Kratos Defense & Security Solutions, Inc. (KTOS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Kratos Defense & Security Solutions, Inc.

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Why is Kratos Defense & Security Solutions, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -5.71% of over the last 5 years

The company has declared Positive results for the last 7 consecutive quarters

DEBTORS TURNOVER RATIO(HY) Highest at 3.46 times
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
CASH AND EQV(HY) Highest at USD 1,349.5 MM

With ROCE of 1.70%, it has a fair valuation with a 11.30 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 170.78%, its profits have risen by 23.6% ; the PEG ratio of the company is 66.8

High Institutional Holdings at 96.91%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 170.78% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How 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.

167.81%

4.65

67.46%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.08%

EBIT Growth (5y)

-5.71%

EBIT to Interest (avg)

3.04

Debt to EBITDA (avg)

1.06

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.74

Tax Ratio

30.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

96.91%

ROCE (avg)

2.50%

ROE (avg)

2.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

704

Industry P/E

Price to Book Value

8.44

EV to EBIT

665.41

EV to EBITDA

200.86

EV to Capital Employed

11.30

EV to Sales

12.59

PEG Ratio

66.77

Dividend Yield

ROCE (Latest)

1.70%

ROE (Latest)

1.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 3.46 times

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

CASH AND EQV(HY)

Highest at USD 1,349.5 MM

DEBT-EQUITY RATIO (HY)

Lowest at -21.78 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.9 times

OPERATING PROFIT(Q)

Highest at USD 22.2 MM

PRE-TAX PROFIT(Q)

Highest at USD 12.1 MM

NET PROFIT(Q)

Highest at USD 8.85 MM

EPS(Q)

Highest at USD 0.05

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -8.6 MM

INTEREST(HY)

At USD 1.5 MM has Grown at 36.36%

RAW MATERIAL COST(Y)

Grown by 12.11% (YoY

Here's what is working for Kratos Defense & Security Solutions, Inc.

Pre-Tax Profit

At USD 12.1 MM has Grown at 104.22%

over average net sales of the previous four periods of USD 5.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 8.85 MM has Grown at 94.23%

over average net sales of the previous four periods of USD 4.55 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Debtors Turnover Ratio

Highest at 3.46 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Operating Profit

Highest at USD 22.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 12.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 8.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 1,349.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -21.78 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 5.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at USD 14.9 MM

in the last five periods

MOJO 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.

Interest

At USD 1.5 MM has Grown at 36.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD -8.6 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Raw Material Cost

Grown by 12.11% (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