32.55 USD
-0.57 (-1.72%)
32.55 USD
0 (0%)
DRS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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.
Each year in the past 5 years DRS has been profitable.
Of the past 5 years DRS 4 years had a positive operating cash flow.
1.2 Ratios
DRS has a Return On Assets of 6.24%. This is in the better half of the industry: DRS outperforms 71.83% of its industry peers.
DRS has a better Return On Equity (10.01%) than 66.20% of its industry peers.
The Return On Invested Capital of DRS (9.17%) is better than 77.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DRS is significantly above the industry average of 8.60%.
The last Return On Invested Capital (9.17%) for DRS is well below the 3 year average (14.80%), which needs to be investigated, but indicates that DRS had better years and this may not be a problem.
| 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.
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.
In the last couple of years the Operating Margin of DRS has declined.
The Gross Margin of DRS (23.40%) is comparable to the rest of the industry.
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
DRS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DRS has been increased compared to 1 year ago.
Compared to 5 years ago, DRS has more shares outstanding
DRS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.87 indicates that DRS is not in any danger for bankruptcy at the moment.
DRS has a Altman-Z score (3.87) which is in line with its industry peers.
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.
DRS's Debt to FCF ratio of 1.32 is amongst the best of the industry. DRS outperforms 95.77% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that DRS is not too dependend on debt financing.
DRS has a better Debt to Equity ratio (0.12) than 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 3.87 |
ROIC/WACC0.91
WACC10.09%
2.3 Liquidity
A Current Ratio of 2.00 indicates that DRS has no problem at all paying its short term obligations.
With a Current ratio value of 2.00, DRS is not doing good in the industry: 61.97% of the companies in the same industry are doing better.
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
DRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.44%, 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 23.42% on average per year.
The Revenue has grown by 12.27% 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 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 3Y8.03%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.59 indicates a quite expensive valuation of DRS.
Based on the Price/Earnings ratio, DRS is valued a bit cheaper than 73.24% of the companies in the same industry.
DRS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.22.
DRS is valuated quite expensively with a Price/Forward Earnings ratio of 25.62.
Based on the Price/Forward Earnings ratio, DRS is valued a bit cheaper than 74.65% of the companies in the same industry.
DRS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.59 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DRS is valued a bit cheaper than the industry average as 70.42% of the companies are valued more expensively.
DRS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DRS is cheaper than 77.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.68 | ||
| EV/EBITDA | 19.91 |
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.
DRS's earnings are expected to grow with 14.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.68
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%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of DRS has falen by -21.45%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 0.40, DRS pays a better dividend. On top of this DRS pays more dividend than 88.73% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, DRS's dividend is way lower than the S&P500 average.
| 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%
32.55
-0.57 (-1.72%)
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 Cap8.66B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target48.25 (48.23%)
Short Float %3.88%
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)-3.91%
PT rev (3m)-3.91%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-2.96%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.59 | ||
| Fwd PE | 25.62 | ||
| P/S | 2.43 | ||
| P/FCF | 32.68 | ||
| P/OCF | 22.55 | ||
| P/B | 3.27 | ||
| P/tB | 6.68 | ||
| EV/EBITDA | 19.91 |
EPS(TTM)1.1
EY3.38%
EPS(NY)1.27
Fwd EY3.9%
FCF(TTM)1
FCFY3.06%
OCF(TTM)1.44
OCFY4.43%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)1.68
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 | 3.87 |
F-Score8
WACC10.09%
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 3Y8.03%
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 29.59 and the Price/Book (PB) ratio is 3.27.
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%.