Leonardo DRS Inc. Common Stock (DRS)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Leonardo DRS as a steady defense-electronics supplier, not a bargain-bin special. In fiscal Q2 2026 (the quarter ended 2026-06-30), revenue was $913.0M versus $829.0M in fiscal Q2 2025 (the quarter ended 2025-06-30), and net income rose to $86.0M from $54.0M; diluted EPS was $0.32 versus $0.20. For FY2025 the company reported $3.6B revenue and $278.0M net income, up from $3.2B and $213.0M in FY2024. That is real progress. The balance sheet looks sound: debt/equity is 0.10, FairStock's Altman Z-score is 3.82, and its Piotroski F-score is 7/9. The provided trailing free cash flow is $363.0M, a 3.8% FCF yield. But returns are only fair: FairStock calculates ROE at 11.92% and ROCE at 6.04%, which do not scream wide moat. At the $35.84 close on 2026-10-26, FairStock's P/E is 30.12, P/B is 3.41, EV/EBITDA is 18.71, and the Graham Number is $16.77, leaving a -105.78% margin of safety. PEG is 0.49, so growth-adjusted it is not crazy if the profit surge persists, and FairStock classifies it as a Stalwart with 26.7% annual profit growth but only 5.6% revenue growth over five years. My conclusion: a decent, low-leverage business with positive momentum, but the price already reflects a lot. I would want a wider discount before calling it a value opportunity.

In plain English: Leonardo DRS makes electronics and systems for defense customers. The business looks financially solid: sales and profit are growing, debt is low, and cash flow is positive. But at $35.84 the stock looks expensive compared with its profits, assets, and a conservative value estimate.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer