Dec. 10 at 12:04 PM
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$DRS — Leonardo DRS (Dec 9th, 2025) - Fundamental + Technical Snapshot
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Fundamentals (Very Strong Core Business)
Revenue & margins: Revenue steadily rising (TTM +18%). Net margins stable at 7–9% = strong for defence contracting.
Backlog strength: Multi-year defence contracts = unusually predictable revenue.
Balance sheet:
Debt:
$471M (modest).
Cash:
$309M → Net debt low and well covered by cash flows.
FCF: Highly volatile quarter to quarter but positive TTM at
$265M.
Profitability: Gross margin holding ~20–22%, operating income growing YoY for most quarters.
Dividend: Very small (1.06%) but safe (27% payout).
Ownership: 72% closely held → lower float = stronger moves on good news.
Overall Fundamental View:
High-quality defence contractor with contract visibility, clean leverage, and stable growth. Not a value stock (P/E ~34), but premium is justified by backlog and sector strength.
