KTOS · NASDAQ · STOCK
Kratos Defense & Security Solutions (KTOS) Stock Analysis
$42.37
52W $40.92 – $134.00
58/100
$7.94B
246.4
1.11
Is KTOS Bullish or Bearish?
Bullish.
Innellis AI committee rates Kratos Defense & Security Solutions (KTOS) Buy with a composite score of 58/100
, based on 6 analysts with 50% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +16.76 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -3.24 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — revenue growing 25.5% yoy -- genuine top-line momentum. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- Revenue growing 25.5% YoY -- genuine top-line momentum — Growth
- EPS growing 88.1% YoY — Growth
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Low leverage (debt-to-equity 0.05) -- balance sheet can absorb a shock — Risk
- News sentiment is positive (+0.20 across 59 articles, 14d) — News
Bear Case
- P/E of 254.7 is expensive by classic value standards — Value
- Price-to-book of 6.6x prices in significant intangible value — Value
- ROE of only 1.1% -- cheap may mean cheap for a reason — Value
- Price structure making lower highs and lower lows — Technical
- MACD histogram negative -- bearish momentum — Technical
- Bollinger bandwidth of 21.4% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
58/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 43%
of 227 Industrials peers
Value Analyst
bearish
38
/ 100 · High confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
− P/E of 254.7 is expensive by classic value standards
Growth Analyst
bullish
84
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ Revenue growing 25.5% YoY -- genuine top-line momentum
Technical Analyst
neutral
42
/ 100 · High confidence
Mixed or range-bound price action
− Price structure making lower highs and lower lows
Risk Analyst
neutral
58
/ 100 · Moderate confidence
Moderate risk -- no single red flag, but nothing that clearly de-risks the position either
+ Low leverage (debt-to-equity 0.05) -- balance sheet can absorb a shock
− Bollinger bandwidth of 21.4% signals elevated volatility
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
64
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.20 across 59 articles, 14d)
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 58.2 to 58.2.
- New bearish signals: 2 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 2 signal(s) disappeared.
Analyst-level changes:
- News Analyst: +1 bullish signal(s).
- Risk Analyst: +1 bearish signal(s).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
36.2
Neutral
MACD Histogram
-0.013
Bearish Momentum
Trend Direction
Downtrend
Weekly: Sideways
Market Structure
Mixed
Support
$25.80
Resistance
$66.72
Bollinger %B
0.23
Inside Bands
Price vs Moving Averages
EMA 9
$43.01
Below
EMA 21
$44.96
Below
EMA 50
$48.38
Below
EMA 200
$59.17
Below
Fundamental Analysis
Valuation
29
Growth
85
Profitability
7
Financial Health
100
Cash Flow
15
Valuation
P/E Ratio
246.4×
P/B Ratio
2.33×
PEG Ratio
3.52
Dividend Yield
0.00%
52W High
$134.00
52W Low
$40.92
Quality & Growth
ROE
110.2%
ROA
89.2%
Gross Margin
2199.0%
Operating Margin
154.4%
Revenue Growth YoY
—
Debt / Equity
0.06
AI Fundamental Assessment
P/E ratio of 246.4 (rich relative to a 15-40x range); Price-to-book of 2.3x; PEG ratio of 3.5 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 1.1%; Return on assets of 0.9%; Net margin of 2.0%; Gross margin of 22.0%; Current ratio of 5.54 (healthy short-term liquidity); Debt-to-equity of 0.06; Free cash flow per share is negative (-0.68); Most recent quarter beat estimates by 45.7%; 5 consecutive earnings beats; EPS growth accelerating (-11.1% -> +31.2% QoQ); Average YoY EPS growth of 90.9%; Analyst estimates falling over recent quarters
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