Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) trade is getting exciting but lets take a deeper look whether it is as good a moment. Now trading with a market value of 1.12B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. Everyone seems to have their own opinion of this stock. But what do the numbers really say? We think it’s a great time to take a fresh look.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Fundamentals That Matter
It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For KTOS, the company currently has 63.5 million of cash on the books. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 950 million in total assets, balanced by 603 million in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.
Kratos Defense & Security Solutions, Inc. (KTOS) saw -10.1 million in free cash flow last quarter, representing a quarterly net change in cash of -10.1 million. Perhaps most importantly where cash movements are concerned, the company saw about -2.6 million in net operating cash flow.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Revenue Growth Potential
As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 185.7 million in total revenues. That represents a quarterly year/year change in revenues of 0.10 in sequential terms, the KTOS saw sales decline by 0.11.
But what about the bottom line? After all, that’s what really matters in the end. Kratos Defense & Security Solutions, Inc. (KTOS) is intriguing when broken down to its core data. The cost of selling goods last quarter was 138.3 million, yielding a gross basic income of 47.4 million. For shareholders, given the total diluted outstanding shares of 86.6 million, this means overall earnings per share of -0.07. Note, this compares with a consensus analyst forecast of 0.01 in earnings per share for its next fiscal quarterly report.
Is Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Valuation Attractive
Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about 0.25 in total earnings per share. If we consider a median price to earnings ratio on the stock, that corresponds with a stock price of 79.59. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Kratos Defense & Security Solutions, Inc..