ScoreWhy is Leonardo DRS, Inc. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.43 times
2
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.87%
3
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 336 MM
- NET PROFIT(HY) At USD 104 MM has Grown at 48.13%
- DIVIDEND PAYOUT RATIO(Y) Highest at 44.84%
4
With ROCE of 12.25%, it has a fair valuation with a 4.58 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 -4.71%, its profits have risen by 26.1% ; the PEG ratio of the company is 2
5
High Institutional Holdings at 28.71%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.71% returns
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.
-1.69%
0.94
40.90%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.91%
EBIT Growth (5y)
218.74%
EBIT to Interest (avg)
8.12
Debt to EBITDA (avg)
2.43
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.07
Tax Ratio
17.89%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
28.71%
ROCE (avg)
8.87%
ROE (avg)
10.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
49
Industry P/E
Price to Book Value
4.59
EV to EBIT
37.40
EV to EBITDA
28.96
EV to Capital Employed
4.58
EV to Sales
3.53
PEG Ratio
1.96
Dividend Yield
22.74%
ROCE (Latest)
12.25%
ROE (Latest)
9.32%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 336 MM
NET PROFIT(HY)
At USD 104 MM has Grown at 48.13%
DIVIDEND PAYOUT RATIO(Y)
Highest at 44.84%
RAW MATERIAL COST(Y)
Fallen by -6.73% (YoY
DIVIDEND PER SHARE(HY)
Highest at USD 2.73
-2What is not working for the Company
INTEREST(Q)
At USD 2 MM has Grown at 100%
Here's what is working for Leonardo DRS, Inc.
Operating Cash Flow
Highest at USD 336 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 104 MM has Grown at 48.13%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Dividend per share
Highest at USD 2.73
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 44.84%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -6.73% (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
Here's what is not working for Leonardo DRS, Inc.
Interest
At USD 2 MM has Grown at 100%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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