In my opinion, this stock is undervalued right now and is a very good investment. Following is what I have gathered from through research that supports my hypothesis:
Kratos Defense & Security Solutions, a national security, and communications company has developed a number of products for use in space including networks, satellites, and signals. It last issued its quarterly earnings data on Thursday, February 25th. The aerospace company reported $0.04 EPS for the quarter. The company had revenue of $206.40 million for the quarter, compared to the consensus estimate of $218.72 million. Kratos Defense & Security Solutions had a return on equity of 3.99% and a net margin of 0.62%. Total revenue has been progressive over years. One of the most undervalued stocks, which is the third top holding of Cathie Wood’s ARK Space Exploration and Innovation ETF. We all know SPACEX and Blue Origin hold the monopoly of Government contracts, yet this company is considered as a good prospect. We see a large investors, Gamco Investors INC, ET AL, Kestra Advisory LLC, etc. KTOS is committed to employee development, providing fair and equitable pay for employees, to creating a company where everyone is included and respected. Over the past several years, they have significantly internally funded investments in strategic growth areas including unmanned tactical aircraft drone systems. They have increased fundings for Research and development, capital expenditures, non-recurring engineering expenditures, and infrastructure investments, including executive management and new business captures pursuits, and related expenses. These investments allow them to retain the intellectual property rights, design, and data packages for these platforms and systems, and to ultimately secure sole source production position in these strategic growth areas. In July the company was awarded a five-year IDIQ contract valued at up to $400 million for the development, integration, and prototype air vehicle delivery in support of the Air Force’s Skyborg program. Also in December 2020, the Company was awarded a $37.7 million contract from the FLCMC/WA Advanced AircraftProgram Executive Office for the Skyborg Delivery Order 2 to integrate, test, and deliver XQ-58A Valkyrie aircraft. COVID has put some restrictions on its production and projects. They continue to focus on research and development as a key strategy for growth and profitability. Their current primary internal research Anns development is focused on areas including satellite communications and signal monitoring, unmanned products, and turbine technologies. Active contracts such as Subsonic Sea Aerial Target (SSAT) BQM177-A Basic Ordering Agreement (BOA) with the department of defense would play a key role in generating revenue The planned BOA is anticipated to have a period of performance of 5 years from the award date and will cover the procurement of supplies and services including: logistics, engineering, technical design, fabrication, and training support; test support and analysis, technical data, trade studies and analysis, design and integration support. This is a radio-controlled, air or ground-launched aerial target system which emulates a variety of enemy threats in support of fleet training and system test evaluation, which will fulfill the needs of the U.S. Navy. It seems most technology companies are not anticipating a slowdown in 2021 and are looking forward to bringing new technologies to market. Some might say the satellite market is in the midst of a revolution, we anticipate the 2030 market to look very different than it does now, and so will this company's market value change for good.