34.02 USD
+0.06 (+0.18%)
34.5 USD
+0.48 (+1.41%)
DRS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 72 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 not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, DRS could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
DRS had positive earnings in the past year.
DRS had a positive operating cash flow in the past year.
DRS had positive earnings in each of the past 5 years.
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 72.22% of its industry peers.
DRS's Return On Equity of 10.01% is fine compared to the rest of the industry. DRS outperforms 66.67% of its industry peers.
The Return On Invested Capital of DRS (9.17%) is better than 79.17% of its industry peers.
DRS had an Average Return On Invested Capital over the past 3 years of 14.80%. This is significantly above the industry average of 8.58%.
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
With a decent Profit Margin value of 7.43%, DRS is doing good in the industry, outperforming 68.06% of the companies in the same industry.
In the last couple of years the Profit Margin of DRS has declined.
DRS has a Operating Margin (9.67%) which is in line with its industry peers.
DRS's Operating Margin has declined in the last couple of years.
DRS has a Gross Margin of 23.40%. This is comparable to the rest of the industry: DRS outperforms 45.83% of its industry peers.
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.
The number of shares outstanding for DRS has been increased compared to 1 year ago.
Compared to 5 years ago, DRS has more shares outstanding
The debt/assets ratio for DRS has been reduced compared to a year ago.
2.2 Solvency
DRS has an Altman-Z score of 4.01. This indicates that DRS is financially healthy and has little risk of bankruptcy at the moment.
DRS has a Altman-Z score of 4.01. This is comparable to the rest of the industry: DRS outperforms 52.78% of its industry peers.
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's Debt to FCF ratio of 1.32 is amongst the best of the industry. DRS outperforms 95.83% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that DRS is not too dependend on debt financing.
DRS's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. DRS outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.94
WACC9.78%
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 Current ratio (2.00) which is comparable to the rest of the industry.
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 62.50% 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
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
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 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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.93, DRS can be considered very expensive at the moment.
73.61% of the companies in the same industry are more expensive than DRS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DRS to the average of the S&P500 Index (26.59), we can say DRS is valued inline with the index average.
A Price/Forward Earnings ratio of 26.78 indicates a quite expensive valuation of DRS.
Based on the Price/Forward Earnings ratio, DRS is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
DRS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.93 | ||
| Fwd PE | 26.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 68.06% of the companies listed in the same industry.
DRS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DRS is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.15 | ||
| EV/EBITDA | 20.77 |
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.
A more expensive valuation may be justified as DRS's earnings are expected to grow with 14.38% in the coming years.
PEG (NY)1.75
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
DRS has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
DRS's Dividend Yield is rather good when compared to the industry average which is at 1.12. DRS pays more dividend than 87.50% of the companies in the same industry.
With a Dividend Yield of 1.05, DRS pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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
27.17% of the earnings are spent on dividend by DRS. This is a low number and sustainable payout ratio.
DP27.17%
EPS Next 2Y16.26%
EPS Next 3Y14.38%
34.02
+0.06 (+0.18%)
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-6.72%
Market Cap9.05B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target48.25 (41.83%)
Short Float %3.45%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)0.04%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.93 | ||
| Fwd PE | 26.78 | ||
| P/S | 2.54 | ||
| P/FCF | 34.15 | ||
| P/OCF | 23.57 | ||
| P/B | 3.42 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 20.77 |
EPS(TTM)1.1
EY3.23%
EPS(NY)1.27
Fwd EY3.73%
FCF(TTM)1
FCFY2.93%
OCF(TTM)1.44
OCFY4.24%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)1.75
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 | 4.01 |
F-Score8
WACC9.78%
ROIC/WACC0.94
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 3Y8.03%
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
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 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 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 30.93 and the Price/Book (PB) ratio is 3.42.
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%.