Does Kratos Defense & Security Solutions, Inc. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Kratos Defense & Security Solutions, Inc. (KTOS) 28.9 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 42, returns on capital 0, balance-sheet safety 57, capital discipline 24.

How has KTOS's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 28.9 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Kratos Defense & Security Solutions, Inc.

KTOS · Consumer Discretionary · $7.8B mkt cap · FY2025 filings · No moat ·

Doesn't clear the bar

No moat

The four filters

Pricing power42

Median gross margin 26.0% over 10y, very stable.

Returns on capital0

Median ROIC 1.7%, above the 9% hurdle in 0% of years.

Balance-sheet safety57

Net cash position — no leverage risk.

Capital discipline24

Owner earnings trend unclear, share count growing (dilution).

Margin of safety

Above valueOn sale

No price data

Owner earnings (normalized): —
Est. intrinsic value / share: —
Recent price: $46.03
Discount to value: No price data

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

18 years of fundamentals

The business, in plain English

Kratos Defense & Security Solutions, Inc. booked $1.3B of revenue in FY2025 in the Consumer Discretionary sector and kept 22.9% of it as gross profit — a moderate-margin business by that measure. After every other cost, 1.6% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $334.5M (FY2009) to $1.3B (FY2025) — about 9.1% a year compounded over 16 years.

It earned 1.2% on invested capital in FY2025, with a median of 1.6% across 17 filed years. The Returns on Capital filter above scores it 0/100.

The balance sheet carried $0 of total debt in FY2025 against $22.0M of owner earnings — roughly 0.0 years of owner earnings to retire it all. Balance-Sheet Safety scores it 57/100.

The share count rose 807.1% between FY2010 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 24/100.

Put together: Balance-Sheet Safety is the strongest of the four filters (57/100) and Returns on Capital the weakest (0/100), which is how KTOS lands at 29/100 — a None moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$1.3B FY2025

Gross marginRevenue kept after cost of goods22.9% FY2025

Return on invested capitalOperating profit on the capital employed1.2% FY2025

Owner earningsCash an owner could take out$22.0M FY2025

Gaps in a line mean that item isn’t in KTOS’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale28.9 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — KTOS has read No moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Consumer Discretionary context

#272 of 340 scored Consumer Discretionary companies, ranked by Moat Score.

Nearest peers by Moat Score

#270AMCR AMCOR PLC29.3 out of 100, No moatNo moat
#271RAIL FREIGHTCAR AMERICA, INC.29.1 out of 100, No moatNo moat
#273HLLY HOLLEY INC.28.5 out of 100, No moatNo moat
#274GRWG GROWGENERATION CORP.28.3 out of 100, No moatNo moat

Compare KTOS with its nearest peers →All Consumer Discretionary companies on the Index →

Common questions about KTOS

Does Kratos Defense & Security Solutions, Inc. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Kratos Defense & Security Solutions, Inc. (KTOS) 28.9 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 42, returns on capital 0, balance-sheet safety 57, capital discipline 24.
How has KTOS's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 28.9 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell KTOS. See the disclaimer.