Kratos Defense & Security Solutions Inc. (KTOS) carries a Roarable Rating of D- (Sell) with 40/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.
As of 2026-11-02, Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) is rated D- (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 40/100 at a spot price of $41.09 (-5.73% 1D, market cap $8.18B). Pillar breakdown: Fundamental Cash Engine 6/20, Institutional 13F & Options Flow 10/20, Executive Insider Alignment 14/20, FRED Macro Regime Fit 5/20, and SEC Balance-Sheet Forensics 5/20. Across 485 tracked Industrials issuers, KTOS ranks #341 in composite RQD confidence.
Within the Industrials sector (Military/Government/Technical), KTOS carries a Roarable D- (40/100 RQD), trailing P/E of N/A, gross margin of 22.9%, and ROIC of 1.4%. By comparison, FLR (Fluor Corporation) holds a E grade (29/100 RQD, P/E N/A, ROIC -13.7%, cap $6.36B) and LOAR (Loar Holdings Inc.) posts a C- grade (60/100 RQD, P/E N/A, ROIC 4.7%, cap $6.07B). Among the 5-stock peer group, STRL leads on earnings multiple (39.4x) while STRL leads on capital efficiency (32.3% ROIC).
Per KTOS's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-28, CIK 0001069258), Kratos Defense & Security Solutions Inc. generated $1.35B in revenue (+18.5% YoY), $22.0M in net income, and -$102.7M in free cash flow against $2.47B in total assets and $0 in total debt. Key quantitative strengths: Established market leader in Industrials with deep daily trading liquidity.. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately.. Institutional options positioning shows a 50% call / 50% put premium split.
Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer
Altman Z-Score 11.11 (FORTRESS SAFE (>3.0)) • Piotroski F-Score 5/9
20D Institutional Volume Accumulation (±11.1% realized swing band)
Dilution Drag (+1.92% YoY Shares) & executive Form 4 sales trim 15 pts from alignment
While KTOS currently carries a cautious 40/100 (D-) rating due to Insider Conviction & Share Dilution (5/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.
Established market leader in Industrials with deep daily trading liquidity.
Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($44.70) and Max Pain ($43.14) forces dealer call-delta covering toward $140.70.
Forensic Repair Trigger: Halting share dilution (Dilution Drag (+1.92% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.
Kratos Defense & Security Solutions Inc. (KTOS) dropped -5.73% to $41.09, trading at 5% of its 52-week range ($36.37 – $134). Stretched risk/reward at current multiples (1% return on capital) under elevated 10-year interest-rate pressure.
Yahoo Finance report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
TradingView report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
StockInvest.us report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
Investing.com report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
The Motley Fool report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
Benzinga report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
GuruFocus report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
Kratos Defense's manufacturing expansions, rising hypersonics revenues and strong defense bookings support Q3 growth prospects, but currency pressures could weigh on margins.
Defense stocks rebounded into the midterms as Lockheed rose 26% in October on a record backlog, but drone makers like AeroVironment and Kratos lagged.
Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).
vs. +18.5% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).
No active Ellis Vennor swing setup published on KTOS today. View full Setup Ledger →
No direct multi-tier Butterfly edges indexed yet for KTOS. Explore sector supply chains on /butterfly.
Across 485 tracked Industrials securities in the Roarable RQD universe, Kratos Defense & Security Solutions Inc. (KTOS) ranks #341 by composite RQD confidence (40/100, grade D-) and #113 by equity capitalization ($8.18B). Within this direct 5-issuer industry benchmark cohort, STRL leads on earnings valuation at 39.4x trailing P/E, while STRL leads on capital efficiency and profitability with 32.3% ROIC and 23.0% gross margin. STRL currently holds the highest overall quantitative score in the immediate peer group at 61/100 (C-) compared with KTOS at 40/100 (D-).
