Kratos Defense & Security Solutions (LTS:0JS0) Debt-to-EBITDA : 1.73 (As of Mar. 2026) — 65% Below Median


LTS:0JS0 Kratos Defense & Security Solutions Inc LTS:0JS0
74 GF Score
Price $48.21
GF Value $28.16
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Kratos Defense & Security Solutions Debt-to-EBITDA?

Kratos Defense & Security Solutions LTS:0JS0 -1.87% 74 Debt-to-EBITDA is 1.73 as of Mar. 2026, which is 65% below its 10-year median of 5.01. GuruFocus rates LTS:0JS0 with a GF Score™ of 74/100 and a GF Value™ of $28.16 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 254 Aerospace & Defense companies, Kratos Defense & Security Solutions ranks better than 52.36% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Kratos Defense & Security Solutions's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was $19 Mil. Kratos Defense & Security Solutions's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was $167 Mil. Kratos Defense & Security Solutions's annualized EBITDA for the quarter that ended in Mar. 2026 was $107 Mil. Kratos Defense & Security Solutions's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 1.73.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Kratos Defense & Security Solutions's Debt-to-EBITDA or its related term are showing as below:

LTS:0JS0' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -50.6   Med: 5.01   Max: 80
Current: 1.69

During the past 13 years, the highest Debt-to-EBITDA Ratio of Kratos Defense & Security Solutions was 80.00. The lowest was -50.60. And the median was 5.01.

LTS:0JS0's Debt-to-EBITDA is ranked better than
52.36% of 254 companies
in the Aerospace & Defense industry
Industry Median: 1.83 vs LTS:0JS0: 1.69

Kratos Defense & Security Solutions  (LTS:0JS0) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Kratos Defense & Security Solutions Debt-to-EBITDA Related Terms


Kratos Defense & Security Solutions Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Kratos Defense & Security Solutions's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Kratos Defense & Security Solutions Debt-to-EBITDA Chart

Kratos Defense & Security Solutions Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.41 11.52 4.15 3.01 1.42

Kratos Defense & Security Solutions Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.54 3.77 1.51 0.86 1.73

LTS:0JS0 vs SARO, PL, LOAR: Debt-to-EBITDA Comparison

For the Aerospace & Defense subindustry, Kratos Defense & Security Solutions's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kratos Defense & Security Solutions Debt-to-EBITDA vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Kratos Defense & Security Solutions's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Kratos Defense & Security Solutions's Debt-to-EBITDA falls into.


LTS:0JS0
74GF Score
Kratos Defense & Security Solutions Inc LTS:0JS0
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kratos Defense & Security Solutions Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Kratos Defense & Security Solutions's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(16.2 + 129.6) / 102.9
=1.42

Kratos Defense & Security Solutions's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(18.7 + 166.7) / 107.2
=1.73

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 1.73 mean?
Kratos Defense & Security Solutions (LTS:0JS0) has a Debt-to-EBITDA of 1.73 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Kratos Defense & Security Solutions. This is 65% below median its historical median of 5.01. According to the industry distribution chart, Kratos Defense & Security Solutions ranks #121 out of 254 companies in the Aerospace & Defense industry, placing it in the top 47.6%.
Is Kratos Defense & Security Solutions' Debt-to-EBITDA too high?
Kratos Defense & Security Solutions' current Debt-to-EBITDA of 1.73 is 65% below median its 10-year median of 5.01. The Aerospace & Defense industry median Debt-to-EBITDA is 1.83. Kratos Defense & Security Solutions' value of 1.73 is 5.5% below this industry median. Based on the distribution chart, Kratos Defense & Security Solutions ranks #121 out of 254 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Kratos Defense & Security Solutions has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kratos Defense & Security Solutions' Debt-to-EBITDA compare to SARO and PL?
According to the Aerospace & Defense industry distribution chart, Kratos Defense & Security Solutions ranks #121 out of 254 companies for Debt-to-EBITDA. This puts Kratos Defense & Security Solutions in the upper half of its industry. The industry median Debt-to-EBITDA is 1.83. Kratos Defense & Security Solutions' value of 1.73 is 5.5% below this benchmark. While the company's 10-year median is 5.01 vs. the industry median of 1.83, Kratos Defense & Security Solutions has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Aerospace & Defense company?
The median Debt-to-EBITDA among Aerospace & Defense companies is 1.83, based on 254 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kratos Defense & Security Solutions's current Debt-to-EBITDA of 1.73 is 5.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Kratos Defense & Security Solutions. For the Aerospace & Defense industry, the median Debt-to-EBITDA is 1.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kratos Defense & Security Solutions's current Debt-to-EBITDA is 1.73, which is 65% below median its own 10-year median of 5.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kratos Defense & Security Solutions stock overvalued right now?
Based on GuruFocus' analysis, Kratos Defense & Security Solutions (LTS:0JS0) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.16, compared to a current price of $48.21 — trading 71.2% above its estimated fair value. The current Debt-to-EBITDA is 1.73, which is 65% below median its 10-year median of 5.01 and 5.5% below the Aerospace & Defense industry median of 1.83. Kratos Defense & Security Solutions' overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Kratos Defense & Security Solutions (LTS:0JS0), the current Debt-to-EBITDA is 1.73 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Kratos Defense & Security Solutions (LTS:0JS0) Overvalued in 2026?

Based on GuruFocus' analysis, Kratos Defense & Security Solutions stock appears to be overvalued. The current stock price of $48.21 is trading 71.2% above its estimated GF Value™ of $28.16. GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.

Key valuation signals for LTS:0JS0:

  • Debt-to-EBITDA: 1.73 (65% below median its 10-year median of 5.01)
  • GF Value™: $28.16 vs. price of $48.21 (71.2% above fair value)
  • GF Score™: 74/100 with 5 warning signs
  • Industry Position: 5.5% below the Aerospace & Defense median (#121 of 254)

No single metric tells the full story. See the LTS:0JS0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kratos Defense & Security Solutions Business Description

Address 1 Chisholm Trail, Suite 300, Round Rock, TX, USA, 78681
Kratos Defense & Security Solutions Inc develops and fields transformative, affordable technology, platforms, and systems. The company has two segments; The Kratos Government Solutions (KGS) segment is comprised of an aggregation of KGS operating segments, including its microwave electronic products, space, training, and cybersecurity, C5ISR/modular systems, turbine technologies, and defense and rocket support services operating segments and The Unmanned Systems segment consists of unmanned aerial, unmanned ground, unmanned seaborne and related command, control, and communications system businesses. The company derives a majority of its revenue from the Kratos Government Solutions segment.
74GF Score

Get the complete analysis for LTS:0JS0

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$48.21
Price
$28.16
GF Value