KRATOS DEFENSE & SECURITY's gross profit margin for the third quarter of its fiscal year 2014 has increased 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||25.98||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||502329.0||494430.0|
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. To use another comparison, its price-to-book ratio of 1.45 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 13.71. 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 21.01||KTOS NM||Peers 15.07|
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 11.58||Peers 17.99||KTOS NA||Peers 2.80|
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 1.45||Peers 13.71||KTOS 29.76||Peers 16.94|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
KTOS is expected to have an earnings growth rate that significantly exceeds its peers.
|KTOS 0.38||Peers 1.67||KTOS -9.85||Peers 3.09|
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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