Is KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (KTOS) Halal?

NASDAQ Industrials United States $13.4B
✓ HALAL
Confidence: 95/100
KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (KTOS) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.9% against the AAOIFI threshold of 30%, KRATOS DEFENSE & SECURITY SOLUTIONS, INC. comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Aerospace & Defense), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.9%
/ 30%
3.5%
/ 30%
2.8%
/ 30%
1.15%
/ 5%
✓ HALAL
DJIM 0.9%
/ 33%
3.5%
/ 33%
2.8%
/ 33%
1.15%
/ 5%
✓ HALAL
MSCI 5.9%
/ 33%
22.7%
/ 33%
18.5%
/ 33%
1.15%
/ 5%
✓ HALAL
S&P 0.9%
/ 33%
3.5%
/ 33%
2.8%
/ 33%
1.15%
/ 5%
✓ HALAL
FTSE 5.9%
/ 33%
22.7%
/ 33%
18.5%
/ 50%
1.15%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
553.4
Forward: 67.2
EPS
$0.13
P/B Ratio
6.1
EV/EBITDA
158.3
EV: $11.8B
Revenue
$1.3B
Growth: 21.9%
Beta
1.1
Average volatility
Current Ratio
4.1

Profitability

Gross Margin 22.9%
Operating Margin 2.9%
Net Margin 1.6%
Return on Equity (ROE) 1.3%
Return on Assets (ROA) 0.8%

Cash Flow & Balance Sheet

Operating Cash Flow-$42M
Free Cash Flow-$137M
Total Debt$146M
Debt-to-Equity7.3
Current Ratio4.1
Total Assets$2.5B

Price & Trading

Last Close$75.86
50-Day MA$95.68
200-Day MA$78.02
Avg Volume4.2M
Beta1.1
52-Week Range
$25.78
$134.00

About KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (KTOS)

CEO
Mr. Eric M. DeMarco
Employees
4,300
Sector
Industrials
Industry
Aerospace & Defense
Country
United States
Exchange
NASDAQ
Market Cap
$13.4B
Currency
USD

Kratos Defense & Security Solutions, Inc., a technology company, provides technology, hardware, products, system, and software for the defense, national security, and commercial markets in the United States, other North America, the Asia Pacific, the Middle East, Europe, and Internationally. The company operates through Kratos Government Solutions and Unmanned Systems segments. It offers virtualized ground systems for satellites and space vehicles, including software for command and control, telemetry, and tracking and control; jet powered unmanned aerial drone systems and hypersonic vehicles and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft and launch systems, command, control, communication, computing, combat, and intelligence surveillance and reconnaissance; and microwave electronic products for missile, radar, missile defense, space, and satellite; and counter unmanned aircraft systems, directed energy, communication and other systems, and virtual and augmented reality training systems for the warfighter. The company primarily serves national security-related agencies, the U.S. Department of Defense, intelligence and classified agencies, international government agencies, and domestic and international commercial customers. Kratos Defense & Security Solutions, Inc. was formerly known as Wireless Facilities, Inc. and changed its name to Kratos Defense & Security Solutions, Inc. in August 1999. Kratos Defense & Security Solutions, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

Purification Calculator

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Frequently Asked Questions

Is KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (KTOS) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), KRATOS DEFENSE & SECURITY SOLUTIONS, INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is KRATOS DEFENSE & SECURITY SOLUTIONS, INC.'s debt ratio?

KRATOS DEFENSE & SECURITY SOLUTIONS, INC.'s debt ratio is 0.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 5.9%.

Does KRATOS DEFENSE & SECURITY SOLUTIONS, INC. require dividend purification?

Yes, KRATOS DEFENSE & SECURITY SOLUTIONS, INC. has an impermissible income ratio of 1.15%, which means 1.15% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are KRATOS DEFENSE & SECURITY SOLUTIONS, INC.'s key financial metrics?

KRATOS DEFENSE & SECURITY SOLUTIONS, INC. has a market capitalization of $13.4B, trailing P/E ratio of 553.4, and revenue of $1.3B. The company maintains a gross margin of 22.9% and a net margin of 1.6%. Return on equity stands at 1.3%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.