Logo image of DRS

LEONARDO DRS INC (DRS) Stock Fundamental Analysis

NASDAQ:DRS - US52661A1088 - Common Stock

41.66 USD
-0.81 (-1.91%)
Last: 8/29/2025, 8:17:24 PM
41.66 USD
0 (0%)
After Hours: 8/29/2025, 8:17:24 PM
Fundamental Rating

6

DRS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. DRS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DRS has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

DRS had positive earnings in the past year.
DRS had a positive operating cash flow in the past year.
DRS had positive earnings in each of the past 5 years.
Of the past 5 years DRS 4 years had a positive operating cash flow.
DRS Yearly Net Income VS EBIT VS OCF VS FCFDRS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

1.2 Ratios

DRS's Return On Assets of 6.13% is fine compared to the rest of the industry. DRS outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 9.62%, DRS is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.81%, DRS belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DRS is significantly above the industry average of 8.50%.
The last Return On Invested Capital (8.81%) for DRS is well below the 3 year average (14.80%), which needs to be investigated, but indicates that DRS had better years and this may not be a problem.
Industry RankSector Rank
ROA 6.13%
ROE 9.62%
ROIC 8.81%
ROA(3y)6.8%
ROA(5y)7.59%
ROE(3y)11.53%
ROE(5y)11.69%
ROIC(3y)14.8%
ROIC(5y)12.07%
DRS Yearly ROA, ROE, ROICDRS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60

1.3 Margins

DRS has a better Profit Margin (7.31%) than 69.12% of its industry peers.
DRS's Profit Margin has declined in the last couple of years.
The Operating Margin of DRS (9.56%) is better than 63.24% of its industry peers.
DRS's Operating Margin has declined in the last couple of years.
DRS's Gross Margin of 23.15% is in line compared to the rest of the industry. DRS outperforms 44.12% of its industry peers.
In the last couple of years the Gross Margin of DRS has declined.
Industry RankSector Rank
OM 9.56%
PM (TTM) 7.31%
GM 23.15%
OM growth 3Y-18.83%
OM growth 5YN/A
PM growth 3Y-32.5%
PM growth 5YN/A
GM growth 3Y-17.5%
GM growth 5Y-8.71%
DRS Yearly Profit, Operating, Gross MarginsDRS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DRS is creating some value.
DRS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DRS has been increased compared to 5 years ago.
DRS has a better debt/assets ratio than last year.
DRS Yearly Shares OutstandingDRS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
DRS Yearly Total Debt VS Total AssetsDRS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

DRS has an Altman-Z score of 5.15. This indicates that DRS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.15, DRS is doing good in the industry, outperforming 61.76% of the companies in the same industry.
The Debt to FCF ratio of DRS is 1.50, which is an excellent value as it means it would take DRS, only 1.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DRS (1.50) is better than 97.06% of its industry peers.
DRS has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.13, DRS is in the better half of the industry, outperforming 77.94% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.5
Altman-Z 5.15
ROIC/WACC0.88
WACC9.98%
DRS Yearly LT Debt VS Equity VS FCFDRS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

DRS has a Current Ratio of 2.11. This indicates that DRS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.11, DRS is in line with its industry, outperforming 47.06% of the companies in the same industry.
A Quick Ratio of 1.70 indicates that DRS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.70, DRS is in the better half of the industry, outperforming 66.18% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.11
Quick Ratio 1.7
DRS Yearly Current Assets VS Current LiabilitesDRS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 26.51% over the past year.
Measured over the past years, DRS shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.42% on average per year.
Looking at the last year, DRS shows a quite strong growth in Revenue. The Revenue has grown by 11.43% in the last year.
Measured over the past years, DRS shows a very strong growth in Revenue. The Revenue has been growing by 135.87% on average per year.
EPS 1Y (TTM)26.51%
EPS 3Y23.42%
EPS 5YN/A
EPS Q2Q%27.78%
Revenue 1Y (TTM)11.43%
Revenue growth 3Y202.18%
Revenue growth 5Y135.87%
Sales Q2Q%10.09%

3.2 Future

Based on estimates for the next years, DRS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.27% on average per year.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y18.67%
EPS Next 2Y16.92%
EPS Next 3Y14.62%
EPS Next 5Y9.27%
Revenue Next Year12.25%
Revenue Next 2Y9.4%
Revenue Next 3Y8.03%
Revenue Next 5Y7.2%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
DRS Yearly Revenue VS EstimatesDRS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B
DRS Yearly EPS VS EstimatesDRS Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 0.5 1

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 39.68, DRS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DRS is valued a bit cheaper than 61.76% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, DRS is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 32.42, the valuation of DRS can be described as expensive.
61.76% of the companies in the same industry are more expensive than DRS, based on the Price/Forward Earnings ratio.
DRS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 39.68
Fwd PE 32.42
DRS Price Earnings VS Forward Price EarningsDRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

DRS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DRS is cheaper than 60.29% of the companies in the same industry.
DRS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DRS is cheaper than 69.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF 47.18
EV/EBITDA 27.15
DRS Per share dataDRS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DRS has a very decent profitability rating, which may justify a higher PE ratio.
DRS's earnings are expected to grow with 14.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.13
PEG (5Y)N/A
EPS Next 2Y16.92%
EPS Next 3Y14.62%

