(DRS) Leonardo DRS, Common Stock - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NASDAQ (USA) | Market Cap: 11.983m USD | Total Return: 6.6% in 12m
Avg Turnover: 34.8M
EPS Trend: 1.4%
Qual. Beats: 6
Rev. Trend: 99.5%
Qual. Beats: 3
Warnings
Altman Z'' -1.35 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Leonardo DRS, Inc. is a defense electronics provider specializing in advanced sensing, network computing, and integrated mission systems for global military applications. The company operates through two primary segments: Advanced Sensing and Computing, which focuses on real-time situational awareness and electronic warfare, and Integrated Mission Systems, which develops naval propulsion and power management technologies.
As a Tier 2 defense contractor, the company’s business model relies on integrating specialized components into larger platforms managed by prime contractors or government agencies. The aerospace and defense sector is characterized by high barriers to entry due to stringent security clearances and long-term research and development cycles required for mission-critical hardware.
To better understand the companys financial health, examine the latest valuation metrics on ValueRay.
Headquartered in Arlington, Virginia, Leonardo DRS operates as a subsidiary of Leonardo US Holding, LLC, maintaining a legacy in the defense industry dating back to 1968. Its portfolio includes diverse technologies ranging from space sensing and tactical radars to permanent magnet motors and thermal management systems for maritime vessels.
- U.S. Navy shipbuilding expansion drives demand for integrated electric propulsion systems
- Pentagon budget allocation for electronic warfare and tactical radars fuels revenue
- Supply chain stability and labor costs impact advanced sensing manufacturing margins
- Geopolitical tensions increase global demand for battlefield situational awareness technology
- Integration of Leonardo SpA parent company resources enhances large-scale defense contract bidding
| Net Income: 290.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 0.04 > 1.0 |
| NWC/Revenue: 25.74% < 20% (prev 31.18%; Δ -5.44% < -1%) |
| CFO/TA 0.10 > 3% & CFO 438.0m > Net Income 290.0m |
| Net Debt (63.0m) to EBITDA (457.0m): 0.14 < 3 |
| Current Ratio: 1.86 > 1.5 & < 3 |
| Outstanding Shares: last quarter (268.8m) vs 12m ago 0.0% < -2% |
| Gross Margin: 24.06% > 18% (prev 0.23%; Δ 2.38k% > 0.5%) |
| Asset Turnover: 88.96% > 50% (prev 81.67%; Δ 7.30% > 0%) |
| Interest Coverage Ratio: 51.86 > 6 (EBITDA TTM 457.0m / Interest Expense TTM 7.00m) |
| A: 0.23 (Total Current Assets 2.06b - Total Current Liabilities 1.10b) / Total Assets 4.21b |
| B: -0.54 (Retained Earnings -2.25b / Total Assets 4.21b) |
| C: 0.09 (EBIT TTM 363.0m / Avg Total Assets 4.15b) |
| D: -1.59 (Book Value of Equity -2.29b / Total Liabilities 1.44b) |
| Altman-Z'' = -1.35 = CCC |
| DSRI: 0.95 (Receivables 1.30b/1.24b, Revenue 3.69b/3.35b) |
| GMI: 0.95 (GM 24.06% / 22.84%) |
| AQI: 1.02 (AQ_t 0.39 / AQ_t-1 0.38) |
| SGI: 1.10 (Revenue 3.69b / 3.35b) |
| TATA: -0.04 (NI 290.0m - CFO 438.0m) / TA 4.21b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 44.92 with a total of 802,500 shares traded.
Over the past week, the price has changed by +8.47%,
over one month by +10.55%,
over three months by +6.47% and
over the past year by +6.63%.
Leonardo DRS, Common Stock has received a consensus analysts rating of 4.38. Therefore, it is recommended to buy DRS.
