LEONARDO DRS INC (DRS) Stock Fundamental Analysis

NASDAQ:DRS • US52661A1088

42.83 USD
+0.47 (+1.11%)
Last: Feb 26, 2026, 02:09 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, DRS scores 5 out of 10 in our fundamental rating. DRS was compared to 74 industry peers in the Aerospace & Defense industry. DRS has only an average score on both its financial health and profitability. DRS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

5

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.
  • DRS had positive earnings in 4 of the past 5 years.
  • In multiple years DRS reported negative operating cash flow during the last 5 years.
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 0 200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of DRS (6.24%) is better than 74.32% of its industry peers.
  • DRS has a better Return On Equity (10.01%) than 66.22% of its industry peers.
  • With a decent Return On Invested Capital value of 9.17%, DRS is doing good in the industry, outperforming 77.03% 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 9.00%.
  • 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 RankSector 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%
DRS Yearly ROA, ROE, ROICDRS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

  • With a decent Profit Margin value of 7.43%, DRS is doing good in the industry, outperforming 70.27% of the companies in the same industry.
  • DRS's Profit Margin has declined in the last couple of years.
  • DRS has a Operating Margin (9.67%) which is comparable to the rest of the industry.
  • DRS's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 23.40%, DRS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • DRS's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
DRS Yearly Profit, Operating, Gross MarginsDRS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
DRS Yearly Shares OutstandingDRS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B 4B

2.2 Solvency

  • DRS has an Altman-Z score of 4.85. This indicates that DRS is financially healthy and has little risk of bankruptcy at the moment.
  • With a Altman-Z score value of 4.85, DRS perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
  • DRS has a debt to FCF ratio of 1.32. This is a very positive value and a sign of high solvency as it would only need 1.32 years to pay back of all of its debts.
  • The Debt to FCF ratio of DRS (1.32) is better than 95.95% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.12, DRS is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.32
Altman-Z 4.85
ROIC/WACC0.95
WACC9.68%
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 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 2.00 indicates that DRS has no problem at all paying its short term obligations.
  • The Current ratio of DRS (2.00) is worse than 62.16% of its industry peers.
  • A Quick Ratio of 1.63 indicates that DRS should not have too much problems paying its short term obligations.
  • DRS has a Quick ratio (1.63) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 1.63
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 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

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.
  • The Earnings Per Share has been growing by 53.45% on average over the past years. This is a very strong growth
EPS 1Y (TTM)21.28%
EPS 3YN/A
EPS 5Y53.45%
EPS Q2Q%10.53%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.05%

3.2 Future

  • DRS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.96% yearly.
  • DRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.07% yearly.
EPS Next Y11.28%
EPS Next 2Y11.32%
EPS Next 3Y10.55%
EPS Next 5Y9.96%
Revenue Next Year6.69%
Revenue Next 2Y6%
Revenue Next 3Y6.05%
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.
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • DRS is valuated quite expensively with a Price/Earnings ratio of 37.57.
  • Based on the Price/Earnings ratio, DRS is valued a bit cheaper than 71.62% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.05. DRS is valued slightly more expensive when compared to this.
  • The Price/Forward Earnings ratio is 33.76, which means the current valuation is very expensive for DRS.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 68.92% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.03. DRS is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 37.57
Fwd PE 33.76
DRS Price Earnings VS Forward Price EarningsDRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DRS is valued a bit cheaper than 63.51% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, DRS is valued a bit cheaper than the industry average as 77.03% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 43
EV/EBITDA 25.88
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 DRS does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.33
PEG (5Y)0.7
EPS Next 2Y11.32%
EPS Next 3Y10.55%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.82%, DRS is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.34, DRS pays a better dividend. On top of this DRS pays more dividend than 86.49% of the companies listed in the same industry.
  • With a Dividend Yield of 0.82, DRS pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.82%

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
DRS Yearly Dividends per shareDRS Yearly Dividends per shareYearly Dividends per share 2025 0.1 0.2 0.3

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 2Y11.32%
EPS Next 3Y10.55%
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 0 100M 200M 300M 400M
DRS Dividend Payout.DRS Dividend Payout, showing the Payout Ratio.DRS Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

LEONARDO DRS INC

NASDAQ:DRS (2/26/2026, 2:09:40 PM)

42.83

+0.47 (+1.11%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-24
Earnings (Next)04-29
Inst Owners26.48%
Inst Owner Change0.2%
Ins Owners0.29%
Ins Owner Change-5.18%
Market Cap11.39B
Revenue(TTM)N/A
Net Income(TTM)265.00M
Analysts82.67
Price Target49.24 (14.97%)
Short Float %4.62%
Short Ratio3.2
Dividend
Industry RankSector Rank
Dividend Yield 0.82%
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)0.36%
PT rev (3m)2.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 37.57
Fwd PE 33.76
P/S 3.19
P/FCF 43
P/OCF 29.67
P/B 4.3
P/tB 8.79
EV/EBITDA 25.88
EPS(TTM)1.14
EY2.66%
EPS(NY)1.27
Fwd EY2.96%
FCF(TTM)1
FCFY2.33%
OCF(TTM)1.44
OCFY3.37%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)3.33
PEG (5Y)0.7
Graham Number15.98
Profitability
Industry RankSector 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 RankSector 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 4.85
F-Score8
WACC9.68%
ROIC/WACC0.95
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)21.28%
EPS 3YN/A
EPS 5Y53.45%
EPS Q2Q%10.53%
EPS Next Y11.28%
EPS Next 2Y11.32%
EPS Next 3Y10.55%
EPS Next 5Y9.96%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.05%
Revenue Next Year6.69%
Revenue Next 2Y6%
Revenue Next 3Y6.05%
Revenue Next 5Y6.07%
EBIT growth 1Y21.48%
EBIT growth 3Y145.27%
EBIT growth 5YN/A
EBIT Next Year40.19%
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 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 5 / 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 37.57 and the Price/Book (PB) ratio is 4.3.


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%.