34.78 USD
+0.69 (+2.02%)
34.78 USD
0 (0%)
Overall DRS gets a fundamental rating of 6 out of 10. We evaluated DRS against 71 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of DRS get a neutral evaluation. Nothing too spectacular is happening here. DRS is growing strongly while it is still valued neutral. This is a good combination! This makes DRS very considerable for growth investing!
1. Profitability
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.
1.2 Ratios
With a decent Return On Assets value of 6.24%, DRS is doing good in the industry, outperforming 73.24% of the companies in the same industry.
DRS has a Return On Equity of 10.01%. This is in the better half of the industry: DRS outperforms 66.20% of its industry peers.
DRS has a better Return On Invested Capital (9.17%) 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
The Profit Margin of DRS (7.43%) is better than 67.61% of its industry peers.
DRS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.67%, DRS is in line with its industry, outperforming 59.15% of the companies in the same industry.
In the last couple of years the Operating Margin of DRS has declined.
DRS has a Gross Margin (23.40%) which 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DRS is creating some value.
DRS has more shares outstanding than it did 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 4.03 indicates that DRS is not in any danger for bankruptcy at the moment.
DRS has a Altman-Z score of 4.03. This is comparable to the rest of the industry: DRS outperforms 53.52% of 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 has a Debt to FCF ratio of 1.32. This is amongst the best in 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.
Looking at the Debt to Equity ratio, with a value of 0.12, DRS is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 4.03 |
ROIC/WACC0.93
WACC9.81%
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 61.97% of its industry peers.
DRS has a Quick Ratio of 1.63. 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 1.63 is in line compared to the rest of the industry. DRS outperforms 59.15% of its industry peers.
| 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.
The Earnings Per Share has been growing by 23.42% on average over the past years. This is a very strong growth
DRS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.27%.
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.
The Revenue is expected to grow by 7.27% on average over the next years.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 31.62, which means the current valuation is very expensive for DRS.
Compared to the rest of the industry, the Price/Earnings ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 74.65% of the companies listed in the same industry.
DRS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 27.37, DRS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 73.24% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. DRS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.62 | ||
| Fwd PE | 27.37 |
4.2 Price Multiples
DRS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DRS is cheaper than 70.42% of the companies in the same industry.
77.46% of the companies in the same industry are more expensive than DRS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.92 | ||
| EV/EBITDA | 20.85 |
4.3 Compensation for Growth
DRS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DRS 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)1.79
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, DRS has a reasonable but not impressive dividend return.
In the last 3 months the price of DRS has falen by -21.65%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
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.
Compared to an average S&P500 Dividend Yield of 2.00, 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%
34.78
+0.69 (+2.02%)
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 Cap9.25B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target47.84 (37.55%)
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-DateN/A
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 | 31.62 | ||
| Fwd PE | 27.37 | ||
| P/S | 2.59 | ||
| P/FCF | 34.92 | ||
| P/OCF | 24.1 | ||
| P/B | 3.49 | ||
| P/tB | 7.14 | ||
| EV/EBITDA | 20.85 |
EPS(TTM)1.1
EY3.16%
EPS(NY)1.27
Fwd EY3.65%
FCF(TTM)1
FCFY2.86%
OCF(TTM)1.44
OCFY4.15%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)1.79
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
WACC9.81%
ROIC/WACC0.93
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
Can you provide the ChartMill fundamental rating for LEONARDO DRS INC?
ChartMill assigns a fundamental rating of 6 / 10 to DRS.
Can you provide the valuation status for LEONARDO DRS INC?
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 are the PE and PB ratios of LEONARDO DRS INC (DRS) stock?
The Price/Earnings (PE) ratio for LEONARDO DRS INC (DRS) is 31.62 and the Price/Book (PB) ratio is 3.49.
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 27.17%.