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Kratos Defense & Security Solutions

DB:WF5A
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WF5A
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Kratos Defense & Security Solutions, Inc. The last earnings update was 74 days ago. More info.


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WF5A Share Price and Events
7 Day Returns
7.3%
DB:WF5A
0.8%
Europe Aerospace & Defense
2.8%
DE Market
1 Year Returns
54.9%
DB:WF5A
11.7%
Europe Aerospace & Defense
3%
DE Market
WF5A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kratos Defense & Security Solutions (WF5A) 7.3% -1.1% -17% 54.9% 213.1% 247%
Europe Aerospace & Defense 0.8% -3.8% 0.9% 11.7% 67.1% 114.9%
DE Market 2.8% 0.2% 1.3% 3% 8% 23.6%
1 Year Return vs Industry and Market
  • WF5A outperformed the Aerospace & Defense industry which returned 11.7% over the past year.
  • WF5A outperformed the Market in Germany which returned 3% over the past year.
Price Volatility
WF5A
Industry
5yr Volatility vs Market

WF5A Value

 Is Kratos Defense & Security Solutions undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kratos Defense & Security Solutions to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kratos Defense & Security Solutions.

DB:WF5A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:WF5A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 21%) (19.22%))
0.997
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.997 * 5.96%)
6.17%

Discounted Cash Flow Calculation for DB:WF5A using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kratos Defense & Security Solutions is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:WF5A DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.17%)
2020 33.74 Analyst x5 31.78
2021 60.08 Analyst x3 53.31
2022 89.00 Analyst x1 74.37
2023 111.31 Est @ 25.07% 87.61
2024 130.91 Est @ 17.61% 97.05
2025 147.14 Est @ 12.4% 102.75
2026 160.02 Est @ 8.75% 105.24
2027 169.92 Est @ 6.19% 105.27
2028 177.40 Est @ 4.4% 103.52
2029 182.99 Est @ 3.15% 100.57
Present value of next 10 years cash flows $861.00
DB:WF5A DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $182.99 × (1 + 0.23%) ÷ (6.17% – 0.23%)
$3,087.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,087.49 ÷ (1 + 6.17%)10
$1,696.89
DB:WF5A Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $861.00 + $1,696.89
$2,557.89
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,557.89 / 106.10
$24.11
DB:WF5A Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:WF5A represents 0.93517x of NasdaqGS:KTOS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.93517x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 24.11 x 0.93517
€22.54
Value per share (EUR) From above. €22.54
Current discount Discount to share price of €17.60
= -1 x (€17.60 - €22.54) / €22.54
21.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Kratos Defense & Security Solutions is available for.
Intrinsic value
22%
Share price is €17.6 vs Future cash flow value of €22.54
Current Discount Checks
For Kratos Defense & Security Solutions to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Kratos Defense & Security Solutions's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Kratos Defense & Security Solutions's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kratos Defense & Security Solutions's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kratos Defense & Security Solutions's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:WF5A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.11
NasdaqGS:KTOS Share Price ** NasdaqGS (2019-10-11) in USD $18.82
Europe Aerospace & Defense Industry PE Ratio Median Figure of 36 Publicly-Listed Aerospace & Defense Companies 21.4x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kratos Defense & Security Solutions.

DB:WF5A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:KTOS Share Price ÷ EPS (both in USD)

= 18.82 ÷ 0.11

175.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kratos Defense & Security Solutions is overvalued based on earnings compared to the Europe Aerospace & Defense industry average.
  • Kratos Defense & Security Solutions is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Kratos Defense & Security Solutions's expected growth come at a high price?
Raw Data
DB:WF5A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 175.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
49.5%per year
Europe Aerospace & Defense Industry PEG Ratio Median Figure of 26 Publicly-Listed Aerospace & Defense Companies 1.59x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:WF5A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 175.93x ÷ 49.5%

