Leonardo DRS, Inc. DRS
Composite 57/100; the shares have moved about 38% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 29/100 — a moderate mark against it.
Balance-sheet strength ranks 87/100 — a strong point in its favour. Growth ranks 74/100 — a moderate point in its favour. Quality ranks 52/100 — a slight point in its favour.
Momentum ranks 29/100 — a moderate mark against it. Valuation ranks 42/100 — a slight mark against it.
What the company does Leonardo DRS designs and manufactures advanced sensing, computing, and integrated mission systems for defense applications, including radar, electro-optic sensors, electronic warfare, and space sensing. Its two segments—Advanced Sensing and Computing and Integrated Mission Systems—support real-time situational awareness and platform-level computing for military platforms.
Key financials Revenue grew 6% and EPS 22% year-over-year. Margins are solid: gross 24%, operating 9%, net 8%. ROE is 11%, ROA 6%, and ROCE 12%. Leverage is low (debt/equity 0.10), interest coverage is strong at 52x, and the current ratio is 1.86. Valuations are elevated: P/E 45x (forward 38x), EV/EBITDA 28x, P/B 4.6x.
Stock health The stock shows mixed momentum: +16% over 3 months, +8% over 6 months, but -5% over 12 months and -10% from its 52-week high. RSI(14) is neutral at 50. Beta is low at 0.19, indicating low sensitivity to broader market moves.
Price vs fair value The stock trades at a PREMIUM of 60.10% versus our fair-value estimate of 18.20 and at a discount of 15.96% versus the analyst 12-month target of 52.90. - Q2 2026 results beat estimates and raised guidance (Zacks, Motley Fool) - Record backlog and strategic initiatives highlighted on earnings calls (GuruFocus, MarketBeat) - Stock described as “above fair value” after a 171% run (Simply Wall St.)
Looking forward Forward P/E of 38x and PEG of 1.92 suggest high expectations are already priced in. Growth in defense electronics and mission systems remains supported by strong backlog, but valuation remains a key risk.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.