(DRS) Leonardo DRS, Common Stock - Ratings and Ratios
Sensors, Radars, Computing, Power, Propulsion
Dividends
| Dividend Yield | 1.06% |
| Yield on Cost 5y | 4.00% |
| Yield CAGR 5y | 0.00% |
| Payout Consistency | 100.0% |
| Payout Ratio | 32.7% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 38.4% |
| Value at Risk 5%th | 59.2% |
| Relative Tail Risk | -6.24% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.05 |
| Alpha | -18.30 |
| CAGR/Max DD | 1.43 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.402 |
| Beta | 0.966 |
| Beta Downside | 0.816 |
| Drawdowns 3y | |
|---|---|
| Max DD | 31.38% |
| Mean DD | 6.27% |
| Median DD | 4.34% |
Description: DRS Leonardo DRS, Common Stock October 30, 2025
Leonardo DRS, Inc. (NASDAQ:DRS) is a U.S.-based defense contractor that designs, develops, and manufactures electronic systems and provides military support services worldwide. The company operates through two primary segments: Advanced Sensing and Computing (ASC) and Integrated Mission Systems.
The ASC segment delivers real-time situational-awareness technologies-including long-range electro-optic/infrared sensors, signals-intelligence equipment, active electronically scanned-array radars, and space-sensing solutions-plus network-computing platforms for battle-management, command-and-control, and tactical communications. It also offers electrical-propulsion products such as power-dense permanent-magnet motors, energy-storage modules, and thermal-management systems for ground, naval, and aerospace platforms.
Key quantitative indicators (FY 2023) show DRS generated roughly $2.0 billion in revenue with a backlog of about $2.3 billion, reflecting strong demand from U.S. and allied defense programs. The company’s operating margin hovered near 7 %, and its R&D spend was approximately 5 % of revenue, underscoring a focus on next-generation sensor and propulsion technologies.
Sector-wide drivers that materially affect DRS include the U.S. defense budget’s multi-year growth (projected FY 2025-2029 average annual increase of ~3 %), heightened geopolitical tensions that spur procurement of advanced ISR and electronic-warfare capabilities, and the ongoing modernization of legacy platforms that require retro-fit power-conversion and sensor upgrades.
For a deeper quantitative view of DRS’s valuation metrics, you might explore the analyst tools on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (265.0m TTM) > 0 and > 6% of Revenue (6% = 214.1m TTM) |
| FCFTA 0.06 (>2.0%) and ΔFCFTA -0.72pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 30.37% (prev 30.83%; Δ -0.45pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.09 (>3.0%) and CFO 384.0m > Net Income 265.0m (YES >=105%, WARN >=100%) |
| Net Debt (162.0m) to EBITDA (426.0m) ratio: 0.38 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.00 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (268.8m) change vs 12m ago 0.30% (target <= -2.0% for YES) |
| Gross Margin 23.40% (prev 22.37%; Δ 1.03pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 88.06% (prev 82.34%; Δ 5.72pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 30.36 (EBITDA TTM 426.0m / Interest Expense TTM 11.0m) >= 6 (WARN >= 3) |
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 (Balance) -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 |
| Total Rating: -1.24 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 65.84
| 1. Piotroski 7.0pt |
| 2. FCF Yield 2.90% |
| 3. FCF Margin 7.43% |
| 4. Debt/Equity 0.18 |
| 5. Debt/Ebitda 0.38 |
| 6. ROIC - WACC (= 0.24)% |
| 7. RoE 10.22% |
| 8. Rev. Trend 60.79% |
| 9. EPS Trend -0.83% |
What is the price of DRS shares?
Over the past week, the price has changed by +2.05%, over one month by -4.50%, over three months by -17.15% and over the past year by +0.43%.
Is DRS a buy, sell or hold?
- Strong Buy: 5
- Buy: 1
- Hold: 2
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the DRS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 47.3 | 39.4% |
| Analysts Target Price | 47.3 | 39.4% |
| ValueRay Target Price | 42.4 | 25.1% |
DRS Fundamental Data Overview November 26, 2025
P/E Trailing = 34.1212
P/E Forward = 26.2467
P/S = 2.5188
P/B = 3.3786
Beta = 0.228
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 = 9.15b USD (8.99b + Debt 471.0m - CCE 309.0m)
Interest Coverage Ratio = 30.36 (Ebit TTM 334.0m / Interest Expense TTM 11.0m)
FCF Yield = 2.90% (FCF TTM 265.0m / Enterprise Value 9.15b)
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 = 2.16 (Enterprise Value 9.15b / 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 = 6.24% (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 = 9.13% (E(8.99b)/V(9.46b) * Re(9.57%) + D(471.0m)/V(9.46b) * Rd(0.85%) * (1-Tc(0.17)))
Discount Rate = 9.57% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.58%
[DCF Debug] Terminal Value 63.88% ; FCFE base≈266.6m ; Y1≈175.0m ; Y5≈80.0m
Fair Price DCF = 4.68 (DCF Value 1.24b / Shares Outstanding 266.0m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -0.83 | EPS CAGR: 32.83% | SUE: 0.91 | # QB: 4
Revenue Correlation: 60.79 | Revenue CAGR: 4.29% | SUE: 1.57 | # QB: 1
EPS next Quarter (2026-03-31): EPS=0.21 | Chg30d=+0.005 | Revisions Net=+0 | Analysts=6
EPS next Year (2026-12-31): EPS=1.26 | Chg30d=-0.014 | Revisions Net=-1 | Growth EPS=+14.9% | Growth Revenue=+6.7%
Additional Sources for DRS Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle