41.51 USD
+1.06 (+2.62%)
At close: Feb 3, 2026
41.55 USD
+0.04 (+0.1%)
Pre-Market: 2/4/2026, 4:18:44 AM
We assign a fundamental rating of 6 out of 10 to DRS. DRS was compared to 72 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of DRS get a neutral evaluation. Nothing too spectacular is happening here. DRS is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make DRS a good candidate 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's Return On Assets of 6.24% is fine compared to the rest of the industry. DRS outperforms 73.61% 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.
- DRS has a better Return On Invested Capital (9.17%) than 79.17% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DRS is significantly above the industry average of 8.66%.
- 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 69.44% of the companies in the same industry.
- DRS's Profit Margin has declined in the last couple of years.
- DRS has a Operating Margin of 9.67%. This is comparable to the rest of the industry: DRS outperforms 59.72% of its industry peers.
- DRS's Operating Margin has declined in the last couple of years.
- DRS's Gross Margin of 23.40% is in line compared to the rest of the industry. DRS outperforms 48.61% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DRS is still creating some value.
- The number of shares outstanding for DRS has been increased compared to 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 4.77 indicates that DRS is not in any danger for bankruptcy at the moment.
- DRS has a Altman-Z score (4.77) 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.
- 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.
- Looking at the Debt to Equity ratio, with a value of 0.12, DRS is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 4.77 |
ROIC/WACC0.88
WACC10.44%
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 61.11% 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 59.72% of the companies in the same industry.
| 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.
- Measured over the past years, DRS shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.42% on average per year.
- Looking at the last year, DRS shows a quite strong growth in Revenue. The Revenue has grown by 12.27% in the last year.
- DRS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 135.87% yearly.
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.
- 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 2Y16.17%
EPS Next 3Y14.55%
EPS Next 5Y12.13%
Revenue Next Year12.22%
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.
- 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
- With a Price/Earnings ratio of 37.74, DRS can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 69.44% of the companies listed in the same industry.
- DRS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.18.
- Based on the Price/Forward Earnings ratio of 32.72, the valuation of DRS can be described as expensive.
- Based on the Price/Forward Earnings ratio, DRS is valued a bit cheaper than 69.44% of the companies in the same industry.
- DRS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.74 | ||
| Fwd PE | 32.72 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DRS is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
- 75.00% of the companies in the same industry are more expensive than DRS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.67 | ||
| EV/EBITDA | 25.36 |
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.
- 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 14.55% in the coming years.
PEG (NY)2.14
PEG (5Y)N/A
EPS Next 2Y16.17%
EPS Next 3Y14.55%
5. Dividend
5.1 Amount
- DRS has a yearly dividend return of 0.87%, which is pretty low.
- DRS's Dividend Yield is rather good when compared to the industry average which is at 0.34. DRS pays more dividend than 86.11% of the companies in the same industry.
- With a Dividend Yield of 0.87, DRS pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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 3Y14.55%
41.51
+1.06 (+2.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-24 2026-02-24/amc
Inst Owners26.48%
Inst Owner Change-2.79%
Ins Owners0.29%
Ins Owner Change-7.15%
Market Cap11.04B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target49.06 (18.19%)
Short Float %4.08%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)2.56%
PT rev (3m)-2.28%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-4.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.74 | ||
| Fwd PE | 32.72 | ||
| P/S | 3.09 | ||
| P/FCF | 41.67 | ||
| P/OCF | 28.76 | ||
| P/B | 4.17 | ||
| P/tB | 8.52 | ||
| EV/EBITDA | 25.36 |
EPS(TTM)1.1
EY2.65%
EPS(NY)1.27
Fwd EY3.06%
FCF(TTM)1
FCFY2.4%
OCF(TTM)1.44
OCFY3.48%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)2.14
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 | 4.77 |
F-Score8
WACC10.44%
ROIC/WACC0.88
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 2Y16.17%
EPS Next 3Y14.55%
EPS Next 5Y12.13%
Revenue 1Y (TTM)12.27%
Revenue growth 3Y202.18%
Revenue growth 5Y135.87%
Sales Q2Q%18.23%
Revenue Next Year12.22%
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 Year40.19%
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 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 37.74 and the Price/Book (PB) ratio is 4.17.
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%.