DEERE & CO (DCO.DE) Stock Fundamental Analysis
FRA:DCO - Deutsche Boerse Ag - US2441991054 - Common Stock - Currency: EUR
Overall DCO gets a fundamental rating of 5 out of 10. We evaluated DCO against 105 industry peers in the Machinery industry. DCO has an excellent profitability rating, but there are concerns on its financial health. DCO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
DCO had positive earnings in the past year.
DCO had a positive operating cash flow in the past year.
In the past 5 years DCO has always been profitable.
Each year in the past 5 years DCO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DCO (5.32%) is better than 67.62% of its industry peers.
DCO's Return On Equity of 23.27% is amongst the best of the industry. DCO outperforms 89.52% of its industry peers.
DCO's Return On Invested Capital of 9.46% is fine compared to the rest of the industry. DCO outperforms 76.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DCO is above the industry average of 8.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 23.27% | ||
| ROIC | 9.46% |
ROA(3y)8.1%
ROA(5y)7.01%
ROE(3y)37.65%
ROE(5y)33.31%
ROIC(3y)12.67%
ROIC(5y)11.11%
1.3 Margins
DCO has a better Profit Margin (12.40%) than 90.48% of its industry peers.
DCO's Profit Margin has improved in the last couple of years.
DCO has a Operating Margin of 22.89%. This is amongst the best in the industry. DCO outperforms 95.24% of its industry peers.
In the last couple of years the Operating Margin of DCO has grown nicely.
The Gross Margin of DCO (40.60%) is comparable to the rest of the industry.
DCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.89% | ||
| PM (TTM) | 12.4% | ||
| GM | 40.6% |
OM growth 3Y8.52%
OM growth 5Y11.73%
PM growth 3Y0.43%
PM growth 5Y10.67%
GM growth 3Y8.89%
GM growth 5Y6.87%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DCO is still creating some value.
The number of shares outstanding for DCO has been reduced compared to 1 year ago.
DCO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DCO has been reduced compared to a year ago.
2.2 Solvency
DCO has an Altman-Z score of 2.51. This is not the best score and indicates that DCO is in the grey zone with still only limited risk for bankruptcy at the moment.
DCO has a Altman-Z score (2.51) which is in line with its industry peers.
The Debt to FCF ratio of DCO is 15.31, which is on the high side as it means it would take DCO, 15.31 years of fcf income to pay off all of its debts.
DCO has a Debt to FCF ratio of 15.31. This is in the lower half of the industry: DCO underperforms 70.48% of its industry peers.
DCO has a Debt/Equity ratio of 2.36. This is a high value indicating a heavy dependency on external financing.
DCO has a worse Debt to Equity ratio (2.36) than 92.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 15.31 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.02
WACC9.32%
2.3 Liquidity
A Current Ratio of 0.94 indicates that DCO may have some problems paying its short term obligations.
DCO has a Current ratio of 0.94. This is amonst the worse of the industry: DCO underperforms 91.43% of its industry peers.
A Quick Ratio of 0.72 indicates that DCO may have some problems paying its short term obligations.
DCO has a worse Quick ratio (0.72) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
DCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.89%.
The Earnings Per Share has been growing by 20.90% on average over the past years. This is a very strong growth
The Revenue for DCO has decreased by -22.29% in the past year. This is quite bad
The Revenue has been growing slightly by 5.62% on average over the past years.
EPS 1Y (TTM)-37.89%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-22.16%
Revenue 1Y (TTM)-22.29%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-17.92%
3.2 Future
Based on estimates for the next years, DCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.55% on average per year.
Based on estimates for the next years, DCO will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
EPS Next Y-24.47%
EPS Next 2Y-4.96%
EPS Next 3Y2.91%
EPS Next 5Y14.55%
Revenue Next Year-15.82%
Revenue Next 2Y-5.05%
Revenue Next 3Y-0.88%
Revenue Next 5Y8.39%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.08 indicates a rather expensive valuation of DCO.
DCO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of DCO to the average of the S&P500 Index (27.11), we can say DCO is valued inline with the index average.
A Price/Forward Earnings ratio of 20.63 indicates a rather expensive valuation of DCO.
Based on the Price/Forward Earnings ratio, DCO is valued a bit more expensive than the industry average as 64.76% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 35.78. DCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 20.63 |
4.2 Price Multiples
67.62% of the companies in the same industry are cheaper than DCO, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as DCO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.82 | ||
| EV/EBITDA | 14.43 |
4.3 Compensation for Growth
The excellent profitability rating of DCO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y-4.96%
EPS Next 3Y2.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, DCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.82, DCO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, DCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of DCO is nicely growing with an annual growth rate of 14.18%!
