LEONARDO DRS INC (DRS)
US52661A1088 - Common Stock
Overall DRS gets a fundamental rating of 5 out of 10. We evaluated DRS against 63 industry peers in the Aerospace & Defense industry. DRS has an excellent profitability rating, but there are some minor concerns on its financial health. DRS is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years DRS 4 years were profitable.
In multiple years DRS reported negative operating cash flow during the last 5 years.
1.2 Ratios
DRS has a better Return On Assets (4.28%) than 64.06% of its industry peers.
DRS has a better Return On Equity (7.23%) than 65.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.72%, DRS is in the better half of the industry, outperforming 65.63% 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 8.69%.
The last Return On Invested Capital (6.72%) for DRS is well below the 3 year average (15.17%), which needs to be investigated, but indicates that DRS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.28% | ||
| ROE | 7.23% | ||
| ROIC | 6.72% |
ROA(3y)9.21%
ROA(5y)5.95%
ROE(3y)14.12%
ROE(5y)9.06%
ROIC(3y)15.17%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 5.94%, DRS is doing good in the industry, outperforming 64.06% of the companies in the same industry.
DRS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.21%, DRS is doing good in the industry, outperforming 65.63% of the companies in the same industry.
DRS's Operating Margin has improved in the last couple of years.
DRS's Gross Margin of 22.93% is in line compared to the rest of the industry. DRS outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of DRS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.21% | ||
| PM (TTM) | 5.94% | ||
| GM | 22.93% |
OM growth 3Y5.86%
OM growth 5Y64.34%
PM growth 3Y-6.82%
PM growth 5Y52.78%
GM growth 3Y-14.85%
GM growth 5Y-8.84%
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.
DRS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DRS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.31 indicates that DRS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.31, DRS is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of DRS is 2.80, which is a good value as it means it would take DRS, 2.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DRS (2.80) is better than 87.50% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that DRS is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.15, DRS belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.72
WACC9.34%
2.3 Liquidity
DRS has a Current Ratio of 1.78. 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 Current ratio (1.78) which is comparable to the rest of the industry.
DRS has a Quick Ratio of 1.47. 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 Quick ratio of 1.47. This is in the better half of the industry: DRS outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for DRS have decreased strongly by -66.30% in the last year.
Measured over the past years, DRS shows a very strong growth in Earnings Per Share. The EPS has been growing by 99.77% on average per year.
Looking at the last year, DRS shows a small growth in Revenue. The Revenue has grown by 4.94% in the last year.
The Revenue has been growing by 151.65% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-66.3%
EPS 3Y75.96%
EPS 5Y99.77%
EPS growth Q2Q-11.43%
Revenue 1Y (TTM)4.94%
Revenue growth 3Y233.48%
Revenue growth 5Y151.65%
Revenue growth Q2Q12.93%
3.2 Future
The Earnings Per Share is expected to grow by 14.68% on average over the next years. This is quite good.
DRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.17% yearly.
EPS Next Y11.15%
EPS Next 2Y15.37%
EPS Next 3Y14.68%
EPS Next 5YN/A
Revenue Next Year8.27%
Revenue Next 2Y7.39%
Revenue Next 3Y7.17%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.68 indicates a quite expensive valuation of DRS.
Compared to the rest of the industry, the Price/Earnings ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 67.19% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DRS to the average of the S&P500 Index (24.84), we can say DRS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 26.71, the valuation of DRS can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 70.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DRS to the average of the S&P500 Index (21.35), we can say DRS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.68 | ||
| Fwd PE | 26.71 |
4.2 Price Multiples
DRS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DRS is cheaper than 65.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.3 | ||
| EV/EBITDA | 17.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DRS may justify a higher PE ratio.
DRS's earnings are expected to grow with 14.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.66
PEG (5Y)0.3
EPS Next 2Y15.37%
EPS Next 3Y14.68%
5. Dividend
5.1 Amount
DRS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LEONARDO DRS INC
NASDAQ:DRS (4/26/2024, 7:00:02 PM)
After market: 21.67 0 (0%)21.67
+0.28 (+1.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.68 | ||
| Fwd PE | 26.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.66
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.28% | ||
| ROE | 7.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.21% | ||
| PM (TTM) | 5.94% | ||
| GM | 22.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-66.3%
EPS 3Y75.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.94%
Revenue growth 3Y233.48%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y