Kratos Defense & Security Solutions, Inc. (KTOS) Financial Ratios
28 years of historical data (1998–2025) · Industrials · Aerospace & Defense
EV/EBITDA
↑
115.05
↑+81% vs avg
5yr avg: 63.39
30Y Low9.8·High74.3
P/FCF
N/A
—
5yr avg: 206.70
30Y Low6.4·High150.3
P/B Ratio
↑
5.33
↑+64% vs avg
5yr avg: 3.26
30Y Low0.5·High15.1
ROE
↑
1.3%
↓+386% vs avg
5yr avg: -0.5%
30Y Low-71%·High33%
Debt/EBITDA
↓
2.06
↓-55% vs avg
5yr avg: 4.63
30Y Low0.0·High21.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
KTOS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Kratos Defense & Security Solutions, Inc. trades at 473.2x earnings, 13% above its 5-year average of 419.4x, sitting at the 100th percentile of its historical range. Compared to the Industrials sector median P/E of 25.9x, the stock trades at a premium of 1727%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.4B | $13.4B | $4.0B | $2.6B | $1.3B | $2.5B | $3.3B | $2.0B | $1.5B | $948M | $454M |
| Enterprise Value | $10.0B | $13.1B | $4.0B | $2.9B | $1.5B | $2.5B | $3.2B | $2.1B | $1.6B | $1.1B | $817M |
| P/E Ratio → | 473.23 | 597.69 | 241.09 | — | — | — | 40.94 | 163.73 | — | — | — |
| P/S Ratio | 7.72 | 9.98 | 3.52 | 2.55 | 1.46 | 3.06 | 4.35 | 2.74 | 2.42 | 1.26 | 0.68 |
| P/B Ratio | 5.33 | 6.74 | 2.96 | 2.65 | 1.38 | 2.59 | 3.46 | 3.34 | 2.88 | 1.85 | 1.64 |
| P/FCF | — | — | — | 206.70 | — | — | 304.29 | 531.54 | — | — | — |
| P/OCF | — | — | 80.52 | 40.58 | — | 80.62 | 69.87 | 65.56 | 82.59 | — | — |
P/E links to full P/E history page with 30-year chart
KTOS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Kratos Defense & Security Solutions, Inc.'s enterprise value stands at 115.1x EBITDA, 81% above its 5-year average of 63.4x. The Industrials sector median is 13.7x, placing the stock at a 740% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 9.70 | 3.48 | 2.79 | 1.70 | 3.05 | 4.31 | 2.98 | 2.60 | 1.48 | 1.22 |
| EV / EBITDA | 115.05 | 150.17 | 48.88 | 38.18 | 40.21 | 39.51 | 50.93 | 29.23 | 33.26 | 67.78 | 194.41 |
| EV / EBIT | 361.36 | 293.60 | 94.83 | 88.24 | — | 88.02 | 106.04 | 54.51 | 53.02 | — | — |
| EV / FCF | — | — | — | 226.13 | — | — | 301.27 | 577.48 | — | — | — |
KTOS Profitability
Margins and return-on-capital ratios measuring operating efficiency
Kratos Defense & Security Solutions, Inc. earns an operating margin of 2.1%, below the Industrials sector average of 4.7%. ROE of 1.3% is modest, trailing the sector median of 8.2%. ROIC of 1.4% represents below-average returns on invested capital versus a sector median of 6.4%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 22.1% | 22.1% | 25.3% | 25.9% | 25.2% | 27.7% | 27.2% | 26.5% | 27.5% | 26.2% | 23.0% |
| Operating Margin | 2.1% | 2.1% | 2.6% | 3.0% | -0.3% | 3.4% | 3.9% | 5.3% | 4.9% | -0.8% | -2.8% |
| Net Profit Margin | 1.6% | 1.6% | 1.4% | -0.9% | -4.1% | -0.2% | 10.6% | 1.7% | -0.6% | -5.7% | -9.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.3% | 1.3% | 1.4% | -0.9% | -3.9% | -0.2% | 10.4% | 2.3% | -0.7% | -10.8% | -22.8% |
| ROA | 1.0% | 1.0% | 0.9% | -0.6% | -2.3% | -0.1% | 5.8% | 1.1% | -0.3% | -4.3% | -6.5% |
| ROIC | 1.4% | 1.4% | 1.7% | 1.9% | -0.2% | 2.3% | 2.6% | 4.1% | 3.5% | -0.7% | -2.1% |
| ROCE | 1.5% | 1.5% | 1.9% | 2.3% | -0.2% | 2.0% | 2.5% | 4.1% | 3.6% | -0.7% | -2.5% |
KTOS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Kratos Defense & Security Solutions, Inc. carries a Debt/EBITDA ratio of 2.1x, which is manageable (33% below the sector average of 3.1x). The company holds a net cash position — cash of $561M exceeds total debt of $180M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of just 2.6x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.09 | 0.09 | 0.21 | 0.32 | 0.32 | 0.35 | 0.37 | 0.58 | 0.57 | 0.58 | 1.56 |
| Debt / EBITDA | 2.06 | 2.06 | 3.49 | 4.24 | 7.94 | 5.42 | 5.51 | 4.69 | 6.09 | 17.95 | 102.86 |
| Net Debt / Equity | — | -0.19 | -0.03 | 0.25 | 0.23 | -0.01 | -0.03 | 0.29 | 0.21 | 0.32 | 1.31 |
