34.28 USD
-0.24 (-0.7%)
34.28 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to DRS. DRS was compared to 71 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes DRS very considerable for growth investing!
1. Profitability
1.1 Basic Checks
DRS had positive earnings in the past year.
In the past year DRS had a positive cash flow from operations.
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 71.83% of its industry peers.
DRS has a better Return On Equity (10.01%) than 66.20% of its industry peers.
With a decent Return On Invested Capital value of 9.17%, DRS is doing good in the industry, outperforming 77.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DRS is significantly above the industry average of 8.60%.
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 67.61% of the companies in the same industry.
In the last couple of years the Profit Margin of DRS has declined.
DRS's Operating Margin of 9.67% is in line compared to the rest of the industry. DRS outperforms 59.15% of 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 45.07% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DRS is still creating some 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.
DRS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.04 indicates that DRS is not in any danger for bankruptcy at the moment.
DRS's Altman-Z score of 4.04 is in line compared to the rest of the industry. DRS outperforms 50.70% 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 has a Debt to FCF ratio of 1.32. This is amongst the best in the industry. DRS outperforms 95.77% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that DRS is not too dependend on debt financing.
DRS has a Debt to Equity ratio of 0.12. This is in the better half of the industry: DRS outperforms 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 4.04 |
ROIC/WACC0.91
WACC10.04%
2.3 Liquidity
A Current Ratio of 2.00 indicates that DRS has no problem at all paying its short term obligations.
DRS has a Current ratio of 2.00. This is in the lower half of the industry: DRS underperforms 63.38% of its industry peers.
A Quick Ratio of 1.63 indicates that DRS should not have too much problems paying its short term obligations.
The Quick ratio of DRS (1.63) is comparable to the rest of the 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.
DRS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.27%.
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
The Earnings Per Share is expected to grow by 12.13% on average over the next years. This is quite good.
DRS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.27% yearly.
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 3Y7.87%
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
DRS is valuated quite expensively with a Price/Earnings ratio of 31.16.
DRS's Price/Earnings ratio is a bit cheaper when compared to the industry. DRS is cheaper than 73.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of DRS to the average of the S&P500 Index (26.92), we can say DRS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 26.98, the valuation of DRS can be described as expensive.
DRS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DRS is cheaper than 74.65% of the companies in the same industry.
DRS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.16 | ||
| Fwd PE | 26.98 |
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 71.83% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DRS is valued a bit cheaper than the industry average as 78.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.41 | ||
| EV/EBITDA | 20.96 |
4.3 Compensation for Growth
DRS's 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 14.38% in the coming years.
PEG (NY)1.77
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, DRS has a reasonable but not impressive dividend return.
The stock price of DRS dropped by -21.98% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DRS's Dividend Yield is rather good when compared to the industry average which is at 0.39. DRS pays more dividend than 88.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, DRS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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 2Y16.26%
EPS Next 3Y14.38%
34.28
-0.24 (-0.7%)
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-7.26%
Market Cap9.12B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target47.84 (39.56%)
Short Float %3.88%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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)-0.85%
PT rev (3m)-4.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.16 | ||
| Fwd PE | 26.98 | ||
| P/S | 2.56 | ||
| P/FCF | 34.41 | ||
| P/OCF | 23.75 | ||
| P/B | 3.44 | ||
| P/tB | 7.04 | ||
| EV/EBITDA | 20.96 |
EPS(TTM)1.1
EY3.21%
EPS(NY)1.27
Fwd EY3.71%
FCF(TTM)1
FCFY2.91%
OCF(TTM)1.44
OCFY4.21%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)1.77
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 | 4.04 |
F-Score8
WACC10.04%
ROIC/WACC0.91
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 3Y7.87%
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 31.16 and the Price/Book (PB) ratio is 3.44.
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%.