DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DCO - US2441991054 - Common Stock
420.8 EUR
-8.95 (-2.08%)
Taking everything into account, DCO scores 5 out of 10 in our fundamental rating. DCO was compared to 114 industry peers in the Machinery industry. DCO has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, DCO is valued expensive at the moment.
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.
DCO had positive earnings in each of the past 5 years.
Each year in the past 5 years DCO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.74%, DCO is in the better half of the industry, outperforming 62.28% of the companies in the same industry.
The Return On Equity of DCO (19.37%) is better than 84.21% of its industry peers.
DCO has a Return On Invested Capital of 9.46%. This is in the better half of the industry: DCO outperforms 74.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DCO is above the industry average of 9.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 19.37% | ||
| ROIC | 9.46% |
ROA(3y)7.04%
ROA(5y)7.23%
ROE(3y)32.38%
ROE(5y)32.94%
ROIC(3y)12.1%
ROIC(5y)11.63%
1.3 Margins
Looking at the Profit Margin, with a value of 11.00%, DCO belongs to the top of the industry, outperforming 85.96% of the companies in the same industry.
DCO's Profit Margin has improved in the last couple of years.
The Operating Margin of DCO (20.63%) is better than 92.98% of its industry peers.
DCO's Operating Margin has improved in the last couple of years.
DCO's Gross Margin of 38.36% is in line compared to the rest of the industry. DCO outperforms 48.25% of its industry peers.
In the last couple of years the Gross Margin of DCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.63% | ||
| PM (TTM) | 11% | ||
| GM | 38.36% |
OM growth 3Y2.1%
OM growth 5Y5.11%
PM growth 3Y-6.97%
PM growth 5Y7.29%
GM growth 3Y8.4%
GM growth 5Y5.27%
2. Health
2.1 Basic Checks
DCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DCO has been reduced compared to 5 years ago.
DCO has a better debt/assets ratio than last year.
2.2 Solvency
DCO has a debt to FCF ratio of 19.79. This is a negative value and a sign of low solvency as DCO would need 19.79 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.79, DCO is doing worse than 69.30% of the companies in the same industry.
A Debt/Equity ratio of 1.93 is on the high side and indicates that DCO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.93, DCO is doing worse than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC8.98%
2.3 Liquidity
DCO has a Current Ratio of 0.88. 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 Current ratio, with a value of 0.88, DCO is doing worse than 93.86% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that DCO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, DCO is doing worse than 80.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for DCO have decreased strongly by -26.99% in the last year.
Measured over the past years, DCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.52% on average per year.
DCO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.66%.
The Revenue has been growing slightly by 5.15% on average over the past years.
EPS 1Y (TTM)-26.99%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-13.63%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.33%
Revenue growth 5Y5.15%
Sales Q2Q%14.06%
3.2 Future
Based on estimates for the next years, DCO will show a very strong growth in Earnings Per Share. The EPS will grow by 23.15% on average per year.
The Revenue is expected to grow by 15.42% on average over the next years. This is quite good.
EPS Next Y-8.92%
EPS Next 2Y10%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue Next Year7.54%
Revenue Next 2Y8.34%
Revenue Next 3Y7.68%
Revenue Next 5Y15.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
DCO is valuated quite expensively with a Price/Earnings ratio of 26.22.
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 (27.25), we can say DCO is valued inline with the index average.
A Price/Forward Earnings ratio of 28.78 indicates a quite expensive valuation of DCO.
DCO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DCO is more expensive than 71.93% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DCO to the average of the S&P500 Index (23.98), we can say DCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.22 | ||
| Fwd PE | 28.78 |
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 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DCO is valued a bit more expensive than the industry average as 68.42% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.99 | ||
| EV/EBITDA | 15.57 |
4.3 Compensation for Growth
The excellent profitability rating of DCO may justify a higher PE ratio.
DCO's earnings are expected to grow with 14.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y10%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, DCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.55, DCO has a dividend in line with its industry peers.
DCO's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
The dividend of DCO is nicely growing with an annual growth rate of 15.79%!
Dividend Growth(5Y)15.79%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
34.22% of the earnings are spent on dividend by DCO. This is a low number and sustainable payout ratio.
DCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.22%
EPS Next 2Y10%
EPS Next 3Y14.21%
FRA:DCO (1/9/2026, 7:00:00 PM)
420.8
-8.95 (-2.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.5%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap113.75B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target452.49 (7.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend5.45
Dividend Growth(5Y)15.79%
DP34.22%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.24%
Min EPS beat(2)-0.87%
Max EPS beat(2)3.35%
EPS beat(4)2
Avg EPS beat(4)4.41%
Min EPS beat(4)-0.87%
Max EPS beat(4)15.53%
EPS beat(8)6
Avg EPS beat(8)7.73%
EPS beat(12)10
Avg EPS beat(12)9.51%
EPS beat(16)12
Avg EPS beat(16)8.06%
Revenue beat(2)1
Avg Revenue beat(2)0.92%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)4.32%
Revenue beat(4)2
Avg Revenue beat(4)-2.95%
Min Revenue beat(4)-14.13%
Max Revenue beat(4)4.32%
Revenue beat(8)3
Avg Revenue beat(8)-1.92%
Revenue beat(12)5
Avg Revenue beat(12)-0.41%
Revenue beat(16)8
Avg Revenue beat(16)1.52%
PT rev (1m)0.8%
PT rev (3m)-1.03%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-31.17%
EPS NY rev (1m)-6.5%
EPS NY rev (3m)-21.63%
Revenue NQ rev (1m)2.35%
Revenue NQ rev (3m)6.55%
Revenue NY rev (1m)1.64%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.22 | ||
| Fwd PE | 28.78 | ||
| P/S | 2.9 | ||
| P/FCF | 40.99 | ||
| P/OCF | 17.75 | ||
| P/B | 5.1 | ||
| P/tB | 6.35 | ||
| EV/EBITDA | 15.57 |
EPS(TTM)16.05
EY3.81%
EPS(NY)14.62
Fwd EY3.47%
FCF(TTM)10.27
FCFY2.44%
OCF(TTM)23.7
OCFY5.63%
SpS145.16
BVpS82.45
TBVpS66.31
PEG (NY)N/A
PEG (5Y)1.59
Graham Number172.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 19.37% | ||
| ROCE | 13.15% | ||
| ROIC | 9.46% | ||
| ROICexc | 10.58% | ||
| ROICexgc | 12.05% | ||
| OM | 20.63% | ||
| PM (TTM) | 11% | ||
| GM | 38.36% | ||
| FCFM | 7.07% |
ROA(3y)7.04%
ROA(5y)7.23%
ROE(3y)32.38%
ROE(5y)32.94%
ROIC(3y)12.1%
ROIC(5y)11.63%
ROICexc(3y)13.35%
ROICexc(5y)12.84%
ROICexgc(3y)14.72%
ROICexgc(5y)14.18%
ROCE(3y)18.29%
ROCE(5y)17.42%
ROICexgc growth 3Y-4.95%
ROICexgc growth 5Y4.28%
ROICexc growth 3Y-5.45%
ROICexc growth 5Y4.33%
OM growth 3Y2.1%
OM growth 5Y5.11%
PM growth 3Y-6.97%
PM growth 5Y7.29%
GM growth 3Y8.4%
GM growth 5Y5.27%
F-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Debt/EBITDA | 4.3 | ||
| Cap/Depr | 189.68% | ||
| Cap/Sales | 9.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64% | ||
| Profit Quality | 64.27% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | N/A |
F-Score4
WACC8.98%
ROIC/WACC1.05
Cap/Depr(3y)213.12%
Cap/Depr(5y)193.02%
Cap/Sales(3y)8.62%
Cap/Sales(5y)7.8%
Profit Quality(3y)55.73%
Profit Quality(5y)53.25%
High Growth Momentum
Growth
EPS 1Y (TTM)-26.99%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-13.63%
EPS Next Y-8.92%
EPS Next 2Y10%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.33%
Revenue growth 5Y5.15%
Sales Q2Q%14.06%
Revenue Next Year7.54%
Revenue Next 2Y8.34%
Revenue Next 3Y7.68%
Revenue Next 5Y15.42%
EBIT growth 1Y-24.92%
EBIT growth 3Y-2.32%
EBIT growth 5Y10.52%
EBIT Next Year11.24%
EBIT Next 3Y18.98%
EBIT Next 5Y23.17%
FCF growth 1Y-27.05%
FCF growth 3Y52.5%
FCF growth 5Y-7.71%
OCF growth 1Y-19.2%
OCF growth 3Y16.65%
OCF growth 5Y-0.06%
DEERE & CO / DCO.DE FAQ
What is the ChartMill fundamental rating of DEERE & CO (DCO.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DCO.DE.
What is the valuation status for DCO stock?
ChartMill assigns a valuation rating of 2 / 10 to DEERE & CO (DCO.DE). This can be considered as Overvalued.
What is the profitability of DCO stock?
DEERE & CO (DCO.DE) has a profitability rating of 8 / 10.
What is the valuation of DEERE & CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DEERE & CO (DCO.DE) is 26.22 and the Price/Book (PB) ratio is 5.1.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.