LEONARDO DRS INC (DRS) Stock Fundamental Analysis

NASDAQ:DRS • US52661A1088

39.9 USD
+0.77 (+1.97%)
At close: Feb 18, 2026
39.9 USD
0 (0%)
After Hours: 2/18/2026, 8:25:56 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, DRS scores 6 out of 10 in our fundamental rating. DRS was compared to 73 industry peers in the Aerospace & Defense industry. DRS has an excellent financial health rating, but there are some minor concerns on its profitability. DRS is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make DRS a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

6

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.
  • 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 0 200M 400M 600M 800M

1.2 Ratios

  • DRS's Return On Assets of 6.24% is fine compared to the rest of the industry. DRS outperforms 73.97% of its industry peers.
  • DRS has a better Return On Equity (10.01%) than 65.75% of its industry peers.
  • The Return On Invested Capital of DRS (9.17%) is better than 76.71% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for DRS is significantly above the industry average of 8.97%.
  • 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 RankSector 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%
DRS Yearly ROA, ROE, ROICDRS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

  • DRS has a better Profit Margin (7.43%) than 69.86% of its industry peers.
  • DRS's Profit Margin has declined in the last couple of years.
  • DRS has a Operating Margin (9.67%) which is in line with its industry peers.
  • DRS's Operating Margin has declined in the last couple of years.
  • DRS has a Gross Margin (23.40%) which is in line with its industry peers.
  • DRS's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
DRS Yearly Profit, Operating, Gross MarginsDRS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • Compared to 1 year ago, DRS has more shares outstanding
  • DRS has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for DRS has been reduced compared to a year ago.
DRS Yearly Shares OutstandingDRS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 4.53 indicates that DRS is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.53, DRS is in line with its industry, outperforming 56.16% of the companies in the same industry.
  • 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 has a better Debt to FCF ratio (1.32) than 95.89% of its industry peers.
  • A Debt/Equity ratio of 0.12 indicates that DRS is not too dependend on debt financing.
  • The Debt to Equity ratio of DRS (0.12) is better than 78.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.32
Altman-Z 4.53
ROIC/WACC0.94
WACC9.78%
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 0 500M 1B 1.5B 2B 2.5B

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 worse Current ratio (2.00) than 61.64% of its industry peers.
  • DRS has a Quick Ratio of 1.63. 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 1.63, DRS is in the better half of the industry, outperforming 60.27% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 1.63
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 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

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.
  • The Revenue has been growing by 135.87% on average over the past years. This is a very strong growth!
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

  • DRS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.13% yearly.
  • The Revenue is expected to grow by 7.27% on average over the next years.
EPS Next Y17.44%
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

  • 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.
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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4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 36.27 indicates a quite expensive valuation of DRS.
  • Based on the Price/Earnings ratio, DRS is valued a bit cheaper than 73.97% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.27. DRS is valued slightly more expensive when compared to this.
  • With a Price/Forward Earnings ratio of 31.45, 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 69.86% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of DRS to the average of the S&P500 Index (28.16), we can say DRS is valued inline with the index average.
Industry RankSector Rank
PE 36.27
Fwd PE 31.45
DRS Price Earnings VS Forward Price EarningsDRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DRS is valued a bit cheaper than the industry average as 63.01% of the companies are valued more expensively.
  • DRS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DRS is cheaper than 79.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 40.06
EV/EBITDA 23.91
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 an expensive valuation of the company.
  • 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)2.08
PEG (5Y)N/A
EPS Next 2Y16.17%
EPS Next 3Y14.55%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.95%, 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 0.35. DRS pays more dividend than 87.67% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.84, DRS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.95%

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

5.3 Sustainability

  • 27.17% of the earnings are spent on dividend by DRS. This is a low number and sustainable payout ratio.
DP27.17%
EPS Next 2Y16.17%
EPS Next 3Y14.55%
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 0 100M 200M 300M 400M
DRS Dividend Payout.DRS Dividend Payout, showing the Payout Ratio.DRS Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

LEONARDO DRS INC

NASDAQ:DRS (2/18/2026, 8:25:56 PM)

After market: 39.9 0 (0%)

39.9

+0.77 (+1.97%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-29
Earnings (Next)02-24
Inst Owners26.48%
Inst Owner Change-0.06%
Ins Owners0.29%
Ins Owner Change-7.15%
Market Cap10.61B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts82.67
Price Target49.24 (23.41%)
Short Float %4.62%
Short Ratio3.2
Dividend
Industry RankSector Rank
Dividend Yield 0.95%
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)2.93%
PT rev (3m)-1.93%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 36.27
Fwd PE 31.45
P/S 2.97
P/FCF 40.06
P/OCF 27.64
P/B 4.01
P/tB 8.19
EV/EBITDA 23.91
EPS(TTM)1.1
EY2.76%
EPS(NY)1.27
Fwd EY3.18%
FCF(TTM)1
FCFY2.5%
OCF(TTM)1.44
OCFY3.62%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)2.08
PEG (5Y)N/A
Graham Number15.7
Profitability
Industry RankSector 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 RankSector 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 4.53
F-Score8
WACC9.78%
ROIC/WACC0.94
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 Y17.44%
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 36.27 and the Price/Book (PB) ratio is 4.01.


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%.