LEONARDO DRS INC (DRS) Stock Fundamental Analysis

NASDAQ:DRS • US52661A1088

38.14 USD
-1.89 (-4.72%)
At close: Feb 23, 2026
38.14 USD
0 (0%)
After Hours: 2/23/2026, 5:16:24 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, DRS scores 6 out of 10 in our fundamental rating. DRS was compared to 74 industry peers in the Aerospace & Defense industry. DRS has an excellent financial health rating, but there are some minor concerns on its profitability. DRS is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, DRS could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year DRS was profitable.
  • In the past year DRS had a positive cash flow from operations.
  • DRS had positive earnings in each of the past 5 years.
  • DRS had a positive operating cash flow in 4 of the past 5 years.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.24%, DRS is in the better half of the industry, outperforming 74.32% of the companies in the same industry.
  • DRS has a better Return On Equity (10.01%) than 66.22% of its industry peers.
  • With a decent Return On Invested Capital value of 9.17%, DRS is doing good in the industry, outperforming 77.03% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DRS is significantly above the industry average of 9.00%.
  • The last Return On Invested Capital (9.17%) 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 6.24%
ROE 10.01%
ROIC 9.17%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

  • Looking at the Profit Margin, with a value of 7.43%, DRS is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
  • DRS's Profit Margin has declined in the last couple of years.
  • The Operating Margin of DRS (9.67%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of DRS has declined.
  • DRS has a Gross Margin (23.40%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of DRS has declined.
Industry RankSector Rank
OM 9.67%
PM (TTM) 7.43%
GM 23.4%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 1 year ago, DRS has more shares outstanding
  • The number of shares outstanding for DRS has been increased compared to 5 years ago.
  • The debt/assets ratio for DRS has been reduced compared to a year ago.
DRS Yearly Shares OutstandingDRS Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 4.62 indicates that DRS is not in any danger for bankruptcy at the moment.
  • DRS has a Altman-Z score (4.62) which is comparable to the rest of the industry.
  • The Debt to FCF ratio of DRS is 1.32, which is an excellent value as it means it would take DRS, only 1.32 years of fcf income to pay off all of its debts.
  • DRS has a Debt to FCF ratio of 1.32. This is amongst the best in the industry. DRS outperforms 95.95% of its industry peers.
  • DRS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
  • DRS's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. DRS outperforms 78.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.32
Altman-Z 4.62
ROIC/WACC0.94
WACC9.73%
DRS Yearly LT Debt VS Equity VS FCFDRS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 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 2.00. This indicates that DRS is financially healthy and has no problem in meeting its short term obligations.
  • DRS's Current ratio of 2.00 is on the low side compared to the rest of the industry. DRS is outperformed by 60.81% of its industry peers.
  • DRS has a Quick Ratio of 1.63. This is a normal value and indicates that DRS is financially healthy and should not expect problems in meeting its short term obligations.
  • DRS has a better Quick ratio (1.63) than 60.81% of its industry peers.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 1.63
DRS Yearly Current Assets VS Current LiabilitesDRS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 26.44% over the past year.
  • DRS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.42% yearly.
  • The Revenue has grown by 12.27% in the past year. This is quite good.
  • DRS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 135.87% yearly.
EPS 1Y (TTM)26.44%
EPS 3Y23.42%
EPS 5YN/A
EPS Q2Q%20.83%
Revenue 1Y (TTM)12.27%
Revenue growth 3Y202.18%
Revenue growth 5Y135.87%
Sales Q2Q%18.23%

3.2 Future

  • The Earnings Per Share is expected to grow by 12.13% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 7.27% on average over the next years.
EPS Next Y17.44%
EPS Next 2Y16.17%
EPS Next 3Y14.55%
EPS Next 5Y12.13%
Revenue Next Year12.22%
Revenue Next 2Y9.42%
Revenue Next 3Y8.03%
Revenue Next 5Y7.27%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
DRS Yearly Revenue VS EstimatesDRS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 1.5

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 34.67, DRS can be considered very expensive at the moment.
  • 75.68% of the companies in the same industry are more expensive than DRS, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.99. DRS is valued slightly more expensive when compared to this.
  • DRS is valuated quite expensively with a Price/Forward Earnings ratio of 30.07.
  • Based on the Price/Forward Earnings ratio, DRS is valued a bit cheaper than the industry average as 72.97% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 28.02. DRS is around the same levels.
Industry RankSector Rank
PE 34.67
Fwd PE 30.07
DRS Price Earnings VS Forward Price EarningsDRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DRS is valued a bit cheaper than 63.51% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, DRS is valued cheaper than 81.08% of the companies in the same industry.
Industry RankSector Rank
P/FCF 38.29
EV/EBITDA 24.46
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 14.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.99
PEG (5Y)N/A
EPS Next 2Y16.17%
EPS Next 3Y14.55%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • DRS has a yearly dividend return of 0.88%, which is pretty low.
  • DRS's Dividend Yield is rather good when compared to the industry average which is at 0.34. DRS pays more dividend than 87.84% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, DRS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.88%