3.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kratos Defense & Security Solutions is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Kratos Defense & Security Solutions's assets?
Raw Data
DB:WF5A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $5.28
NasdaqGS:KTOS Share Price * NasdaqGS (2019-10-11) in USD $18.82
Europe Aerospace & Defense Industry PB Ratio Median Figure of 49 Publicly-Listed Aerospace & Defense Companies 1.96x
Germany Market PB Ratio Median Figure of 598 Publicly-Listed Companies 1.74x
DB:WF5A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:KTOS Share Price ÷ Book Value per Share (both in USD)

= 18.82 ÷ 5.28

3.56x

* Primary Listing of Kratos Defense & Security Solutions.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kratos Defense & Security Solutions is overvalued based on assets compared to the Europe Aerospace & Defense industry average.
X
Value checks
We assess Kratos Defense & Security Solutions's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Kratos Defense & Security Solutions has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WF5A Future Performance

 How is Kratos Defense & Security Solutions expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
49.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kratos Defense & Security Solutions expected to grow at an attractive rate?
  • Kratos Defense & Security Solutions's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Kratos Defense & Security Solutions's earnings growth is expected to exceed the Germany market average.
  • Kratos Defense & Security Solutions's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:WF5A Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:WF5A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 49.5%
DB:WF5A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 14.6%
Europe Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 14.2%
Europe Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:WF5A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:WF5A Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,064 64 1
2021-12-31 997 71 59 7
2020-12-31 859 60 37 9
2019-12-31 730 47 18 9
2019-10-13
DB:WF5A Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 672 35 11
2019-03-31 635 23 7
2018-12-30 618 10 4
2018-09-30 769 -1 -21
2018-07-01 618 -20 -32
2018-04-01 614 -15 -36
2017-12-31 603 -28 -47
2017-10-01 619 -21 -27
2017-06-25 627 -12 -45
2017-03-26 648 -10 -48
2016-12-25 542 -13 -58
2016-09-25 664 -14 -63

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kratos Defense & Security Solutions's earnings are expected to grow significantly at over 20% yearly.
  • Kratos Defense & Security Solutions's revenue is expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:WF5A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Kratos Defense & Security Solutions Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WF5A Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.55 0.78 0.33 5.00
2020-12-31 0.36 0.46 0.23 7.00
2019-12-31 0.17 0.23 0.13 7.00
2019-10-13
DB:WF5A Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.11
2019-03-31 0.06
2018-12-30 0.04
2018-09-30 -0.20
2018-07-01 -0.32
2018-04-01 -0.37
2017-12-31 -0.52
2017-10-01 -0.34
2017-06-25 -0.62
2017-03-26 -0.73
2016-12-25 -0.94
2016-09-25 -1.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kratos Defense & Security Solutions is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kratos Defense & Security Solutions's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kratos Defense & Security Solutions has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WF5A Past Performance

