Kratos Defense & Security Solutions, Inc. [NASDAQ:KTOS]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Kratos Defense & Security Solutions, Inc. [KTOS], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give KTOS an Outperform rating. Its stock price has been found in the range of 10.66 to 20.77. This is compared to its latest closing price of $20.46.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Kratos Defense & Security Solutions, Inc. [KTOS] is sitting at 2.11. This is compared to 1 month ago, when its average rating was 2.10.
For the quarter ending in Mar-19 Kratos Defense & Security Solutions, Inc. [KTOS] generated $0.16 billion in sales. That’s 4.46% higher than the average estimate of $0.15 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 1 Aug (In 77 Days).
Fundamental Analysis of Kratos Defense & Security Solutions, Inc. [KTOS]
Now let’s turn to look at profitability: with a current Operating Margin for Kratos Defense & Security Solutions, Inc. [KTOS] sitting at +5.55 and its Gross Margin at +26.52, this company’s Net Margin is now 0.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 4.24, and its Return on Invested Capital has reached 3.20%. Its Return on Equity is 0.80, and its Return on Assets is 0.40. These metrics suggest that this Kratos Defense & Security Solutions, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Kratos Defense & Security Solutions, Inc. [KTOS] has generated a Total Debt to Total Equity ratio of 56.65. Similarly, its Total Debt to Total Capital is 36.16, while its Total Debt to Total Assets stands at 29.13. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 56.65, and its Long-Term Debt to Total Capital is 36.16. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 41.06 and its Total Debt to EBITDA Value is 5.65. The Enterprise Value to Sales for this firm is now 3.37, and its Total Debt to Enterprise Value stands at 0.19. Kratos Defense & Security Solutions, Inc. [KTOS] has a Price to Book Ratio of 2.75, a Price to Cash Flow Ratio of 79.29 and P/E Ratio of 1,422.60. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Kratos Defense & Security Solutions, Inc. [KTOS] earns $237,692 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 2.43 and its Total Asset Turnover is 0.60. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.72 and its Current Ratio is 3.00. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Kratos Defense & Security Solutions, Inc. [KTOS] has 104.90M shares outstanding, amounting to a total market cap of $2.15B. Its stock price has been found in the range of 10.66 to 20.77. At its current price, it has moved by 0.11% from its 52-week high, and it has moved 95.06% from its 52-week low.
This stock’s Beta value is currently 1.74, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 87.43. This RSI suggests that Kratos Defense & Security Solutions, Inc. is currently Overbought.
Conclusion: Is Kratos Defense & Security Solutions, Inc. [KTOS] a Reliable Buy?
Kratos Defense & Security Solutions, Inc. [KTOS] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.