- StrongBuy: 5
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 52.9 | 17.8% |
P/E Trailing = 41.9813
P/E Forward = 35.0877
P/S = 3.243
P/B = 4.3279
Revenue TTM = 3.69b USD
EBIT TTM = 363.0m USD
EBITDA TTM = 457.0m USD
Long Term Debt = 140.0m USD (from longTermDebt, last quarter)
Short Term Debt = 40.0m USD (from shortTermDebt, last quarter)
Debt = 391.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 120.0m
Net Debt = 63.0m USD (calculated: Debt 391.0m - CCE 328.0m)
Enterprise Value = 12.0b USD (12.0b + Debt 391.0m - CCE 328.0m)
Interest Coverage Ratio = 51.86 (Ebit TTM 363.0m / Interest Expense TTM 7.00m)
EV/FCF = 40.02x (Enterprise Value 12.0b / FCF TTM 301.0m)
FCF Yield = 2.50% (FCF TTM 301.0m / Enterprise Value 12.0b)
FCF Margin = 8.15% (FCF TTM 301.0m / Revenue TTM 3.69b)
Net Margin = 7.85% (Net Income TTM 290.0m / Revenue TTM 3.69b)
Gross Margin = 24.06% ((Revenue TTM 3.69b - Cost of Revenue TTM 2.81b) / Revenue TTM)
Gross Margin QoQ = 24.47% (prev 24.81%)
Tobins Q-Ratio = 2.86 (Enterprise Value 12.0b / Total Assets 4.21b)
Interest Expense / Debt = 1.79% (Interest Expense 7.00m / Debt 391.0m)
Taxrate = 19.48% (15.0m / 77.0m)
NOPAT = 292.3m (EBIT 363.0m * (1 - 19.48%))
Current Ratio = 1.86 (Total Current Assets 2.06b / Total Current Liabilities 1.10b)
Debt / Equity = 0.14 (Debt 391.0m / totalStockholderEquity, last quarter 2.77b)
Debt / EBITDA = 0.14 (Net Debt 63.0m / EBITDA 457.0m)
Debt / FCF = 0.21 (Net Debt 63.0m / FCF TTM 301.0m)
Total Stockholder Equity = 2.69b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.98% (Net Income 290.0m / Total Assets 4.21b)
RoE = 5.87% (Net Income TTM 290.0m / Total Stockholder Equity 4.94b)
RoCE = 7.15% (EBIT 363.0m / Capital Employed (Equity 4.94b + L.T.Debt 140.0m))
RoIC = 9.29% (NOPAT 292.3m / Invested Capital 3.15b)
WACC = 8.31% (E(12.0b)/V(12.4b) * Re(8.53%) + D(391.0m)/V(12.4b) * Rd(1.79%) * (1-Tc(0.19)))
Discount Rate = 8.53% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.92 | Cagr: 0.52%
[DCF] Terminal Value 75.88% ; FCFF base≈297.0m ; Y1≈306.7m ; Y5≈343.8m
[DCF] Fair Price = 19.69 (EV 5.32b - Net Debt 63.0m = Equity 5.25b / Shares 266.8m; r=8.35% [WACC [floored]]; 5y FCF grow 3.44% → 2.50% )
EPS Correlation: 1.35 | EPS CAGR: 0.49% | SUE: 4.0 | # QB: 6
Revenue Correlation: 99.54 | Revenue CAGR: 13.34% | SUE: 0.94 | # QB: 3
EPS current Quarter (2026-06-30): EPS=0.27 | Chg30d=+2.01% | Revisions=+17% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.34 | Chg30d=-0.35% | Revisions=+9% | Analysts=10
EPS current Year (2026-12-31): EPS=1.30 | Chg30d=+3.63% | Revisions=+67% | GrowthEPS=+13.1% | GrowthRev=+7.9%
EPS next Year (2027-12-31): EPS=1.44 | Chg30d=+2.25% | Revisions=+45% | GrowthEPS=+10.7% | GrowthRev=+6.7%
[Analyst] Revisions Ratio: +67%