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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
LTS:0JS0's Price-to-Net-Net-Working-Capital is ranked better than 56.78% of 118
companies
in the Aerospace & Defense industry
Industry Median: 9.605
vs LTS:0JS0: 8.65
Kratos Defense & Security Solutions (LTS:0JS0) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Kratos Defense & Security Solutions Net-Net Working Capital Related Terms
Kratos Defense & Security Solutions Net-Net Working Capital 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 Net-Net Working Capital Chart
LTS:0JS0 vs SARO, PL, LOAR: Net-Net Working Capital Comparison
For the Aerospace & Defense subindustry, Kratos Defense & Security Solutions's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Kratos Defense & Security Solutions's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Kratos Defense & Security Solutions's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $5.82 mean?
Kratos Defense & Security Solutions (LTS:0JS0) has a Net-Net Working Capital of $5.82 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Kratos Defense & Security Solutions According to the industry distribution chart, Kratos Defense & Security Solutions ranks #51 out of 118 companies in the Aerospace & Defense industry, placing it in the top 43.2%.
Is Kratos Defense & Security Solutions' Net-Net Working Capital too high?
Kratos Defense & Security Solutions' current Net-Net Working Capital is $5.82. The Aerospace & Defense industry median Net-Net Working Capital is 9.61. Kratos Defense & Security Solutions' value of $5.82 is 39.4% below this industry median. Based on the distribution chart, Kratos Defense & Security Solutions ranks #51 out of 118 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Kratos Defense & Security Solutions has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kratos Defense & Security Solutions' Net-Net Working Capital compare to SARO and PL?
According to the Aerospace & Defense industry distribution chart, Kratos Defense & Security Solutions ranks #51 out of 118 companies for Net-Net Working Capital. This puts Kratos Defense & Security Solutions in the upper half of its industry. The industry median Net-Net Working Capital is 9.61. Kratos Defense & Security Solutions' value of $5.82 is 39.4% 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-Net Working Capital for an Aerospace & Defense company?
The median Net-Net Working Capital among Aerospace & Defense companies is 9.61, based on 118 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kratos Defense & Security Solutions's current Net-Net Working Capital of $5.82 is 39.4% 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-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Kratos Defense & Security Solutions For the Aerospace & Defense industry, the median Net-Net Working Capital is 9.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kratos Defense & Security Solutions's current Net-Net Working Capital is $5.82. 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 $28.15, compared to a current price of $49.90 — trading 77.3% above its estimated fair value. The current Net-Net Working Capital is $5.82 and 39.4% below the Aerospace & Defense industry median of 9.61. Kratos Defense & Security Solutions' overall GF Score™ is 68/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Kratos Defense & Security Solutions (LTS:0JS0), the current Net-Net Working Capital is $5.82 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 $49.90 is trading 77.3% above its estimated GF Value™ of $28.15.
GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.
Key valuation signals for LTS:0JS0:
Net-Net Working Capital: $5.82
GF Value™: $28.15 vs. price of $49.90 (77.3% above fair value)
Industry Position: 39.4% below the Aerospace & Defense median (#51 of 118)
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
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.
68GF Score
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