(DRS) Leonardo DRS, Common Stock - Overview
Electro-Optic, Radar, Computing, Propulsion, Power
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.99% |
| Yield on Cost 5y | 3.50% |
| Yield CAGR 5y | 0.00% |
| Payout Consistency | 100.0% |
| Payout Ratio | 32.7% |
| Risk 5d forecast | |
|---|---|
| Volatility | 38.8% |
| Relative Tail Risk | -8.05% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.56 |
| Alpha | 6.11 |
| Character TTM | |
|---|---|
| Beta | 0.892 |
| Beta Downside | 0.761 |
| Drawdowns 3y | |
|---|---|
| Max DD | 32.48% |
| CAGR/Max DD | 1.54 |
Description: DRS Leonardo DRS, Common Stock January 02, 2026
Leonardo DRS, Inc. (NASDAQ:DRS) is a U.S.-based defense contractor that designs, develops, and manufactures electronic products, mission-critical systems, and support services for military customers worldwide. The company operates through two primary segments: Advanced Sensing & Computing (ASC) and Integrated Mission Systems (IMS). ASC focuses on real-time situational-awareness technologies-including electro-optical/infrared sensors, signals-intelligence suites, active electronically scanned-array radars, and soldier-wearable sensors-while also supplying high-performance electrical-propulsion and power-management solutions for ground, naval, and space platforms.
In fiscal 2023, DRS reported approximately $2.1 billion in revenue with an operating margin of 9.2% and a backlog of roughly $1.2 billion, indicating a solid order pipeline that is weighted heavily toward U.S. Department of Defense contracts. The company’s earnings are highly sensitive to annual U.S. defense appropriations, which have risen 5% year-over-year in FY2024 due to increased funding for electronic warfare, AI-enabled sensing, and platform modernization-a macro trend that directly underpins DRS’s growth prospects.
Key performance drivers include (1) the expanding U.S. defense budget for next-generation electronic warfare and autonomous systems, (2) DRS’s ability to cross-sell ASC power-conversion technologies into existing radar and combat-system platforms, and (3) a free-cash-flow conversion rate of about 75% of operating cash flow, which supports ongoing R&D investment and potential strategic acquisitions. For a deeper, data-rich analysis of DRS’s valuation dynamics, consider exploring the company’s profile on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 265.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -0.72 > 1.0 |
| NWC/Revenue: 30.37% < 20% (prev 30.83%; Δ -0.45% < -1%) |
| CFO/TA 0.09 > 3% & CFO 384.0m > Net Income 265.0m |
| Net Debt (162.0m) to EBITDA (426.0m): 0.38 < 3 |
| Current Ratio: 2.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (268.8m) vs 12m ago 0.30% < -2% |
| Gross Margin: 23.40% > 18% (prev 0.22%; Δ 2317 % > 0.5%) |
| Asset Turnover: 88.06% > 50% (prev 82.34%; Δ 5.72% > 0%) |
| Interest Coverage Ratio: 30.36 > 6 (EBITDA TTM 426.0m / Interest Expense TTM 11.0m) |
Altman Z'' -1.24
| A: 0.26 (Total Current Assets 2.17b - Total Current Liabilities 1.08b) / Total Assets 4.25b |
| B: -0.57 (Retained Earnings -2.42b / Total Assets 4.25b) |
| C: 0.08 (EBIT TTM 334.0m / Avg Total Assets 4.05b) |
| D: -1.54 (Book Value of Equity -2.46b / Total Liabilities 1.60b) |
| Altman-Z'' Score: -1.24 = CCC |
Beneish M -3.06
| DSRI: 1.00 (Receivables 1.38b/1.23b, Revenue 3.57b/3.18b) |
| GMI: 0.96 (GM 23.40% / 22.37%) |
| AQI: 0.92 (AQ_t 0.38 / AQ_t-1 0.41) |
| SGI: 1.12 (Revenue 3.57b / 3.18b) |
| TATA: -0.03 (NI 265.0m - CFO 384.0m) / TA 4.25b) |
| Beneish M-Score: -3.06 (Cap -4..+1) = AA |
What is the price of DRS shares?