| Net Debt / EBITDA | -4.38 | -4.38 | -0.58 | 3.28 | 5.80 | -0.16 | -0.51 | 2.33 | 2.31 | 9.99 | 86.40 |
| Debt / FCF | — | — | — | 19.42 | — | — | -3.02 | 45.95 | — | — | — |
| Interest Coverage | 2.64 | 2.64 | 1.91 | 1.43 | -0.16 | 1.18 | 1.24 | 1.62 | 1.41 | -0.20 | -0.54 |
Net cash position: cash ($561M) exceeds total debt ($180M)
KTOS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Kratos Defense & Security Solutions, Inc.'s current ratio of 4.06x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 3.46x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 2.03x to 4.06x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.06 | 4.06 | 2.94 | 2.03 | 2.49 | 3.43 | 3.87 | 2.86 | 3.00 | 2.49 | 1.90 |
| Quick Ratio | 3.46 | 3.46 | 2.39 | 1.50 | 1.95 | 3.01 | 3.46 | 2.52 | 2.72 | 2.23 | 1.62 |
| Cash Ratio | 1.80 | 1.80 | 1.11 | 0.25 | 0.35 | 1.58 | 1.93 | 0.94 | 1.11 | 0.69 | 0.35 |
| Asset Turnover | — | 0.55 | 0.58 | 0.64 | 0.58 | 0.51 | 0.48 | 0.60 | 0.61 | 0.73 | 0.70 |
| Inventory Turnover | 5.57 | 5.57 | 5.24 | 4.92 | 5.36 | 6.39 | 6.71 | 8.63 | 9.58 | 11.00 | 9.30 |
| Days Sales Outstanding | — | 123.96 | 103.98 | 115.82 | 133.40 | 128.01 | 132.88 | 134.35 | 140.21 | 103.06 | 127.73 |
KTOS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Kratos Defense & Security Solutions, Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 0.2% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.2% | 0.2% | 0.4% | — | — | — | 2.4% | 0.6% | — | — | — |
| FCF Yield | — | — | — | 0.5% | — | — | 0.3% | 0.2% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 1.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 1.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% |
| Shares Outstanding | — | $173M | $151M | $130M | $127M | $128M | $119M | $109M | $106M | $90M | $61M |
Peer Comparison
Compare KTOS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 KTOSYou | $10B | 473.2 | 115.1 | — | 22.1% | 2.1% | 1.3% | 1.4% | 2.1 |
 AVAV | $9B | 112.5 | 106.7 | — | 39.4% | 5.0% | 5.1% | 3.6% | 0.8 |
 RCAT | $1B | -17.7 | — | — | 3.1% | -163.5% | -48.7% | -71.0% | — |
 JOBY | $10B | -9.3 | — | — | -30.1% | -1346.9% | -80.1% | -54.7% | — |
 ACHR | $5B | -6.5 | — | — | — | -243100.0% | -41.8% | -89.6% | — |
 CACI | $11B | 22.4 | 14.9 | 22.9 | 8.9% | 8.9% | 13.5% | 9.2% | 3.5 |
 SAIC | $4B | 12.3 | 6.4 | 7.4 | 12.0% | 7.1% | 23.3% | 14.2% | 0.3 |
 LHX | $56B | 35.4 | 19.3 | 21.0 | 25.7% | 10.0% | 8.2% | 5.4% | 3.1 |
 HII | $13B | 20.8 | 16.0 | 15.8 | 12.7% | 4.9% | 12.4% | 6.2% | 3.4 |
 TDY | $30B | 34.1 | 21.6 | 27.8 | 39.2% | 18.8% | 8.9% | 7.0% | 1.8 |
 LDOS | $17B | 12.1 | 9.0 | 10.5 | 17.7% | 12.3% | 30.9% | 17.1% | 2.5 |
| Industrials Median | — | 25.9 | 13.7 | 21.0 | 33.0% | 4.7% | 8.2% | 6.4% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonKTOS — Frequently Asked Questions
Quick answers to the most common questions about buying KTOS stock.
What is Kratos Defense & Security Solutions, Inc.'s P/E ratio?
Kratos Defense & Security Solutions, Inc.'s current P/E ratio is 473.2x. The historical average is 70.6x. This places it at the 100th percentile of its historical range.
What is Kratos Defense & Security Solutions, Inc.'s EV/EBITDA?
Kratos Defense & Security Solutions, Inc.'s current EV/EBITDA is 115.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 33.2x.
What is Kratos Defense & Security Solutions, Inc.'s ROE?
Kratos Defense & Security Solutions, Inc.'s return on equity (ROE) is 1.3%. The historical average is -6.4%.
Is KTOS stock overvalued?
Based on historical data, Kratos Defense & Security Solutions, Inc. is trading at a P/E of 473.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Kratos Defense & Security Solutions, Inc.'s profit margins?
Kratos Defense & Security Solutions, Inc. has 22.1% gross margin and 2.1% operating margin.
How much debt does Kratos Defense & Security Solutions, Inc. have?
Kratos Defense & Security Solutions, Inc.'s Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.