Kratos Defense & Security Solutions
KTOS
$50.36
+7.24%
Kratos Defense & Security Solutions is a technology company that develops and fields affordable, transformative systems for the aerospace and defense industry, operating through its Kratos Government Solutions and Unmanned Systems segments. It is a niche player focused on unmanned aerial, ground, and seaborne systems, as well as microwave electronics, space, training, and cybersecurity, positioning itself as a disruptor in the defense tech space. The current investor narrative centers on the company's potential to benefit from increased global defense spending on unmanned systems and drone dominance initiatives, as highlighted by recent news of a UK drone investment and Trump's drone dominance play. However, the stock has experienced significant volatility, with a 57.6% decline over the past six months, driven by fears of a U.S.-Iran peace deal and broader market sell-offs, creating debate around whether the pullback presents a buying opportunity or signals fundamental deterioration.…
KTOS
Kratos Defense & Security Solutions
$50.36
Related headlines
KTOS 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Kratos Defense & Security Solutions's 12-month outlook, with a consensus price target around $65.47 and implied upside of +30.0% versus the current price.
Average Target
$65.47
8 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
8
covering this stock
Price Range
$40 - $65
Analyst target range
Only 4 analysts cover KTOS, with a consensus Buy rating and an average EPS estimate of $2.46 for the next fiscal year. The average target price is not explicitly provided, but based on the forward P/E of 44.2x and estimated EPS of $2.46, the implied target price is approximately $108.73, representing a 125.6% upside from the current price of $48.19. The consensus leans bullish, but the limited coverage suggests the stock is not widely followed, which can lead to higher volatility and less efficient price discovery.
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KTOS Technical Analysis
The prevailing price trend for KTOS is a sustained downtrend, with the stock declining 4.15% over the past year but experiencing a severe 57.6% drop over the last six months. The current price of $48.19 sits at just 36% of its 52-week range (low: $46.01, high: $134.00), indicating the stock is trading near its lows, which could be interpreted as a value opportunity or a falling knife depending on one's view of the company's prospects. The 1-year price change of +4.15% masks the dramatic decline from the 52-week high, highlighting the stock's extreme volatility and the importance of the recent downward trajectory.
Beta
1.07
1.07x market volatility
Max Drawdown
-64.6%
Largest decline past year
52-Week Range
$46-$134
Price range past year
Annual Return
-3.1%
Cumulative gain past year
| Period | KTOS Return | S&P 500 |
|---|---|---|
| 1m | -12.8% | +1.4% |
| 3m | -32.5% | +7.4% |
| 6m | -59.6% | +8.6% |
| 1y | -3.1% | +20.3% |
| ytd | -36.5% | +10.3% |
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KTOS Fundamental Analysis
Revenue has been growing steadily, with Q4 2025 revenue of $345.1 million representing a 21.9% year-over-year increase, and the trailing twelve-month revenue run rate is approximately $1.35 billion. The growth is driven by both the KGS and Unmanned Systems segments, with product revenue of $230.8 million and service revenue of $114.3 million in the most recent quarter. However, the growth rate has decelerated from the 24.3% YoY growth seen in Q1 2025, suggesting a potential normalization, though the company continues to benefit from strong defense demand.
Quarterly Revenue
$345100000.0B
2025-12
Revenue YoY Growth
+21.9%
YoY Comparison
Gross Margin
21.4%
Latest Quarter
Free Cash Flow
$-137400000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is KTOS Overvalued?
Since net income is positive (TTM net income of $5.9 million), the primary valuation metric is the P/E ratio. The trailing P/E stands at 595.9x, while the forward P/E is 44.2x, implying the market expects significant earnings growth in the coming year. The large gap between trailing and forward P/E suggests that the market is pricing in a dramatic improvement in profitability, which is consistent with the company's low current earnings base and high growth expectations.
PE
595.9x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -305x~774x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
124.9x
Enterprise Value Multiple
