LEONARDO DRS INC (DRS) Fundamental Analysis & Valuation

NASDAQ:DRS • US52661A1088

46.16 USD
-0.19 (-0.41%)
At close: Mar 11, 2026
46 USD
-0.16 (-0.35%)
After Hours: 3/11/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This DRS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Overall DRS gets a fundamental rating of 5 out of 10. We evaluated DRS against 78 industry peers in the Aerospace & Defense industry. DRS has only an average score on both its financial health and profitability. While showing a medium growth rate, DRS is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

6

1. DRS Profitability Analysis

1.1 Basic Checks

  • DRS had positive earnings in the past year.
  • DRS had a positive operating cash flow in the past year.
  • In the past 5 years DRS has always been profitable.
  • DRS had a positive operating cash flow in 4 of the past 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 2025 0 200M 400M 600M 800M

1.2 Ratios

  • DRS has a better Return On Assets (6.20%) than 71.79% of its industry peers.
  • DRS has a better Return On Equity (10.18%) than 62.82% of its industry peers.
  • The Return On Invested Capital of DRS (8.74%) is better than 73.08% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for DRS is in line with the industry average of 9.32%.
  • The last Return On Invested Capital (8.74%) for DRS is above the 3 year average (7.87%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.2%
ROE 10.18%
ROIC 8.74%
ROA(3y)5.19%
ROA(5y)7.78%
ROE(3y)8.58%
ROE(5y)12.17%
ROIC(3y)7.87%
ROIC(5y)12.38%
DRS Yearly ROA, ROE, ROICDRS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40

1.3 Margins

  • The Profit Margin of DRS (7.62%) is better than 71.79% of its industry peers.
  • DRS's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 9.54%, DRS is in line with its industry, outperforming 57.69% of the companies in the same industry.
  • DRS's Operating Margin has improved in the last couple of years.
  • The Gross Margin of DRS (23.82%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of DRS has declined.
Industry RankSector Rank
OM 9.54%
PM (TTM) 7.62%
GM 23.82%
OM growth 3Y-34.52%
OM growth 5Y5.74%
PM growth 3Y-20.28%
PM growth 5Y0.73%
GM growth 3Y3.72%
GM growth 5Y-8.5%
DRS Yearly Profit, Operating, Gross MarginsDRS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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6

2. DRS Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRS is destroying value.
  • Compared to 1 year ago, DRS has more shares outstanding
  • The number of shares outstanding for DRS has been increased compared to 5 years ago.
  • Compared to 1 year ago, DRS has an improved debt to assets ratio.
DRS Yearly Shares OutstandingDRS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 4.85 indicates that DRS is not in any danger for bankruptcy at the moment.
  • DRS has a Altman-Z score of 4.85. This is comparable to the rest of the industry: DRS outperforms 56.41% of its industry peers.
  • DRS has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
  • DRS's Debt to FCF ratio of 1.53 is amongst the best of the industry. DRS outperforms 94.87% 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 78.21% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.53
Altman-Z 4.85
ROIC/WACC0.89
WACC9.83%
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 2025 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 1.89 indicates that DRS should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.89, DRS is doing worse than 64.10% of the companies in the same industry.
  • DRS has a Quick Ratio of 1.60. 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 1.60, DRS is in line with its industry, outperforming 56.41% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.89
Quick Ratio 1.6
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 2025 500M 1B 1.5B 2B

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6

3. DRS Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 21.28% over the past year.
  • The Earnings Per Share has been growing by 53.45% on average over the past years. This is a very strong growth
  • Looking at the last year, DRS shows a quite strong growth in Revenue. The Revenue has grown by 12.80% in the last year.
  • The Revenue has been growing by 116.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)21.28%
EPS 3Y-18.05%
EPS 5Y53.45%
EPS Q2Q%10.53%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y10.65%
Revenue growth 5Y116.78%
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.
  • The Revenue is expected to grow by 6.07% on average over the next years.
EPS Next Y11.21%
EPS Next 2Y11.08%
EPS Next 3Y10.49%
EPS Next 5Y9.96%
Revenue Next Year8.7%
Revenue Next 2Y7.5%
Revenue Next 3Y6.88%
Revenue Next 5Y6.07%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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.
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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3

4. DRS Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 40.49 indicates a quite expensive valuation of DRS.
  • DRS's Price/Earnings ratio is a bit cheaper when compared to the industry. DRS is cheaper than 65.38% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of DRS to the average of the S&P500 Index (26.15), we can say DRS is valued expensively.
  • With a Price/Forward Earnings ratio of 36.41, 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 64.10% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.27. DRS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 40.49
Fwd PE 36.41
DRS Price Earnings VS Forward Price EarningsDRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • 60.26% of the companies in the same industry are more expensive than DRS, based on the Enterprise Value to EBITDA ratio.
  • DRS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DRS is cheaper than 65.38% of the companies in the same industry.
Industry RankSector Rank
P/FCF 54.05
EV/EBITDA 27.26
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.
  • The decent profitability rating of DRS may justify a higher PE ratio.
PEG (NY)3.61
PEG (5Y)0.76
EPS Next 2Y11.08%
EPS Next 3Y10.49%

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3

5. DRS Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.79%, DRS is not a good candidate for dividend investing.
  • DRS's Dividend Yield is rather good when compared to the industry average which is at 0.34. DRS pays more dividend than 87.18% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, DRS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.79%

