Kratos Defense & Security Solutions, Inc.

Fundamentals6.0
Price Action5.0
News Sentiment8.0
AI Rating
6.0

Key Drivers

  • Stronger Liquidity
  • Weak Cash Conversion
  • Thin Profitability

AI
AI Summary

6.0

KTOS is shifting from a speculative defense-tech name to a scaled growth platform with strong backlog and 1.6x book-to-bill, but the investment now hinges on whether accelerating revenue and margin gains can convert into sustained free cash flow fast enough to support its premium valuation and avoid an execution-driven multiple reset.

GrowthOpportunity
CashBurn

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

6.0

Key Financial Insights:

  • Stronger Liquidity
  • Weak Cash Conversion
  • Thin Profitability

KTOS's balance sheet and margins improved, but negative operating/free cash flow, reliance on financing, and a very rich valuation make the current risk-reward unattractive despite low leverage.

Liquidity
CashFlow

Price Behavior

5.0
Research tool. Not personalized advice. Technical analysis is for informational purposes only.

Key Price Behavior Insights:

  • Downtrend Break
  • Support Rebound
  • Resistance Test

KTOS remains technically weak over the last month, but the bounce from about $46.95 to $55.35 signals improving short-term demand, with confirmation still needed above upper-$50s resistance.

KTOS
rebound
Support Level: $46.95
Resistance Level: $57.75–$58.78

Sharp rebound from $46.95 to $55.35 after a lower-high/lower-low decline

Sentiment & News

8.0

Key News Insights:

  • Record backlog
  • Capacity expansion
  • Demand catalysts

KTOS is showing strong defense-driven growth with rising drone, missile, propulsion, and air-defense demand, backed by a $2.0B backlog and expanding production, though near-term cash flow and stock volatility remain risks.

Backlog

The news is supportive for long-term growth and contract visibility, but execution risk and defense-sentiment swings could keep the stock volatile near term