3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Kratos Defense & Security Solutions's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 3.34%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Kratos Defense & Security Solutions 3-Year ROIIC % Related Terms
Kratos Defense & Security Solutions 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Aerospace & Defense subindustry, Kratos Defense & Security Solutions's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Kratos Defense & Security Solutions's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Kratos Defense & Security Solutions's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 17.92467 (Dec. 2025) - 4.6 (Dec. 2022) )
/
( 1776.5 (Dec. 2025) - 1377.6 (Dec. 2022) )
=
13.32467
/
398.9
=
3.34%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) 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.
Kratos Defense & Security Solutions (LTS:0JS0) has a 3-Year ROIIC % of 3.34 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Kratos Defense & Security Solutions and its competitors. This is 271% above median its historical median of 0.90. According to the industry distribution chart, Kratos Defense & Security Solutions ranks #166 out of 321 companies in the Aerospace & Defense industry, placing it in the top 51.7%.
Is Kratos Defense & Security Solutions' 3-Year ROIIC % too high?
Kratos Defense & Security Solutions' current 3-Year ROIIC % of 3.34 is 271% above median its 10-year median of 0.90. The Aerospace & Defense industry median 3-Year ROIIC % is 3.84. Kratos Defense & Security Solutions' value of 3.34 is 13% below this industry median. Based on the distribution chart, Kratos Defense & Security Solutions ranks #166 out of 321 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Kratos Defense & Security Solutions has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kratos Defense & Security Solutions' 3-Year ROIIC % compare to SARO and PL?
According to the Aerospace & Defense industry distribution chart, Kratos Defense & Security Solutions ranks #166 out of 321 companies for 3-Year ROIIC %. This places Kratos Defense & Security Solutions in the lower half of its industry. The industry median 3-Year ROIIC % is 3.84. Kratos Defense & Security Solutions' value of 3.34 is 13% below this benchmark. While the company's 10-year median is 0.90 vs. the industry median of 3.84, 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 3-Year ROIIC % for an Aerospace & Defense company?
The median 3-Year ROIIC % among Aerospace & Defense companies is 3.84, based on 321 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kratos Defense & Security Solutions's current 3-Year ROIIC % of 3.34 is 13% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Kratos Defense & Security Solutions and its competitors. For the Aerospace & Defense industry, the median 3-Year ROIIC % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kratos Defense & Security Solutions's current 3-Year ROIIC % is 3.34, which is 271% above median its own 10-year median of 0.90. 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 $27.76, compared to a current price of $54.47 — trading 96.2% above its estimated fair value. The current 3-Year ROIIC % is 3.34, which is 271% above median its 10-year median of 0.90 and 13% below the Aerospace & Defense industry median of 3.84. Kratos Defense & Security Solutions' overall GF Score™ is 72/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Kratos Defense & Security Solutions (LTS:0JS0), the current 3-Year ROIIC % is 3.34 as of Dec. 2025. 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 $54.47 is trading 96.2% above its estimated GF Value™ of $27.76.
GuruFocus considers Kratos Defense & Security Solutions to be Significantly Overvalued.
Key valuation signals for LTS:0JS0:
3-Year ROIIC %: 3.34 (271% above median its 10-year median of 0.90)
GF Value™: $27.76 vs. price of $54.47 (96.2% above fair value)
Industry Position: 13% below the Aerospace & Defense median (#166 of 321)
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.
72GF Score
Get the complete analysis for LTS:0JS0
3-Year ROIIC % 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 
