DEERE & CO (DCO.DE) Stock Fundamental Analysis
FRA:DCO - Deutsche Boerse Ag - US2441991054 - Common Stock - Currency: EUR
Taking everything into account, DCO scores 5 out of 10 in our fundamental rating. DCO was compared to 107 industry peers in the Machinery industry. DCO scores excellent on profitability, 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
In the past year DCO was profitable.
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 66.36% of its industry peers.
DCO has a better Return On Equity (23.27%) than 88.78% of its industry peers.
DCO's Return On Invested Capital of 9.46% is fine compared to the rest of the industry. DCO outperforms 77.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DCO is above the industry average of 8.95%.
| 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 Profit Margin of 12.40%. This is amongst the best in the industry. DCO outperforms 90.65% of its industry peers.
DCO's Profit Margin has improved in the last couple of years.
DCO's Operating Margin of 22.89% is amongst the best of the industry. DCO outperforms 94.39% of its industry peers.
In the last couple of years the Operating Margin of DCO has grown nicely.
Looking at the Gross Margin, with a value of 40.60%, DCO is in line with its industry, outperforming 52.34% of the companies in the same industry.
In the last couple of years the Gross Margin of DCO has grown nicely.
| 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
DCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, DCO has less shares outstanding
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 2.48. 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's Altman-Z score of 2.48 is in line compared to the rest of the industry. DCO outperforms 56.07% of its industry peers.
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.
With a Debt to FCF ratio value of 15.31, DCO is not doing good in the industry: 70.09% of the companies in the same industry are doing better.
DCO has a Debt/Equity ratio of 2.36. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.36, DCO is doing worse than 91.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 15.31 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.02
WACC9.32%
2.3 Liquidity
DCO has a Current Ratio of 0.94. 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 0.94, DCO is doing worse than 91.59% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that DCO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, DCO is doing worse than 80.37% of the companies in the same industry.
| 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%.
DCO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.90% yearly.
Looking at the last year, DCO shows a very negative growth in Revenue. The Revenue has decreased by -22.29% in the last year.
Measured over the past years, DCO shows a small growth in Revenue. The Revenue has been growing by 5.62% on average per year.
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
DCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.55% yearly.
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-24.47%
EPS Next 2Y-4.96%
EPS Next 3Y2.91%
EPS Next 5Y14.55%
Revenue Next Year-15.8%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.78%
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
With a Price/Earnings ratio of 23.99, DCO is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DCO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.48. DCO is around the same levels.
The Price/Forward Earnings ratio is 21.45, which indicates a rather expensive current valuation of DCO.
DCO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DCO is more expensive than 62.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DCO to the average of the S&P500 Index (36.52), we can say DCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 21.45 |
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 64.49% of the companies in the same industry.
DCO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31 | ||
| EV/EBITDA | 14.13 |
4.3 Compensation for Growth
The excellent profitability rating of DCO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.15
EPS Next 2Y-4.96%
EPS Next 3Y2.91%
5. Dividend
5.1 Amount
DCO has a Yearly Dividend Yield of 1.25%.
Compared to an average industry Dividend Yield of 2.36, DCO has a dividend in line with its industry peers.
With a Dividend Yield of 1.25, DCO pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
On average, the dividend of DCO grows each year by 14.18%, which is quite nice.
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 (7/17/2025, 7:00:00 PM)
428.3
-0.05 (-0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.35%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap116.00B
Analysts73.94
Price Target482.52 (12.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend4.97
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)-0.95%
PT rev (3m)4.8%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-15.41%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 21.45 | ||
| P/S | 2.95 | ||
| P/FCF | 31 | ||
| P/OCF | 15.17 | ||
| P/B | 5.53 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 14.13 |
EPS(TTM)17.85
EY4.17%
EPS(NY)19.97
Fwd EY4.66%
FCF(TTM)13.81
FCFY3.23%
OCF(TTM)28.24
OCFY6.59%
SpS145.3
BVpS77.45
TBVpS61.32
PEG (NY)N/A
PEG (5Y)1.15
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 | 2.48 |
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-15.8%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.78%
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 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%