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Leonardo DRSDRS -1.08%78 Debt-to-Equity is 0.05 as of Jun. 2026, which is 78% below its 10-year median of 0.23. GuruFocus rates DRS with a GF Score™ of 78/100 and a GF Value™ of $37.86 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 314 Aerospace & Defense companies, Leonardo DRS ranks better than 85.03% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Leonardo DRS's Debt-to-Equity or its related term are showing as below:
DRS'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.05 Med: 0.23 Max: 0.81
Current: 0.05
During the past 8 years, the highest Debt-to-Equity Ratio of Leonardo DRS was 0.81. The lowest was 0.05. And the median was 0.23.
DRS's Debt-to-Equity is ranked better than 85.03% of 314
companies
in the Aerospace & Defense industry
Industry Median: 0.335
vs DRS: 0.05
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Leonardo DRS Debt-to-Equity Related Terms
Leonardo DRS Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Leonardo DRS's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DRS vs MOG.A, HII, BWXT: Debt-to-Equity Comparison
For the Aerospace & Defense subindustry, Leonardo DRS's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Leonardo DRS Debt-to-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo DRS's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Leonardo DRS's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Leonardo DRS (DRS) has a Debt-to-Equity of 0.05 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Leonardo DRS and its competitors. This is 78% below median its historical median of 0.23. Over the past decade, Leonardo DRS's Debt-to-Equity has ranged from 0.05 to 0.81. According to the industry distribution chart, Leonardo DRS ranks #47 out of 314 companies in the Aerospace & Defense industry, placing it in the top 15%.
Is Leonardo DRS's Debt-to-Equity too high?
Leonardo DRS's current Debt-to-Equity of 0.05 is 78% below median its 10-year median of 0.23. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 0.81. The Aerospace & Defense industry median Debt-to-Equity is 0.34. Leonardo DRS's value of 0.05 is 85.1% below this industry median. Based on the distribution chart, Leonardo DRS ranks #47 out of 314 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Leonardo DRS has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo DRS's Debt-to-Equity compare to MOG.A and HII?
According to the Aerospace & Defense industry distribution chart, Leonardo DRS ranks #47 out of 314 companies for Debt-to-Equity. This places Leonardo DRS in the top 15% of its industry — outperforming the majority of peers. The industry median Debt-to-Equity is 0.34. Leonardo DRS's value of 0.05 is 85.1% below this benchmark. Historically, Leonardo DRS's own Debt-to-Equity has ranged from 0.05 to 0.81 over the past decade. While the company's 10-year median is 0.23 vs. the industry median of 0.34, Leonardo DRS has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for an Aerospace & Defense company?
The median Debt-to-Equity among Aerospace & Defense companies is 0.34, based on 314 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Leonardo DRS's current Debt-to-Equity of 0.05 is 85.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Leonardo DRS and its competitors. For the Aerospace & Defense industry, the median Debt-to-Equity is 0.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leonardo DRS's current Debt-to-Equity is 0.05, which is 78% below median its own 10-year median of 0.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leonardo DRS stock overvalued right now?
Based on GuruFocus' analysis, Leonardo DRS (DRS) is currently considered Modestly Overvalued. The stock's GF Value™ is $37.86, compared to a current price of $44.82 — trading 18.4% above its estimated fair value. The current Debt-to-Equity is 0.05, which is 78% below median its 10-year median of 0.23 and 85.1% below the Aerospace & Defense industry median of 0.34. Leonardo DRS's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Leonardo DRS (DRS), the current Debt-to-Equity is 0.05 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Leonardo DRS (DRS) Overvalued in 2026?
Based on GuruFocus' analysis, Leonardo DRS stock appears to be overvalued.
The current stock price of $44.82 is trading 18.4% above its estimated GF Value™ of $37.86.
GuruFocus considers Leonardo DRS to be Modestly Overvalued.
Key valuation signals for DRS:
Debt-to-Equity: 0.05 (78% below median its 10-year median of 0.23)
GF Value™: $37.86 vs. price of $44.82 (18.4% above fair value)
Industry Position: 85.1% below the Aerospace & Defense median (#47 of 314)
No single metric tells the full story. See the DRS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leonardo DRS Inc is a provider of defense products and technologies that are used across land, air, sea, space, and cyber domains. It is in the design, development, and manufacture of Advanced sensing, network computing, force protection, and electric power and propulsion technologies and solutions. The company has two segments: Advanced Sensing and Computing, which generates the majority of revenue, and the Integrated Mission Systems segment. The Advanced Sensing and Computing segment is engaged in designing, developing, and manufacturing sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision-making and execution by the customers.
78GF Score
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