33.63 USD
+0.39 (+1.17%)
33.63 USD
0 (0%)
Taking everything into account, DRS scores 6 out of 10 in our fundamental rating. DRS was compared to 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 growing strongly while it is still valued neutral. This is a good combination! These ratings would make DRS suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year DRS was profitable.
DRS had a positive operating cash flow in the past year.
DRS had positive earnings in each of the past 5 years.
Of the past 5 years DRS 4 years had a positive operating cash flow.
1.2 Ratios
DRS has a better Return On Assets (6.24%) than 71.83% of its industry peers.
The Return On Equity of DRS (10.01%) is better than 67.61% of its industry peers.
With an excellent Return On Invested Capital value of 9.17%, DRS belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
DRS had an Average Return On Invested Capital over the past 3 years of 14.80%. This is significantly above the industry average of 8.52%.
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 has a Profit Margin of 7.43%. This is in the better half of the industry: DRS outperforms 67.61% of its industry peers.
In the last couple of years the Profit Margin of DRS has declined.
Looking at the Operating Margin, with a value of 9.67%, DRS is in the better half of the industry, outperforming 60.56% of the companies in the same industry.
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 49.30% 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.
The number of shares outstanding for DRS has been increased compared to 1 year ago.
DRS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DRS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.98 indicates that DRS is not in any danger for bankruptcy at the moment.
DRS has a Altman-Z score (3.98) which is in line with its industry peers.
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 95.77% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that DRS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.12, DRS is doing good in the industry, outperforming 77.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 3.98 |
ROIC/WACC0.9
WACC10.2%
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.
A Quick Ratio of 1.63 indicates that DRS should not have too much problems paying its short term obligations.
DRS's Quick ratio of 1.63 is fine compared to the rest of the industry. DRS outperforms 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
DRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.44%, which is quite impressive.
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.
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.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 30.57 indicates a quite expensive valuation of DRS.
73.24% 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 25.65. DRS is around the same levels.
A Price/Forward Earnings ratio of 26.51 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 69.01% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.45. DRS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.57 | ||
| Fwd PE | 26.51 |
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 69.01% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DRS is valued a bit cheaper than 76.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.77 | ||
| EV/EBITDA | 20.57 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as DRS's earnings are expected to grow with 14.07% in the coming years.
PEG (NY)1.69
PEG (5Y)N/A
EPS Next 2Y16.17%
EPS Next 3Y14.07%
5. Dividend
5.1 Amount
DRS has a Yearly Dividend Yield of 1.09%.
DRS's Dividend Yield is rather good when compared to the industry average which is at 1.15. DRS pays more dividend than 88.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, DRS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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 2Y16.17%
EPS Next 3Y14.07%
33.63
+0.39 (+1.17%)
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 Cap8.95B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target48.25 (43.47%)
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 | 30.57 | ||
| Fwd PE | 26.51 | ||
| P/S | 2.51 | ||
| P/FCF | 33.77 | ||
| P/OCF | 23.31 | ||
| P/B | 3.38 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 20.57 |
EPS(TTM)1.1
EY3.27%
EPS(NY)1.27
Fwd EY3.77%
FCF(TTM)1
FCFY2.96%
OCF(TTM)1.44
OCFY4.29%
SpS13.41
BVpS9.95
TBVpS4.87
PEG (NY)1.69
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 | 3.98 |
F-Score8
WACC10.2%
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 30.57 and the Price/Book (PB) ratio is 3.38.
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%.