Kratos Defense & Security Solutions - AI Stock Analysis

Analysis generated January 22, 2026

Kratos Defense & Security Solutions, Inc. (KTOS), is a mid-cap company operating in the aerospace and defense sector. The company provides innovative technology solutions to the United States and its allies' national security and public safety operations. Their offerings include unmanned systems, microwave electronics, satellite communications, cybersecurity, and more. This makes it a significant player within a critical and continuously evolving industry.

Fundamental Analysis

In the most recent quarter, Kratos Defense Security Solutions reported revenues of $348 million. Although this marks a decline of 1.11% compared to the previous quarter, representing a short-term concern, it is important to note a strong 25.99% year-over-year growth from the same quarter last year.

Net income for the last quarter was $8.7 million, a notable surge of 200.00% compared to the previous quarter and a stellar 171.88% increase year-over-year. This healthy growth in profit is reinforced by the company's EBITDA, which was $24 million for the last quarter. This reflects a quarterly growth of 28.65% and a year-over-year increase of 25.93%.

However, the company's current Price-to-Earnings (P/E) ratio stands at a lofty 927.62. Such a high P/E ratio could indicate an overvaluation and possibly project a bearish outlook. Moreover, recent insider selling of company stock is another potential bearish signal that raises red flags for some investors.

Technical Analysis

Kratos Defense Security Solutions' stock price is currently $112.25, representing an impressive 37.68% increase compared to a month ago and a staggering 224.70% increase from a year ago. Despite these gains, technical indicators suggest a bearish trend in the shorter term.

The current Simple Moving Average over the last 10 days (SMA10) is 125.02, which is lower than the previous SMA10 of 125.58. This hints at a potential downward trend. The Relative Strength Index (RSI) is 33.6, indicating a neutral market condition. Combined, these metrics suggest caution may be necessary.

Alternative Data Analysis

From an employment perspective, Kratos Defense Security Solutions currently has 178 open positions. This stable number over the last few months indicates the company is maintaining its workforce size, reflecting stability. The employee sentiment about the business outlook remains neutral.

Concerning customer acquisition, the company's website currently attracts an estimated 72,000 visitors. However, this number is down by 31% over the past couple of months, a worrisome trend potentially indicating a loss in customer interest. Despite this, the company's Twitter page has witnessed an 11% increase in followers, now totaling 7,900, suggesting growing interest or engagement from its core audience.

AltIndex’s AI score for Kratos, which integrates fundamental, technical, and alternative data, gives it a score of 53, signifying a hold recommendation.

Conclusion

In summary, Kratos Defense Security Solutions presents a mixed bag of strong year-over-year growth metrics in revenue, net income, and EBITDA, contrasted with possible short-term concerns indicated by a high P/E ratio, recent insider selling, and a decline in website visitors. Meanwhile, the technical indicators suggest potential for near-term bearishness.

The overall recommendation, considering all the varied data points, would be to hold the stock. Investors should keep a close eye on future quarterly results, insider trading activities, and customer engagement metrics to reassess the position as new data becomes available.

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.