5.2 History

  • DRS is new to the dividend game and has less than 3 years of track record.
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 0.1 0.2 0.3

5.3 Sustainability

  • 27.17% of the earnings are spent on dividend by DRS. This is a low number and sustainable payout ratio.
DP27.17%
EPS Next 2Y16.17%
EPS Next 3Y14.55%
DRS Yearly Income VS Free CF VS DividendDRS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 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

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Find the best dividend stocksShow peers with best dividend

LEONARDO DRS INC

NASDAQ:DRS (2/23/2026, 5:16:24 PM)

After market: 38.14 0 (0%)

38.14

-1.89 (-4.72%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-29
Earnings (Next)02-24
Inst Owners26.48%
Inst Owner Change0.2%
Ins Owners0.29%
Ins Owner Change-5.18%
Market Cap10.15B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts82.67
Price Target49.24 (29.1%)
Short Float %4.62%
Short Ratio3.2
Dividend
Industry RankSector Rank
Dividend Yield 0.88%
Yearly Dividend0
Dividend Growth(5Y)N/A
DP27.17%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.75%
Min EPS beat(2)2.95%
Max EPS beat(2)6.54%
EPS beat(4)4
Avg EPS beat(4)8.97%
Min EPS beat(4)2.95%
Max EPS beat(4)20.01%
EPS beat(8)8
Avg EPS beat(8)15.04%
EPS beat(12)12
Avg EPS beat(12)19.34%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.99%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)2.78%
Revenue beat(4)3
Avg Revenue beat(4)3.11%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)7.38%
Revenue beat(8)7
Avg Revenue beat(8)4.45%
Revenue beat(12)9
Avg Revenue beat(12)2.83%
Revenue beat(16)12
Avg Revenue beat(16)363.31%
PT rev (1m)0.36%
PT rev (3m)2.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 34.67
Fwd PE 30.07
P/S 2.84
P/FCF 38.29
P/OCF 26.42
P/B 3.83
P/tB 7.83
EV/EBITDA 24.46
EPS(TTM)1.1
EY2.88%
EPS(NY)1.27
Fwd EY3.33%
FCF(TTM)1
FCFY2.61%
OCF(TTM)1.44
OCFY3.78%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)1.99
PEG (5Y)N/A
Graham Number15.7
Profitability
Industry RankSector Rank
ROA 6.24%
ROE 10.01%
ROCE 10.91%
ROIC 9.17%
ROICexc 10.17%
ROICexgc 19.32%
OM 9.67%
PM (TTM) 7.43%
GM 23.4%
FCFM 7.43%
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%
ROICexgc growth 3Y5.24%
ROICexgc 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-Score8
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.32
Debt/EBITDA 0.75
Cap/Depr 129.35%
Cap/Sales 3.33%
Interest Coverage 250
Cash Conversion 87.87%
Profit Quality 100%
Current Ratio 2
Quick Ratio 1.63
Altman-Z 4.62
F-Score8
WACC9.73%
ROIC/WACC0.94
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)26.44%
EPS 3Y23.42%
EPS 5YN/A
EPS Q2Q%20.83%
EPS Next Y17.44%
EPS Next 2Y16.17%
EPS Next 3Y14.55%
EPS Next 5Y12.13%
Revenue 1Y (TTM)12.27%
Revenue growth 3Y202.18%
Revenue growth 5Y135.87%
Sales Q2Q%18.23%
Revenue Next Year12.22%
Revenue Next 2Y9.42%
Revenue Next 3Y8.03%
Revenue Next 5Y7.27%
EBIT growth 1Y21.48%
EBIT growth 3Y145.27%
EBIT growth 5YN/A
EBIT Next Year40.19%
EBIT Next 3Y21.22%
EBIT Next 5Y15.64%
FCF growth 1Y357.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1338.71%
OCF growth 3YN/A
OCF growth 5YN/A

LEONARDO DRS INC / DRS FAQ

Can you provide the ChartMill fundamental rating for LEONARDO DRS INC?

ChartMill assigns a fundamental rating of 6 / 10 to DRS.


Can you provide the valuation status for LEONARDO DRS INC?

ChartMill assigns a valuation rating of 4 / 10 to LEONARDO DRS INC (DRS). This can be considered as Fairly Valued.


How profitable is LEONARDO DRS INC (DRS) stock?

LEONARDO DRS INC (DRS) has a profitability rating of 6 / 10.


What are the PE and PB ratios of LEONARDO DRS INC (DRS) stock?

The Price/Earnings (PE) ratio for LEONARDO DRS INC (DRS) is 34.67 and the Price/Book (PB) ratio is 3.83.


How sustainable is the dividend of LEONARDO DRS INC (DRS) stock?

The dividend rating of LEONARDO DRS INC (DRS) is 3 / 10 and the dividend payout ratio is 27.17%.