Leonardo DRS Inc (DRS) Stock Analysis
Verdict: HOLD
Strong sensing/defense tech order momentum and margin expansion are offset by valuation premium (30.9x P/E) and insider selling above $45.
Investment score: 61/100
Analysis as of
Is Leonardo DRS Inc stock worth reviewing? The TradeMates thesis
The TradeMates model rates Leonardo DRS as a HOLD. Operational execution is impressive with 10.46% revenue growth and 28.96% earnings growth, but a 30.88x TTM P/E and insider selling above $45 warrant patient entry near key technical support.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 80/100 (weight 15%)
- Technical Momentum: 40/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 65/100 (weight 15%)
Leonardo DRS Inc opportunities and risks
What speaks for DRS
- Multi-year tailwinds in naval propulsion and sensing contracts
What speaks against DRS
- Valuation premium relative to defense sector peers
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| DRS | 30.9x | 2.6x | 20.8x | 24.9% | 8.5% | 3.7% |
| TXT | 15.3x | 0.9x | 9.6x | 16.5% | 6.1% | 5.4% |
| BWXT | 37.9x | 3.8x | 26.9x | 22.1% | 10.1% | 2.3% |
| HII | 16.5x | 0.8x | 12.4x | 12.6% | 5.0% | 3.4% |
| Peer median | 16.5x | 0.9x | 12.4x | 16.5% | 6.1% | 3.4% |
Frequently asked questions about Leonardo DRS Inc (DRS)
Is DRS stock a good investment?
The TradeMates model rates Leonardo DRS Inc as HOLD with an investment score of 61/100. The TradeMates model rates Leonardo DRS as a HOLD. Operational execution is impressive with 10.46% revenue growth and 28.96% earnings growth, but a 30.88x TTM P/E and insider selling above $45 warrant patient entry near key technical support. This is algorithmic model output, not personal investment advice.
Is DRS stock a buy?
The TradeMates model verdict for DRS is HOLD with an investment score of 61/100. Treat this as a model signal to review, not a personal buy recommendation.