Kratos Defense & Security Solutions (KTOS) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Kratos Defense & Security Solutions stock (KTOS) is currently trading at $79.98. Kratos Defense & Security Solutions PE ratio is 596.08. Kratos Defense & Security Solutions PS ratio (Price-to-Sales) is 10.75. Analyst consensus price target for KTOS is $117.95. WallStSmart rates KTOS as Sell.
- KTOS PE ratio analysis and historical PE chart
- KTOS PS ratio (Price-to-Sales) history and trend
- KTOS intrinsic value — DCF, Graham Number, EPV models
- KTOS stock price prediction 2025 2026 2027 2028 2029 2030
- KTOS fair value vs current price
- KTOS insider transactions and insider buying
- Is KTOS undervalued or overvalued?
- Kratos Defense & Security Solutions financial analysis — revenue, earnings, cash flow
- KTOS Piotroski F-Score and Altman Z-Score
- KTOS analyst price target and Smart Rating
Kratos Defense & Security Solutions
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KTOS Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Kratos Defense & Security Solutions (KTOS)
KTOS trades 1748% above its Graham fair value of $4.75, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Kratos Defense & Security Solutions (KTOS) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, revenue growth, institutional own.. Concerns around peg ratio and return on equity. Mixed signals suggest waiting for clearer direction before acting.
Kratos Defense & Security Solutions (KTOS) Key Strengths (3)
85.57% of shares held by major funds and institutions
Large-cap company with substantial market presence
Strong revenue growth at 21.90% annually
Supporting Valuation Data
Kratos Defense & Security Solutions (KTOS) Areas to Watch (7)
Very low returns on shareholder equity
Near-zero operating margins, business under pressure
Very expensive relative to growth, significant premium
Very expensive at 10.8x annual revenue
Very expensive at 7.9x book value
Very thin margins, barely profitable
Solid earnings growth at 18.60%
Supporting Valuation Data
Kratos Defense & Security Solutions (KTOS) Detailed Analysis Report
Overall Assessment
This company scores 39/100 in our Smart Analysis, earning a F grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.0/10) while 7 fall into concern territory (avg 2.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap, Revenue Growth. Growth metrics are encouraging with Revenue Growth at 21.90%.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, PEG Ratio. Some valuation metrics including PEG Ratio (34.12), Price/Sales (10.75), Price/Book (7.92) suggest expensive pricing. Growth concerns include EPS Growth at 18.60%, which may limit upside. Profitability pressure is visible in Return on Equity at 1.31%, Operating Margin at 2.93%, Profit Margin at 1.63%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 1.31% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 21.90% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
KTOS Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
KTOS's Price-to-Sales ratio of 10.75x sits near its historical average of 11.92x (0th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 19% below its historical high of 13.22x set in Mar 2026, and 0% above its historical low of 10.75x in Mar 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Kratos Defense & Security Solutions (KTOS) · INDUSTRIALS › AEROSPACE & DEFENSE
The Big Picture
Kratos Defense & Security Solutions is a strong growth company balancing expansion with improving profitability. Revenue reached 1.3B with 22% growth year-over-year. Profit margins are strong at 163.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 131.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 163.0% and operating margin of 293.0% demonstrate strong pricing power and operational efficiency.
Free cash flow is -12M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Growth sustainability: can Kratos Defense & Security Solutions maintain 22%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 596.1x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor AEROSPACE & DEFENSE industry trends, competitive moves, and regulatory changes that could impact Kratos Defense & Security Solutions.
Bottom Line
Kratos Defense & Security Solutions offers an attractive blend of growth (22% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Kratos Defense & Security Solutions(KTOS)
NASDAQ
INDUSTRIALS
AEROSPACE & DEFENSE
USA
Kratos Defense & Security Solutions, Inc. is a government contractor for the US Department of Defense. The company is headquartered in San Diego, California.