DRS Stock Analysis: Leonardo DRS, Common Stock | NASDAQ
Aerospace & Defense | NASDAQ, USA | Market Cap: 11.775m USD | 12M Return: 1.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 47.0M
EPS Trend: 1.4%
Qual. Beats: 6
Rev. Trend: 99.5%
Qual. Beats: 3
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Leonardo DRS, Inc. (NASDAQ: DRS) is a U.S.-based defense electronics company headquartered in Arlington, Virginia, operating as a subsidiary of Leonardo US Holding, LLC, the American arm of Italys Leonardo S.p.A. Founded in 1968 and taken public in late 2022, the company designs and manufactures advanced defense electronic systems and provides military support services to customers worldwide.
The business is organized into two segments. The Advanced Sensing and Computing segment produces sensing and network computing technologies used for real-time situational awareness, including electro-optic/infrared sensors, signals intelligence, electronic warfare systems, ground vehicle sensing, AESA tactical radars, and tactical networking and combat computing platforms for ground and shipboard applications. The Integrated Mission Systems segment provides electrical propulsion and power management technologies, including power conversion and distribution systems, permanent magnet motors, energy storage, advanced thermal management, motor controllers, and instrumentation and control equipment.
As a mid- to large-cap player in the Aerospace & Defense sub-industry (GICS Industrials sector), Leonardo DRS supplies critical subsystems rather than complete platforms, positioning it as a Tier 1/2 supplier to U.S. and allied defense primes and government end customers. Its focus on power electronics and sensing aligns with the Department of Defenses emphasis on all-electric propulsion, energy-efficient combat systems, and network-centric warfare, and its products are typically embedded in long-cycle military programs, providing revenue visibility tied to multi-year defense procurement budgets.
- Defense budget growth lifts missile detection and sensing orders
- Navy shipbuilding demand accelerates Integrated Mission Systems power conversion
- Parent company ownership limits independent capital allocation decisions
| 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 (456.0m): 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 22.84%; Δ 1.22% > 0.5%) |
| Asset Turnover: 88.96% > 50% (prev 81.67%; Δ 7.30% > 0%) |
| Interest Coverage Ratio: 51.71 > 6 (EBIT TTM 362.0m / 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 362.0m / Avg Total Assets 4.15b) |
| D: 1.92 (Book Value of Equity 2.77b / Total Liabilities 1.44b) |
| Altman-Z'' = 2.34 = BBB |
| DSRI: 0.95 (Receivables 1.30b/1.24b, Revenue 3.69b/3.35b) |
| GMI: 0.95 (GM 22.84% / 24.06%) |
| 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 = -3.03 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at USD 48.45 with a total of 671,694 shares traded. Over the past week, the price has changed by +9.10%, over one month by +18.32%, over three months by +19.23% and over the past year by +1.66%.
Current recommended Stop Loss: 46.40 (which is 4.2% or 1.3 ATR below the current price).
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 | 9.2% |
P/E Trailing = 41.2523
P/E Forward = 34.4828
P/S = 3.1867
P/B = 4.2509
Revenue TTM = 3.69b USD
EBIT TTM = 362.0m USD
EBITDA TTM = 456.0m 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 = 11.8b USD (11.8b + Debt 391.0m - CCE 328.0m)
Interest Coverage Ratio = 51.71 (Ebit TTM 362.0m / Interest Expense TTM 7.00m)
EV/FCF = 39.33x (Enterprise Value 11.8b / FCF TTM 301.0m)
FCF Yield = 2.54% (FCF TTM 301.0m / Enterprise Value 11.8b)
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 = 2.81 (Enterprise Value 11.8b / Total Assets 4.21b)
Interest Expense / Debt = 1.79% (Interest Expense 7.00m / Debt 391.0m)
Taxrate = 18.31% (65.0m / 355.0m)
NOPAT = 295.7m (EBIT 362.0m * (1 - 18.31%))
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 456.0m)
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 = 10.79% (Net Income TTM 290.0m / Total Stockholder Equity 2.69b)
RoCE = 12.81% (EBIT 362.0m / Capital Employed (Equity 2.69b + L.T.Debt 140.0m))
RoIC = 9.99% (NOPAT 295.7m / Invested Capital 2.96b)
WACC = 7.93% (E(11.8b)/V(12.2b) * Re(8.14%) + D(391.0m)/V(12.2b) * Rd(1.79%) * (1-Tc(0.18)))
Discount Rate = 8.14% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 90.54 | 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=+0.00% | Revisions=+18% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.34 | Chg30d=+0.00% | Revisions=+10% | Analysts=10
EPS current Year (2026-12-31): EPS=1.30 | Chg30d=+0.00% | Revisions=+73% | GrowthEPS=+13.1% | GrowthRev=+7.9%
EPS next Year (2027-12-31): EPS=1.44 | Chg30d=+0.00% | Revisions=+50% | GrowthEPS=+10.7% | GrowthRev=+6.7%
[Analyst] Revisions Ratio: +48% (up=23, down=7)