KTOSKratos Defense & Security Solutions, Inc.
Is the business good?
The checks split: 4 of 9 health tests passed and margins steady.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 1% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is KTOS?
Kratos Defense & Security Solutions, Inc. earns 0.73% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 8.3 points below what the capital costs: growth destroys value
- Operating margin
- 1.2%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2026
- Share count, year on year
- +21%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 2.9%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 3.9% |
| FY2021 | 3.4% |
| FY2022 | −0.32% |
| FY2023 | 3.0% |
| FY2024 | 2.5% |
| FY2025 | 1.9% |
Details›
- Gross margin12 months to Q2 2026
- 23%
- Operating margin12 months to Q2 2026
- 1.2%
- Net margin12 months to Q2 2026
- 2.0%
- Free cash flow margin
- −8.5%
- R&D as % of revenue
- 2.9%
- Revenue, trailing twelve months
- $1.52B
- Free cash flow, trailing twelve months
- −$129M
- Net income, trailing twelve months
- $31M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 0.73%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Aerospace & Defense
Ranks #26 of 36 by RyuScore