LEONARDO DRS INC (DRS) Stock Fundamental Analysis
USA - NASDAQ:DRS - US52661A1088 - Common Stock
35.61 USD
+0.28 (+0.79%)
35.61 USD
0 (0%)
Overall DRS gets a fundamental rating of 6 out of 10. We evaluated DRS against 72 industry peers in the Aerospace & Defense industry. While DRS has a great health rating, its profitability is only average at the moment. DRS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make DRS suitable 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.
Each year in the past 5 years DRS has been profitable.
Of the past 5 years DRS 4 years had a positive operating cash flow.
1.2 Ratios
DRS's Return On Assets of 6.24% is fine compared to the rest of the industry. DRS outperforms 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.
DRS has a Return On Invested Capital of 9.17%. This is amongst the best in the industry. DRS outperforms 80.56% 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 8.46%.
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 68.06% of its industry peers.
DRS's Profit Margin has declined in the last couple of years.
The Operating Margin of DRS (9.67%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DRS has declined.
With a Gross Margin value of 23.40%, DRS perfoms like the industry average, outperforming 48.61% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DRS is creating some value.
DRS has more shares outstanding than it did 1 year ago.
DRS has more shares outstanding than it did 5 years ago.
DRS has a better debt/assets ratio than last year.
2.2 Solvency
DRS has an Altman-Z score of 4.18. This indicates that DRS is financially healthy and has little risk of bankruptcy at the moment.
DRS's Altman-Z score of 4.18 is in line compared to the rest of the industry. DRS outperforms 58.33% of 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.
With an excellent Debt to FCF ratio value of 1.32, DRS belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
DRS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.12, DRS is doing good in the industry, outperforming 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 4.18 |
ROIC/WACC0.93
WACC9.86%
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.
The Current ratio of DRS (2.00) 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.
With a decent Quick ratio value of 1.63, DRS is doing good in the industry, outperforming 65.28% 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.
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.
The Revenue is expected to grow by 7.27% on average over the next years.
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
Based on the Price/Earnings ratio of 32.37, the valuation of DRS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 72.22% of the companies listed in the same industry.
DRS is valuated rather expensively when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.07, the valuation of DRS can be described as expensive.
Based on the Price/Forward Earnings ratio, DRS is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.61. DRS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 28.07 |
4.2 Price Multiples
DRS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DRS is cheaper than 65.28% 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 73.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.76 | ||
| EV/EBITDA | 21.78 |
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.
DRS's earnings are expected to grow with 14.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.79
PEG (5Y)N/A
EPS Next 2Y16.17%
EPS Next 3Y14.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, DRS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.12, DRS pays a better dividend. On top of this DRS pays more dividend than 88.89% of the companies listed in the same industry.
With a Dividend Yield of 1.02, DRS pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
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%
35.61
+0.28 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners25.55%
Inst Owner Change0.01%
Ins Owners0.3%
Ins Owner Change-4.22%
Market Cap9.48B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target50.21 (41%)
Short Float %3.46%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)0%
PT rev (3m)0.71%
EPS NQ rev (1m)-4.39%
EPS NQ rev (3m)-2.84%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)-2.78%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 28.07 | ||
| P/S | 2.66 | ||
| P/FCF | 35.76 | ||
| P/OCF | 24.68 | ||
| P/B | 3.58 | ||
| P/tB | 7.31 | ||
| EV/EBITDA | 21.78 |
EPS(TTM)1.1
EY3.09%
EPS(NY)1.27
Fwd EY3.56%
FCF(TTM)1
FCFY2.8%
OCF(TTM)1.44
OCFY4.05%
SpS13.41
BVpS9.95
TBVpS4.87
PEG (NY)1.79
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 | 4.18 |
F-Score8
WACC9.86%
ROIC/WACC0.93
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 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 32.37 and the Price/Book (PB) ratio is 3.58.
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%.