LEONARDO DRS INC (DRS) Stock Fundamental Analysis

NASDAQ:DRS • US52661A1088

38.13 USD
+0.36 (+0.95%)
At close: Feb 13, 2026
38.13 USD
0 (0%)
After Hours: 2/13/2026, 8:03:55 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall DRS gets a fundamental rating of 6 out of 10. We evaluated DRS against 73 industry peers in the Aerospace & Defense industry. DRS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. DRS is not overvalued while it is showing excellent growth. This is an interesting combination. This makes DRS very considerable for growth investing!


Dividend Valuation Growth Profitability Health

6

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.
  • Of the past 5 years DRS 4 years had a positive operating cash flow.
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

  • The Return On Assets of DRS (6.24%) is better than 73.97% of its industry peers.
  • DRS's Return On Equity of 10.01% is fine compared to the rest of the industry. DRS outperforms 65.75% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 9.17%, DRS is in the better half of the industry, outperforming 78.08% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for DRS is significantly above the industry average of 8.71%.
  • 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

  • DRS's Profit Margin of 7.43% is fine compared to the rest of the industry. DRS outperforms 69.86% of its industry peers.
  • In the last couple of years the Profit Margin of DRS has declined.
  • The Operating Margin of DRS (9.67%) is comparable to the rest of the industry.
  • DRS's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 23.40%, DRS perfoms like the industry average, outperforming 47.95% of the companies in the same industry.
  • 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • 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.
  • The debt/assets ratio for DRS has been reduced compared to a year ago.
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 4.39 indicates that DRS is not in any danger for bankruptcy at the moment.
  • DRS has a Altman-Z score (4.39) 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.
  • With an excellent Debt to FCF ratio value of 1.32, DRS belongs to the best of the industry, outperforming 95.89% 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.
  • DRS has a better Debt to Equity ratio (0.12) than 78.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 1.32
Altman-Z 4.39
ROIC/WACC0.94
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 0 500M 1B 1.5B 2B 2.5B

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.
  • Looking at the Current ratio, with a value of 2.00, DRS is doing worse than 61.64% of the companies in the same industry.
  • 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.
  • The Quick ratio of DRS (1.63) is better than 60.27% of its industry peers.
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

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

7

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 26.44% over the past year.
  • 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.
  • 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

  • Based on estimates for the next years, DRS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.13% on average per year.
  • The Revenue is expected to grow by 7.27% on average over the next years.
EPS Next Y17.44%
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

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 34.66, DRS can be considered very expensive at the moment.
  • 75.34% of the companies in the same industry are more expensive than DRS, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.97. DRS is valued slightly more expensive when compared to this.
  • DRS is valuated quite expensively with a Price/Forward Earnings ratio of 30.06.
  • 72.60% 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 27.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 34.66
Fwd PE 30.06
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 65.75% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, DRS is valued cheaply inside the industry as 80.82% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 38.28
EV/EBITDA 23.09
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)1.99
PEG (5Y)N/A
EPS Next 2Y16.17%
EPS Next 3Y14.55%

More info and screens

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

3

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.97%, DRS is not a good candidate for dividend investing.
  • DRS's Dividend Yield is rather good when compared to the industry average which is at 0.35. DRS pays more dividend than 87.67% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.79, DRS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.97%

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

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LEONARDO DRS INC

NASDAQ:DRS (2/13/2026, 8:03:55 PM)

After market: 38.13 0 (0%)

38.13

+0.36 (+0.95%)

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-2.35%
Ins Owners0.29%
Ins Owner Change-7.15%
Market Cap10.14B
Revenue(TTM)3.57B
Net Income(TTM)265.00M
Analysts81.43
Price Target49.24 (29.14%)
Short Float %4.08%
Short Ratio2.91
Dividend
Industry RankSector Rank
Dividend Yield 0.97%
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)2.93%
PT rev (3m)-1.93%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 34.66
Fwd PE 30.06
P/S 2.84
P/FCF 38.28
P/OCF 26.42
P/B 3.83
P/tB 7.83
EV/EBITDA 23.09
EPS(TTM)1.1
EY2.88%
EPS(NY)1.27
Fwd EY3.33%
FCF(TTM)1
FCFY2.61%
OCF(TTM)1.44
OCFY3.79%
SpS13.42
BVpS9.95
TBVpS4.87
PEG (NY)1.99
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 4.39
F-Score8
WACC9.74%
ROIC/WACC0.94
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 Y17.44%
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 34.66 and the Price/Book (PB) ratio is 3.83.


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%.