Kratos Defense & Security SolutionsLTS:0JS0 +4.77%78 Return-on-Tangible-Equity is 2.61% as of Mar. 2026, which is 222% above its 10-year median of 0.81. GuruFocus rates LTS:0JS0 with a GF Score™ of 78/100 and a GF Value™ of $27.98 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 334 Aerospace & Defense companies, Kratos Defense & Security Solutions ranks worse than 64.67% on this metric.
The historical rank and industry rank for Kratos Defense & Security Solutions's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0JS0'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.1 Med: 0.81 Max: 33.35
Current: 2.1
During the past 13 years, Kratos Defense & Security Solutions's highest Return-on-Tangible-Equity was 33.35%. The lowest was -10.10%. And the median was 0.81%.
LTS:0JS0's Return-on-Tangible-Equity is ranked worse than 64.67% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs LTS:0JS0: 2.10
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Kratos Defense & Security Solutions Return-on-Tangible-Equity Related Terms
Kratos Defense & Security Solutions Return-on-Tangible-Equity 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.
LTS:0JS0 vs SARO, PL, LOAR: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Kratos Defense & Security Solutions's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Kratos Defense & Security Solutions's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kratos Defense & Security Solutions's Return-on-Tangible-Equity 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 the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 2.61% mean?
Kratos Defense & Security Solutions (LTS:0JS0) has a Return-on-Tangible-Equity of 2.61% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Kratos Defense & Security Solutions and its competitors. This is 222% above median its historical median of 0.81. According to the industry distribution chart, Kratos Defense & Security Solutions ranks #216 out of 334 companies in the Aerospace & Defense industry, placing it in the top 64.7%.
Is Kratos Defense & Security Solutions' Return-on-Tangible-Equity too high?
Kratos Defense & Security Solutions' current Return-on-Tangible-Equity of 2.61% is 222% above median its 10-year median of 0.81. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Kratos Defense & Security Solutions' value of 2.61% is 68.2% below this industry median. Based on the distribution chart, Kratos Defense & Security Solutions ranks #216 out of 334 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Kratos Defense & Security Solutions has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kratos Defense & Security Solutions' Return-on-Tangible-Equity compare to SARO and PL?
According to the Aerospace & Defense industry distribution chart, Kratos Defense & Security Solutions ranks #216 out of 334 companies for Return-on-Tangible-Equity. This places Kratos Defense & Security Solutions in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.20. Kratos Defense & Security Solutions' value of 2.61% is 68.2% below this benchmark. While the company's 10-year median is 0.81 vs. the industry median of 8.20, 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 Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kratos Defense & Security Solutions's current Return-on-Tangible-Equity of 2.61% is 68.2% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Kratos Defense & Security Solutions and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kratos Defense & Security Solutions's current Return-on-Tangible-Equity is 2.61%, which is 222% above median its own 10-year median of 0.81. 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 $27.98, compared to a current price of $49.59 — trading 77.2% above its estimated fair value. The current Return-on-Tangible-Equity is 2.61%, which is 222% above median its 10-year median of 0.81 and 68.2% below the Aerospace & Defense industry median of 8.20. Kratos Defense & Security Solutions' overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Kratos Defense & Security Solutions (LTS:0JS0), the current Return-on-Tangible-Equity is 2.61% 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 $49.59 is trading 77.2% above its estimated GF Value™ of $27.98.
GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.
Key valuation signals for LTS:0JS0:
Return-on-Tangible-Equity: 2.61% (222% above median its 10-year median of 0.81)
GF Value™: $27.98 vs. price of $49.59 (77.2% above fair value)
Industry Position: 68.2% below the Aerospace & Defense median (#216 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 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.
78GF Score
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