Important note
This AI stock analysis for Kratos Defense & Security Solutions is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Kratos Defense & Security Solutions - AI Stock Analysis
Analysis generated July 12, 2025
Kratos Defense & Security Solutions, Inc. (KTOS) is a publicly traded American defense contractor that specializes in appropriating transformative technologies for national security, defense, and commercial applications. They are heavily involved in areas such as unmanned systems, satellite communications, cyber security, and missile defense. Over the years, Kratos has made significant investments in unmanned air systems and satellite communications, positioning themselves at the forefront of futuristic technologies vital for modern defense strategies.
Fundamental Analysis
Revenue for the last quarter was $303 million, representing a 6.89% increase compared to the previous quarter. This positive growth trajectory is further supported by a 9.16% year-over-year growth compared to the same quarter last year. This steady revenue increase is indicative of the company's capacity to scale its operations effectively.
Net income for the last quarter was $4.5 million, marking a 15.38% increase from the previous quarter and an impressive 246.15% growth year-over-year. This sharp increase in net income showcases robust profitability improvements, potentially driven by operational efficiencies and successful program implementations.
EBITDA for the last quarter was $6.6 million. While this figure represents a 120% increase from the previous quarter, it is notable that this is a 65.80% decrease from the same quarter the previous year. This significant year-over-year drop in EBITDA might raise concerns regarding operational cost management or could be reflective of increased R&D expenditure for future projects.
The current P/E ratio stands at 369.36, which is considerably high and might suggest overvaluation. Such a high P/E ratio can be perceived as a bearish outlook, implying that the stock price might be trading higher than its intrinsic value. Furthermore, recent insider selling adds a layer of caution for potential investors.
Technical Analysis
Today’s stock price is $51.71, indicating a 25.39% rise compared to a month ago. Over the long term, the stock has seen a substantial 146.12% increase over the past year, suggesting a strong bullish trend.
The current SMA10 (Simple Moving Average) is $46.35, up from the previous SMA10 of $45.50. This uptick indicates a potential upward trend in price movement, which is generally a bullish signal.
The RSI (Relative Strength Index) currently stands at 65.5, placing it in neutral territory. This suggests that the stock is neither overbought nor oversold, offering a balanced viewpoint with no immediate signals for reversal.
Alternative Data Analysis
Kratos Defense Security Solutions has garnered attention in alternative data metrics as well. There are currently 184 open positions advertised on popular job boards, showing an 8% increase in the past couple of months, a positive growth indicator. However, employee sentiment remains neutral, neither optimistic nor pessimistic.
The company's online footprint is expanding, as evidenced by a 13% increase in website visitors, totaling approximately 96,000. This could imply growing interest and potential customer acquisition. Additionally, their Twitter account has seen an uptick in engagement, with a 9% increase in followers, now standing at 6,400.
AltIndex's AI score, which integrates fundamental, technical, and alternative data analysis, has given Kratos Defense Security Solutions a score of 71. This score is interpreted as a buy signal, suggesting positive expectations for the stock.
Conclusion and Recommendation
Kratos Defense & Security Solutions showcases compelling growth in revenue and net income, although the substantial year-over-year drop in EBITDA warrants caution. Their high P/E ratio and recent insider selling might be interpreted as a bearish signal in the short term. However, the technical indicators suggest a bullish trend with stock prices displaying significant upward momentum both short and long term.
The alternative data further supports a positive outlook, showing strong job market activity, increased web traffic, and growing social media engagement—all signs of a company in expansion mode.
Based on the synthesis of fundamental, technical, and alternative data, the outlook for Kratos Defense & Security Solutions appears cautiously optimistic. Potential investors may find an investment in Kratos Defense & Security Solutions attractive due to their robust growth metrics and positive indicators across various analyses.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
