Leonardo DRS, Inc. (DRS) Financial Ratios
21 years of historical data (2005–2025) · Industrials · Aerospace & Defense
EV/EBITDA
↑
27.47
↑+98% vs avg
5yr avg: 13.91
30Y Low4.3·High22.2
P/FCF
↑
54.15
↑+61% vs avg
5yr avg: 33.73
30Y Low0.3·High46.5
P/B Ratio
↑
4.54
↑+103% vs avg
5yr avg: 2.23
30Y Low0.0·High3.4
ROE
↑
10.5%
-11% vs avg
5yr avg: 11.8%
30Y Low6%·High22%
Debt/EBITDA
↓
1.07
↓-15% vs avg
5yr avg: 1.26
30Y Low0.8·High7.6
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
DRS Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Leonardo DRS, Inc. trades at 44.7x earnings, 86% above its 5-year average of 24.1x, sitting at the 100th percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 75%. On a free-cash-flow basis, the stock trades at 54.2x P/FCF, 61% above the 5-year average of 33.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.3B | $9.2B | $8.6B | $5.3B | $2.7B | $1.4B | $1.5B | $753M | $344M | $100M | $29M |
| Enterprise Value | $12.1B | $9.0B | $8.5B | $5.3B | $2.9B | $1.6B | $1.9B | $1.5B | $1.9B | $1.8B | $1.9B |
| P/E Ratio → | 44.74 | 33.10 | 40.39 | 31.31 | 6.80 | 8.89 | 17.11 | 9.98 | 2.07 | 0.79 | 0.36 |
| P/S Ratio | 3.37 | 2.51 | 2.67 | 1.87 | 1.02 | 0.47 | 0.53 | 0.28 | 0.10 | 0.04 | 0.02 |
| P/B Ratio | 4.54 | 3.36 | 3.38 | 2.28 | 1.29 | 0.86 | 1.02 | 0.74 | 0.20 | 0.07 | 0.02 |
| P/FCF | 54.15 | 40.37 | 46.50 | 36.49 | — | 11.58 | 21.17 | 7.38 | 2.45 | 0.72 | 0.26 |
| P/OCF | 33.59 | 25.04 | 31.92 | 25.81 | 83.26 | 7.67 | 11.68 | 4.79 | 1.63 | 0.51 | 0.19 |
P/E links to full P/E history page with 30-year chart
DRS EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Leonardo DRS, Inc.'s enterprise value stands at 27.5x EBITDA, 98% above its 5-year average of 13.9x. The Industrials sector median is 13.8x, placing the stock at a 99% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.46 | 2.63 | 1.88 | 1.09 | 0.56 | 0.69 | 0.55 | 0.57 | 0.64 | 1.07 |
| EV / EBITDA | 27.47 | 20.38 | 22.16 | 16.84 | 4.68 | 5.50 | 8.25 | 6.96 | 4.31 | 4.62 | 7.70 |
| EV / EBIT | 34.81 | 25.82 | 29.86 | 23.34 | 5.24 | 6.88 | 10.96 | 9.30 | 5.23 | 5.81 | 9.39 |
| EV / FCF | — | 39.59 | 45.75 | 36.69 | — | 13.69 | 27.96 | 14.59 | 13.49 | 12.86 | 16.35 |
DRS Profitability
Margins and return-on-capital ratios measuring operating efficiency
Leonardo DRS, Inc. earns an operating margin of 9.5%, above the Industrials sector average of 4.3%. Operating margins have expanded from 8.2% to 9.5% over the past 3 years, signaling improving operational efficiency. ROE of 10.5% is modest. ROIC of 10.5% represents solid returns on invested capital versus a sector median of 6.1%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.2% | 23.2% | 22.8% | 22.9% | 21.4% | 19.0% | 17.8% | 16.9% | 12.9% | 12.8% | 13.8% |
| Operating Margin | 9.5% | 9.5% | 9.1% | 8.2% | 20.8% | 8.2% | 6.5% | 6.0% | 10.9% | 11.0% | 11.1% |
| Net Profit Margin | 7.6% | 7.6% | 6.6% | 5.9% | 15.0% | 5.3% | 3.1% | 2.8% | 5.0% | 4.5% | 4.7% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 8.7% | 7.5% | 21.8% | 10.2% | 7.0% | 5.6% | 10.4% | 8.9% | 6.0% |
| ROA | 6.3% | 6.3% | 5.3% | 4.4% | 12.0% | 5.1% | 2.9% | 2.1% | 3.9% | 3.1% | 2.0% |
| ROIC | 10.5% | 10.5% | 9.2% | 7.4% | 20.3% | 9.5% | 7.4% | 4.9% | 8.4% | 7.3% | 4.5% |
| ROCE | 10.8% | 10.8% | 9.9% | 8.4% | 23.8% | 11.6% | 9.4% | 6.1% | 10.5% | 9.2% | 5.8% |
DRS Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Leonardo DRS, Inc. carries a Debt/EBITDA ratio of 1.1x, which is manageable (67% below the sector average of 3.2x). The company holds a net cash position — cash of $647M exceeds total debt of $470M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 43.5x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.17 | 0.17 | 0.18 | 0.21 | 0.23 | 0.31 | 0.37 | 0.81 | 0.97 | 1.19 | 1.36 |
| Debt / EBITDA | 1.07 | 1.07 | 1.19 | 1.57 | 0.78 | 1.67 | 2.26 | 3.84 | 3.72 | 4.61 | 7.59 |
| Net Debt / Equity | — | -0.06 | -0.05 | 0.01 | 0.09 | 0.16 | 0.33 | 0.72 | 0.92 | 1.13 | 1.36 |
| Net Debt / EBITDA | -0.40 | -0.40 | -0.36 | 0.09 | 0.29 | 0.85 | 2.00 | 3.44 | 3.53 | 4.36 | 7.58 |
