Over the past week, Kratos Defense & Security Solutions Inc (KTOS, Financial) has seen a significant surge in its stock price, with a gain of 7.23%. This upward trend extends to the past three months, during which the stock has rallied by an impressive 20.24%. Currently priced at $16.01, the company boasts a market cap of $2.06 billion. According to GuruFocus.com's GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is modestly undervalued with a GF Value of $22.4. This is a notable improvement from three months ago when the stock was considered a possible value trap with a GF Value of $21.95.
Company Overview: Kratos Defense & Security Solutions Inc
Kratos Defense & Security Solutions Inc operates in the Aerospace & Defense industry. The company develops and fields transformative, affordable technology, platforms, and systems. It operates through two segments: Kratos Government Solutions (KGS) and Unmanned Systems. The KGS segment includes microwave electronic products, space, training, and cybersecurity, C5ISR/modular systems, turbine technologies, and defense and rocket support services. The Unmanned Systems segment comprises unmanned aerial, unmanned ground, unmanned seaborne, and related command, control, and communications system businesses. The majority of the company's revenue is derived from the Kratos Government Solutions segment. 
Profitability Analysis
As of June 30, 2023, Kratos Defense & Security Solutions Inc has a Profitability Rank of 4/10, indicating its profitability relative to other companies. The company's operating margin stands at 0.98%, better than 35.03% of 294 companies in the same industry. Its ROE and ROA are -2.77% and -1.66% respectively, better than 28.37% and 29.8% of companies in the same sector. The company's ROIC is 1.20%, better than 40.07% of 302 companies. Over the past 10 years, the company has been profitable for 3 years, which is better than 14.5% of 262 companies. 
Growth Prospects
As of today, the company's Growth Rank is 3/10, indicating its growth relative to other companies. The 3-year revenue growth rate per share is 2.60%, better than 50% of 264 companies. The 5-year revenue growth rate per share is 1.30%, better than 44.87% of 234 companies. The total revenue growth rate for the future 3 to 5 years is estimated at 8.94%, better than 63.33% of 60 companies. 
Major Stockholders
The top three holders of Kratos Defense & Security Solutions Inc's stock are Catherine Wood (Trades, Portfolio), who holds 5.7% of the shares, Ron Baron (Trades, Portfolio), who holds 3.56% of the shares, and Chuck Royce (Trades, Portfolio), who holds 0.42% of the shares.
Competitive Landscape
Kratos Defense & Security Solutions Inc operates in a competitive industry, with its closest competitors being Spirit AeroSystems Holdings Inc (SPR, Financial) with a market cap of $1.73 billion, AAR Corp (AIR, Financial) with a market cap of $2.12 billion, and V2X Inc (VVX, Financial) with a market cap of $1.68 billion.
Conclusion
In conclusion, Kratos Defense & Security Solutions Inc's stock has shown a strong performance recently, with a significant price surge over the past week and the past three months. The company's profitability and growth, as well as its standing among holders and competitors, make it a potential investment for value investors. However, as always, potential investors should conduct their own thorough research before making any investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
