Kratos Defense & Security Solutions (LTS:0JS0) ROCE %: 0.91% (As of Mar. 2026)

What is Kratos Defense & Security Solutions ROCE %?

Kratos Defense & Security Solutions LTS:0JS0 -4.74% 77 ROCE % is 0.91% as of Mar. 2026. GuruFocus rates LTS:0JS0 with a GF Score™ of 77/100 and a GF Value™ of $27.90 (Significantly Overvalued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Kratos Defense & Security Solutions's annualized ROCE % for the quarter that ended in Mar. 2026 was 0.91%.

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

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Kratos Defense & Security Solutions ROCE % Related Terms

Kratos Defense & Security Solutions ROCE % Historical Data

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

Kratos Defense & Security Solutions Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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2.06

-1.09

2.47

2.79

2.29

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
ROCE %	Get a 7-Day Free Trial															1.57	0.75	1.33	4.85	0.91

77GF Score

Kratos Defense & Security Solutions Inc LTS:0JS0

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Kratos Defense & Security Solutions ROCE % Calculation

Kratos Defense & Security Solutions's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	43.6	/	( ( (1950.9 - 296.7)	+	(2467.2 - 311) )	/ 2 )
	=	43.6	/	( (1654.2	+	2156.2)	/ 2 )
	=	43.6	/	1905.2
	=	2.29 %

Kratos Defense & Security Solutions's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	26.4	/	( ( (2467.2 - 311)	+	(4042.7 - 410.7) )	/ 2 )
	=	26.4	/	( ( 2156.2	+	3632 )	/ 2 )
	=	26.4	/	2894.1
	=	0.91 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 0.91% mean?

Kratos Defense & Security Solutions (LTS:0JS0) has a ROCE % of 0.91% as of Mar. 2026.

Is Kratos Defense & Security Solutions' ROCE % too high?

Kratos Defense & Security Solutions' current ROCE % is 0.91%. The Aerospace & Defense industry median ROCE % is 6.29. Kratos Defense & Security Solutions' value of 0.91% is 85.5% below this industry median. 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' ROCE % compare to HII and MOG.A?

Kratos Defense & Security Solutions' ROCE % of 0.91% can be compared against companies in the Aerospace & Defense industry. The industry median ROCE % is 6.29. Kratos Defense & Security Solutions' value of 0.91% is 85.5% 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 ROCE % for an Aerospace & Defense company?

The median ROCE % among Aerospace & Defense companies is 6.29, based on 350 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kratos Defense & Security Solutions's current ROCE % of 0.91% is 85.5% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median ROCE % is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kratos Defense & Security Solutions's current ROCE % is 0.91%. 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 $27.90, compared to a current price of $46.44 — trading 66.5% above its estimated fair value. The current ROCE % is 0.91% and 85.5% below the Aerospace & Defense industry median of 6.29. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Kratos Defense & Security Solutions (LTS:0JS0), the current ROCE % is 0.91% 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 66.5% above its estimated GF Value™ of $27.90. GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.

Key valuation signals for LTS:0JS0:

ROCE %: 0.91%
GF Value™: $27.90 vs. price of $46.44 (66.5% above fair value)
GF Score™: 77/100 with 5 warning signs
Industry Position: 85.5% below the Aerospace & Defense median

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

Industry Industrials Aerospace & Defense

Comparable Companies HII MOG.A DRS AVAV SARO TXT KRMN FLY LUNR HXL GE RTX BA XPAR:AIR LSE:RR.XPAR:SAF LMT HWM GD RKLB

Other Exchanges KTOS:USA 1KTOS:Italy WF5A:Germany

Address 1 Chisholm Trail, Suite 300, Round Rock, TX, USA, 78681

Website https://www.kratosdefense.com

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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$46.44

Price

$27.90

GF Value

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