DRS Stock Analysis: Leonardo DRS, Common Stock | NASDAQ
Aerospace & Defense | NASDAQ, USA | Market Cap: 9.076m USD | 12M Return: 1.7% | US52661A1088 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 53.1M
EPS Trend: 99.3%
Qual. Beats: 4
Rev. Trend: 99.4%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 11.9 years of data, until 10/2026
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, ≥40 worth a closer look and ≥60 is strong.
Leonardo DRS, Inc. (NASDAQ: DRS) is a U.S.-based defense electronics company that designs, manufactures, and services advanced military systems for customers worldwide. The company operates through two segments: Advanced Sensing and Computing, which focuses on sensors, network computing, and situational awareness technologies, and Integrated Mission Systems, which produces electrical propulsion, power conversion, and thermal management systems for military platforms.
The company was incorporated in 1968 and is headquartered in Arlington, Virginia. It trades as a mid-cap stock in the Industrials sector (Aerospace & Defense sub-industry) following its November 2022 listing, and operates as a subsidiary of Leonardo US Holding, LLC. As a defense prime and sub-prime contractor, Leonardo DRS primarily generates revenue through long-term U.S. Department of Defense and allied government procurement programs, a model characterized by multi-year contracts, rigorous certification requirements, and high barriers to entry.
- ASC segment revenue accelerates on sensing and computing demand
- Integrated Mission Systems margins expand on power conversion backlog
- US defense budget priorities boost electronic warfare and radar orders
| Net Income: 365.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 1.62 > 1.0 |
| NWC/Revenue: 26.31% < 20% (prev 30.37%; Δ -4.07% < -1%) |
| CFO/TA 0.11 > 3% & CFO 490.0m > Net Income 365.0m |
| Net Debt (123.0m) to EBITDA (525.0m): 0.23 < 3 |
| Current Ratio: 1.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (268.3m) vs 12m ago -0.20% < -2% |
| Gross Margin: 25.25% > 18% (prev 23.40%; Δ 1.86% > 0.5%) |
| Asset Turnover: 90.15% > 50% (prev 84.08%; Δ 6.07% > 0%) |
| Interest Coverage Ratio: 53.0 > 6 (EBIT TTM 424.0m / Interest Expense TTM 8.00m) |
| A: 0.23 (Total Current Assets 2.18b - Total Current Liabilities 1.16b) / Total Assets 4.37b |
| B: -0.47 (Retained Earnings -2.05b / Total Assets 4.37b) |
| C: 0.10 (EBIT TTM 424.0m / Avg Total Assets 4.31b) |
| D: 1.95 (Book Value of Equity 2.89b / Total Liabilities 1.48b) |
| Altman-Z'' = 2.71 = A |
| DSRI: 0.24 (Receivables 358.0m/1.38b, Revenue 3.88b/3.57b) |
| GMI: 0.93 (GM 23.40% / 25.25%) |
| AQI: 0.98 (AQ_t 0.37 / AQ_t-1 0.38) |
| SGI: 1.09 (Revenue 3.88b / 3.57b) |
| TATA: -0.03 (NI 365.0m - CFO 490.0m) / TA 4.37b) |
| Beneish M = -3.67 (Cap -4..+1) = AAA |
As of November 13, 2026, the stock is trading at USD 35.66 with a total of 648,291 shares traded. Over the past week, the price has changed by +8.33%, over one month by +0.36%, over three months by -20.70% and over the past year by +1.68%.
Current recommended Stop Loss: 33.50 (which is 6.1% or 1.3 ATR below the current price).
Leonardo DRS, Common Stock has received a consensus analysts rating of 4.58. Therefore, it is recommended to buy DRS.
- StrongBuy: 9
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 52.6 | 47.4% |
P/E Trailing = 25.0294
P/E Forward = 21.4133
P/S = 2.3361
P/B = 3.1404
P/EG = 1.7841
Revenue TTM = 3.88b USD
EBIT TTM = 424.0m USD
EBITDA TTM = 525.0m USD
Long Term Debt = 165.0m USD (from longTermDebt, last quarter)
Short Term Debt = 44.0m USD (from shortTermDebt, last quarter)
Debt = 417.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 121.0m
Net Debt = 123.0m USD (calculated: Debt 417.0m - CCE 294.0m)
Enterprise Value = 9.20b USD (9.08b + Debt 417.0m - CCE 294.0m)
Interest Coverage Ratio = 53.0 (Ebit TTM 424.0m / Interest Expense TTM 8.00m)
EV/FCF = 26.74x (Enterprise Value 9.20b / FCF TTM 344.0m)
FCF Yield = 3.74% (FCF TTM 344.0m / Enterprise Value 9.20b)
FCF Margin = 8.85% (FCF TTM 344.0m / Revenue TTM 3.88b)
Net Margin = 9.40% (Net Income TTM 365.0m / Revenue TTM 3.88b)
Gross Margin = 25.25% ((Revenue TTM 3.88b - Cost of Revenue TTM 2.90b) / Revenue TTM)
Gross Margin QoQ = 24.67% (prev 25.96%)
Tobins Q-Ratio = 2.10 (Enterprise Value 9.20b / Total Assets 4.37b)
Interest Expense / Debt = 1.92% (Interest Expense 8.00m / Debt 417.0m)
Taxrate = 12.47% (52.0m / 417.0m)
NOPAT = 371.1m (EBIT 424.0m * (1 - 12.47%))
Current Ratio = 1.88 (Total Current Assets 2.18b / Total Current Liabilities 1.16b)
Debt / Equity = 0.14 (Debt 417.0m / totalStockholderEquity, last quarter 2.89b)
Debt / EBITDA = 0.23 (Net Debt 123.0m / EBITDA 525.0m)
Debt / FCF = 0.36 (Net Debt 123.0m / FCF TTM 344.0m)
Total Stockholder Equity = 2.80b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.47% (Net Income 365.0m / Total Assets 4.37b)
RoE = 13.04% (Net Income TTM 365.0m / Total Stockholder Equity 2.80b)
RoCE = 14.31% (EBIT 424.0m / Capital Employed (Equity 2.80b + L.T.Debt 165.0m))
RoIC = 12.10% (NOPAT 371.1m / Invested Capital 3.07b)
WACC = 6.68% (E(9.08b)/V(9.49b) * Re(6.91%) + D(417.0m)/V(9.49b) * Rd(1.92%) * (1-Tc(0.12)))
Discount Rate = 6.91% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 65.56 | Cagr: 0.21%
[DCF] Terminal Value 77.97% ; FCFF base≈312.4m ; Y1≈358.1m ; Y5≈527.0m
[DCF] Fair Price = 29.29 (EV 7.93b - Net Debt 123.0m = Equity 7.81b / Shares 266.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.27 | EPS CAGR: 26.50% | SUE: 4.0 | # QB: 4
Revenue Correlation: 99.40 | Revenue CAGR: 11.91% | SUE: 1.63 | # QB: 1
EPS current Quarter (2027-03-31): EPS=0.28 | Chg30d=+12.68% | Revisions=+25% | Analysts=6
EPS current Year (2026-12-31): EPS=1.51 | Chg30d=+9.69% | Revisions=+40% | GrowthEPS=+31.7% | GrowthRev=+8.9%
EPS next Year (2027-12-31): EPS=1.53 | Chg30d=+4.59% | Revisions=+40% | GrowthEPS=+1.3% | GrowthRev=+8.3%
[Analyst] Revisions Ratio: +62% (up=5, down=0)