ScoreWhy is Kratos Defense & Security Solutions, Inc. ?
1
The company is Net-Debt Free
2
Poor long term growth as Operating profit has grown by an annual rate -2.66% of over the last 5 years
3
Flat results in Jun 26
- OPERATING CASH FLOW(Y) Lowest at USD -41 MM
- NET PROFIT(Q) At USD 4.53 MM has Fallen at -45.76%
- PRE-TAX PROFIT(Q) At USD 7.2 MM has Fallen at -33.64%
4
With ROCE of 1.91%, it has a very attractive valuation with a 8.88 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -44.98%, its profits have risen by 15.2% ; the PEG ratio of the company is 187.3
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 12.44% over the previous quarter.
6
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 15.76% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -44.98% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Kratos Defense & Security Solutions, Inc. should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kratos Defense & Security Solutions, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Kratos Defense & Security Solutions, Inc.
-42.08%
1.73
72.69%
S&P 500
16.06%
1.20
13.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.49%
EBIT Growth (5y)
-2.66%
EBIT to Interest (avg)
3.04
Debt to EBITDA (avg)
1.06
Net Debt to Equity (avg)
-0.06
Sales to Capital Employed (avg)
0.73
Tax Ratio
30.11%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
87.56%
ROCE (avg)
2.50%
ROE (avg)
2.30%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
582
Industry P/E
Price to Book Value
6.73
EV to EBIT
465.38
EV to EBITDA
148.17
EV to Capital Employed
8.88
EV to Sales
9.57
PEG Ratio
187.31
Dividend Yield
NA
ROCE (Latest)
1.91%
ROE (Latest)
1.16%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
NET PROFIT(HY)
At USD 19.33 MM has Grown at 161.16%
CASH AND EQV(HY)
Highest at USD 2,901.9 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -36.3 %
NET SALES(Q)
Highest at USD 458.8 MM
-9What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD -41 MM
NET PROFIT(Q)
At USD 4.53 MM has Fallen at -45.76%
PRE-TAX PROFIT(Q)
At USD 7.2 MM has Fallen at -33.64%
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.12 times
Here's what is working for Kratos Defense & Security Solutions, Inc.
Net Sales
Highest at USD 458.8 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 458.8 MM has Grown at 29.68%
over average net sales of the previous four periods of USD 353.8 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Cash and Eqv
Highest at USD 2,901.9 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -36.3 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at USD 25.6 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 25.6 MM has Grown at 26.73%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for Kratos Defense & Security Solutions, Inc.
Net Profit
At USD 4.53 MM has Fallen at -45.76%
over average net sales of the previous four periods of USD 8.34 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Operating Cash Flow
Lowest at USD -41 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Pre-Tax Profit
At USD 7.2 MM has Fallen at -33.64%
over average net sales of the previous four periods of USD 10.85 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Debtors Turnover Ratio
Lowest at 3.12 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at USD 1.14 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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