A research filter, not a predictor — not financial advice. Grades rank growth stocks on evidence-based quality signals from end-of-day data; they are not buy/sell calls or price forecasts. Always do your own research.

Kratos Defense & Security Solutions, Inc. KTOS

Weak Emerging Frontier sector · Drones, propulsion, and space/defense systems.

Kratos Defense & Security Solutions, Inc. (KTOS) is an established Emerging Frontier company, graded Weak on FrontierLab's evidence-based quality rubric (data as of 2026-10-05). Revenue grew 25.5% year-over-year at a 22% gross margin. Gross-profits-to-assets is 0.08; Rule of 40 is 27. Net share issuance 20.8% YoY (heavy issuance). 3 risk flags are noted below. Analyst mix: 26 buy / 3 hold / 0 sell. Track record: 35% of Weak-graded names beat the S&P over 63 sessions (95% CI 18–57%, N=20). Median excess vs the S&P was -13%.

These sentences are generated from the day's data by deterministic templates.

Key quality signals

Revenue growth (YoY)	25.5%
Gross margin	22%
Gross profits / assets	0.08
Rule of 40	27
Net margin	1.5%
Cash runway (months)	120
PEG	3.6
Price / sales	5.3

Quality checklist

Each line is one quality test behind the grade — ✓ passed · ~ borderline · ✗ failed. Hover a metric in the tables below for what it means.

~ Revenue growth — 25.5% (pass ≥ 20%)
✗ Gross profits / assets — 0.08 (pass ≥ 0.33)
· Rule of 40 — 27 (context — graded for software only)
✗ Gross margin — 22% (pass ≥ 45% · Emerging Frontier)
~ Cash generation
✗ Share dilution — 20.8%
~ Competitive moat — Narrow
✓ Market size (TAM) — Large

Grade history

Graded Weak since 2026-06-10 — no grade changes recorded yet.

How have Weak-graded names performed?

The forward returns of all Weak-graded names since each grade was recorded — the bucket this name currently sits in, not a forecast of this individual stock.

Window	Forward record vs the S&P	Median
~1 month	32% of Weak-graded names beat the S&P over 21 sessions (95% CI 15–54%, N=19).	Median excess vs the S&P was -3%.
~3 months	35% of Weak-graded names beat the S&P over 63 sessions (95% CI 18–57%, N=20).	Median excess vs the S&P was -13%.
~6 months	building — 46 more sessions needed

How have this name's flags scored?

Flag	N	Mean excess vs S&P
Thin gross margin — keeps little of each sales dollar (judge it against its industry).	21	-18.4%
Heavy dilution (~21%/yr) — top-decile share issuers have historically underperformed.	sample still too small to report (need ≥ 8)
Hyper-expansion — assets up ~58% in a year; aggressive expanders have historically lagged.	sample still too small to report (need ≥ 8)

These per-flag figures are observational — a flag firing is not a randomized assignment, so any edge can reflect what kind of names trip a flag, not the flag itself. Descriptive, not causal.

Scope: these are forward returns vs the S&P among names still covered at each horizon's end, within the curated universe — not a survivorship-clean whole-market backtest. Names later dropped from coverage are counted as attrition (not hidden), and single-session moves beyond ±300% are treated as split/data artifacts and excluded. How this is measured → · Full track record →

How it compares

Revenue growth: higher than most peers across all sectors (N=66)

Coarse same-sector, same-stage context — not a percentile or rank. GP/A is graded on its absolute level, not position.

Fundamentals

Market cap	$8.08B
Stage	Established
Share issuance (YoY)	20.8% · heavy issuance
Moat	Narrow
TAM	LARGE
P/E (trailing)	252.8
EPS (trailing)	$0.17
Burn multiple	—
Gross-margin trend (pts)	-1.6
Cash / assets	0.35
Accruals (%)	2.1%
Net debt / EBITDA	-10.5
Statements as of	Q2 FY2026 · filed 2026-08-04

Momentum context — describes the past, not a signal

52-week range

$41.83$134

Low reached Sep 30, 2026 · high reached Jan 16, 2026 — by daily close.

Price	$43.07 (as of 2026-10-02)
Last session move	—
% off 52-wk high	-67.9%
RSI (14)	31
Relative volume	1.1×

Risk flags

Thin gross margin — keeps little of each sales dollar (judge it against its industry).Heavy dilution (~21%/yr) — top-decile share issuers have historically underperformed.Hyper-expansion — assets up ~58% in a year; aggressive expanders have historically lagged.

Positive signals

Growth accelerating — revenue growth sped up ~18 points year-on-year; acceleration is an early fundamental tell (annual data, so it's coarse).

Insider activity (90 days)

Cluster buyers	0
Sellers	7

Insider selling is routine diversification, not a bearish signal.

Analyst mix

Strong buy	10
Buy	16
Hold	3
Sell	0
Strong sell	0

Ratings are context, not a price target. "Momentum" = how the mix changed over recent weeks, not a forecast.

From the headlines

Is Kratos (KTOS) Turning GEK800 Missile Engine Progress Into a Durable Defense Portfolio Advantage?

AI take — daily, AI-generated

AI leans cautious

Decent growth but a PEG of 3.6 signals overvaluation relative to growth; weak margins and low profit per asset are red flags.

Generated by an AI model from the day's news — an opinion for context only. Not financial advice, not a recommendation, and not a price target.

Similar Emerging Frontier names

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← All Emerging Frontier names · Open KTOS in the interactive screener →

Data as of 2026-10-05 08:19 (end-of-day). How grades are computed →