DEERE & CO (DCO.DE) Stock Fundamental Analysis
FRA:DCO - Deutsche Boerse Ag - US2441991054 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to DCO. DCO was compared to 109 industry peers in the Machinery industry. While DCO belongs to the best of the industry regarding profitability, there are concerns on its financial health. DCO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DCO was profitable.
In the past year DCO had a positive cash flow from operations.
DCO had positive earnings in each of the past 5 years.
DCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.32%, DCO is in the better half of the industry, outperforming 71.56% of the companies in the same industry.
DCO has a better Return On Equity (23.27%) than 90.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.51%, DCO belongs to the top of the industry, outperforming 80.73% of the companies in the same industry.
DCO had an Average Return On Invested Capital over the past 3 years of 12.67%. This is above the industry average of 8.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 23.27% | ||
| ROIC | 10.51% |
ROA(3y)8.1%
ROA(5y)7.01%
ROE(3y)37.65%
ROE(5y)33.31%
ROIC(3y)12.67%
ROIC(5y)11.11%
1.3 Margins
Looking at the Profit Margin, with a value of 12.40%, DCO belongs to the top of the industry, outperforming 92.66% of the companies in the same industry.
DCO's Profit Margin has improved in the last couple of years.
DCO has a better Operating Margin (22.89%) than 95.41% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DCO is creating some value.
Compared to 1 year ago, DCO has less shares outstanding
The number of shares outstanding for DCO has been reduced compared to 5 years ago.
Compared to 1 year ago, DCO has an improved debt to assets ratio.
2.2 Solvency
DCO has a debt to FCF ratio of 15.31. This is a negative value and a sign of low solvency as DCO would need 15.31 years to pay back of all of its debts.
The Debt to FCF ratio of DCO (15.31) is worse than 66.06% of its industry peers.
A Debt/Equity ratio of 2.07 is on the high side and indicates that DCO has dependencies on debt financing.
DCO has a worse Debt to Equity ratio (2.07) than 88.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 15.31 | ||
| Altman-Z | N/A |
ROIC/WACC1.13
WACC9.33%
2.3 Liquidity
DCO has a Current Ratio of 0.90. This is a bad value and indicates that DCO is not financially healthy enough and could expect problems in meeting its short term obligations.
DCO's Current ratio of 0.90 is on the low side compared to the rest of the industry. DCO is outperformed by 91.74% of its industry peers.
DCO has a Quick Ratio of 0.90. This is a bad value and indicates that DCO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.69, DCO is doing worse than 80.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for DCO have decreased strongly by -37.89% in the last year.
DCO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.90% yearly.
DCO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.29%.
DCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.62% yearly.
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
The Earnings Per Share is expected to grow by 13.05% on average over the next years. This is quite good.
DCO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.39% yearly.
EPS Next Y-24.34%
EPS Next 2Y-6.37%
EPS Next 3Y1.36%
EPS Next 5Y13.05%
Revenue Next Year-16.47%
Revenue Next 2Y-5.51%
Revenue Next 3Y-0.92%
Revenue Next 5Y8.39%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.65 indicates a rather expensive valuation of DCO.
DCO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of DCO to the average of the S&P500 Index (26.30), we can say DCO is valued inline with the index average.
The Price/Forward Earnings ratio is 22.71, which indicates a rather expensive current valuation of DCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DCO indicates a slightly more expensive valuation: DCO is more expensive than 66.06% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DCO to the average of the S&P500 Index (22.06), we can say DCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 22.71 |
4.2 Price Multiples
DCO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DCO is more expensive than 67.89% of the companies in the same industry.
DCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.94 | ||
| EV/EBITDA | 15 |
4.3 Compensation for Growth
DCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-6.37%
EPS Next 3Y1.36%
5. Dividend
5.1 Amount
DCO has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.75, DCO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, DCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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.
DCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.23%
EPS Next 2Y-6.37%
EPS Next 3Y1.36%
FRA:DCO (6/5/2025, 7:00:00 PM)
446.25
-2.15 (-0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap121.12B
Analysts73.75
Price Target445.89 (-0.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend5.12
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)1.99%
PT rev (3m)-2.33%
EPS NQ rev (1m)-15.26%
EPS NQ rev (3m)-15.73%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)-2.81%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 22.71 | ||
| P/S | 3.04 | ||
| P/FCF | 31.94 | ||
| P/OCF | 15.62 | ||
| P/B | 5.7 | ||
| P/tB | 7.19 | ||
| EV/EBITDA | 15 |
EPS(TTM)18.1
EY4.06%
EPS(NY)19.65
Fwd EY4.4%
FCF(TTM)13.97
FCFY3.13%
OCF(TTM)28.56
OCFY6.4%
SpS146.97
BVpS78.34
TBVpS62.02
PEG (NY)N/A
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 23.27% | ||
| ROCE | 15.02% | ||
| ROIC | 10.51% | ||
| ROICexc | 11.72% | ||
| ROICexgc | 13.38% | ||
| 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 | 2.07 | ||
| Debt/FCF | 15.31 | ||
| Debt/EBITDA | 4 | ||
| Cap/Depr | 207.76% | ||
| Cap/Sales | 9.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.25% | ||
| Profit Quality | 76.65% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | N/A |
F-Score6
WACC9.33%
ROIC/WACC1.13
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-24.34%
EPS Next 2Y-6.37%
EPS Next 3Y1.36%
EPS Next 5Y13.05%
Revenue 1Y (TTM)-22.29%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-17.92%
Revenue Next Year-16.47%
Revenue Next 2Y-5.51%
Revenue Next 3Y-0.92%
Revenue Next 5Y8.39%
EBIT growth 1Y-30.73%
EBIT growth 3Y14.52%
EBIT growth 5Y18.01%
EBIT Next Year-9.32%
EBIT Next 3Y5.68%
EBIT Next 5Y12.14%
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%