ScoreWhy is Kratos Defense & Security Solutions, Inc. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Poor long term growth as Operating profit has grown by an annual rate -5.23% of over the last 5 years
3
The company has declared Positive results for the last 7 consecutive quarters
- DEBT-EQUITY RATIO (HY) Lowest at -25.73 %
- CASH AND EQV(HY) Highest at USD 1,047.3 MM
- INVENTORY TURNOVER RATIO(HY) Highest at 5.63 times
4
With ROCE of 2.48%, it has a very attractive valuation with a 4.68 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 184.17%, its profits have risen by 123.1% ; the PEG ratio of the company is 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 5.85% over the previous quarter.
6
Consistent Returns over the last 3 years
- Along with generating 184.17% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods
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.
194.69%
4.71
56.70%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.36%
EBIT Growth (5y)
-5.23%
EBIT to Interest (avg)
3.04
Debt to EBITDA (avg)
1.06
Net Debt to Equity (avg)
-0.06
Sales to Capital Employed (avg)
0.75
Tax Ratio
30.11%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
2.50%
ROE (avg)
2.30%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
267
Industry P/E
Price to Book Value
4.48
EV to EBIT
188.69
EV to EBITDA
71.72
EV to Capital Employed
4.68
EV to Sales
5.28
PEG Ratio
2.98
Dividend Yield
NA
ROCE (Latest)
2.48%
ROE (Latest)
1.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -25.73 %
CASH AND EQV(HY)
Highest at USD 1,047.3 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 5.63 times
NET SALES(Q)
Highest at USD 351.5 MM
-18What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,233.33
OPERATING PROFIT MARGIN(Q)
Lowest at 5.26 %
RAW MATERIAL COST(Y)
Grown by 19.97% (YoY
INTEREST(Q)
Highest at USD 1.5 MM
OPERATING PROFIT(Q)
Lowest at USD 18.5 MM
PRE-TAX PROFIT(Q)
Lowest at USD 4.6 MM
NET PROFIT(Q)
Lowest at USD 2.9 MM
EPS(Q)
Lowest at USD 0.02
Here's what is working for Kratos Defense & Security Solutions, Inc.
Debt-Equity Ratio
Lowest at -25.73 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales
Highest at USD 351.5 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 351.5 MM has Grown at 21.03%
over average net sales of the previous four periods of USD 290.43 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Cash and Eqv
Highest at USD 1,047.3 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 5.63 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at USD 14.8 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Kratos Defense & Security Solutions, Inc.
Pre-Tax Profit
At USD 4.6 MM has Fallen at -42.14%
over average net sales of the previous four periods of USD 7.95 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 2.9 MM has Fallen at -50.04%
over average net sales of the previous four periods of USD 5.8 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest
At USD 1.5 MM has Grown at 25%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,233.33
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit Margin
Lowest at 5.26 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Interest
Highest at USD 1.5 MM
in the last five periods and Increased by 25% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit
Lowest at USD 18.5 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Pre-Tax Profit
Lowest at USD 4.6 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 2.9 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.02
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 19.97% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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