34.09 USD
+0.01 (+0.01%)
34.09 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to DRS. DRS was compared to 71 industry peers in the Aerospace & Defense industry. DRS has an average financial health and profitability rating. DRS is growing strongly while it is still valued neutral. This is a good combination! This makes DRS very considerable for growth investing!
1. Profitability
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.
DRS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DRS has a better Return On Assets (6.24%) than 73.24% of its industry peers.
DRS has a better Return On Equity (10.01%) than 66.20% of its industry peers.
The Return On Invested Capital of DRS (9.17%) is better than 77.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRS is significantly above the industry average of 8.60%.
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
Looking at the Profit Margin, with a value of 7.43%, DRS is in the better half of the industry, outperforming 67.61% of the companies in the same industry.
In the last couple of years the Profit Margin of DRS has declined.
DRS's Operating Margin of 9.67% is in line compared to the rest of the industry. DRS outperforms 59.15% of its industry peers.
In the last couple of years the Operating Margin of DRS has declined.
DRS's Gross Margin of 23.40% is in line compared to the rest of the industry. DRS outperforms 46.48% of 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.
DRS has more shares outstanding than it did 5 years ago.
DRS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.03 indicates that DRS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.03, DRS is in line with its industry, outperforming 53.52% 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.
Looking at the Debt to FCF ratio, with a value of 1.32, DRS belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
DRS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.12, DRS is doing good in the industry, outperforming 78.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 4.03 |
ROIC/WACC0.93
WACC9.81%
2.3 Liquidity
A Current Ratio of 2.00 indicates that DRS has no problem at all paying 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 61.97% of its industry peers.
A Quick Ratio of 1.63 indicates that DRS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.63, DRS is in line with its industry, outperforming 59.15% 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.
The Earnings Per Share has been growing by 23.42% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, DRS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.13% on average per year.
Based on estimates for the next years, DRS will show a small growth in Revenue. The Revenue will grow by 7.27% on average per year.
EPS Next Y17.65%
EPS Next 2Y16.26%
EPS Next 3Y14.38%
EPS Next 5Y12.13%
Revenue Next Year12.25%
Revenue Next 2Y9.42%
Revenue Next 3Y7.87%
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
The Price/Earnings ratio is 30.99, which means the current valuation is very expensive for DRS.
74.65% 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 26.51. DRS is around the same levels.
With a Price/Forward Earnings ratio of 26.83, DRS can be considered very expensive at the moment.
DRS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DRS is cheaper than 73.24% of the companies in the same industry.
DRS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.99 | ||
| Fwd PE | 26.83 |
4.2 Price Multiples
DRS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DRS is cheaper than 70.42% 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 77.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.22 | ||
| EV/EBITDA | 20.85 |
4.3 Compensation for Growth
DRS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 14.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.76
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, DRS has a reasonable but not impressive dividend return.
The stock price of DRS dropped by -23.20% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DRS's Dividend Yield is rather good when compared to the industry average which is at 0.39. DRS pays more dividend than 88.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, DRS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
5.3 Sustainability
DRS pays out 27.17% of its income as dividend. This is a sustainable payout ratio.
DP27.17%
EPS Next 2Y16.26%
EPS Next 3Y14.38%
34.09
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners26.55%
Inst Owner Change4.61%
Ins Owners0.3%
Ins Owner Change-7.26%
Market Cap9.07B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target47.84 (40.33%)
Short Float %3.89%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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)-0.85%
PT rev (3m)-4.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.99 | ||
| Fwd PE | 26.83 | ||
| P/S | 2.54 | ||
| P/FCF | 34.22 | ||
| P/OCF | 23.62 | ||
| P/B | 3.42 | ||
| P/tB | 7 | ||
| EV/EBITDA | 20.85 |
EPS(TTM)1.1
EY3.23%
EPS(NY)1.27
Fwd EY3.73%
FCF(TTM)1
FCFY2.92%
OCF(TTM)1.44
OCFY4.23%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)1.76
PEG (5Y)N/A
Graham Number15.7
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 | 4.03 |
F-Score8
WACC9.81%
ROIC/WACC0.93
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 Y17.65%
EPS Next 2Y16.26%
EPS Next 3Y14.38%
EPS Next 5Y12.13%
Revenue 1Y (TTM)12.27%
Revenue growth 3Y202.18%
Revenue growth 5Y135.87%
Sales Q2Q%18.23%
Revenue Next Year12.25%
Revenue Next 2Y9.42%
Revenue Next 3Y7.87%
Revenue Next 5Y7.27%
EBIT growth 1Y21.48%
EBIT growth 3Y145.27%
EBIT growth 5YN/A
EBIT Next Year40.29%
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 30.99 and the Price/Book (PB) ratio is 3.42.
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%.