Kratos Defense & Security Solutions Inc

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KTOS : NASDAQ : Services
$12.46 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1378500.0
08/16/17 - 4:00 PM ET

Financial Analysis

KRATOS DEFENSE & SECURITY's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. KRATOS DEFENSE & SECURITY has strong liquidity. Currently, the Quick Ratio is 1.55 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 53.81% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)185.7168.2
EBITDA ($mil)8.110.4
EBIT ($mil)2.74.8
Net Income ($mil)-6.2-10.4

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)63.518.3
Total Assets ($mil)950.0874.2
Total Debt ($mil)369.5444.7
Equity ($mil)347.0225.6

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin26.6628.24
EBITDA Margin4.366.18
Operating Margin1.452.85
Sales Turnover0.740.76
Return on Assets-4.642.11
Return on Equity-12.68-15.64
Debt Q2 FY17 Q2 FY16
Current Ratio2.01.8
Interest Expense7.28.7
Interest Coverage0.380.55

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)86.6359.68
Div / share0.00.0
Book value / share4.013.78
Institutional Own % n/a n/a
Avg Daily Volume1339478.01887478.0


HOLD. 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 3.03 indicates valuation on par with the S&P 500 average of 3.03 and a significant discount versus the industry average of 16.11. The current price-to-sales ratio is well below the S&P 500 average and is also below 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KTOS NM Peers 28.40   KTOS NM Peers 16.48

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
KTOS 34.14 Peers 22.20   KTOS NA Peers 4.97

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KTOS 3.03 Peers 16.11   KTOS -11.86 Peers 60.33

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KTOS 1.50 Peers 1.85   KTOS 6.14 Peers 3.82

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 discount to its industry on this measurement.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

KTOS has a sales growth rate that significantly exceeds its peers.



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