Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Kratos Defense & Security Solutions's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 0.80. The higher Degree of Operating Leverage, the higher operating risk the company will take.
LTS:0JS0's Degree of Operating Leverage is ranked better than 54.79% of 334
companies
in the Aerospace & Defense industry
Industry Median: 1.055
vs LTS:0JS0: 0.80
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Kratos Defense & Security Solutions Degree of Operating Leverage Related Terms
Kratos Defense & Security Solutions Degree of Operating Leverage Historical Data
* 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 Degree of Operating Leverage Chart
LTS:0JS0 vs HXL, SARO, AVAV: Degree of Operating Leverage Comparison
For the Aerospace & Defense subindustry, Kratos Defense & Security Solutions's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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 Degree of Operating Leverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Kratos Defense & Security Solutions's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Kratos Defense & Security Solutions's Degree of Operating Leverage falls into.
* 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 0.80 mean?
Kratos Defense & Security Solutions (LTS:0JS0) has a Degree of Operating Leverage of 0.80 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Kratos Defense & Security Solutions and its competitors. According to the industry distribution chart, Kratos Defense & Security Solutions ranks #151 out of 334 companies in the Aerospace & Defense industry, placing it in the top 45.2%.
Is Kratos Defense & Security Solutions' Degree of Operating Leverage too high?
Kratos Defense & Security Solutions' current Degree of Operating Leverage is 0.80. The Aerospace & Defense industry median Degree of Operating Leverage is 1.06. Kratos Defense & Security Solutions' value of 0.80 is 24.2% below this industry median. Based on the distribution chart, Kratos Defense & Security Solutions ranks #151 out of 334 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Kratos Defense & Security Solutions has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kratos Defense & Security Solutions' Degree of Operating Leverage compare to HXL and SARO?
According to the Aerospace & Defense industry distribution chart, Kratos Defense & Security Solutions ranks #151 out of 334 companies for Degree of Operating Leverage. This puts Kratos Defense & Security Solutions in the upper half of its industry. The industry median Degree of Operating Leverage is 1.06. Kratos Defense & Security Solutions' value of 0.80 is 24.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Aerospace & Defense company?
The median Degree of Operating Leverage among Aerospace & Defense companies is 1.06, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kratos Defense & Security Solutions's current Degree of Operating Leverage of 0.80 is 24.2% 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 Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Kratos Defense & Security Solutions and its competitors. For the Aerospace & Defense industry, the median Degree of Operating Leverage is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kratos Defense & Security Solutions's current Degree of Operating Leverage is 0.80. 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 $33.11, compared to a current price of $51.70 — trading 56.1% above its estimated fair value. The current Degree of Operating Leverage is 0.80 and 24.2% below the Aerospace & Defense industry median of 1.06. Kratos Defense & Security Solutions' overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Kratos Defense & Security Solutions (LTS:0JS0), the current Degree of Operating Leverage is 0.80 as of Jun. 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 $51.70 is trading 56.1% above its estimated GF Value™ of $33.11.
GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.
Key valuation signals for LTS:0JS0:
Degree of Operating Leverage: 0.80
GF Value™: $33.11 vs. price of $51.70 (56.1% above fair value)
Industry Position: 24.2% below the Aerospace & Defense median (#151 of 334)
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 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.
66GF Score
Get the complete analysis for LTS:0JS0
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0JS0 has been successfully added to your 
