Latest Ratios: P/E Ratio 36.3x · EV/EBITDA 22.2x · ROE 10.5%. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.0B | $9.2B | $8.6B | $5.3B | $2.7B | $1.4B | $1.5B | $753M | $344M | $100M | $29M |
| Enterprise Value | $9.8B | $9.0B | $8.5B | $5.3B | $2.9B | $1.6B | $1.9B | $1.5B | $1.9B | $1.8B | $1.9B |
| P/E Ratio → | 36.32 | 33.10 | 40.39 | 31.31 | 6.80 | 8.89 | 17.11 | 9.98 | 2.07 | 0.79 | 0.36 |
| P/S Ratio | 2.74 | 2.51 | 2.67 | 1.87 | 1.02 | 0.47 | 0.53 | 0.28 | 0.10 | 0.04 | 0.02 |
| P/B Ratio | 3.68 | 3.36 | 3.38 | 2.28 | 1.29 | 0.86 | 1.02 | 0.74 | 0.20 | 0.07 | 0.02 |
| P/FCF | 43.96 | 40.37 | 46.50 | 36.49 | — | 11.58 | 21.17 | 7.38 | 2.45 | 0.72 | 0.26 |
| P/OCF | 27.27 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 22.23 | 20.38 | 22.16 | 16.84 | 4.68 | 5.50 | 8.25 | 6.96 | 4.31 | 4.62 | 7.70 |
| EV / EBIT | 28.17 | 26.12 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 43.00 | 43.00 | 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)
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 1.0% | 1.0% | — | — | 14.4% | — | — | — | 1.4% | 5.0% | 12.6% |
| Payout Ratio | 34.5% | 34.5% | — | — | 97.8% | — | — | — | 3.0% | 3.9% | 4.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2007 | FY 2006 | FY 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 3.0% | 2.5% | 3.2% | 14.7% | 11.3% | 5.8% | 10.0% | 48.2% | 127.1% | 277.6% |
| FCF Yield | 2.3% | 2.5% | 2.2% | 2.7% | — | 8.6% | 4.7% | 13.6% | 40.7% | 139.5% | 387.9% |
| Buyback Yield | 0.4% | 0.4% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.3% | 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 |
Includes 30+ ratios · 10 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying DRS stock.
Leonardo DRS, Inc.'s current P/E ratio is 36.3x. The historical average is 15.1x. This places it at the 90th percentile of its historical range.
Leonardo DRS, Inc.'s current EV/EBITDA is 22.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.1x.
Leonardo DRS, Inc.'s return on equity (ROE) is 10.5%. The historical average is 9.7%.
Based on historical data, Leonardo DRS, Inc. is trading at a P/E of 36.3x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Leonardo DRS, Inc.'s current dividend yield is 0.95% with a payout ratio of 34.5%.
Leonardo DRS, Inc. has 23.2% gross margin and 9.5% operating margin.
Leonardo DRS, Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Backlog conversion execution risk
Metrics are mathematically derived from official filings.
Margin Expansion Signals Mix Shift
Gross margin improved to 26.0% in 2026Q2 from 22.2% in 2024Q1, while operating margin rose to 11.2% from 6.2%, indicating a favorable shift toward proprietary technologies, as per reported financials.
The sequential and year-over-year margin expansion suggests that DRS is benefiting from a richer product mix, likely driven by higher-margin sensing and propulsion content. However, the 9.5% operating margin remains below peers like Curtiss-Wright at 18.2%, implying room for further operating leverage if the company can sustain its growth trajectory without proportionate cost increases. Investors should monitor whether this margin expansion is durable or a function of favorable contract timing.
ROIC Trajectory Points to Compounding
ROIC improved from 1.3% in 2024Q1 to 2.8% in 2026Q2, a doubling over ten quarters, though still below the cost of capital, as per quarterly data.
The steady climb in ROIC, driven by margin expansion and efficient capital deployment, suggests that DRS is beginning to generate returns above its cost of capital, a key driver for value creation. However, the absolute level remains low, reflecting the capital-intensive nature of defense manufacturing and the significant goodwill from the RADA acquisition. If the company can maintain its current margin trajectory and convert its record backlog efficiently, ROIC could approach peer levels, but this remains contingent on execution.
Working Capital Drag Persists
Cash conversion cycle averaged 107 days in 2026Q2, down from 154 days in 2024Q1, but still elevated due to high DSO of 81 days, as per reported figures.
The improvement in CCC is encouraging, but the persistent high DSO suggests that DRS is extending payment terms to customers, possibly reflecting the government's payment cycles. The negative FCF margins in some quarters, such as -11.3% in 2026Q1, highlight the lumpy nature of working capital, which could pressure cash flow despite strong earnings. Investors should monitor whether the company can further reduce DSO without sacrificing growth, as this would enhance cash generation.
Fortress Balance Sheet Provides Flexibility
Debt-to-equity fell to 0.10 in 2026Q2 from 0.21 in 2024Q1, with interest coverage at 125x in 2025Q4, indicating minimal leverage risk, as per financial statements.
The dramatic deleveraging, driven by debt repayment and equity growth, positions DRS with significant financial flexibility to fund organic growth or M&A. The near-zero leverage suggests that the company is not constrained by debt service, but it also implies a conservative capital allocation that may not maximize shareholder returns. Given the record backlog, the low leverage provides a cushion against potential cost overruns or delays, but investors should watch for any shift toward debt-funded acquisitions.
Liquidity Buffer Remains Adequate
Current ratio improved to 1.92 in 2026Q2 from 1.96 in 2024Q1, with quick ratio at 1.56, indicating a stable liquidity position, as per quarterly data.
The current and quick ratios suggest that DRS can cover its short-term obligations comfortably, even with inventory levels that are typical for defense manufacturing. However, the reliance on government contracts and the potential for milestone delays could strain liquidity if working capital needs spike. The company's cash position of $270M, combined with minimal debt, provides a solid buffer, but the negative FCF in some quarters warrants monitoring.
P/E Misapplied to Defense Subsystem
The trailing P/E of 39.5x appears rich, but it fails to capture DRS's multi-decade backlog and sole-source position in Columbia-class propulsion, as per valuation data.
A simple P/E multiple understates DRS's value because it ignores the long-term visibility provided by its record backlog and the high barriers to entry in its niche. The market may be pricing DRS as a generic defense electronics firm, but its role in nuclear submarine propulsion and sensor fusion suggests a more durable earnings stream. Investors should consider EV/EBITDA or a sum-of-the-parts valuation that accounts for the recurring nature of its programs, rather than relying solely on P/E.