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Upturn AI Summary - About
Leonardo DRS, Inc. Common Stock(DRS)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for DRS
10/09/2026: DRS (1-star) is currently NOT-A-BUY. Pass it for now.
Leonardo DRS is a specialized provider of advanced defense technologies, including sensor systems, naval power solutions, and network computing for the U.S. military. The company is known for its strong technical niche and deep integration into multi-year defense modernization programs, which supports a predictable, backlog-driven revenue model. Its primary growth story involves capitalizing on high-demand areas like air defense radar and sensor systems. However, the firm faces risks related to U.S. government budget volatility and competition from larger defense primes. Leonardo DRS is generally well-suited for growth-oriented investors looking for exposure to defense technology, though careful monitoring of contract execution and defense spending trends remains essential.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The company's focus on high-priority defense technology areas aligns well with sustained growth trends in defense spending. |
| Momentum investor | Mixed fit | Momentum is often linked to major contract wins and positive macro-defense news, necessitating a selective, signal-based approach. |
| Value investor | Mixed fit | Valuation fluctuates with industry cycles, making entry points critical for value-oriented investors. |
| Dividend investor | Mixed fit | While a dividend is paid, it is not a primary high-yield income play, making it a secondary consideration. |
| Low-risk investor | Strong fit | The reliance on long-term government contracts provides a stable revenue floor, reducing business-specific operational risk. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | Defense stocks can react sharply to budget announcements and geopolitical developments. |
| Valuation risk | Medium | Market expectations for defense spending can sometimes outpace actual contract execution. |
| Competition risk (Defense primes) | High | Large prime contractors can compete for the same subsystems and technologies, leveraging their broader scale. |
| Business quality | Strong | The company’s deep technical expertise and entrenched position in critical programs represent strong franchise quality. |
| Dividend income | Low | Investors should not rely on DRS for significant income generation compared to higher-yielding sectors. |
| Execution risk | Medium | Large-scale government contracts require precise engineering and delivery, which involves technical and management complexity. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 5.13% | Avg. Invested days 42 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  4.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 10/09/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.67B USD | Price to earnings Ratio 30.2 | 1Y Target Price 53.82 |
Price to earnings Ratio 30.2 | 1Y Target Price 53.82 | ||
Volume (30-day avg) 939.0K shares | Beta 0.16 | 52 Weeks Range 32.24 - 50.49 | Updated Date 10/10/2026 |
52 Weeks Range 32.24 - 50.49 | Updated Date 10/10/2026 | ||
Dividends yield (FY) 1.00% | Basic EPS (TTM) 1.2 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Advanced Sensor Technologies | Thermal imaging, EO/IR sensors, radar systems. | The company earns money by providing the 'eyes' for modern military equipment. |
| Integrated Mission Systems | Naval power, computing, and combat systems. | The company earns money by providing critical electrical and computing infrastructure for ships and vehicles. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Valuation
Trailing PE 30.2 | Forward PE 30.86 | Enterprise Value 9.98B | Price to Sales(TTM) 2.56 |
Enterprise Value 9.98B | Price to Sales(TTM) 2.56 | ||
Enterprise Value to Revenue 2.64 | Enterprise Value to EBITDA 20.33 | Shares Outstanding 266.89M | Shares Floating 76.27M |
Shares Outstanding 266.89M | Shares Floating 76.27M | ||
Percent Insiders 71.4 | Percent Institutions 28.12 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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