* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $598 M
Debt : $458 M
EBITDA : $405 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: MANUFACTURING
Industry: SEARCH, DETECTION, NAVAGATION, GUIDANCE, AERONAUTICAL SYS
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 35.46
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $98 M
Average Revenue: $2,279 M
Revenue Converted To Free Cash FLow(%): 4%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 98.59%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $3,234 M
Revenue 4 Years Ago (2020-12-31): $2,778 M
Last 5 Years Average Revenue Growth: 3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $268 M
Share Count 5 Years Ago (2020-12-31): $150 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.30
Trailing 12-Month Earnings Per Share (EPS): $1.05
Average Earnings Per Share (EPS): $1.18
Dividend Per Share (DPS): $0
Payout Ratio: 8%
Dividend Yield: 0%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 2%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $42
52-Week Low: $23
Threshold Price (15% Above 52-Week Low): $26
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $12,887 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above Leonardo DRS, Inc. Common Stock (DRS) stock.
Last 3 Years Avg PE (Limited to last 3 years of EPS data) 4, Fair Value PE 12, Industry Based PE is 18 and Growth based PE is 10. Based on these all values average assigned is 11.00.
Value-Trades has assined P/E value 11.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.175.
The fair value of Leonardo DRS, Inc. Common Stock (DRS) stock should be (11.00 x $1.175) = $12.93
