Kratos Defense & Security Solutions Inc

Find Ratings Reports
KTOS : NASDAQ : Services
$4.54 -0.01 | -0.22%
Today's Range: 4.46 - 4.61
Avg. Daily Volume: 423,300
07/26/16 - 11:25 AM ET

Financial Analysis


KRATOS DEFENSE & SECURITY's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. KRATOS DEFENSE & SECURITY has average liquidity. Currently, the Quick Ratio is 1.35 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 10.96% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)153.0157.1
EBITDA ($mil)1.43.9
EBIT ($mil)-4.7-3.0
Net Income ($mil)-22.2-16.3


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)20.836.0
Total Assets ($mil)884.41122.6
Total Debt ($mil)444.4663.0
Equity ($mil)234.7211.5


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin25.0325.91
EBITDA Margin0.912.48
Operating Margin-3.07-1.91
Sales Turnover0.740.66
Return on Assets1.57-7.06
Return on Equity-17.42-36.31
Debt Q1 FY16 Q1 FY15
Current Ratio1.791.64
Debt/Capital0.650.76
Interest Expense8.78.8
Interest Coverage-0.54-0.34


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)59.5858.27
Div / share0.00.0
EPS-0.37-0.25
Book value / share3.943.63
Institutional Own % n/a n/a
Avg Daily Volume426078.0483746.0

Valuation


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 1.15 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 9.94. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KTOS NM Peers 20.96   KTOS 1.29 Peers 16.97

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.

 

Discount. 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 is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KTOS 1506.67 Peers 18.28   KTOS NA Peers 2.24

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

KTOS's ratio is negative making this valuation measure meaningless.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KTOS 1.15 Peers 9.94   KTOS 48.51 Peers 3.18

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KTOS 0.41 Peers 1.67   KTOS -12.51 Peers 6.23

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

 

 

Latest Stock Upgrades/Downgrades