LEONARDO DRS INC (DRS) Fundamental Analysis & Valuation

NASDAQ:DRS • US52661A1088

Current stock price

41.41 USD
-0.66 (-1.57%)
At close:
41.41 USD
0 (0%)
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

  • 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.
  • 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

  • DRS has a Return On Assets of 6.20%. This is in the better half of the industry: DRS outperforms 71.25% of its industry peers.
  • DRS has a better Return On Equity (10.18%) than 62.50% of its industry peers.
  • DRS has a Return On Invested Capital of 8.77%. This is in the better half of the industry: DRS outperforms 75.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years 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 has a better Profit Margin (7.62%) than 75.00% of its industry peers.
  • In the last couple of years the Profit Margin of DRS has remained more or less at the same level.
  • The Operating Margin of DRS (9.59%) is better than 62.50% of its industry peers.
  • DRS's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 23.82%, DRS is in line with its industry, outperforming 48.75% of the companies in the same industry.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DRS is destroying 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.
  • Compared to 1 year ago, DRS has an improved debt to assets ratio.
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 4.46. This indicates that DRS is financially healthy and has little risk of bankruptcy at the moment.
  • DRS has a Altman-Z score (4.46) which is comparable to the rest of the industry.
  • The Debt to FCF ratio of DRS is 1.53, which is an excellent value as it means it would take DRS, only 1.53 years of fcf income to pay off all of its debts.
  • DRS's Debt to FCF ratio of 1.53 is amongst the best of the industry. DRS outperforms 95.00% of its industry peers.
  • DRS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
  • DRS has a better Debt to Equity ratio (0.12) than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.53
Altman-Z 4.46
ROIC/WACC0.84
WACC10.44%
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 65.00% of its industry peers.
  • DRS has a Quick Ratio of 1.60. This is a normal value and indicates that DRS is financially healthy and should not expect problems in meeting its short term obligations.
  • DRS's Quick ratio of 1.60 is in line compared to the rest of the industry. DRS outperforms 51.25% 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

  • DRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.28%, 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 53.45% on average per year.
  • DRS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.80%.
  • 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

  • Based on estimates for the next years, DRS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.96% on average per year.
  • 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.
  • 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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3

4. DRS Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 36.32, 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 63.75% of the companies in the same industry.
  • DRS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.47.
  • The Price/Forward Earnings ratio is 32.66, which means the current valuation is very expensive for DRS.
  • Based on the Price/Forward Earnings ratio, DRS is valued a bit cheaper than 62.50% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.62, DRS is valued a bit more expensive.
Industry RankSector Rank
PE 36.32
Fwd PE 32.66
DRS Price Earnings VS Forward Price EarningsDRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 61.25% 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 71.25% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 48.52
EV/EBITDA 24.57
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)3.24
PEG (5Y)0.68
EPS Next 2Y11.34%
EPS Next 3Y10.49%

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3

5. DRS Dividend Analysis

5.1 Amount

  • DRS has a yearly dividend return of 0.80%, which is pretty low.
  • 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.
  • With a Dividend Yield of 0.80, DRS pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.8%

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 2026 0.1 0.2 0.3

5.3 Sustainability

  • DRS pays out 34.53% of its income as dividend. This is a 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 (4/23/2026, 7:00:47 PM)

After market: 41.41 0 (0%)

41.41

-0.66 (-1.57%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-24
Earnings (Next)05-05
Inst Owners27.19%
Inst Owner Change-0.15%
Ins Owners0.27%
Ins Owner Change10.31%
Market Cap11.01B
Revenue(TTM)3.65B
Net Income(TTM)278.00M
Analysts82.67
Price Target52.63 (27.09%)
Short Float %3.66%
Short Ratio2.29
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
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)7.28%
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)0.05%
Revenue NY rev (3m)2.18%
Valuation
Industry RankSector Rank
PE 36.32
Fwd PE 32.66
P/S 3.02
P/FCF 48.52
P/OCF 30.09
P/B 4.03
P/tB 7.98
EV/EBITDA 24.57
EPS(TTM)1.14
EY2.75%
EPS(NY)1.27
Fwd EY3.06%
FCF(TTM)0.85
FCFY2.06%
OCF(TTM)1.38
OCFY3.32%
SpS13.72
BVpS10.26
TBVpS5.19
PEG (NY)3.24
PEG (5Y)0.68
Graham Number16.2259 (-60.82%)
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 4.46
F-Score8
WACC10.44%
ROIC/WACC0.84
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%.