KRATOS DEFENSE & SECURITY's gross profit margin for the third quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. KRATOS DEFENSE & SECURITY has average liquidity. Currently, the Quick Ratio is 1.22 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 23.43% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||217.1||226.4|
|Net Income ($mil)||-10.9||-9.9|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||21.4||54.8|
|Total Assets ($mil)||1145.9||1224.7|
|Total Debt ($mil)||662.9||644.6|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||22.06||24.43|
|Return on Assets||-7.26||-9.78|
|Return on Equity||-35.8||-38.48|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||57.8||57.05|
|Div / share||0.0||0.0|
|Book value / share||4.0||5.29|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||497616.0||364999.0|
SELL. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.18 indicates a significant discount versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 4.63. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, KRATOS DEFENSE & SECURITY proves to trade at a discount to investment alternatives within the industry.
|KTOS NM||Peers 19.09||KTOS NM||Peers 14.38|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
KTOS's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
KTOS's P/CF is negative making the measure meaningless.
|KTOS 9.46||Peers 23.55||KTOS NA||Peers 1.16|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
KTOS is trading at a significant premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|KTOS 1.18||Peers 4.63||KTOS 29.76||Peers 93.83|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
KTOS is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, KTOS is expected to significantly trail its peers on the basis of its earnings growth rate.
|KTOS 0.31||Peers 1.60||KTOS -9.85||Peers 3.58|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
KTOS is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
KTOS significantly trails its peers on the basis of sales growth
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