LEONARDO DRS INC (DRS) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:DRS • US52661A1088

41.51 USD
+1.06 (+2.62%)
At close: Feb 3, 2026
41.55 USD
+0.04 (+0.1%)
Pre-Market: 2/4/2026, 4:18:44 AM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to DRS. DRS was compared to 72 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make DRS a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

6

1. Profitability

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 0 200M 400M 600M 800M

1.2 Ratios

  • DRS's Return On Assets of 6.24% is fine compared to the rest of the industry. DRS outperforms 73.61% of its industry peers.
  • DRS's Return On Equity of 10.01% is fine compared to the rest of the industry. DRS outperforms 66.67% of its industry peers.
  • DRS has a better Return On Invested Capital (9.17%) than 79.17% 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 8.66%.
  • 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 RankSector 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%
DRS Yearly ROA, ROE, ROICDRS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

  • Looking at the Profit Margin, with a value of 7.43%, DRS is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
  • DRS's Profit Margin has declined in the last couple of years.
  • DRS has a Operating Margin of 9.67%. This is comparable to the rest of the industry: DRS outperforms 59.72% of its industry peers.
  • DRS's Operating Margin has declined in the last couple of years.
  • DRS's Gross Margin of 23.40% is in line compared to the rest of the industry. DRS outperforms 48.61% of its industry peers.
  • In the last couple of years the Gross Margin of DRS has declined.
Industry RankSector 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%
DRS Yearly Profit, Operating, Gross MarginsDRS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DRS is still 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.
  • 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 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 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 4.77 indicates that DRS is not in any danger for bankruptcy at the moment.
  • DRS has a Altman-Z score (4.77) which is in line with its industry peers.
  • DRS has a debt to FCF ratio of 1.32. This is a very positive value and a sign of high solvency as it would only need 1.32 years to pay back of all of its debts.
  • DRS's Debt to FCF ratio of 1.32 is amongst the best of the industry. DRS outperforms 95.83% 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 77.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.32
Altman-Z 4.77
ROIC/WACC0.88
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 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 2.00 indicates that DRS has no problem at all paying its short term obligations.
  • DRS's Current ratio of 2.00 is on the low side compared to the rest of the industry. DRS is outperformed by 61.11% of its industry peers.
  • A Quick Ratio of 1.63 indicates that DRS should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.63, DRS is in line with its industry, outperforming 59.72% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 1.63
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 500M 1B 1.5B 2B

7

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.
  • Looking at the last year, DRS shows a quite strong growth in Revenue. The Revenue has grown by 12.27% in the last year.
  • DRS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 135.87% yearly.
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

  • The Earnings Per Share is expected to grow by 12.13% on average over the next years. This is quite good.
  • 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 2Y16.17%
EPS Next 3Y14.55%
EPS Next 5Y12.13%
Revenue Next Year12.22%
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.
  • 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

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 37.74, DRS can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of DRS indicates a somewhat cheap valuation: DRS is cheaper than 69.44% of the companies listed in the same industry.
  • DRS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.18.
  • Based on the Price/Forward Earnings ratio of 32.72, the valuation of DRS can be described as expensive.
  • Based on the Price/Forward Earnings ratio, DRS is valued a bit cheaper than 69.44% of the companies in the same industry.
  • DRS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 37.74
Fwd PE 32.72
DRS Price Earnings VS Forward Price EarningsDRS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DRS is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
  • 75.00% of the companies in the same industry are more expensive than DRS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 41.67
EV/EBITDA 25.36
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 DRS does not grow enough to justify the current Price/Earnings ratio.
  • 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 14.55% in the coming years.
PEG (NY)2.14
PEG (5Y)N/A
EPS Next 2Y16.17%
EPS Next 3Y14.55%

3

5. Dividend

5.1 Amount

  • DRS has a yearly dividend return of 0.87%, which is pretty low.
  • DRS's Dividend Yield is rather good when compared to the industry average which is at 0.34. DRS pays more dividend than 86.11% of the companies in the same industry.
  • With a Dividend Yield of 0.87, DRS pays less dividend than the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 0.87%

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 0.1 0.2 0.3

5.3 Sustainability

  • DRS pays out 27.17% of its income as dividend. This is a sustainable payout ratio.
DP27.17%
EPS Next 2Y16.17%
EPS Next 3Y14.55%
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 0 100M 200M 300M 400M
DRS Dividend Payout.DRS Dividend Payout, showing the Payout Ratio.DRS Dividend Payout.PayoutRetained Earnings

LEONARDO DRS INC

NASDAQ:DRS (2/3/2026, 8:11:26 PM)

Premarket: 41.55 +0.04 (+0.1%)

41.51

+1.06 (+2.62%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-29
Earnings (Next)02-24
Inst Owners26.48%
Inst Owner Change-2.79%
Ins Owners0.29%
Ins Owner Change-7.15%
Market Cap11.04B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target49.06 (18.19%)
Short Float %4.08%
Short Ratio2.91
Dividend
Industry RankSector Rank
Dividend Yield 0.87%
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)2.56%
PT rev (3m)-2.28%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-4.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.06%
Valuation
Industry RankSector Rank
PE 37.74
Fwd PE 32.72
P/S 3.09
P/FCF 41.67
P/OCF 28.76
P/B 4.17
P/tB 8.52
EV/EBITDA 25.36
EPS(TTM)1.1
EY2.65%
EPS(NY)1.27
Fwd EY3.06%
FCF(TTM)1
FCFY2.4%
OCF(TTM)1.44
OCFY3.48%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)2.14
PEG (5Y)N/A
Graham Number15.7
Profitability
Industry RankSector 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 RankSector 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 4.77
F-Score8
WACC10.44%
ROIC/WACC0.88
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 2Y16.17%
EPS Next 3Y14.55%
EPS Next 5Y12.13%
Revenue 1Y (TTM)12.27%
Revenue growth 3Y202.18%
Revenue growth 5Y135.87%
Sales Q2Q%18.23%
Revenue Next Year12.22%
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 Year40.19%
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 37.74 and the Price/Book (PB) ratio is 4.17.


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%.