  How has Kratos Defense & Security Solutions performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kratos Defense & Security Solutions's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kratos Defense & Security Solutions has delivered over 20% year on year earnings growth in the past 5 years.
  • Kratos Defense & Security Solutions has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Kratos Defense & Security Solutions has become profitable in the last year making it difficult to compare the Europe Aerospace & Defense industry average.
Earnings and Revenue History
Kratos Defense & Security Solutions's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kratos Defense & Security Solutions Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WF5A Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 672.10 11.20 125.10 16.80
2019-03-31 635.40 6.50 121.50 15.90
2018-12-30 618.00 4.10 119.80 15.60
2018-09-30 768.50 -20.80 155.20 16.70
2018-07-01 617.60 -32.40 125.30 16.50
2018-04-01 614.30 -35.50 127.10 17.00
2017-12-31 603.30 -46.90 127.30 17.80
2017-10-01 619.10 -27.30 131.50 16.50
2017-06-25 627.40 -44.90 134.10 15.50
2017-03-26 647.70 -48.30 138.60 15.40
2016-12-25 541.90 -57.60 114.60 13.90
2016-09-25 664.10 -63.00 147.70 14.60
2016-06-26 660.90 -35.30 147.10 14.90
2016-03-27 653.00 -40.90 151.00 15.20
2015-12-27 657.10 -33.20 150.70 16.20
2015-09-27 671.70 -29.00 146.90 16.70
2015-06-28 700.30 -44.50 152.40 18.10
2015-03-29 746.30 -76.80 152.40 18.40
2014-12-28 763.00 -75.70 153.60 18.60
2014-09-28 806.60 -79.80 167.40 20.50
2014-06-29 842.20 -78.00 174.80 20.40
2014-03-30 871.60 -37.10 182.40 20.60
2013-12-29 844.10 -29.50 172.80 19.70
2013-09-29 978.50 -116.10 197.10 19.40
2013-06-30 1,028.40 -111.00 203.80 19.10
2013-03-31 1,012.50 -118.60 198.10 19.10
2012-12-30 969.20 -112.90 193.10 17.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kratos Defense & Security Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kratos Defense & Security Solutions used its assets less efficiently than the Europe Aerospace & Defense industry average last year based on Return on Assets.
  • Kratos Defense & Security Solutions has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kratos Defense & Security Solutions's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kratos Defense & Security Solutions has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WF5A Health

 How is Kratos Defense & Security Solutions's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kratos Defense & Security Solutions's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kratos Defense & Security Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kratos Defense & Security Solutions's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kratos Defense & Security Solutions's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kratos Defense & Security Solutions Company Filings, last reported 3 months ago.

DB:WF5A Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 574.90 294.60 176.20
2019-03-31 567.90 294.40 178.40
2018-12-30 519.30 294.20 182.70
2018-09-30 511.90 294.00 187.20
2018-07-01 506.50 293.80 182.80
2018-04-01 512.50 293.60 127.80
2017-12-31 511.50 293.50 130.50
2017-10-01 531.90 369.70 239.20
2017-06-25 347.00 369.50 63.30
2017-03-26 351.40 369.30 73.40
2016-12-25 276.40 432.00 69.10
2016-09-25 204.10 445.00 20.50
2016-06-26 225.60 444.70 17.60
2016-03-27 234.70 444.40 20.10
2015-12-27 254.20 445.10 28.50
2015-09-27 257.60 448.50 35.80
2015-06-28 198.70 663.00 22.20
2015-03-29 211.50 663.00 34.40
2014-12-28 224.30 656.40 33.50
2014-09-28 231.00 662.90 16.20
2014-06-29 237.10 662.90 26.90
2014-03-30 284.10 642.00 53.60
2013-12-29 295.80 644.30 55.70
2013-09-29 301.70 644.60 49.80
2013-06-30 308.10 645.90 49.70
2013-03-31 315.60 647.20 51.60
2012-12-30 324.10 649.40 49.00
  • Kratos Defense & Security Solutions's level of debt (51.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (276.8% vs 51.2% today).
  • Debt is not well covered by operating cash flow (11.9%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Kratos Defense & Security Solutions's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kratos Defense & Security Solutions has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WF5A Dividends

 What is Kratos Defense & Security Solutions's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Kratos Defense & Security Solutions dividends. Estimated to be 0% next year.
If you bought €2,000 of Kratos Defense & Security Solutions shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Kratos Defense & Security Solutions's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Kratos Defense & Security Solutions's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:WF5A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Europe Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 1.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:WF5A Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00
2019-10-13

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Kratos Defense & Security Solutions has not reported any payouts.
  • Unable to verify if Kratos Defense & Security Solutions's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Kratos Defense & Security Solutions's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Kratos Defense & Security Solutions has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Kratos Defense & Security Solutions's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Kratos Defense & Security Solutions's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kratos Defense & Security Solutions afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kratos Defense & Security Solutions has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WF5A Management

