LEONARDO DRS INC (DRS) Fundamental Analysis & Valuation

NASDAQ:DRS • US52661A1088

Current stock price

44.4 USD
+0.58 (+1.32%)
At close:
44.9 USD
+0.5 (+1.13%)
After Hours:

This DRS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. DRS Profitability Analysis

1.1 Basic Checks

  • DRS had positive earnings in the past year.
  • In the past year DRS had a positive cash flow from operations.
  • In the past 5 years DRS has always been profitable.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.20%, DRS is in the better half of the industry, outperforming 72.15% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 10.18%, DRS is in the better half of the industry, outperforming 62.03% of the companies in the same industry.
  • The Return On Invested Capital of DRS (8.77%) is better than 72.15% of its industry peers.
  • DRS had an Average Return On Invested Capital over the past 3 years of 7.88%. This is in line with the industry average of 9.24%.
  • The 3 year average ROIC (7.88%) for DRS is below the current ROIC(8.77%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.2%
ROE 10.18%
ROIC 8.77%
ROA(3y)5.19%
ROA(5y)7.78%
ROE(3y)8.58%
ROE(5y)12.17%
ROIC(3y)7.88%
ROIC(5y)12.39%
DRS Yearly ROA, ROE, ROICDRS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40

1.3 Margins

  • DRS has a Profit Margin of 7.62%. This is in the better half of the industry: DRS outperforms 72.15% of its industry peers.
  • DRS's Profit Margin has been stable in the last couple of years.
  • DRS has a Operating Margin of 9.59%. This is comparable to the rest of the industry: DRS outperforms 58.23% of its industry peers.
  • In the last couple of years the Operating Margin of DRS has grown nicely.
  • DRS has a Gross Margin (23.82%) which is in line with its industry peers.
  • DRS's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.59%
PM (TTM) 7.62%
GM 23.82%
OM growth 3Y-34.39%
OM growth 5Y5.86%
PM growth 3Y-20.28%
PM growth 5Y0.73%
GM growth 3Y3.72%
GM growth 5Y-8.5%
DRS Yearly Profit, Operating, Gross MarginsDRS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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6

2. DRS Health Analysis

2.1 Basic Checks

  • DRS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • DRS has more shares outstanding than it did 1 year ago.
  • DRS has more shares outstanding than it did 5 years ago.
  • DRS has a better debt/assets ratio than last year.
DRS Yearly Shares OutstandingDRS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B 4B

2.2 Solvency

  • DRS has an Altman-Z score of 4.62. This indicates that DRS is financially healthy and has little risk of bankruptcy at the moment.
  • DRS's Altman-Z score of 4.62 is in line compared to the rest of the industry. DRS outperforms 59.49% of its industry peers.
  • DRS has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 1.53, DRS belongs to the best of the industry, outperforming 93.67% of the companies in the same industry.
  • A Debt/Equity ratio of 0.12 indicates that DRS is not too dependend on debt financing.
  • The Debt to Equity ratio of DRS (0.12) is better than 78.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.53
Altman-Z 4.62
ROIC/WACC0.86
WACC10.2%
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 2025 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • DRS has a Current Ratio of 1.89. This is a normal value and indicates that DRS is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of DRS (1.89) is worse than 63.29% of its industry peers.
  • A Quick Ratio of 1.60 indicates that DRS should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.60, DRS is in line with its industry, outperforming 55.70% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.89
Quick Ratio 1.6
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 2025 500M 1B 1.5B 2B

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6

3. DRS Growth Analysis

3.1 Past

  • DRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.28%, which is quite impressive.
  • DRS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 53.45% yearly.
  • DRS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.80%.
  • Measured over the past years, DRS shows a very strong growth in Revenue. The Revenue has been growing by 116.78% on average per year.
EPS 1Y (TTM)21.28%
EPS 3Y-18.05%
EPS 5Y53.45%
EPS Q2Q%10.53%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y10.65%
Revenue growth 5Y116.78%
Sales Q2Q%8.05%

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 9.96% on average per year.
  • The Revenue is expected to grow by 6.07% on average over the next years.
EPS Next Y11.21%
EPS Next 2Y11.08%
EPS Next 3Y10.49%
EPS Next 5Y9.96%
Revenue Next Year8.95%
Revenue Next 2Y7.68%
Revenue Next 3Y6.88%
Revenue Next 5Y6.07%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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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3

4. DRS Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 38.95, DRS can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, DRS is valued a bit cheaper than 62.03% of the companies in the same industry.
  • DRS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.54.
  • A Price/Forward Earnings ratio of 35.02 indicates a quite expensive valuation of DRS.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 60.76% 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 (22.70), we can say DRS is valued expensively.
Industry RankSector Rank
PE 38.95
Fwd PE 35.02
DRS Price Earnings VS Forward Price EarningsDRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRS is on the same level as its industry peers.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 65.82% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 51.99
EV/EBITDA 25.61
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.
PEG (NY)3.48
PEG (5Y)0.73
EPS Next 2Y11.08%
EPS Next 3Y10.49%

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3

5. DRS Dividend Analysis

5.1 Amount

  • DRS has a yearly dividend return of 0.79%, which is pretty low.
  • DRS's Dividend Yield is rather good when compared to the industry average which is at 0.36. DRS pays more dividend than 87.34% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, DRS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.79%

