* Note: Prices are in Million (M) USD.
Description:
Kratos Defense & Security Solutions, Inc. is a government contractor for the US Department of Defense. The company is headquartered in San Diego, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $329 M
Debt : $282 M
EBITDA : $74 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: MANUFACTURING
Industry: GUIDED MISSILES & SPACE VEHICLES & PARTS
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 185.31
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $-7 M
Average Revenue: $665 M
Revenue Converted To Free Cash Flow (%): -1%
Avg Free Cash Flow Growth Per Year (Last 5 Years): -91.76%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,136 M
Revenue 4 Years Ago (2020-12-31): $748 M
Last 5 Years Average Revenue Growth: 10%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $151 M
Share Count 5 Years Ago (2020-12-31): $119 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.58
Trailing 12-Month Earnings Per Share (EPS): $0.14
Average Earnings Per Share (EPS): $0.36
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -10%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $67
52-Week Low: $18
Threshold Price (15% Above 52-Week Low): $21
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $10,064 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 13 points to above Kratos Defense & Security Solutions (KTOS) stock.
Last 3 Years Avg PE 27.57, Fair Value PE 12, Industry Based PE 18, Growth Based PE 10. Based on these 4 values, average assigned is 16.89.
Value-Trades has assined P/E value 16.89. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.36.
The fair value of Kratos Defense & Security Solutions (KTOS) stock should be (16.89 x $0.36) = $6.08
