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Upturn AI SWOT - About
Leonardo DRS, Inc. Common Stock (DRS)
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Upturn Advisory Summary
08/29/2025: DRS (3-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Number of Analysts
8 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $49
1 Year Target Price $49
| 5 | Strong Buy |
| 1 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 41.03% | Avg. Invested days 57 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 08/29/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 11.09B USD | Price to earnings Ratio 44.32 | 1Y Target Price 49 |
Price to earnings Ratio 44.32 | 1Y Target Price 49 | ||
Volume (30-day avg) 8 | Beta 0.25 | 52 Weeks Range 25.81 - 49.20 | Updated Date 08/30/2025 |
52 Weeks Range 25.81 - 49.20 | Updated Date 08/30/2025 | ||
Dividends yield (FY) 0.42% | Basic EPS (TTM) 0.94 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 7.31% | Operating Margin (TTM) 8.44% |
Management Effectiveness
Return on Assets (TTM) 5.18% | Return on Equity (TTM) 9.99% |
Valuation
Trailing PE 44.32 | Forward PE 16.98 | Enterprise Value 11280710592 | Price to Sales(TTM) 3.24 |
Enterprise Value 11280710592 | Price to Sales(TTM) 3.24 | ||
Enterprise Value to Revenue 3.3 | Enterprise Value to EBITDA 27.58 | Shares Outstanding 266124000 | Shares Floating 75477985 |
Shares Outstanding 266124000 | Shares Floating 75477985 | ||
Percent Insiders 71.62 | Percent Institutions 25.51 |
Upturn AI SWOT
Leonardo DRS, Inc. Common Stock
Company Overview
History and Background
Leonardo DRS, Inc. is a technology company that provides defense products and services to military forces, intelligence agencies, and prime defense contractors worldwide. The company was formerly a subsidiary of Leonardo S.p.A. and was spun off as a public company in 2023 through a merger with RADA Electronic Industries.
Core Business Areas
- Advanced Sensing and Computing: This segment includes advanced sensors and sensor processing systems, including infrared detectors, electro-optical targeting systems, and advanced computing solutions.
- Networked Communications: This segment focuses on secure communications systems, including tactical communications networks, electronic warfare systems, and cyber security solutions.
- Electro Optical and Infrared Solutions: This segment develops advanced electro-optical and infrared (EO/IR) technologies for military applications. This includes thermal imaging systems, laser rangefinders, and targeting systems.
Leadership and Structure
William J. Lynn III is the Chief Executive Officer of Leonardo DRS. The company operates with a divisional structure, focusing on its core business segments.
Top Products and Market Share
Key Offerings
- Electro-Optical/Infrared (EO/IR) Systems: Leonardo DRS provides advanced EO/IR systems for surveillance, targeting, and situational awareness. While exact market share data fluctuates, competitors include L3Harris and RTX. They have gained significant market share in EO/IR systems for military vehicles. Market Share is estimated at 20% with annual revenue ~$500 Million.
- Advanced Signal Processing: Leonardo DRS offers advanced signal processing solutions for electronic warfare and communications intelligence. Competitors include BAE Systems and General Dynamics. Market Share is estimated at 15% with annual revenue ~$375 Million.
Market Dynamics
Industry Overview
The defense industry is currently driven by geopolitical tensions, technological advancements (AI, cybersecurity), and increased government spending on military modernization. Demand is high for advanced sensing, communication, and electronic warfare systems.
Positioning
Leonardo DRS is positioned as a key provider of advanced technology solutions to the U.S. military and its allies. Its competitive advantage lies in its specialized technology portfolio and established relationships with prime contractors.
Total Addressable Market (TAM)
The total addressable market for defense electronics is estimated to be in the hundreds of billions of dollars annually. Leonardo DRS is well-positioned to capture a significant portion of this TAM through its focus on advanced technologies and its strong relationships with key customers. An estimated TAM would be around $200 Billion and DRS is estimated to acquire at least 5% market share.
Upturn SWOT Analysis
Strengths
- Strong technological expertise
- Established relationships with U.S. military and prime contractors
- Focus on high-growth areas of defense spending
- Reputation for high-quality products and services
Weaknesses
- Reliance on government contracts
- Vulnerability to changes in defense spending priorities
- Exposure to geopolitical risks
- Integration risks from acquisitions
Opportunities
- Increasing global defense spending
- Growing demand for advanced defense technologies
- Expansion into new markets and geographies
- Strategic acquisitions to expand product portfolio
Threats
- Budget cuts in defense spending
- Intensifying competition from other defense contractors
- Technological disruptions
- Geopolitical instability
Competitors and Market Share
Key Competitors
- L3Harris Technologies (LHX)
- RTX Corporation (RTX)
- BAE Systems (BAESY)
- General Dynamics (GD)
Competitive Landscape
Leonardo DRS competes with larger defense contractors but differentiates itself through its specialized technology portfolio and focus on specific market segments. Its competitive advantage lies in its agility and responsiveness to customer needs.
Major Acquisitions
RADA Electronic Industries
- Year: 2022
- Acquisition Price (USD millions): 735
- Strategic Rationale: The merger with RADA Electronic Industries expanded Leonardo DRS's capabilities in active protection systems, advanced radar systems, and tactical edge computing.
Growth Trajectory and Initiatives
Historical Growth: Historical growth data is limited due to the recent merger. However, based on the performance of legacy Leonardo DRS and RADA Electronic Industries, the company has experienced steady growth in revenue and earnings.
Future Projections: Analyst estimates project continued growth in revenue and earnings, driven by increased defense spending and demand for advanced defense technologies. Revenue growth is projected at 5-7% annually over the next five years.
Recent Initiatives: Recent initiatives include the integration of Leonardo DRS and RADA Electronic Industries, investments in new technologies, and expansion into new markets.
Summary
Leonardo DRS is a technology-focused defense company with strong technological expertise and established relationships with the U.S. military. The company is well-positioned to benefit from increased defense spending and demand for advanced technologies. However, it faces risks from budget cuts and competition. The recent merger with RADA Electronic Industries should help bolster their future outlook.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
Disclaimers:
This analysis is based on publicly available information and analyst estimates. It is not financial advice, and readers should conduct their own due diligence before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Leonardo DRS, Inc. Common Stock
Exchange NASDAQ | Headquaters Arlington, VA, United States | ||
IPO Launch date 2022-11-29 | Chairman & CEO Mr. William J. Lynn III, J.D. | ||
Sector Industrials | Industry Aerospace & Defense | Full time employees 7000 | Website https://www.leonardodrs.com |
Full time employees 7000 | Website https://www.leonardodrs.com | ||
Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services worldwide. It operates through Advanced Sensing and Computing and Integrated Mission Systems segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications, such as platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications.This segment also offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems and associated efficient, rugged, and compact power conversion, electrical actuation systems, as well as cooling technologies; and motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems. Leonardo DRS, Inc. was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo US Holding, LLC
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