LEONARDO DRS INC (DRS) Fundamental Analysis & Valuation

NASDAQ:DRS • US52661A1088

Current stock price

45.48 USD
-0.96 (-2.07%)
At close:
46.6077 USD
+1.13 (+2.48%)
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.
  • 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

  • Looking at the Return On Assets, with a value of 6.20%, DRS is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
  • DRS has a better Return On Equity (10.18%) than 62.82% of its industry peers.
  • The Return On Invested Capital of DRS (8.74%) is better than 73.08% of its industry peers.
  • DRS had an Average Return On Invested Capital over the past 3 years of 7.87%. This is in line with the industry average of 9.30%.
  • The 3 year average ROIC (7.87%) for DRS is below the current ROIC(8.74%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.2%
ROE 10.18%
ROIC 8.74%
ROA(3y)5.19%
ROA(5y)7.78%
ROE(3y)8.58%
ROE(5y)12.17%
ROIC(3y)7.87%
ROIC(5y)12.38%
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 Profit Margin of 7.62%. This is in the better half of the industry: DRS outperforms 71.79% of its industry peers.
  • In the last couple of years the Profit Margin of DRS has remained more or less at the same level.
  • DRS has a Operating Margin (9.54%) which is comparable to the rest of the industry.
  • DRS's Operating Margin has improved in the last couple of years.
  • The Gross Margin of DRS (23.82%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of DRS has declined.
Industry RankSector Rank
OM 9.54%
PM (TTM) 7.62%
GM 23.82%
OM growth 3Y-34.52%
OM growth 5Y5.74%
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. DRS Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DRS is destroying value.
  • DRS has more shares outstanding than it did 1 year ago.
  • 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.
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

  • An Altman-Z score of 4.86 indicates that DRS is not in any danger for bankruptcy at the moment.
  • DRS's Altman-Z score of 4.86 is fine compared to the rest of the industry. DRS outperforms 60.26% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 1.53, DRS belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
  • DRS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.12, DRS is doing good in the industry, outperforming 78.21% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.53
Altman-Z 4.86
ROIC/WACC0.9
WACC9.74%
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

  • A Current Ratio of 1.89 indicates that DRS should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.89, DRS is doing worse than 64.10% of the companies in the same industry.
  • 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 has a Quick ratio (1.60) which is in line with 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

More info and screens

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

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.
  • The Revenue has grown by 12.80% in the past year. This is quite good.
  • Measured over the past years, DRS shows a very strong growth in Revenue. The Revenue has been growing by 116.78% on average per year.
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 2Y11.08%
EPS Next 3Y10.49%
EPS Next 5Y9.96%
Revenue Next Year8.7%
Revenue Next 2Y7.5%
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

More info and screens

Find the best growth stocksShow best growing peers

3

4. DRS Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 39.89, the valuation of DRS can be described as expensive.
  • Based on the Price/Earnings ratio, DRS is valued a bit cheaper than the industry average as 64.10% of the companies are valued more expensively.
  • DRS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.73.
  • Based on the Price/Forward Earnings ratio of 35.87, the valuation of DRS can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 60.26% of the companies listed in the same industry.
  • DRS is valuated expensively when we compare the Price/Forward Earnings ratio to 23.72, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 39.89
Fwd PE 35.87
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 is on the same level as its industry peers.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 62.82% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 53.26
EV/EBITDA 27.31
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.
  • DRS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.56
PEG (5Y)0.75
EPS Next 2Y11.08%
EPS Next 3Y10.49%

More info and screens

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

3

5. DRS Dividend Analysis

5.1 Amount

  • DRS has a yearly dividend return of 0.78%, which is pretty low.
  • DRS's Dividend Yield is rather good when compared to the industry average which is at 0.65. DRS pays more dividend than 83.33% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, DRS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.78%

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 2Y11.08%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

DRS Fundamentals: All Metrics, Ratios and Statistics

LEONARDO DRS INC

NASDAQ:DRS (3/19/2026, 8:00:01 PM)

After market: 46.6077 +1.13 (+2.48%)

45.48

-0.96 (-2.07%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-24
Earnings (Next)04-29
Inst Owners27%
Inst Owner Change0.23%
Ins Owners0.29%
Ins Owner Change-6.98%
Market Cap12.09B
Revenue(TTM)3.65B
Net Income(TTM)278.00M
Analysts82.67
Price Target49.24 (8.27%)
Short Float %4.37%
Short Ratio2.5
Dividend
Industry RankSector Rank
Dividend Yield 0.78%
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)0%
PT rev (3m)2.06%
EPS NQ rev (1m)-4.5%
EPS NQ rev (3m)-4.5%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)-2.29%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)1.89%
Revenue NY rev (3m)1.89%
Valuation
Industry RankSector Rank
PE 39.89
Fwd PE 35.87
P/S 3.31
P/FCF 53.26
P/OCF 33.03
P/B 4.43
P/tB 8.76
EV/EBITDA 27.31
EPS(TTM)1.14
EY2.51%
EPS(NY)1.27
Fwd EY2.79%
FCF(TTM)0.85
FCFY1.88%
OCF(TTM)1.38
OCFY3.03%
SpS13.72
BVpS10.27
TBVpS5.19
PEG (NY)3.56
PEG (5Y)0.75
Graham Number16.23
Profitability
Industry RankSector Rank
ROA 6.2%
ROE 10.18%
ROCE 10.69%
ROIC 8.74%
ROICexc 10.9%
ROICexgc 22.6%
OM 9.54%
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)7.87%
ROIC(5y)12.38%
ROICexc(3y)9.68%
ROICexc(5y)16.03%
ROICexgc(3y)21.41%
ROICexgc(5y)32.73%
ROCE(3y)9.67%
ROCE(5y)15.21%
ROICexgc growth 3Y-34.46%
ROICexgc growth 5Y18.11%
ROICexc growth 3Y-30.13%
ROICexc growth 5Y2.09%
OM growth 3Y-34.52%
OM growth 5Y5.74%
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 0.73
Cap/Depr 149.46%
Cap/Sales 3.81%
Interest Coverage 250
Cash Conversion 82.99%
Profit Quality 81.65%
Current Ratio 1.89
Quick Ratio 1.6
Altman-Z 4.86
F-Score8
WACC9.74%
ROIC/WACC0.9
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 2Y11.08%
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 Year8.7%
Revenue Next 2Y7.5%
Revenue Next 3Y6.88%
Revenue Next 5Y6.07%
EBIT growth 1Y15.61%
EBIT growth 3Y-27.55%
EBIT growth 5Y129.22%
EBIT Next Year44.76%
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.


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 39.89 and the Price/Book (PB) ratio is 4.43.


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%.