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Kratos Defense & Security Solut (KTOS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Kratos Defense & Security Solut
NasdaqGS•Industrials•Aerospace & Defense
$47.62+0.04(<0.01%)After hours
Market Cap
$8.99B
P/E
290.9x
P/S
5.9x
P/B
2.6x

Kratos Defense & Security Solutions, Inc., a technology company, provides technology, hardware, products, system, and software for the defense, national security, and commercial markets in the United States, other North America, the Asia Pacific, the Middle East, Europe, and Internationally. The company operates through Kratos Government Solutions and Unmanned Systems segments. It offers virtualized ground systems for satellites and space vehicles, including software for command and control, telemetry, and tracking and control; jet powered unmanned aerial drone systems and hypersonic vehicles and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft and launch systems, command, control, communication, computing, combat, and intelligence surveillance and reconnaissance; and microwave electronic products for missile, radar, missile defense, space, and satellite; and counter unmanned aircraft systems, directed energy, communication and other systems, and virtual and augmented reality training systems for the warfighter. The company primarily serves national security-related agencies, the U.S. Department of Defense, intelligence and classified agencies, international government agencies, and domestic and international commercial customers. Kratos Defense & Security Solutions, Inc. was formerly known as Wireless Facilities, Inc. and changed its name to Kratos Defense & Security Solutions, Inc. in August 1999. Kratos Defense & Security Solutions, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

C

How this company scores

AverageMetricSide Score: 45/100

Strongest: Growth (22/25); weakest: Cash & Earnings Quality (1/25).

Profitability7/25
Growth22/25
Balance Sheet & Red Flags15/25
Cash & Earnings Quality1/25
Strengths
Growing revenueRising earningsInterest easily coveredConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 290.9x5y range 37.2x – 735.5x
P/E 290.9x · near its 10-quarter median

Currently near its 10-quarter median.

P/S · 5.9x5y range 3.0x – 11.4x
P/S 5.9x · above its 20-quarter median

Currently above its 20-quarter median.

P/B · 2.6x5y range 2.5x – 7.4x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Watch

Operating margins declined 19.7% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Red Flag

Free cash flow has been negative in 7 of the last 8 quarters — earnings are not translating to cash.

Price & Volume
Market Cap $8.99B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$1.52B
7Q
Q. Revenue
$458.80M
2Q
TTM EBITDA
$82.20M
4Q
TTM Op. Income
$18.40M
2Q
Q. Op. Income
$-1.60M
2Q
TTM Net Income
$30.90M
4Q
Q. Net Income
$4.40M
52%
EPS
$0.02
0%
Shares Out.
$188.60M
2Q
$1.52B in TTM revenue grew 25.5% YoY, reaching $458.80M last quarter. TTM EBITDA of $82.20M and TTM operating income of $18.40M show growth is flowing through to the bottom line. TTM net income of $30.90M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
21.8%
2Q
EBITDA Margin
4.5%
2Q
Op. Margin
-0.3%
2Q
Net Margin
1.0%
16%
Op. margin of -0.3% is down 1.4% YoY — costs are rising relative to revenue. Net margin at 1.0% and gross margin of 21.8% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
290.9x
3Q
P/S Ratio
5.9x
3Q
P/B Ratio
2.6x
3Q
At 290.9x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 5.9x and P/B of 2.6x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 3 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$4.09B
3Q
Cash
$1.44B
83%
Long-Term Debt
N/A
3Q
Book Value
$3.43B
7Q
D/E Ratio
N/A
3Q
Debt/EBITDA
0.0
100%

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$-11.00M
6%
TTM Free Cash Flow
$-128.90M
2Q
FCF Margin
-8.5%
2Q
FCF / Net Income
-4.2
2Q
TTM FCF of $-128.90M on $-11.00M in operating cash flow. The FCF / Net Income ratio of -4.2x means the business consumes cash — it is not yet self-funding. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.

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· near its 20-quarter median

Currently near its 20-quarter median.

Cash Burn

Red Flag

The last 6 consecutive quarters had negative FCF — the company is burning cash and may need external funding.

Share Dilution

Red Flag

Shares outstanding increased 23.6% — significant dilution, likely from stock compensation or capital raises.