 What is the CEO of Kratos Defense & Security Solutions's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Eric DeMarco
COMPENSATION $5,514,184
AGE 55
TENURE AS CEO 15.5 years
CEO Bio

Mr. Eric M. DeMarco has been the Chief Executive Officer of Kratos Defense & Security Solutions, Inc. (alternatively, Wireless Facilities Inc.) since April 1, 2004 and as its President since November 24, 2003. Mr. DeMarco has been the President of Kratos Government Solutions, Inc. since December 2009. Mr. DeMarco served as the Chief Executive Officer and President of Integral Systems Inc. since July 27, 2011. He served as an Executive Vice President of Cayenta Inc. since September 1997. He served as Cayenta Inc.'s Chief Financial Officer from September 1997 to December 1999. He served as Chief Financial Officer, Executive Vice President and Treasurer of Engility Corporation (formerly L-3 Communications Titan Group) since September 1998. He served as the Chief Operating Officer of Kratos Defense & Security Solutions, Inc. from November 24, 2003 to April 1, 2004. He served as Chief Financial Officer and Executive Vice President of AverStar, Inc. Mr. DeMarco served as the President and Chief Operating Officer of The Titan Corporation. He served as the Chief Financial Officer and Senior Vice President of Titan Corporation from January 1997 to August 1998 and served as Executive Vice President since August 1998. Mr. DeMarco joined Titan in January 1997. From June 1986 to January 1997, he held various positions at Arthur Andersen LLP, as a Senior Manager. He was employed at SureBeam Corp. He has been Director of Henry Bros. Electronics, Inc. since December 15, 2010. He served as a Director of nLIGHT, Inc. Mr. DeMarco has been a Director of Kratos Defense & Security Solutions, Inc. 2003. He serves as Director of Wavestream Corporation and Cellular Telecommunications & Internet Association. He served as a Director of Integral Systems Inc. since July 27, 2011 and Herley Industries, Inc. since March 2011. He served as a Director of AverStar, Inc. Mr. DeMarco holds a Bachelor of Science in Business Administration and Finance, Summa Cum Laude, from the University of New Hampshire.

CEO Compensation
  • Eric's compensation has increased in line with Kratos Defense & Security Solutions recently becoming profitable.
  • Eric's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Kratos Defense & Security Solutions management team in years:

6.2
Average Tenure
56
Average Age
  • The average tenure for the Kratos Defense & Security Solutions management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Eric DeMarco

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
55
TENURE
15.5 yrs

Deanna Lund

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
51
TENURE
15.5 yrs

Phil Carrai

TITLE
President of Technology & Training Solutions Division
COMPENSATION
$2M
AGE
57
TENURE
9.8 yrs

Jonah Adelman

TITLE
President of Microwave Electronics Division
COMPENSATION
$952K
AGE
68
TENURE
4.2 yrs

Maria de Burgreen

TITLE
VP & Corporate Controller
AGE
44
TENURE
3.4 yrs

Kevin Walden

TITLE
Chief Information Officer
TENURE
2.8 yrs

Marie Mendoza

TITLE
VP, General Counsel & Secretary
AGE
46
TENURE
3.8 yrs

Dave Carter

TITLE
President of Defense & Rocket Support Services Division
COMPENSATION
$503K
AGE
61
TENURE
11.8 yrs

Jennifer Price

TITLE
Senior Vice President of Engineering Services - Madison Research

Tom Mills

TITLE
President of Modular Systems Division
AGE
59
TENURE
6.2 yrs
Board of Directors Tenure

Average tenure and age of the Kratos Defense & Security Solutions board of directors in years:

10.8
Average Tenure
60
Average Age
  • The average tenure for the Kratos Defense & Security Solutions board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

