DRSLeonardo DRS, Inc.
Is the business good?
The checks split: 7 of 9 health tests passed and earnings fully cash-backed (1.5×), but margins compressing.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DRS?
Leonardo DRS, Inc. earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.7 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2026
- Cash conversion
- 1.52×
Cash conversion · 1.26× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.04%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 6.5% |
| FY2021 | 8.2% |
| FY2022 | 21% |
| FY2023 | 8.2% |
| FY2024 | 9.1% |
| FY2025 | 9.5% |
Details›
- Gross margin12 months to Q2 2026
- 25%
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 8.5%
- Free cash flow margin
- 9.6%
- R&D as % of revenue
- 3.6%
- Revenue, trailing twelve months
- $3.78B
- Free cash flow, trailing twelve months
- $363M
- Net income, trailing twelve months
- $322M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Aerospace & Defense
Ranks #11 of 36 by RyuScore