34.18 USD
+0.05 (+0.15%)
Overall DRS gets a fundamental rating of 6 out of 10. We evaluated DRS against 71 industry peers in the Aerospace & Defense industry. DRS has only an average score on both its financial health and profitability. DRS is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, DRS could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year DRS was profitable.
In the past year DRS had a positive cash flow from operations.
In the past 5 years DRS has always been profitable.
DRS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DRS has a better Return On Assets (6.24%) than 71.83% of its industry peers.
DRS has a better Return On Equity (10.01%) than 66.20% of its industry peers.
DRS has a better Return On Invested Capital (9.17%) than 77.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DRS is significantly above the industry average of 8.60%.
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
With a decent Profit Margin value of 7.43%, DRS is doing good in the industry, outperforming 67.61% of the companies in the same industry.
DRS's Profit Margin has declined in the last couple of years.
The Operating Margin of DRS (9.67%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DRS has declined.
Looking at the Gross Margin, with a value of 23.40%, DRS is in line with its industry, outperforming 45.07% of the companies in the same industry.
DRS's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for DRS has been increased compared to 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 4.03 indicates that DRS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.03, DRS is in line with its industry, outperforming 50.70% of the companies in the same industry.
The Debt to FCF ratio of DRS is 1.32, which is an excellent value as it means it would take DRS, only 1.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.32, DRS belongs to the top of the industry, outperforming 95.77% 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.
Looking at the Debt to Equity ratio, with a value of 0.12, DRS is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 4.03 |
ROIC/WACC0.91
WACC10.04%
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 Current ratio of 2.00. This is in the lower half of the industry: DRS underperforms 63.38% of its industry peers.
A Quick Ratio of 1.63 indicates that DRS should not have too much problems paying its short term obligations.
DRS has a Quick ratio (1.63) which is comparable to the rest of the industry.
| 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.
DRS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.42% yearly.
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
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.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 31.07 indicates a quite expensive valuation of DRS.
DRS's Price/Earnings ratio is a bit cheaper when compared to the industry. DRS is cheaper than 73.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.84, DRS is valued at the same level.
DRS is valuated quite expensively with a Price/Forward Earnings ratio of 26.90.
74.65% of the companies in the same industry are more expensive than DRS, based on the Price/Forward Earnings ratio.
DRS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.07 | ||
| Fwd PE | 26.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRS is valued a bit cheaper than 71.83% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 78.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.31 | ||
| EV/EBITDA | 20.87 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DRS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as DRS's earnings are expected to grow with 14.38% in the coming years.
PEG (NY)1.76
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
DRS has a Yearly Dividend Yield of 1.04%.
The stock price of DRS dropped by -23.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DRS's Dividend Yield is rather good when compared to the industry average which is at 0.39. DRS pays more dividend than 88.73% of the companies in the same industry.
With a Dividend Yield of 1.04, DRS pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
DRS pays out 27.17% of its income as dividend. This is a sustainable payout ratio.
DP27.17%
EPS Next 2Y16.26%
EPS Next 3Y14.38%
NASDAQ:DRS (12/30/2025, 2:10:06 PM)
34.18
+0.05 (+0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners26.55%
Inst Owner Change4.61%
Ins Owners0.3%
Ins Owner Change-7.26%
Market Cap9.09B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target47.84 (39.96%)
Short Float %3.89%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP27.17%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-0.85%
PT rev (3m)-4.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.07 | ||
| Fwd PE | 26.9 | ||
| P/S | 2.55 | ||
| P/FCF | 34.31 | ||
| P/OCF | 23.68 | ||
| P/B | 3.43 | ||
| P/tB | 7.02 | ||
| EV/EBITDA | 20.87 |
EPS(TTM)1.1
EY3.22%
EPS(NY)1.27
Fwd EY3.72%
FCF(TTM)1
FCFY2.91%
OCF(TTM)1.44
OCFY4.22%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)1.76
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 | 4.03 |
F-Score8
WACC10.04%
ROIC/WACC0.91
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
What is the fundamental rating for DRS stock?
ChartMill assigns a fundamental rating of 6 / 10 to DRS.
What is the valuation status of LEONARDO DRS INC (DRS) stock?
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 is the valuation of LEONARDO DRS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LEONARDO DRS INC (DRS) is 31.07 and the Price/Book (PB) ratio is 3.43.
Is the dividend of LEONARDO DRS INC sustainable?
The dividend rating of LEONARDO DRS INC (DRS) is 3 / 10 and the dividend payout ratio is 27.17%.