| Ticker / Company | Roarable Grade | RQD Score | Trailing P/E | Gross Margin | ROIC | 1D Change | Market Cap | Head-to-Head |
|---|---|---|---|---|---|---|---|---|
| KTOS
ACTIVE
Kratos Defense & Security Solutions Inc. | D- | 40/100 | — | 22.9% | 1.4% | -5.73% | $8.18B | Benchmark Subject |
| FLR Fluor Corporation | E | 29/100 | — | -0.8% | -13.7% | -1.47% | $6.36B | /flr-vs-ktos → |
| LOAR Loar Holdings Inc. | C- | 60/100 | — | 52.7% | 4.7% | -4.17% | $6.07B | /loar-vs-ktos → |
| STRL Sterling Infrastructure Inc. | C- | 61/100 | 39.4x | 23.0% | 32.3% | -7.43% | $11.43B | /strl-vs-ktos → |
| KRMN Karman Holdings Inc. | D | 46/100 | — | 40.3% | 8.8% | -4.17% | $5.53B | /krmn-vs-ktos → |
In its most recent audited fiscal period (FY2025, filed 2025-12-28), Kratos Defense & Security Solutions Inc. (KTOS) reported GAAP revenue of $1.35B (+18.5% vs. FY2024 revenue of $1.14B , and +29.9% cumulative change since FY2023) , GAAP net income of $22.0M, operating cash flow of -$42.1M, and free cash flow of -$102.7M (-7064.7% YoY). On the balance sheet, KTOS closed FY2025 with $2.47B in total assets against $0 in total debt (Altman Z-Score: 11.11, Piotroski F-Score: 5/9).
| Fiscal Period | Filing Date | Revenue | Net Income | Operating Cash Flow | Free Cash Flow | Total Assets | Total Debt |
|---|---|---|---|---|---|---|---|
| FY2025 (FY) | 2025-12-28 | $1.35B | $22.0M | -$42.1M | -$102.7M | $2.47B | $0 |
| FY2024 (FY) | 2024-12-29 | $1.14B | $16.3M | $49.7M | -$1.4M | $1.95B | $174.6M |
| FY2023 (FY) | 2023-12-31 | $1.04B | -$8.9M | $65.2M | $18.5M | $4.50B | $1.05B |
As of 2026-11-02, Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) is rated D- (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 40/100 at a spot price of $41.09 (-5.73% 1D, market cap $8.18B). Pillar breakdown: Fundamental Cash Engine 6/20, Institutional 13F & Options Flow 10/20, Executive Insider Alignment 14/20, FRED Macro Regime Fit 5/20, and SEC Balance-Sheet Forensics 5/20. Across 485 tracked Industrials issuers, KTOS ranks #341 in composite RQD confidence.
Within the Industrials sector (Military/Government/Technical), KTOS carries a Roarable D- (40/100 RQD), trailing P/E of N/A, gross margin of 22.9%, and ROIC of 1.4%. By comparison, FLR (Fluor Corporation) holds a E grade (29/100 RQD, P/E N/A, ROIC -13.7%, cap $6.36B) and LOAR (Loar Holdings Inc.) posts a C- grade (60/100 RQD, P/E N/A, ROIC 4.7%, cap $6.07B). Among the 5-stock peer group, STRL leads on earnings multiple (39.4x) while STRL leads on capital efficiency (32.3% ROIC).
Per KTOS's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-28, CIK 0001069258), Kratos Defense & Security Solutions Inc. generated $1.35B in revenue (+18.5% YoY), $22.0M in net income, and -$102.7M in free cash flow against $2.47B in total assets and $0 in total debt. Key quantitative strengths: Established market leader in Industrials with deep daily trading liquidity.. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately.. Institutional options positioning shows a 50% call / 50% put premium split.
KTOS last traded at $41.09 (-5.73% on volume of 3,418,270 shares), positioning the stock -8.08% below its 50-day simple moving average ($44.70) and -35.13% below its 200-day simple moving average ($63.34). Across its 52-week range of $36.37 to $134.00, KTOS sits at the 4.8% percentile with a 14-day RSI of 54.4 (NEUTRAL RANGE) and an implied next-earnings move of ±11.1% ($36.53 to $45.65).
