Kratos Defense Security currently holds roughly 142.4
M in cash with 30.8
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.13.
Our investment recommendation tool can cross-verify current
analyst consensus on Kratos Defense Security and to analyze the entity potential to grow in the current economic cycle.
Investing in Kratos Defense, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Kratos Defense along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Kratos Defense's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Kratos Defense. Your research has to be compared to or analyzed against Kratos Defense's peers to derive any actionable benefits. When done correctly, Kratos Defense's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Kratos Defense Security.
How important is Kratos Defense's Liquidity
Kratos Defense
financial leverage refers to using borrowed capital as a funding source to finance Kratos Defense Security ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kratos Defense financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Kratos Defense's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Kratos Defense's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Kratos Defense's total debt and its cash.
Kratos Defense Gross Profit
Kratos Defense Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Kratos Defense previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Kratos Defense Gross Profit growth over the last 10 years. Please check Kratos Defense's
gross profit and other
fundamental indicators for more details.
Kratos Defense Correlation with Peers
Investors in Kratos can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Kratos Defense Security. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Kratos Defense and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Kratos is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Kratos for more details
A Deeper look at Kratos
Kratos Defense appears to be not too volatile, given 3 months investment horizon.
Kratos Defense Security has Sharpe Ratio of 0.16, which conveys that the firm had 0.16% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Kratos Defense, which you can use to evaluate the future volatility of the firm. Please exercise Kratos Defense's Downside Deviation of 2.82,
risk adjusted performance of 0.0473, and Mean Deviation of 1.95 to check out if our risk estimates are consistent with your expectations.
Momentum Analysis of Kratos Defense suggests possible reversal in March
Kratos Defense newest downside deviation boosts over 2.82.
As of the 22nd of February, Kratos Defense secures the Mean Deviation of 1.95,
risk adjusted performance of 0.0473, and Downside Deviation of 2.82. Kratos Defense Security
technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down and interpolate data for nineteen
technical drivers for Kratos Defense, which can be compared to its peers in the industry. Please verify
Kratos Defense Security market risk adjusted performance,
variance, as well as the
relationship between the Variance and
potential upside to decide if Kratos Defense Security is priced some-what accurately, providing market reflects its recent price of 11.38 per share. Given that Kratos Defense Security has
jensen alpha of 0.1349, we recommend you to check Kratos Defense's last-minute market performance to make sure the company can sustain itself at a future point.
Our Final Perspective on Kratos Defense
Whereas other entities under the aerospace & defense industry are still a bit expensive, Kratos Defense may offer a potential longer-term growth to private investors. To conclude, as of the 22nd of February 2023, we believe that at this point, Kratos Defense is not too volatile with
below average odds of distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. Our primary 90 days buy-hold-sell recommendation on the firm is
Strong Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Kratos Defense Security. Please refer to our
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