Over the past week, the price has changed by +2.44%, over one month by +24.44%, over three months by +5.98% and over the past year by +19.91%.
Is DRS a buy, sell or hold?
- StrongBuy: 5
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the DRS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 48.1 | 13.3% |
| Analysts Target Price | 48.1 | 13.3% |
| ValueRay Target Price | 58.4 | 37.5% |
DRS Fundamental Data Overview January 27, 2026
P/E Forward = 32.0513
P/S = 3.0564
P/B = 4.118
Revenue TTM = 3.57b USD
EBIT TTM = 334.0m USD
EBITDA TTM = 426.0m USD
Long Term Debt = 326.0m USD (from longTermDebt, last quarter)
Short Term Debt = 52.0m USD (from shortTermDebt, last quarter)
Debt = 471.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 162.0m USD (from netDebt column, last quarter)
Enterprise Value = 11.07b USD (10.91b + Debt 471.0m - CCE 309.0m)
Interest Coverage Ratio = 30.36 (Ebit TTM 334.0m / Interest Expense TTM 11.0m)
EV/FCF = 41.78x (Enterprise Value 11.07b / FCF TTM 265.0m)
FCF Yield = 2.39% (FCF TTM 265.0m / Enterprise Value 11.07b)
FCF Margin = 7.43% (FCF TTM 265.0m / Revenue TTM 3.57b)
Net Margin = 7.43% (Net Income TTM 265.0m / Revenue TTM 3.57b)
Gross Margin = 23.40% ((Revenue TTM 3.57b - Cost of Revenue TTM 2.73b) / Revenue TTM)
Gross Margin QoQ = 23.12% (prev 23.76%)
Tobins Q-Ratio = 2.61 (Enterprise Value 11.07b / Total Assets 4.25b)
Interest Expense / Debt = 0.85% (Interest Expense 4.00m / Debt 471.0m)
Taxrate = 17.24% (15.0m / 87.0m)
NOPAT = 276.4m (EBIT 334.0m * (1 - 17.24%))
Current Ratio = 2.00 (Total Current Assets 2.17b / Total Current Liabilities 1.08b)
Debt / Equity = 0.18 (Debt 471.0m / totalStockholderEquity, last quarter 2.65b)
Debt / EBITDA = 0.38 (Net Debt 162.0m / EBITDA 426.0m)
Debt / FCF = 0.61 (Net Debt 162.0m / FCF TTM 265.0m)
Total Stockholder Equity = 2.59b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.54% (Net Income 265.0m / Total Assets 4.25b)
RoE = 10.22% (Net Income TTM 265.0m / Total Stockholder Equity 2.59b)
RoCE = 11.44% (EBIT 334.0m / Capital Employed (Equity 2.59b + L.T.Debt 326.0m))
RoIC = 9.37% (NOPAT 276.4m / Invested Capital 2.95b)
WACC = 8.85% (E(10.91b)/V(11.38b) * Re(9.20%) + D(471.0m)/V(11.38b) * Rd(0.85%) * (1-Tc(0.17)))
Discount Rate = 9.20% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.58%
[DCF Debug] Terminal Value 66.46% ; FCFF base≈266.6m ; Y1≈175.0m ; Y5≈79.9m
Fair Price DCF = 4.50 (EV 1.36b - Net Debt 162.0m = Equity 1.20b / Shares 266.0m; r=8.85% [WACC]; 5y FCF grow -40.0% → 2.90% )
[DCF Warning] FCF declining rapidly (-40.0%), DCF may be unreliable
EPS Correlation: -14.48 | EPS CAGR: 2.57% | SUE: 0.0 | # QB: 0
Revenue Correlation: 60.79 | Revenue CAGR: 4.29% | SUE: 1.57 | # QB: 1
EPS next Quarter (2026-03-31): EPS=0.21 | Chg30d=+0.000 | Revisions Net=+0 | Analysts=6
EPS next Year (2026-12-31): EPS=1.26 | Chg30d=-0.003 | Revisions Net=-1 | Growth EPS=+14.9% | Growth Revenue=+6.7%