41.3 USD
-1.17 (-2.75%)
41.3 USD
0 (0%)
Overall DRS gets a fundamental rating of 6 out of 10. We evaluated DRS against 73 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes DRS very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year DRS was profitable.
- DRS had a positive operating cash flow in the past year.
- In the past 5 years DRS has always been profitable.
- DRS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- DRS's Return On Assets of 6.24% is fine compared to the rest of the industry. DRS outperforms 73.97% of its industry peers.
- DRS has a better Return On Equity (10.01%) than 65.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.17%, DRS is in the better half of the industry, outperforming 78.08% 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 8.56%.
- The 3 year average ROIC (14.80%) for DRS is well above the current ROIC(9.17%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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%
1.3 Margins
- DRS has a better Profit Margin (7.43%) than 68.49% of its industry peers.
- DRS's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 9.67%, DRS is in the better half of the industry, outperforming 60.27% of the companies in the same industry.
- In the last couple of years the Operating Margin of DRS has declined.
- With a Gross Margin value of 23.40%, DRS perfoms like the industry average, outperforming 47.95% of the companies in the same industry.
- In the last couple of years the Gross Margin of DRS has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- DRS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- DRS has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DRS has more shares outstanding
- DRS has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.86 indicates that DRS is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.86, DRS is in line with its industry, outperforming 58.90% of the companies in the same 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 95.89% of its industry peers.
- A Debt/Equity ratio of 0.12 indicates that DRS is not too dependend on debt financing.
- DRS has a better Debt to Equity ratio (0.12) than 78.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.9
WACC10.15%
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 has a worse Current ratio (2.00) than 61.64% 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.
- With a decent Quick ratio value of 1.63, DRS is doing good in the industry, outperforming 60.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
- DRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.44%, which is quite impressive.
- 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.
- DRS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.27%.
- 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)26.44%
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 Y17.65%
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.
- 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 37.55 indicates a quite expensive valuation of DRS.
- DRS's Price/Earnings ratio is a bit cheaper when compared to the industry. DRS is cheaper than 68.49% of the companies in the same industry.
- DRS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.39.
- Based on the Price/Forward Earnings ratio of 32.56, 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 68.49% of the companies listed in the same industry.
- DRS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.55 | ||
| Fwd PE | 32.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DRS is valued a bit cheaper than the industry average as 61.64% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, DRS is valued a bit cheaper than 75.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.46 | ||
| EV/EBITDA | 25.95 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DRS does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of DRS may justify a higher PE ratio.
- A more expensive valuation may be justified as DRS's earnings are expected to grow with 14.55% in the coming years.
PEG (NY)2.13
PEG (5Y)N/A
EPS Next 2Y16.17%
EPS Next 3Y14.55%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.87%, 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 0.34. DRS pays more dividend than 87.67% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, DRS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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
5.3 Sustainability
- DRS pays out 27.17% of its income as dividend. This is a sustainable payout ratio.
DP27.17%
EPS Next 2Y16.17%
EPS Next 3Y14.55%
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 37.55 and the Price/Book (PB) ratio is 4.15.
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%.