Fundamental analysis KTOS (Kratos Defense and Security Solutions Inc)

Updated on 06/09/2026

We analyzed Kratos Defense and Security Solutions stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 5/10, meaning medium quality, and a P/FCF valuation multiple of 342.5×.

Sector: Aerospace & Defense. Listing: US. Current price: 57.73 USD.

Lubin scoring methodology

Kratos Defense and Security Solutions Inc (KTOS)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Bettin-Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The 10 quantitative criteria analyzed

1. Profitable: positive net margin
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Cash profitability: free cash flow margin > 10% of revenue
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Bettin-Mauboussin Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Frequently asked questions

Is Kratos Defense and Security Solutions a quality stock?

Kratos Defense and Security Solutions gets a quality score of 5/10 (medium quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Kratos Defense and Security Solutions's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Kratos Defense and Security Solutions's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Kratos Defense and Security Solutions stock is 342.5×. At Lubin Investment, valuation is judged separately from quality.

Where to see Kratos Defense and Security Solutions's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/KTOS?lng=en.

Other stocks in the Aerospace & Defense sector

• HEICO (HEI) — score 9/10, P/FCF 42.1×
• Thales (HO.PA) — score 9/10, P/FCF 17.9×
• Curtiss-Wright (CW) — score 9/10, P/FCF 47.7×
• HEICO (HEI.A) — score 9/10, P/FCF 44.3×
• Howmet Aerospace (HWM) — score 9/10, P/FCF 60.9×

Go further

👉 See the full interactive analysis of KTOS

Other resources : Detailed methodology · All stocks in the Aerospace & Defense sector · Stocks rated 10 out of 10 · Top quality companies · Lubin Investment pricing.