LEONARDO DRS INC (DRS) Fundamental Analysis & Valuation

NASDAQ:DRS • US52661A1088

Current stock price

44.94 USD
-1.35 (-2.92%)
At close:
44.8 USD
-0.14 (-0.31%)
After Hours:

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

6

1. DRS Profitability Analysis

1.1 Basic Checks

  • In the past year DRS was profitable.
  • DRS had a positive operating cash flow in the past year.
  • Each year in the past 5 years DRS has 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

  • With a decent Return On Assets value of 6.20%, DRS is doing good in the industry, outperforming 71.25% of the companies in the same industry.
  • DRS has a better Return On Equity (10.18%) than 62.50% of its industry peers.
  • With a decent Return On Invested Capital value of 8.77%, DRS is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DRS is in line with the industry average of 9.30%.
  • The last Return On Invested Capital (8.77%) for DRS is above the 3 year average (7.88%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.2%
ROE 10.18%
ROIC 8.77%
ROA(3y)5.19%
ROA(5y)7.78%
ROE(3y)8.58%
ROE(5y)12.17%
ROIC(3y)7.88%
ROIC(5y)12.39%
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

  • DRS's Profit Margin of 7.62% is fine compared to the rest of the industry. DRS outperforms 75.00% of its industry peers.
  • DRS's Profit Margin has been stable in the last couple of years.
  • DRS has a better Operating Margin (9.59%) than 62.50% of its industry peers.
  • DRS's Operating Margin has improved in the last couple of years.
  • DRS's Gross Margin of 23.82% is in line compared to the rest of the industry. DRS outperforms 48.75% of its industry peers.
  • DRS's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.59%
PM (TTM) 7.62%
GM 23.82%
OM growth 3Y-34.39%
OM growth 5Y5.86%
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

  • DRS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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 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

  • DRS has an Altman-Z score of 4.85. This indicates that DRS is financially healthy and has little risk of bankruptcy at the moment.
  • DRS has a Altman-Z score (4.85) which is comparable to the rest of the industry.
  • 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.
  • With an excellent Debt to FCF ratio value of 1.53, DRS belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
  • A Debt/Equity ratio of 0.12 indicates that DRS is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.12, DRS is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.53
Altman-Z 4.85
ROIC/WACC0.86
WACC10.22%
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

  • DRS has a Current Ratio of 1.89. This is a normal value and indicates that DRS is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of DRS (1.89) is worse than 63.75% of its industry peers.
  • A Quick Ratio of 1.60 indicates that DRS should not have too much problems paying its short term obligations.
  • DRS's Quick ratio of 1.60 is in line compared to the rest of the industry. DRS outperforms 52.50% of its industry peers.
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.
  • Measured over the past years, DRS shows a very strong growth in Earnings Per Share. The EPS has been growing by 53.45% on average per year.
  • 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.
  • Based on estimates for the next years, DRS will show a small growth in Revenue. The Revenue will grow by 6.07% on average per year.
EPS Next Y11.21%
EPS Next 2Y11.34%
EPS Next 3Y10.49%
EPS Next 5Y9.96%
Revenue Next Year9.01%
Revenue Next 2Y7.77%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • With a Price/Earnings ratio of 39.42, DRS can be considered very expensive at the moment.
  • DRS's Price/Earnings ratio is a bit cheaper when compared to the industry. DRS is cheaper than 62.50% of the companies in the same industry.
  • DRS is valuated rather expensively when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 35.45, DRS can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, DRS is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of DRS to the average of the S&P500 Index (37.95), we can say DRS is valued inline with the index average.
Industry RankSector Rank
PE 39.42
Fwd PE 35.45
DRS Price Earnings VS Forward Price EarningsDRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

  • DRS's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, DRS is valued a bit cheaper than 68.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 52.66
EV/EBITDA 27.1
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.
PEG (NY)3.52
PEG (5Y)0.74
EPS Next 2Y11.34%
EPS Next 3Y10.49%

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3

5. DRS Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.76%, 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 87.50% 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 0.76%

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

  • 34.53% of the earnings are spent on dividend by DRS. This is a low number and sustainable payout ratio.
DP34.53%
EPS Next 2Y11.34%
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 (4/16/2026, 7:22:53 PM)

After market: 44.8 -0.14 (-0.31%)

44.94

-1.35 (-2.92%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-24
Earnings (Next)05-05
Inst Owners27.19%
Inst Owner Change0.02%
Ins Owners0.27%
Ins Owner Change9.36%
Market Cap11.95B
Revenue(TTM)3.65B
Net Income(TTM)278.00M
Analysts82.67
Price Target52.63 (17.11%)
Short Float %3.66%
Short Ratio2.29
Dividend
Industry RankSector Rank
Dividend Yield 0.76%
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)6.89%
PT rev (3m)10.02%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-4.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-2.61%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)2.18%
Valuation
Industry RankSector Rank
PE 39.42
Fwd PE 35.45
P/S 3.28
P/FCF 52.66
P/OCF 32.66
P/B 4.38
P/tB 8.66
EV/EBITDA 27.1
EPS(TTM)1.14
EY2.54%
EPS(NY)1.27
Fwd EY2.82%
FCF(TTM)0.85
FCFY1.9%
OCF(TTM)1.38
OCFY3.06%
SpS13.72
BVpS10.26
TBVpS5.19
PEG (NY)3.52
PEG (5Y)0.74
Graham Number16.2259 (-63.89%)
Profitability
Industry RankSector Rank
ROA 6.2%
ROE 10.18%
ROCE 10.75%
ROIC 8.77%
ROICexc 10.94%
ROICexgc 22.64%
OM 9.59%
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)7.88%
ROIC(5y)12.39%
ROICexc(3y)9.7%
ROICexc(5y)16.03%
ROICexgc(3y)21.42%
ROICexgc(5y)32.74%
ROCE(3y)9.69%
ROCE(5y)15.22%
ROICexgc growth 3Y-34.43%
ROICexgc growth 5Y18.15%
ROICexc growth 3Y-30.04%
ROICexc growth 5Y2.16%
OM growth 3Y-34.39%
OM growth 5Y5.86%
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 0.74
Cap/Depr 149.46%
Cap/Sales 3.81%
Interest Coverage 16.67
Cash Conversion 82.62%
Profit Quality 81.65%
Current Ratio 1.89
Quick Ratio 1.6
Altman-Z 4.85
F-Score8
WACC10.22%
ROIC/WACC0.86
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 2Y11.34%
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 Year9.01%
Revenue Next 2Y7.77%
Revenue Next 3Y6.88%
Revenue Next 5Y6.07%
EBIT growth 1Y16.28%
EBIT growth 3Y-27.41%
EBIT growth 5Y129.48%
EBIT Next Year44.95%
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 Fundamental Analysis 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.


Can you provide the profitability details for LEONARDO DRS INC?

LEONARDO DRS INC (DRS) has a profitability rating of 6 / 10.


How financially healthy is LEONARDO DRS INC?

The financial health rating of LEONARDO DRS INC (DRS) is 6 / 10.


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%.