at 5.9×.
- **Price / book: 2.6×**. The shares trade at 2.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 102.4×**. Enterprise value is 102.4× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: -1.4%** (5-yr avg -1.4%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 0.4%**. The inverse of the P/E: 0.4% of the price is earned each year.

## Profitability
- **Gross margin: 23.0%**. Kratos Defense & Security Solutions Inc. keeps 23.0% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 1.2%**. 1.2% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 1.6%**. 1.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 1.1%**. 1.1% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 1.0%**. Return on all capital, debt included, is 1.0%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 1.3%**. Each dollar of assets produces 1.3% of profit.

## Growth
- **Revenue growth (1 yr): 18.5%** (3-yr 14.5%/yr, 5-yr 12.5%/yr). Revenue grew 18.5% over the last year, against 12.5% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 18.2%** (5-yr -28.0%/yr). Earnings per share rose 18.2%, roughly in step with revenue.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Kratos Defense & Security Solutions Inc. holds more cash than debt.
- **Altman Z-score: 13.15**. A Z-score of 13.15 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend: none**. Kratos Defense & Security Solutions Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (21 analysts). 21 analysts cover Kratos Defense & Security Solutions Inc.; the consensus is strong_buy, with an average price target of $105.62 (+121% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -24.8%** (YTD -37.0%, 3-mo -18.3%). The shares are down 24.8% over twelve months including dividends.
- **From 52-week high: -64.3%** (11.0% above the low). Trading 64% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 36**. An RSI of 36 is neutral.
- **Beta (1 yr): 2.24** (volatility 72%). Beta of 2.24 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=KTOS · Page: https://foliofundamentals.com/stocks/ktos

Not investment advice.