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Kratos Defense & Security Solutions (KTOS)




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Upturn Advisory Summary
08/14/2025: KTOS (5-star) is a STRONG-BUY. BUY since 100 days. Profits (112.48%). Updated daily EoD!
1 Year Target Price $70.47
1 Year Target Price $70.47
6 | Strong Buy |
2 | Buy |
4 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 165.4% | Avg. Invested days 60 | Today’s Advisory Strong Buy |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 11.56B USD | Price to earnings Ratio 685 | 1Y Target Price 70.47 |
Price to earnings Ratio 685 | 1Y Target Price 70.47 | ||
Volume (30-day avg) 12 | Beta 1.05 | 52 Weeks Range 20.58 - 72.70 | Updated Date 08/15/2025 |
52 Weeks Range 20.58 - 72.70 | Updated Date 08/15/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.1 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Earnings Date
Report Date 2025-08-07 | When - | Estimate 0.09 | Actual 0.11 |
Profitability
Profit Margin 1.2% | Operating Margin (TTM) 1.05% |
Management Effectiveness
Return on Assets (TTM) 0.66% | Return on Equity (TTM) 0.88% |
Valuation
Trailing PE 685 | Forward PE 217.39 | Enterprise Value 11162775840 | Price to Sales(TTM) 9.53 |
Enterprise Value 11162775840 | Price to Sales(TTM) 9.53 | ||
Enterprise Value to Revenue 9.2 | Enterprise Value to EBITDA 128.46 | Shares Outstanding 168794000 | Shares Floating 165261631 |
Shares Outstanding 168794000 | Shares Floating 165261631 | ||
Percent Insiders 1.88 | Percent Institutions 102.88 |
Upturn AI SWOT
Kratos Defense & Security Solutions

Company Overview
History and Background
Kratos Defense & Security Solutions was founded in 1994 (originally as Wireless Facilities, Inc.). It transitioned to a defense technology company through acquisitions and organic growth. A significant milestone was its focus on unmanned systems and directed energy, establishing it as a disruptive force in the defense industry.
Core Business Areas
- Kratos Government Solutions: Provides microwave electronic products, space, training, and cybersecurity solutions to U.S. federal government agencies, state and local governments and commercial customers.
- Unmanned Systems: Focuses on the design, development, and production of unmanned aerial systems (UAS) and related products and services.
Leadership and Structure
Eric M. DeMarco is the President and CEO. The organizational structure is based on business segments, with centralized corporate functions for finance, legal, and human resources.
Top Products and Market Share
Key Offerings
- High-Performance Drones (e.g., XQ-58 Valkyrie): Kratos is a leading provider of high-performance, low-cost unmanned aerial systems (UAS). XQ-58 Valkyrie serves as a 'loyal wingman' to crewed aircraft. Market share is estimated to be growing rapidly in the expendable drone sector, facing competition from Boeing (BA) and General Atomics.
- Satellite Communication Solutions: Provides satellite ground systems, communications, and related services for government and commercial customers. Market share is significant, competition includes ViaSat (VSAT) and Intelsat.
- Microwave Electronics: Offers advanced microwave and millimeter wave components, modules, and sub-systems for defense, aerospace, and commercial applications. Kratos has a meaningful position, and they contend with CPI and L3Harris Technologies (LHX).
Market Dynamics
Industry Overview
The defense industry is experiencing growth, driven by geopolitical instability and increasing defense spending. There is increasing demand for unmanned systems, space-based solutions, and cybersecurity.
Positioning
Kratos is positioned as an innovative provider of affordable technology solutions, particularly in unmanned systems and space. Its competitive advantage lies in its cost-effective designs and rapid development cycles.
Total Addressable Market (TAM)
The total addressable market (TAM) is estimated to be hundreds of billions of dollars across its segments. Kratos is well-positioned within the TAM, with a focus on high-growth areas.
Upturn SWOT Analysis
Strengths
- Innovative technology
- Low-cost solutions
- Rapid development cycles
- Strong government relationships
- Leading position in expendable UAS
Weaknesses
- Smaller scale compared to major defense contractors
- Reliance on government contracts
- Potential for program delays
- Limited international presence relative to competitors
Opportunities
- Increased defense spending
- Growing demand for unmanned systems
- Expansion into new markets
- Strategic acquisitions
- Space market growth
Threats
- Budget cuts
- Competition from larger defense contractors
- Technological obsolescence
- Geopolitical instability
- Cybersecurity threats
Competitors and Market Share
Key Competitors
- BA
- LMT
- NOC
Competitive Landscape
Kratos competes with larger, more established defense contractors. Its advantages include its innovative technology, low-cost solutions, and rapid development cycles. Its disadvantages include its smaller scale and reliance on government contracts.
Major Acquisitions
1-Source Consulting
- Year: 2022
- Acquisition Price (USD millions): 50
- Strategic Rationale: Acquisition intended to bolster engineering and IT service capacity and to expand their geographical footprint.
Growth Trajectory and Initiatives
Historical Growth: Kratos has experienced significant revenue growth in recent years, driven by demand for its unmanned systems and other defense solutions.
Future Projections: Analysts project continued revenue growth for Kratos, driven by government spending and increased demand for its products. Earnings are also expected to grow.
Recent Initiatives: Recent initiatives include strategic acquisitions to expand its capabilities, partnerships with major defense contractors, and investments in research and development.
Summary
Kratos is a growing defense technology company specializing in unmanned systems and satellite communications. They face competition from larger players, but their innovation and cost-effectiveness are strengths. They need to monitor government spending and technological changes. Overall Kratos is well-positioned for future growth due to the growing demand for its unmanned systems and defense solutions.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q), Yahoo Finance, Analyst Reports
- Market Research Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Kratos Defense & Security Solutions
Exchange NASDAQ | Headquaters San Diego, CA, United States | ||
IPO Launch date 1999-11-05 | CEO, President & Director Mr. Eric M. DeMarco | ||
Sector Industrials | Industry Aerospace & Defense | Full time employees 4000 | Website https://www.kratosdefense.com |
Full time employees 4000 | Website https://www.kratosdefense.com |
Kratos Defense & Security Solutions, Inc., a technology company, provides technology, products, and system and software for the defense, national security, and commercial markets in the United States, other North America, the Asia Pacific, the Middle East, Europe, and Internationally. The company operates in two segments, Kratos Government Solutions and Unmanned Systems. It offers ground systems for satellites and space vehicles, including software for command and control, telemetry, and tracking and control; jet powered unmanned aerial drone systems, hypersonic vehicles, and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft, and launch systems; command, control, communication, computing, combat, and intelligence surveillance and reconnaissance; and microwave electronic products for missile, radar, missile defense, space, and satellite; and counter unmanned aircraft systems, directed energy, communication and other systems, and virtual and augmented reality training systems for the warfighter. The company primarily serves national security-related agencies, the U.S. Department of Defense, intelligence and classified agencies, international government agencies, and commercial customers. Kratos Defense & Security Solutions, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

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