Dividend Growth(5Y)14.18%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
DCO pays out 29.23% of its income as dividend. This is a sustainable payout ratio.
The dividend of DCO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP29.23%
EPS Next 2Y-4.96%
EPS Next 3Y2.91%
FRA:DCO (8/14/2025, 4:38:05 PM)
407.3
-28.3 (-6.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.5%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap110.31B
Analysts73.75
Price Target458.7 (12.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend4.98
Dividend Growth(5Y)14.18%
DP29.23%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.58%
Min EPS beat(2)-0.37%
Max EPS beat(2)15.53%
EPS beat(4)3
Avg EPS beat(4)9.49%
Min EPS beat(4)-0.37%
Max EPS beat(4)15.53%
EPS beat(8)7
Avg EPS beat(8)11.03%
EPS beat(12)10
Avg EPS beat(12)8.56%
EPS beat(16)13
Avg EPS beat(16)8.76%
Revenue beat(2)1
Avg Revenue beat(2)-6.82%
Min Revenue beat(2)-14.13%
Max Revenue beat(2)0.49%
Revenue beat(4)2
Avg Revenue beat(4)-3.8%
Min Revenue beat(4)-14.13%
Max Revenue beat(4)1.98%
Revenue beat(8)2
Avg Revenue beat(8)-2.66%
Revenue beat(12)6
Avg Revenue beat(12)1.09%
Revenue beat(16)9
Avg Revenue beat(16)2.26%
PT rev (1m)-4.94%
PT rev (3m)2.87%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-15.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 20.63 | ||
| P/S | 2.84 | ||
| P/FCF | 29.82 | ||
| P/OCF | 14.59 | ||
| P/B | 5.32 | ||
| P/tB | 6.72 | ||
| EV/EBITDA | 14.43 |
EPS(TTM)17.65
EY4.33%
EPS(NY)19.74
Fwd EY4.85%
FCF(TTM)13.66
FCFY3.35%
OCF(TTM)27.92
OCFY6.85%
SpS143.66
BVpS76.57
TBVpS60.63
PEG (NY)N/A
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 23.27% | ||
| ROCE | 14.7% | ||
| ROIC | 9.46% | ||
| ROICexc | 10.44% | ||
| ROICexgc | 11.7% | ||
| OM | 22.89% | ||
| PM (TTM) | 12.4% | ||
| GM | 40.6% | ||
| FCFM | 9.51% |
ROA(3y)8.1%
ROA(5y)7.01%
ROE(3y)37.65%
ROE(5y)33.31%
ROIC(3y)12.67%
ROIC(5y)11.11%
ROICexc(3y)13.82%
ROICexc(5y)12.29%
ROICexgc(3y)15.19%
ROICexgc(5y)13.56%
ROCE(3y)19.77%
ROCE(5y)16.94%
ROICexcg growth 3Y3.38%
ROICexcg growth 5Y8.81%
ROICexc growth 3Y3.46%
ROICexc growth 5Y9.63%
OM growth 3Y8.52%
OM growth 5Y11.73%
PM growth 3Y0.43%
PM growth 5Y10.67%
GM growth 3Y8.89%
GM growth 5Y6.87%
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 15.31 | ||
| Debt/EBITDA | 4.55 | ||
| Cap/Depr | 207.76% | ||
| Cap/Sales | 9.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.25% | ||
| Profit Quality | 76.65% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.51 |
F-Score6
WACC9.32%
ROIC/WACC1.02
Cap/Depr(3y)216.52%
Cap/Depr(5y)180.17%
Cap/Sales(3y)7.95%
Cap/Sales(5y)7.44%
Profit Quality(3y)38.56%
Profit Quality(5y)75.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.89%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-22.16%
EPS Next Y-24.47%
EPS Next 2Y-4.96%
EPS Next 3Y2.91%
EPS Next 5Y14.55%
Revenue 1Y (TTM)-22.29%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-17.92%
Revenue Next Year-15.82%
Revenue Next 2Y-5.05%
Revenue Next 3Y-0.88%
Revenue Next 5Y8.39%
EBIT growth 1Y-30.73%
EBIT growth 3Y14.52%
EBIT growth 5Y18.01%
EBIT Next Year-9.56%
EBIT Next 3Y4.76%
EBIT Next 5Y13.77%
FCF growth 1Y109.99%
FCF growth 3Y-4.88%
FCF growth 5YN/A
OCF growth 1Y40.24%
OCF growth 3Y6.11%
OCF growth 5Y22.02%