Kratos Defense and Security Solutions Inc (KTOS) Stock Analysis
Verdict: WATCH (do not buy)
Rapid revenue growth and a $2.08B backlog highlight drone demand, but 1.5% operating margins and zero insider buying make valuation risky.
Investment score: 47/100
Analysis as of
Is Kratos Defense and Security Solutions Inc stock worth reviewing? AI model thesis
The model score of 47/100 falls in the HOLD range. The central thesis and factor breakdown explain the assessment.
7-factor investment score
- Valuation: 25/100 (weight 20%)
- Financial Health: 55/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 10/100 (weight 10%)
- Analyst Consensus: 85/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
Kratos Defense and Security Solutions Inc opportunities and risks
What speaks for KTOS
- Hypersonic & Rocket Propulsion Franchise Scaling
What speaks against KTOS
- Persistent FCF Drain & Fixed-Price Contract Margin Squeeze
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| KTOS | 233.3x | 4.9x | 52.9x | 22.0% | 2.0% | -1.7% |
| TXT | 14.0x | 0.8x | 8.9x | 16.5% | 6.1% | 6.0% |
| BWXT | 35.3x | 3.6x | 25.3x | 22.1% | 10.1% | 2.5% |
| HII | 15.2x | 0.8x | 10.9x | 12.6% | 5.0% | 3.7% |
| DRS | 28.9x | 2.4x | 18.7x | 24.9% | 8.5% | 3.9% |
| Peer median | 22.1x | 1.6x | 14.8x | 19.3% | 7.3% | 3.8% |
Frequently asked questions about Kratos Defense and Security Solutions Inc (KTOS)
Is KTOS stock a good investment?
The cached TradeMates AI model rates Kratos Defense and Security Solutions Inc as WATCH (do not buy) with an investment score of 47/100. The model score of 47/100 falls in the HOLD range. The central thesis and factor breakdown explain the assessment. This is algorithmic model output, not personal investment advice.
Is KTOS stock a buy?
The TradeMates model verdict for KTOS is WATCH (do not buy) with an investment score of 47/100. Treat this as a model signal to review, not a personal buy recommendation.