| Debt / FCF | — | -0.78 | -0.75 | 0.21 | — | 2.12 | 6.80 | 7.22 | 11.04 | 12.15 | 16.09 |
| Interest Coverage | 43.50 | 43.50 | 13.57 | 6.33 | 16.44 | 6.71 | 2.75 | 2.46 | 3.28 | 2.57 | 3.14 |
Net cash position: cash ($647M) exceeds total debt ($470M)
DRS Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.89x means Leonardo DRS, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.78x to 1.89x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.89 | 1.89 | 1.94 | 1.78 | 1.64 | 1.40 | 1.30 | 1.25 | 1.41 | 1.46 | 1.29 |
| Quick Ratio | 1.60 | 1.60 | 1.62 | 1.47 | 1.33 | 1.20 | 1.04 | 1.04 | 0.90 | 0.98 | 0.81 |
| Cash Ratio | 0.53 | 0.53 | 0.54 | 0.43 | 0.29 | 0.24 | 0.06 | 0.08 | 0.10 | 0.12 | 0.00 |
| Asset Turnover | — | 0.79 | 0.77 | 0.72 | 0.73 | 0.94 | 0.94 | 0.94 | 0.76 | 0.67 | 0.43 |
| Inventory Turnover | 7.96 | 7.96 | 6.98 | 6.62 | 6.64 | 11.38 | 9.25 | 10.79 | 6.55 | 6.69 | 4.51 |
| Days Sales Outstanding | — | 126.57 | 126.97 | 136.78 | 140.69 | 113.98 | 116.81 | 121.31 | 63.59 | 69.25 | 91.49 |
DRS Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Leonardo DRS, Inc. returns 1.1% to shareholders annually — split between a 0.8% dividend yield and 0.3% buyback yield. The payout ratio of 34.5% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 2.2% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 1.0% | — | — | 14.4% | — | — | — | 1.4% | 5.0% | 12.6% |
| Payout Ratio | 34.5% | 34.5% | — | — | 97.8% | — | — | — | 3.0% | 3.9% | 4.5% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.2% | 3.0% | 2.5% | 3.2% | 14.7% | 11.3% | 5.8% | 10.0% | 48.2% | 127.1% | 277.6% |
| FCF Yield | 1.8% | 2.5% | 2.2% | 2.7% | — | 8.6% | 4.7% | 13.6% | 40.7% | 139.5% | 387.9% |
| Buyback Yield | 0.3% | 0.4% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.1% | 1.4% | 0.2% | 0.0% | 14.4% | 0.0% | 0.0% | 0.0% | 1.4% | 5.0% | 12.6% |
| Shares Outstanding | — | $269M | $268M | $264M | $215M | $145M | $150M | $145M | $83M | $20M | $5M |
Peer Comparison
Compare DRS with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 DRSYou | $12B | 44.7 | 27.5 | 54.2 | 23.2% | 9.5% | 10.5% | 10.5% | 1.1 |
 MRCY | $7B | -175.2 | 114.9 | 57.4 | 27.9% | -2.2% | -2.6% | -0.8% | 10.3 |
 KTOS | $10B | 417.0 | 112.5 | — | 22.1% | 2.1% | 1.3% | 1.4% | 2.1 |
 HEI | $47B | 68.8 | 40.3 | 54.5 | 39.8% | 22.7% | 17.1% | 12.6% | 1.8 |
 CW | $28B | 60.0 | 46.1 | 51.5 | 37.2% | 18.2% | 19.4% | 14.1% | 2.1 |
 ASGN | $895M | 8.1 | 5.3 | 3.1 | 27.2% | 6.5% | 6.3% | 6.9% | 3.2 |
 LHX | $55B | 34.6 | 18.8 | 20.5 | 25.7% | 10.0% | 8.2% | 5.4% | 3.1 |
 NOC | $74B | 17.9 | 15.5 | 22.4 | 19.8% | 10.2% | 26.2% | 10.2% | 3.4 |
 RTX | $250B | 37.4 | 21.9 | 31.5 | 20.1% | 10.0% | 10.4% | 6.7% | 3.1 |
 BAH | $8B | 9.6 | 9.0 | 8.4 | 20.9% | 9.8% | 80.7% | 18.6% | 3.3 |
 LDOS | $13B | 9.6 | 7.6 | 8.3 | 17.7% | 12.3% | 30.9% | 17.1% | 2.5 |
| Industrials Median | — | 25.6 | 13.8 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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DRS — Frequently Asked Questions
Quick answers to the most common questions about buying DRS stock.
What is Leonardo DRS, Inc.'s P/E ratio?
Leonardo DRS, Inc.'s current P/E ratio is 44.7x. The historical average is 15.1x. This places it at the 100th percentile of its historical range.
What is Leonardo DRS, Inc.'s EV/EBITDA?
Leonardo DRS, Inc.'s current EV/EBITDA is 27.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.1x.
What is Leonardo DRS, Inc.'s ROE?
Leonardo DRS, Inc.'s return on equity (ROE) is 10.5%. The historical average is 9.7%.
Is DRS stock overvalued?
Based on historical data, Leonardo DRS, Inc. is trading at a P/E of 44.7x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Leonardo DRS, Inc.'s dividend yield?
Leonardo DRS, Inc.'s current dividend yield is 0.78% with a payout ratio of 34.5%.
What are Leonardo DRS, Inc.'s profit margins?
Leonardo DRS, Inc. has 23.2% gross margin and 9.5% operating margin.
How much debt does Leonardo DRS, Inc. have?
Leonardo DRS, Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.