Why KTOS Stock dropped -5.73% Today — RQD Quant Desk Flash. Stretched risk/reward at current multiples (1% return on capital) under elevated 10-year interest-rate pressure.
Per the Roarable RQD rating, KTOS scores 40 out of 100, a letter grade of D-, with the verdict label "Roarable Sell — Vulnerable Balance Sheet & Flow." The five pillars break down as follows:
Investor implications: the upside case rests on the balance sheet resilience and recent price momentum, while valuation and cash-flow metrics present the main tradeoffs. The EV/EBITDA of 95 indicates a rich multiple relative to the reported operating economics. Readers should weigh the balance sheet strength against the weak cash engine and low macro-fit score.
Kratos Defense & Security Solutions Inc. is a NASDAQ-listed issuer in the Industrials sector, operating in the Military/Government/Technical industry. Per the company profile, the company's market capitalization is $8.2B. The source data does not itemize products, customers, or revenue streams by segment, so the specific business model cannot be described beyond sector and industry classification.
| Period | Revenue | Operating Income | Net Income | EPS | FCF | Cash | Debt |
|---|---|---|---|---|---|---|---|
| FY 2025 | $1346.8M | $25.6M | $22.0M | N/A | $-102.7M | $560.6M | $0.0M |
| FY 2024 | $1136.3M | $29.0M | $16.3M | N/A | $-1.4M | $329.3M | $174.6M |
| FY 2023 | $1037.1M | $31.1M | $-8.9M | N/A | $18.5M | N/A | $1053.1M |
Per the SEC financials, revenue rose from $1037.1M in FY 2023 to $1346.8M in FY 2025, while net income moved from $-8.9M to $22.0M. Per the market data, gross margin is 22.9%, operating margin is 1.9%, and net margin is 1.6%, with ROIC at 1.4%. The Altman Z-Score of 11.11 and Piotroski F-Score of 5/9 are cited within the Roarable RQD rating's forensic balance sheet pillar. Reported debt was $0.0M in FY 2025 after $174.6M in FY 2024, and free cash flow was negative in FY 2025 at $-102.7M.
Per the Butterfly Supply-Chain Graph, no supply-chain links or proprietary signals are recorded for KTOS; the supply chain field is listed as NONE.
Real-time company headlines, analyst actions, and sector developments for Kratos Defense & Security Solutions Inc. (KTOS) • Click "Debate This Headline" to argue it in the Roar Pit below
Yahoo Finance report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
TradingView report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
Yahoo Finance report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
StockInvest.us report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
Investing.com report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
The Motley Fool report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
Benzinga report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
GuruFocus report covering Kratos Defense & Security Solutions Inc. (KTOS) market action, institutional positioning, and fundamental catalysts.
Welcome to the KTOS (Kratos Defense & Security Solutions Inc.) Roar Pit. Current RQD Composite is 40/100 (Roarable Sell — Vulnerable Balance Sheet & Flow) in Military/Government/Technical. Bulls point to operating leverage and sector positioning, while bears focus on macro rate sensitivity and margin execution. Pick your side (🐂 Bull or 🐻 Bear) and drop your price target below.
Everyone in here is repeating the bull case on KTOS, but look at what you are paying: current EV/EBITDA multiples with 22.9% gross margins. Unless Kratos Defense & Security Solutions Inc. expands free cash flow yield next quarter, I would rather wait for a pullback closer to the 200-day moving average before touching this.
Looking at the 5-pillar RQD breakdown on KTOS, the market is fixating on short-term headline noise in Military/Government/Technical and ignoring the balance sheet and cash flow trajectory. At $43.59 (52-wk range $36.37 - $134.00), any beat on forward guidance forces shorts and underweight funds to chase.
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