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
DRS Yearly Dividends per shareDRS Yearly Dividends per shareYearly Dividends per share 2025 2026 0.1 0.2 0.3

5.3 Sustainability

  • DRS pays out 34.53% of its income as dividend. This is a sustainable payout ratio.
DP34.53%
EPS Next 2Y11.08%
EPS Next 3Y10.49%
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 2025 0 100M 200M 300M 400M
DRS Dividend Payout.DRS Dividend Payout, showing the Payout Ratio.DRS Dividend Payout.PayoutRetained Earnings

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DRS Fundamentals: All Metrics, Ratios and Statistics

LEONARDO DRS INC

NASDAQ:DRS (3/11/2026, 8:00:02 PM)

After market: 46 -0.16 (-0.35%)

46.16

-0.19 (-0.41%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-24
Earnings (Next)04-29
Inst Owners27%
Inst Owner Change0.23%
Ins Owners0.29%
Ins Owner Change-6.98%
Market Cap12.27B
Revenue(TTM)3.65B
Net Income(TTM)278.00M
Analysts82.67
Price Target49.24 (6.67%)
Short Float %4.66%
Short Ratio2.84
Dividend
Industry RankSector Rank
Dividend Yield 0.79%
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP34.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-10
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.52%
Min EPS beat(2)2.95%
Max EPS beat(2)12.09%
EPS beat(4)4
Avg EPS beat(4)10.4%
Min EPS beat(4)2.95%
Max EPS beat(4)20.01%
EPS beat(8)8
Avg EPS beat(8)16.12%
EPS beat(12)12
Avg EPS beat(12)18.36%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.66%
Min Revenue beat(2)2.78%
Max Revenue beat(2)4.54%
Revenue beat(4)3
Avg Revenue beat(4)3.47%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)7.38%
Revenue beat(8)7
Avg Revenue beat(8)4.53%
Revenue beat(12)10
Avg Revenue beat(12)3.91%
Revenue beat(16)13
Avg Revenue beat(16)363.62%
PT rev (1m)0%
PT rev (3m)2.06%
EPS NQ rev (1m)-4.5%
EPS NQ rev (3m)-4.5%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)-2.29%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)1.89%
Revenue NY rev (3m)1.89%
Valuation
Industry RankSector Rank
PE 40.49
Fwd PE 36.41
P/S 3.36
P/FCF 54.05
P/OCF 33.53
P/B 4.49
P/tB 8.89
EV/EBITDA 27.26
EPS(TTM)1.14
EY2.47%
EPS(NY)1.27
Fwd EY2.75%
FCF(TTM)0.85
FCFY1.85%
OCF(TTM)1.38
OCFY2.98%
SpS13.72
BVpS10.27
TBVpS5.19
PEG (NY)3.61
PEG (5Y)0.76
Graham Number16.23
Profitability
Industry RankSector Rank
ROA 6.2%
ROE 10.18%
ROCE 10.69%
ROIC 8.74%
ROICexc 10.9%
ROICexgc 22.6%
OM 9.54%
PM (TTM) 7.62%
GM 23.82%
FCFM 6.22%
ROA(3y)5.19%
ROA(5y)7.78%
ROE(3y)8.58%
ROE(5y)12.17%
ROIC(3y)7.87%
ROIC(5y)12.38%
ROICexc(3y)9.68%
ROICexc(5y)16.03%
ROICexgc(3y)21.41%
ROICexgc(5y)32.73%
ROCE(3y)9.67%
ROCE(5y)15.21%
ROICexgc growth 3Y-34.46%
ROICexgc growth 5Y18.11%
ROICexc growth 3Y-30.13%
ROICexc growth 5Y2.09%
OM growth 3Y-34.52%
OM growth 5Y5.74%
PM growth 3Y-20.28%
PM growth 5Y0.73%
GM growth 3Y3.72%
GM growth 5Y-8.5%
F-Score8
Asset Turnover0.81
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.53
Debt/EBITDA 0.73
Cap/Depr 149.46%
Cap/Sales 3.81%
Interest Coverage 250
Cash Conversion 82.99%
Profit Quality 81.65%
Current Ratio 1.89
Quick Ratio 1.6
Altman-Z 4.85
F-Score8
WACC9.83%
ROIC/WACC0.89
Cap/Depr(3y)104.49%
Cap/Depr(5y)116.41%
Cap/Sales(3y)2.85%
Cap/Sales(5y)3.25%
Profit Quality(3y)85.1%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.28%
EPS 3Y-18.05%
EPS 5Y53.45%
EPS Q2Q%10.53%
EPS Next Y11.21%
EPS Next 2Y11.08%
EPS Next 3Y10.49%
EPS Next 5Y9.96%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y10.65%
Revenue growth 5Y116.78%
Sales Q2Q%8.05%
Revenue Next Year8.7%
Revenue Next 2Y7.5%
Revenue Next 3Y6.88%
Revenue Next 5Y6.07%
EBIT growth 1Y15.61%
EBIT growth 3Y-27.55%
EBIT growth 5Y129.22%
EBIT Next Year44.76%
EBIT Next 3Y20.79%
EBIT Next 5Y19.33%
FCF growth 1Y22.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.06%
OCF growth 3Y123.01%
OCF growth 5Y151.88%

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 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 40.49 and the Price/Book (PB) ratio is 4.49.


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 34.53%.