33.78 USD
+0.15 (+0.45%)
33.78 USD
0 (0%)
DRS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. While DRS has a great health rating, its profitability is only average at the moment. DRS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, DRS could be worth investigating further for growth investing!.
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.
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
With a decent Return On Assets value of 6.24%, DRS is doing good in the industry, outperforming 71.83% of the companies in the same industry.
DRS's Return On Equity of 10.01% is fine compared to the rest of the industry. DRS outperforms 67.61% of its industry peers.
DRS has a better Return On Invested Capital (9.17%) than 80.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRS is significantly above the industry average of 8.52%.
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 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's Profit Margin of 7.43% is fine compared to the rest of the industry. DRS outperforms 67.61% of its industry peers.
In the last couple of years the Profit Margin of DRS has declined.
DRS's Operating Margin of 9.67% is fine compared to the rest of the industry. DRS outperforms 60.56% of its industry peers.
DRS's Operating Margin has declined in the last couple of years.
DRS has a Gross Margin (23.40%) which is in line with its industry peers.
DRS's Gross Margin has declined in the last couple of years.
| 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
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.
2.2 Solvency
An Altman-Z score of 4.00 indicates that DRS is not in any danger for bankruptcy at the moment.
The Altman-Z score of DRS (4.00) 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.
The Debt to FCF ratio of DRS (1.32) is better than 95.77% 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 has a better Debt to Equity ratio (0.12) than 77.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 4 |
ROIC/WACC0.9
WACC10.19%
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 in line compared to the rest of the industry. DRS outperforms 43.66% 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.
Looking at the Quick ratio, with a value of 1.63, DRS is in the better half of the industry, outperforming 63.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.63 |
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.
The Revenue has been growing by 135.87% on average over the past years. This is a very strong growth!
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.
DRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.27% yearly.
EPS Next Y18.07%
EPS Next 2Y16.17%
EPS Next 3Y14.07%
EPS Next 5Y12.13%
Revenue Next Year12.34%
Revenue Next 2Y9.52%
Revenue Next 3Y8.09%
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 30.71 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 71.83% of the companies listed in the same industry.
DRS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
DRS is valuated quite expensively with a Price/Forward Earnings ratio of 26.63.
Based on the Price/Forward Earnings ratio, DRS is valued a bit cheaper than 70.42% of the companies in the same industry.
DRS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.71 | ||
| Fwd PE | 26.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRS is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, DRS is valued a bit cheaper than the industry average as 74.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.92 | ||
| EV/EBITDA | 20.66 |
4.3 Compensation for Growth
DRS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DRS may justify a higher PE ratio.
DRS's earnings are expected to grow with 14.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)N/A
EPS Next 2Y16.17%
EPS Next 3Y14.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, DRS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.15, DRS pays a better dividend. On top of this DRS pays more dividend than 88.73% of the companies listed in the same industry.
With a Dividend Yield of 1.09, DRS pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
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 3Y14.07%
33.78
+0.15 (+0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners25.55%
Inst Owner Change4.61%
Ins Owners0.3%
Ins Owner Change-5.31%
Market Cap8.99B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target48.25 (42.84%)
Short Float %3.18%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP27.17%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-3.91%
PT rev (3m)-3.91%
EPS NQ rev (1m)-4.36%
EPS NQ rev (3m)-4.66%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)-2.68%
Revenue NQ rev (3m)-3.24%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.71 | ||
| Fwd PE | 26.63 | ||
| P/S | 2.52 | ||
| P/FCF | 33.92 | ||
| P/OCF | 23.41 | ||
| P/B | 3.39 | ||
| P/tB | 6.94 | ||
| EV/EBITDA | 20.66 |
EPS(TTM)1.1
EY3.26%
EPS(NY)1.27
Fwd EY3.76%
FCF(TTM)1
FCFY2.95%
OCF(TTM)1.44
OCFY4.27%
SpS13.41
BVpS9.95
TBVpS4.87
PEG (NY)1.7
PEG (5Y)N/A
Graham Number15.69
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 |
F-Score8
WACC10.19%
ROIC/WACC0.9
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 Y18.07%
EPS Next 2Y16.17%
EPS Next 3Y14.07%
EPS Next 5Y12.13%
Revenue 1Y (TTM)12.27%
Revenue growth 3Y202.18%
Revenue growth 5Y135.87%
Sales Q2Q%18.23%
Revenue Next Year12.34%
Revenue Next 2Y9.52%
Revenue Next 3Y8.09%
Revenue Next 5Y7.27%
EBIT growth 1Y21.48%
EBIT growth 3Y145.27%
EBIT growth 5YN/A
EBIT Next Year42.14%
EBIT Next 3Y21.88%
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
What is the fundamental rating for DRS stock?
ChartMill assigns a fundamental rating of 6 / 10 to DRS.
What is the valuation status of LEONARDO DRS INC (DRS) stock?
ChartMill assigns a valuation rating of 5 / 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 is the valuation of LEONARDO DRS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LEONARDO DRS INC (DRS) is 30.71 and the Price/Book (PB) ratio is 3.39.
Is the dividend of LEONARDO DRS INC sustainable?
The dividend rating of LEONARDO DRS INC (DRS) is 3 / 10 and the dividend payout ratio is 27.17%.