Kratos Defense & Security Solutions (LTS:0JS0) Net Margin %: 3.21% (As of Mar. 2026)


LTS:0JS0 Kratos Defense & Security Solutions Inc LTS:0JS0
77 GF Score
Price $46.44
GF Value $28.55
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Kratos Defense & Security Solutions Net Margin %?

Kratos Defense & Security Solutions LTS:0JS0 -4.74% 77 Net Margin % is 3.21% as of Mar. 2026. GuruFocus rates LTS:0JS0 with a GF Score™ of 77/100 and a GF Value™ of $28.55 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 347 Aerospace & Defense companies, Kratos Defense & Security Solutions ranks worse than 62.54% on this metric.

Net margin is calculated as Net Income divided by its Revenue. Kratos Defense & Security Solutions's Net Income for the three months ended in Mar. 2026 was $12 Mil. Kratos Defense & Security Solutions's Revenue for the three months ended in Mar. 2026 was $371 Mil. Therefore, Kratos Defense & Security Solutions's net margin for the quarter that ended in Mar. 2026 was 3.21%.

The historical rank and industry rank for Kratos Defense & Security Solutions's Net Margin % or its related term are showing as below:

LTS:0JS0' s Net Margin % Range Over the Past 10 Years
Min: -11.16   Med: -0.41   Max: 10.65
Current: 2.08


LTS:0JS0's Net Margin % is ranked worse than
62.54% of 347 companies
in the Aerospace & Defense industry
Industry Median: 4.9 vs LTS:0JS0: 2.08

Kratos Defense & Security Solutions  (LTS:0JS0) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Kratos Defense & Security Solutions Net Margin % Related Terms


Kratos Defense & Security Solutions Net Margin % Historical Data

* Premium members only.

The historical data trend for Kratos Defense & Security Solutions's Net Margin % 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 Net Margin % Chart

Kratos Defense & Security Solutions Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.25 -4.11 -0.86 1.43 1.63

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
Net Margin % 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 1.49 0.83 2.50 1.71 3.21

LTS:0JS0 vs HII, MOG.A, DRS: Net Margin % Comparison

For the Aerospace & Defense subindustry, Kratos Defense & Security Solutions's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Kratos Defense & Security Solutions's Net Margin % distribution charts can be found below:

* The bar in red indicates where Kratos Defense & Security Solutions's Net Margin % falls into.


LTS:0JS0
77GF Score
Kratos Defense & Security Solutions Inc LTS:0JS0
Net Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Kratos Defense & Security Solutions Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Kratos Defense & Security Solutions's Net Margin for the fiscal year that ended in Dec. 2025 is calculated as

Net Margin=Net Income (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=22/1346.8
=1.63 %

Kratos Defense & Security Solutions's Net Margin for the quarter that ended in Mar. 2026 is calculated as

Net Margin=Net Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=11.9/371
=3.21 %

* 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.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of 3.21% mean?
Kratos Defense & Security Solutions (LTS:0JS0) has a Net Margin % of 3.21% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Kratos Defense & Security Solutions and its competitors. According to the industry distribution chart, Kratos Defense & Security Solutions ranks #217 out of 347 companies in the Aerospace & Defense industry, placing it in the top 62.5%.
Is Kratos Defense & Security Solutions' Net Margin % too high?
Kratos Defense & Security Solutions' current Net Margin % is 3.21%. The Aerospace & Defense industry median Net Margin % is 4.90. Kratos Defense & Security Solutions' value of 3.21% is 34.5% below this industry median. Based on the distribution chart, Kratos Defense & Security Solutions ranks #217 out of 347 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Kratos Defense & Security Solutions has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kratos Defense & Security Solutions' Net Margin % compare to HII and MOG.A?
According to the Aerospace & Defense industry distribution chart, Kratos Defense & Security Solutions ranks #217 out of 347 companies for Net Margin %. This places Kratos Defense & Security Solutions in the lower half of its industry. The industry median Net Margin % is 4.90. Kratos Defense & Security Solutions' value of 3.21% is 34.5% 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 Net Margin % for an Aerospace & Defense company?
The median Net Margin % among Aerospace & Defense companies is 4.90, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kratos Defense & Security Solutions's current Net Margin % of 3.21% is 34.5% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Kratos Defense & Security Solutions and its competitors. For the Aerospace & Defense industry, the median Net Margin % is 4.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kratos Defense & Security Solutions's current Net Margin % is 3.21%. 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 $28.55, compared to a current price of $46.44 — trading 62.7% above its estimated fair value. The current Net Margin % is 3.21% and 34.5% below the Aerospace & Defense industry median of 4.90. Kratos Defense & Security Solutions' overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Kratos Defense & Security Solutions (LTS:0JS0), the current Net Margin % is 3.21% 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 $46.44 is trading 62.7% above its estimated GF Value™ of $28.55. GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.

Key valuation signals for LTS:0JS0:

  • Net Margin %: 3.21%
  • GF Value™: $28.55 vs. price of $46.44 (62.7% above fair value)
  • GF Score™: 77/100 with 5 warning signs
  • Industry Position: 34.5% below the Aerospace & Defense median (#217 of 347)

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.
77GF Score

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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$46.44
Price
$28.55
GF Value