ScoreWhy is Leonardo DRS, Inc. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.63 times
2
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.87%
3
Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at USD 501 MM
- ROCE(HY) Highest at 11.92%
- RAW MATERIAL COST(Y) Fallen by -10.25% (YoY)
4
With ROCE of 14.77%, it has a fair valuation with a 4.89 Enterprise value to Capital Employed
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 9.66%, its profits have risen by 27.1% ; the PEG ratio of the company is 1.6
5
High Institutional Holdings at 32.77%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 3.6% over the previous quarter.
6
Underperformed the market in the last 1 year
- The stock has generated a return of 9.66% in the last 1 year, much lower than market (S&P 500) returns of 21.51%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Leonardo DRS, Inc. should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Leonardo DRS, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Leonardo DRS, Inc.
8.61%
2.15
39.80%
S&P 500
22.36%
1.63
13.19%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.60%
EBIT Growth (5y)
222.71%
EBIT to Interest (avg)
8.12
Debt to EBITDA (avg)
2.43
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.11
Tax Ratio
17.89%
Dividend Payout Ratio
34.80%
Pledged Shares
0
Institutional Holding
29.17%
ROCE (avg)
8.87%
ROE (avg)
10.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
Price to Book Value
4.37
EV to EBIT
33.10
EV to EBITDA
26.14
EV to Capital Employed
4.89
EV to Sales
3.17
PEG Ratio
1.63
Dividend Yield
45.05%
ROCE (Latest)
14.77%
ROE (Latest)
10.21%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 501 MM
ROCE(HY)
Highest at 11.92%
RAW MATERIAL COST(Y)
Fallen by -10.25% (YoY
NET PROFIT(Q)
At USD 86 MM has Grown at 59.26%
-12What is not working for the Company
ROCE(HY)
Lowest at 0%
OPERATING PROFIT(Q)
Lowest at USD 26 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 2.85 %
NET PROFIT(Q)
Lowest at USD 0 MM
EPS(Q)
Lowest at USD 0
Here's what is working for Leonardo DRS, Inc.
Operating Cash Flow
Highest at USD 501 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Profit
At USD 86 MM has Grown at 59.26%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Raw Material Cost
Fallen by -10.25% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 26 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Leonardo DRS, Inc.
Net Profit
At USD 0 MM has Fallen at -100%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Operating Profit
Lowest at USD 26 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 2.85 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Net Profit
Lowest at USD 0 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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