Kratos Defense & Security Solutions, Inc.

Fundamentals5.0
Price Action6.0
News Sentiment7.0
AI Rating
6.0

Key Drivers

  • High liquidity
  • Minimal profitability
  • Negative free cash

AI
AI Summary

6.0

Kratos has shifted from an R&D-led story to a capital-intensive production ramp—meaning the investment now hinges on its ability to convert a large backlog into positive free cash flow and sustained gross-margin expansion without further dilution, so investors should watch FCF conversion and sequential margin improvement over the next 3–6 quarters as the decisive catalysts.

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ExecutionWatch‍

Price Chart

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Financial Metrics

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Revenue (TTM)
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Net Income (TTM)
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EPS (Q)
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MCAP

Deep Analysis

Research tool. Not personalized advice.

Fundamental Analysis

5.0

Key Financial Insights:

  • High liquidity
  • Minimal profitability
  • Negative free cash

KTOS combines strong liquidity and low leverage with very weak profitability, persistent negative free cash flow, large intangibles/accumulated deficit, and an extremely rich market valuation.

overvalued
strongliquidity

Price Behavior

6.0
Research tool. Not personalized advice. Technical analysis is for informational purposes only.

Key Price Behavior Insights:

  • Short-term downtrend
  • Mid-$80s support
  • Elevated volatility

KTOS closed below its last-month SMA (~$90.08) and is in a short-term downtrend from $96.08 to $84.62, with nearby support in the mid-$80s limiting near-term downside but weak momentum (~6.4% below the last-month SMA and ~11.8% decline) and elevated volatility (~13% range) raising execution risk until it clears the $90–$96 band to confirm a reversal.

bear
flat
Support Level: $84.62–$85.54
Resistance Level: $90.00–$96.00

~11.8% decline from $96.08 to $84.62 with ~13% high/low range over the last month

Sentiment & News

7.0

Key News Insights:

  • Q4 beats
  • Priced offering
  • Institutional shifts

Kratos Defense beat Q4 estimates and priced a large equity offering as shares rally on unmanned-systems demand despite soft near-term guidance and elevated valuation.

Overall positive for long-term growth prospects driven by unmanned and hypersonics demand, but expect near-term volatility from guidance softness and valuation concerns