William Hoglund

TITLE
Independent Chairman
COMPENSATION
$213K
AGE
65
TENURE
10.3 yrs

Eric DeMarco

TITLE
CEO, President & Director
COMPENSATION
$6M
AGE
55
TENURE
16.8 yrs

Scott Anderson

TITLE
Independent Director
COMPENSATION
$186K
AGE
60
TENURE
22.6 yrs

Scot Jarvis

TITLE
Independent Director
COMPENSATION
$192K
AGE
59
TENURE
22.7 yrs

Amy Zegart

TITLE
Independent Director
COMPENSATION
$181K
AGE
52
TENURE
5.1 yrs

Sam Liberatore

TITLE
Independent Director
COMPENSATION
$171K
AGE
82
TENURE
10.8 yrs

Jane Judd

TITLE
Independent Director
COMPENSATION
$177K
AGE
72
TENURE
8.8 yrs
Who owns this company?
Recent Insider Trading
  • Kratos Defense & Security Solutions individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
30. Aug 19 Sell David Carter Individual 29. Aug 19 29. Aug 19 -14,720 €17.90 €-263,505
09. Aug 19 Sell Bandel Carano Individual 07. Aug 19 07. Aug 19 -250,000 €17.02 €-4,254,831
09. Aug 19 Sell Oak Investment Partners Company 08. Aug 19 08. Aug 19 -250,000 €17.17 €-4,293,562
09. Aug 19 Sell Thomas Mills Individual 07. Aug 19 07. Aug 19 -6,467 €17.02 €-110,067
09. Aug 19 Sell David Carter Individual 09. Aug 19 09. Aug 19 -34,327 €17.05 €-585,175
09. Aug 19 Sell Steven Fendley Individual 09. Aug 19 09. Aug 19 -30,000 €17.00 €-510,016
07. Aug 19 Sell Philip Carrai Individual 05. Aug 19 06. Aug 19 -77,502 €17.76 €-1,346,966
07. Aug 19 Sell Maria de Burgreen Individual 05. Aug 19 05. Aug 19 -16,128 €17.46 €-280,493
07. Aug 19 Sell Marie Mendoza Individual 05. Aug 19 05. Aug 19 -13,993 €17.99 €-249,593
06. Aug 19 Sell Amy Zegart Individual 05. Aug 19 05. Aug 19 -7,305 €17.47 €-127,629
X
Management checks
We assess Kratos Defense & Security Solutions's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kratos Defense & Security Solutions has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WF5A News

Simply Wall St News

WF5A Company Info

Description

Kratos Defense & Security Solutions, Inc. provides mission critical products, solutions, and services in the United States. The company operates through two segments, Kratos Government Solutions and Unmanned Systems. The Kratos Government Solutions segment offers microwave electronic products, satellite communications, training systems, modular systems, and defense and rocket support services. The Unmanned Systems segment provides unmanned aerial systems, and unmanned ground and seaborne systems. It serves national security related agencies, the department of defense, intelligence agencies, and classified agencies, as well as international government agencies and domestic and international commercial customers. The company has a strategic collaboration with AeroVironment, Inc. to develop and demonstrate integrated and operationally effective multi-domain unmanned system solutions for near-peer and denied environments. Kratos Defense & Security Solutions, Inc. was founded in 1994 and is headquartered in San Diego, California.

Details
Name: Kratos Defense & Security Solutions, Inc.
WF5A
Exchange: DB
Founded: 1994
$1,807,184,873
106,104,642
Website: http://www.kratosdefense.com
Address: Kratos Defense & Security Solutions, Inc.
10680 Treena Street,
Suite 600,
San Diego,
California, 92131,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS KTOS Common Stock Nasdaq Global Select US USD 05. Nov 1999
DB WF5A Common Stock Deutsche Boerse AG DE EUR 05. Nov 1999
LSE 0JS0 Common Stock London Stock Exchange GB USD 05. Nov 1999
Number of employees
Current staff
Staff numbers
2,600
Kratos Defense & Security Solutions employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 21:38
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/11
Last earnings filing: 2019/07/31
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.