Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Leonardo DRSDRS -1.17%80 ROC (Joel Greenblatt) % is 60.16% as of Mar. 2026, which is 8% below its 10-year median of 65.37. GuruFocus rates DRS with a GF Score™ of 80/100 and a GF Value™ of $35.63 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 357 Aerospace & Defense companies, Leonardo DRS ranks better than 90.48% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Leonardo DRS's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 60.16%.
The historical rank and industry rank for Leonardo DRS's ROC (Joel Greenblatt) % or its related term are showing as below:
DRS'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 56.58 Med: 65.37 Max: 145.57
Current: 74.82
During the past 8 years, Leonardo DRS's highest ROC (Joel Greenblatt) % was 145.57%. The lowest was 56.58%. And the median was 65.37%.
DRS's ROC (Joel Greenblatt) % is ranked better than 90.48% of 357
companies
in the Aerospace & Defense industry
Industry Median: 10.76
vs DRS: 74.82
Leonardo DRS's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.80% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Leonardo DRS ROC (Joel Greenblatt) % Related Terms
Leonardo DRS ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Leonardo DRS's ROC (Joel Greenblatt) % 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 HII, PL, SARO: ROC (Joel Greenblatt) % Comparison
For the Aerospace & Defense subindustry, Leonardo DRS's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo DRS's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Leonardo DRS's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 60.16% mean?
Leonardo DRS (DRS) has a ROC (Joel Greenblatt) % of 60.16% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Leonardo DRS and its competitors. This is near median its historical median of 65.37. Over the past decade, Leonardo DRS's ROC (Joel Greenblatt) % has ranged from 56.58 to 145.57. According to the industry distribution chart, Leonardo DRS ranks #34 out of 357 companies in the Aerospace & Defense industry, placing it in the top 9.5%.
Is Leonardo DRS's ROC (Joel Greenblatt) % too high?
Leonardo DRS's current ROC (Joel Greenblatt) % of 60.16% is near median its 10-year median of 65.37. Over the past 10 years, this metric has ranged from a low of 56.58 to a high of 145.57. The Aerospace & Defense industry median ROC (Joel Greenblatt) % is 10.76. Leonardo DRS's value of 60.16% is 459.1% above this industry median. Based on the distribution chart, Leonardo DRS ranks #34 out of 357 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 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo DRS's ROC (Joel Greenblatt) % compare to HII and PL?
According to the Aerospace & Defense industry distribution chart, Leonardo DRS ranks #34 out of 357 companies for ROC (Joel Greenblatt) %. This places Leonardo DRS in the top 10% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 10.76. Leonardo DRS's value of 60.16% is 459.1% above this benchmark. Historically, Leonardo DRS's own ROC (Joel Greenblatt) % has ranged from 56.58 to 145.57 over the past decade. While the company's 10-year median is 65.37 vs. the industry median of 10.76, Leonardo DRS has consistently been above 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 ROC (Joel Greenblatt) % for an Aerospace & Defense company?
The median ROC (Joel Greenblatt) % among Aerospace & Defense companies is 10.76, based on 357 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Leonardo DRS's current ROC (Joel Greenblatt) % of 60.16% is 459.1% above 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Leonardo DRS and its competitors. For the Aerospace & Defense industry, the median ROC (Joel Greenblatt) % is 10.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leonardo DRS's current ROC (Joel Greenblatt) % is 60.16%, which is near median its own 10-year median of 65.37. 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 $35.63, compared to a current price of $43.84 — trading 23% above its estimated fair value. The current ROC (Joel Greenblatt) % is 60.16%, which is near median its 10-year median of 65.37 and 459.1% above the Aerospace & Defense industry median of 10.76. Leonardo DRS's overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Leonardo DRS (DRS), the current ROC (Joel Greenblatt) % is 60.16% as of Mar. 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 $43.84 is trading 23% above its estimated GF Value™ of $35.63.
GuruFocus considers Leonardo DRS to be Modestly Overvalued.
Key valuation signals for DRS:
ROC (Joel Greenblatt) %: 60.16% (near median its 10-year median of 65.37)
GF Value™: $35.63 vs. price of $43.84 (23% above fair value)
Industry Position: 459.1% above the Aerospace & Defense median (#34 of 357)
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.
80GF Score
Get the complete analysis for DRS
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DRS has been successfully added to your 