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 2026 0.1 0.2 0.3

5.3 Sustainability

  • 34.53% of the earnings are spent on dividend by DRS. This is a low number and sustainable payout ratio.
DP34.53%
EPS Next 2Y11.08%
EPS Next 3Y10.49%
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 2025 0 100M 200M 300M 400M
DRS Dividend Payout.DRS Dividend Payout, showing the Payout Ratio.DRS Dividend Payout.PayoutRetained Earnings

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DRS Fundamentals: All Metrics, Ratios and Statistics

LEONARDO DRS INC

NASDAQ:DRS (3/23/2026, 6:49:29 PM)

After market: 44.9 +0.5 (+1.13%)

44.4

+0.58 (+1.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-24
Earnings (Next)04-29
Inst Owners27%
Inst Owner Change0.23%
Ins Owners0.29%
Ins Owner Change-9.4%
Market Cap11.80B
Revenue(TTM)3.65B
Net Income(TTM)278.00M
Analysts82.67
Price Target49.24 (10.9%)
Short Float %4.37%
Short Ratio2.5
Dividend
Industry RankSector Rank
Dividend Yield 0.79%
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP34.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-10
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.52%
Min EPS beat(2)2.95%
Max EPS beat(2)12.09%
EPS beat(4)4
Avg EPS beat(4)10.4%
Min EPS beat(4)2.95%
Max EPS beat(4)20.01%
EPS beat(8)8
Avg EPS beat(8)16.12%
EPS beat(12)12
Avg EPS beat(12)18.36%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.66%
Min Revenue beat(2)2.78%
Max Revenue beat(2)4.54%
Revenue beat(4)3
Avg Revenue beat(4)3.47%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)7.38%
Revenue beat(8)7
Avg Revenue beat(8)4.53%
Revenue beat(12)10
Avg Revenue beat(12)3.91%
Revenue beat(16)13
Avg Revenue beat(16)363.62%
PT rev (1m)0%
PT rev (3m)2.06%
EPS NQ rev (1m)-4.5%
EPS NQ rev (3m)-4.5%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)-2.29%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)2.12%
Revenue NY rev (3m)2.12%
Valuation
Industry RankSector Rank
PE 38.95
Fwd PE 35.02
P/S 3.24
P/FCF 51.99
P/OCF 32.25
P/B 4.32
P/tB 8.55
EV/EBITDA 25.61
EPS(TTM)1.14
EY2.57%
EPS(NY)1.27
Fwd EY2.86%
FCF(TTM)0.85
FCFY1.92%
OCF(TTM)1.38
OCFY3.1%
SpS13.72
BVpS10.27
TBVpS5.19
PEG (NY)3.48
PEG (5Y)0.73
Graham Number16.23
Profitability
Industry RankSector Rank
ROA 6.2%
ROE 10.18%
ROCE 10.75%
ROIC 8.77%
ROICexc 10.94%
ROICexgc 22.64%
OM 9.59%
PM (TTM) 7.62%
GM 23.82%
FCFM 6.22%
ROA(3y)5.19%
ROA(5y)7.78%
ROE(3y)8.58%
ROE(5y)12.17%
ROIC(3y)7.88%
ROIC(5y)12.39%
ROICexc(3y)9.7%
ROICexc(5y)16.03%
ROICexgc(3y)21.42%
ROICexgc(5y)32.74%
ROCE(3y)9.69%
ROCE(5y)15.22%
ROICexgc growth 3Y-34.43%
ROICexgc growth 5Y18.15%
ROICexc growth 3Y-30.04%
ROICexc growth 5Y2.16%
OM growth 3Y-34.39%
OM growth 5Y5.86%
PM growth 3Y-20.28%
PM growth 5Y0.73%
GM growth 3Y3.72%
GM growth 5Y-8.5%
F-Score8
Asset Turnover0.81
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.53
Debt/EBITDA 0.74
Cap/Depr 149.46%
Cap/Sales 3.81%
Interest Coverage 16.67
Cash Conversion 82.62%
Profit Quality 81.65%
Current Ratio 1.89
Quick Ratio 1.6
Altman-Z 4.62
F-Score8
WACC10.2%
ROIC/WACC0.86
Cap/Depr(3y)104.49%
Cap/Depr(5y)116.41%
Cap/Sales(3y)2.85%
Cap/Sales(5y)3.25%
Profit Quality(3y)85.1%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.28%
EPS 3Y-18.05%
EPS 5Y53.45%
EPS Q2Q%10.53%
EPS Next Y11.21%
EPS Next 2Y11.08%
EPS Next 3Y10.49%
EPS Next 5Y9.96%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y10.65%
Revenue growth 5Y116.78%
Sales Q2Q%8.05%
Revenue Next Year8.95%
Revenue Next 2Y7.68%
Revenue Next 3Y6.88%
Revenue Next 5Y6.07%
EBIT growth 1Y16.28%
EBIT growth 3Y-27.41%
EBIT growth 5Y129.48%
EBIT Next Year44.76%
EBIT Next 3Y20.79%
EBIT Next 5Y19.33%
FCF growth 1Y22.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.06%
OCF growth 3Y123.01%
OCF growth 5Y151.88%

LEONARDO DRS INC / DRS Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 5 / 10 to DRS.


Can you provide the valuation status for LEONARDO DRS INC?

ChartMill assigns a valuation rating of 3 / 10 to LEONARDO DRS INC (DRS). This can be considered as Overvalued.


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 38.95 and the Price/Book (PB) ratio is 4.32.


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 34.53%.