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Leonardo DRSDRS +2.92%80 5-Year ROIIC % is 14.52 as of Dec. 2025. GuruFocus rates DRS with a GF Score™ of 80/100 and a GF Value™ of $35.62 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 285 Aerospace & Defense companies, Leonardo DRS ranks better than 70.18% on this metric.
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Leonardo DRS's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 14.52%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Leonardo DRS's 5-Year ROIIC % or its related term are showing as below:
DRS's 5-Year ROIIC % is ranked better than 70.18% of 285
companies
in the Aerospace & Defense industry
Industry Median: 5.05
vs DRS: 14.52
Leonardo DRS (NAS:DRS) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Leonardo DRS 5-Year ROIIC % Related Terms
Leonardo DRS 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Leonardo DRS's 5-Year ROIIC % 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.
For the Aerospace & Defense subindustry, Leonardo DRS's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo DRS's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Leonardo DRS's 5-Year ROIIC % falls into.
Leonardo DRS's 5-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 287.9352 (Dec. 2025) - 137.3609 (Dec. 2020) )
/
( 3393 (Dec. 2025) - 2356 (Dec. 2020) )
=
150.5743
/
1037
=
14.52%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Leonardo DRS (DRS) has a 5-Year ROIIC % of 14.52 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Leonardo DRS and its competitors. According to the industry distribution chart, Leonardo DRS ranks #85 out of 285 companies in the Aerospace & Defense industry, placing it in the top 29.8%.
Is Leonardo DRS's 5-Year ROIIC % too high?
Leonardo DRS's current 5-Year ROIIC % is 14.52. The Aerospace & Defense industry median 5-Year ROIIC % is 5.05. Leonardo DRS's value of 14.52 is 187.5% above this industry median. Based on the distribution chart, Leonardo DRS ranks #85 out of 285 companies in the Aerospace & Defense industry, which is above the industry midpoint. 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 5-Year ROIIC % compare to HII and PL?
According to the Aerospace & Defense industry distribution chart, Leonardo DRS ranks #85 out of 285 companies for 5-Year ROIIC %. This puts Leonardo DRS in the upper half of its industry. The industry median 5-Year ROIIC % is 5.05. Leonardo DRS's value of 14.52 is 187.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for an Aerospace & Defense company?
The median 5-Year ROIIC % among Aerospace & Defense companies is 5.05, based on 285 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Leonardo DRS's current 5-Year ROIIC % of 14.52 is 187.5% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Leonardo DRS and its competitors. For the Aerospace & Defense industry, the median 5-Year ROIIC % is 5.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leonardo DRS's current 5-Year ROIIC % is 14.52. 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 $35.62, compared to a current price of $44.62 — trading 25.3% above its estimated fair value. The current 5-Year ROIIC % is 14.52 and 187.5% above the Aerospace & Defense industry median of 5.05. Leonardo DRS's overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Leonardo DRS (DRS), the current 5-Year ROIIC % is 14.52 as of Dec. 2025. 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 $44.62 is trading 25.3% above its estimated GF Value™ of $35.62.
GuruFocus considers Leonardo DRS to be Modestly Overvalued.
Key valuation signals for DRS:
5-Year ROIIC %: 14.52
GF Value™: $35.62 vs. price of $44.62 (25.3% above fair value)
Industry Position: 187.5% above the Aerospace & Defense median (#85 of 285)
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
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5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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