42.57 USD
+0.31 (+0.73%)
42.79 USD
+0.22 (+0.52%)
We assign a fundamental rating of 6 out of 10 to DRS. DRS was compared to 72 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 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.
- DRS had positive earnings in each of the past 5 years.
- Of the past 5 years DRS 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of DRS (6.24%) is better than 73.61% of its industry peers.
- The Return On Equity of DRS (10.01%) is better than 66.67% of its industry peers.
- DRS's Return On Invested Capital of 9.17% is fine compared to the rest of the industry. DRS outperforms 77.78% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DRS is significantly above the industry average of 8.56%.
- 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 68.06% of the companies in the same industry.
- In the last couple of years the Profit Margin of DRS has declined.
- DRS has a Operating Margin (9.67%) which is comparable to the rest of the industry.
- 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 47.22% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DRS is creating some value.
- The number of shares outstanding for DRS has been increased compared to 1 year ago.
- 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.
2.2 Solvency
- An Altman-Z score of 4.87 indicates that DRS is not in any danger for bankruptcy at the moment.
- DRS's Altman-Z score of 4.87 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.
- 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.
- DRS has a Debt to Equity ratio of 0.12. This is in the better half of the industry: DRS outperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 4.87 |
ROIC/WACC0.93
WACC9.84%
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.
- DRS has a worse Current ratio (2.00) than 61.11% 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.
- DRS has a better Quick ratio (1.63) than 61.11% of its industry peers.
| 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.
- 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
- Based on estimates for the next years, DRS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.13% on average per year.
- 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 2Y16.26%
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
- 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.
- 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 38.70.
- Based on the Price/Earnings ratio, DRS is valued a bit cheaper than 73.61% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. DRS is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 33.50, 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 68.06% of the companies in the same industry.
- DRS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 33.5 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DRS is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, DRS is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.74 | ||
| EV/EBITDA | 26.01 |
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.
- DRS's earnings are expected to grow with 14.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.19
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
- DRS has a yearly dividend return of 0.85%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.34, DRS pays a better dividend. On top of this DRS pays more dividend than 87.50% of the companies listed in the same industry.
- With a Dividend Yield of 0.85, DRS pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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
- 27.17% of the earnings are spent on dividend by DRS. This is a low number and sustainable payout ratio.
DP27.17%
EPS Next 2Y16.26%
EPS Next 3Y14.38%
42.57
+0.31 (+0.73%)
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-0.06%
Ins Owners0.29%
Ins Owner Change-7.26%
Market Cap11.32B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target49.06 (15.25%)
Short Float %3.89%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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)1.69%
PT rev (3m)-2.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 33.5 | ||
| P/S | 3.17 | ||
| P/FCF | 42.74 | ||
| P/OCF | 29.49 | ||
| P/B | 4.28 | ||
| P/tB | 8.74 | ||
| EV/EBITDA | 26.01 |
EPS(TTM)1.1
EY2.58%
EPS(NY)1.27
Fwd EY2.98%
FCF(TTM)1
FCFY2.34%
OCF(TTM)1.44
OCFY3.39%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)2.19
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 | 4.87 |
F-Score8
WACC9.84%
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 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
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 38.7 and the Price/Book (PB) ratio is 4.28.
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%.