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 384 MM
- ROCE(HY) Highest at 10.35%
- DIVIDEND PAYOUT RATIO(Y) Highest at 33.54%
4
With ROCE of 12.70%, it has a fair valuation with a 4.46 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 32.19%, its profits have risen by 30.9% ; the PEG ratio of the company is 1.5
5
High Institutional Holdings at 28.89%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.4% over the previous quarter.
6
Consistent Returns over the last 3 years
- Along with generating 32.19% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods
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.
33.94%
1.94
41.07%
S&P 500
14.9%
0.77
19.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.54%
EBIT Growth (5y)
221.97%
EBIT to Interest (avg)
8.12
Debt to EBITDA (avg)
2.43
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.09
Tax Ratio
17.89%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
28.89%
ROCE (avg)
8.87%
ROE (avg)
10.72%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
45
Industry P/E
Price to Book Value
4.55
EV to EBIT
35.11
EV to EBITDA
27.72
EV to Capital Employed
4.46
EV to Sales
3.39
PEG Ratio
1.48
Dividend Yield
44.59%
ROCE (Latest)
12.70%
ROE (Latest)
10.10%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 384 MM
ROCE(HY)
Highest at 10.35%
DIVIDEND PAYOUT RATIO(Y)
Highest at 33.54%
RAW MATERIAL COST(Y)
Fallen by -6.35% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 7.18 times
DIVIDEND PER SHARE(HY)
Highest at USD 2.73
-2What is not working for the Company
INTEREST(Q)
At USD 4 MM has Grown at 100%
Here's what is working for Leonardo DRS, Inc.
Operating Cash Flow
Highest at USD 384 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)
Inventory Turnover Ratio
Highest at 7.18 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
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 33.54%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -6.35% (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 4 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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