3

5. Dividend

5.1 Amount

With a yearly dividend of 0.85%, DRS is not a good candidate for dividend investing.
DRS's Dividend Yield is rather good when compared to the industry average which is at 1.65. DRS pays more dividend than 83.82% of the companies in the same industry.
With a Dividend Yield of 0.85, DRS pays less dividend than the S&P500 average, which is at 2.35.
Industry RankSector Rank
Dividend Yield 0.85%

5.2 History

DRS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
DRS Yearly Dividends per shareDRS Yearly Dividends per shareYearly Dividends per share 2025 0.05 0.1 0.15 0.2 0.25

5.3 Sustainability

19.20% of the earnings are spent on dividend by DRS. This is a low number and sustainable payout ratio.
DP19.2%
EPS Next 2Y16.92%
EPS Next 3Y14.62%
DRS Yearly Income VS Free CF VS DividendDRS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M
DRS Dividend Payout.DRS Dividend Payout, showing the Payout Ratio.DRS Dividend Payout.PayoutRetained Earnings

LEONARDO DRS INC

NASDAQ:DRS (8/29/2025, 8:17:24 PM)

After market: 41.66 0 (0%)

41.66

-0.81 (-1.91%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)07-30 2025-07-30/bmo
Earnings (Next)10-28 2025-10-28/amc
Inst Owners26.77%
Inst Owner Change-6.66%
Ins Owners0.32%
Ins Owner Change35.9%
Market Cap11.09B
Analysts81.54
Price Target50.21 (20.52%)
Short Float %2.62%
Short Ratio1.36
Dividend
Industry RankSector Rank
Dividend Yield 0.85%
Yearly Dividend0
Dividend Growth(5Y)N/A
DP19.2%
Div Incr Years0
Div Non Decr Years0
Ex-Date08-20 2025-08-20 (0.09)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.27%
Min EPS beat(2)6.54%
Max EPS beat(2)20.01%
EPS beat(4)4
Avg EPS beat(4)13.69%
Min EPS beat(4)6.36%
Max EPS beat(4)21.86%
EPS beat(8)8
Avg EPS beat(8)18.04%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)3.29%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)7.38%
Revenue beat(4)3
Avg Revenue beat(4)3.34%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)7.38%
Revenue beat(8)7
Avg Revenue beat(8)4.36%
Revenue beat(12)9
Avg Revenue beat(12)159.28%
Revenue beat(16)11
Avg Revenue beat(16)362.96%
PT rev (1m)2.81%
PT rev (3m)14.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)2.37%
EPS NY rev (3m)2.42%
Revenue NQ rev (1m)5.62%
Revenue NQ rev (3m)5.26%
Revenue NY rev (1m)1.8%
Revenue NY rev (3m)1.86%
Valuation
Industry RankSector Rank
PE 39.68
Fwd PE 32.42
P/S 3.24
P/FCF 47.18
P/OCF 33
P/B 4.26
P/tB 8.93
EV/EBITDA 27.15
EPS(TTM)1.05
EY2.52%
EPS(NY)1.28
Fwd EY3.08%
FCF(TTM)0.88
FCFY2.12%
OCF(TTM)1.26
OCFY3.03%
SpS12.86
BVpS9.77
TBVpS4.67
PEG (NY)2.13
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.13%
ROE 9.62%
ROCE 10.48%
ROIC 8.81%
ROICexc 9.67%
ROICexgc 18.52%
OM 9.56%
PM (TTM) 7.31%
GM 23.15%
FCFM 6.87%
ROA(3y)6.8%
ROA(5y)7.59%
ROE(3y)11.53%
ROE(5y)11.69%
ROIC(3y)14.8%
ROIC(5y)12.07%
ROICexc(3y)17.19%
ROICexc(5y)16.27%
ROICexgc(3y)41.83%
ROICexgc(5y)31.06%
ROCE(3y)17.68%
ROCE(5y)14.42%
ROICexcg growth 3Y5.24%
ROICexcg growth 5YN/A
ROICexc growth 3Y-19.58%
ROICexc growth 5YN/A
OM growth 3Y-18.83%
OM growth 5YN/A
PM growth 3Y-32.5%
PM growth 5YN/A
GM growth 3Y-17.5%
GM growth 5Y-8.71%
F-Score9
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.5
Debt/EBITDA 0.79
Cap/Depr 109.78%
Cap/Sales 2.95%
Interest Coverage 250
Cash Conversion 80.19%
Profit Quality 94%
Current Ratio 2.11
Quick Ratio 1.7
Altman-Z 5.15
F-Score9
WACC9.98%
ROIC/WACC0.88
Cap/Depr(3y)88%
Cap/Depr(5y)129.75%
Cap/Sales(3y)2.39%
Cap/Sales(5y)3.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.51%
EPS 3Y23.42%
EPS 5YN/A
EPS Q2Q%27.78%
EPS Next Y18.67%
EPS Next 2Y16.92%
EPS Next 3Y14.62%
EPS Next 5Y9.27%
Revenue 1Y (TTM)11.43%
Revenue growth 3Y202.18%
Revenue growth 5Y135.87%
Sales Q2Q%10.09%
Revenue Next Year12.25%
Revenue Next 2Y9.4%
Revenue Next 3Y8.03%
Revenue Next 5Y7.2%
EBIT growth 1Y22.01%
EBIT growth 3Y145.27%
EBIT growth 5YN/A
EBIT Next Year42.07%
EBIT Next 3Y22.01%
EBIT Next 5Y15.46%
FCF growth 1Y266.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y573.24%
OCF growth 3YN/A
OCF growth 5YN/A