DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - FRA:DCO - US2441991054 - Common Stock
405.6 EUR
+0.3 (+0.07%)
We assign a fundamental rating of 5 out of 10 to DCO. DCO was compared to 105 industry peers in the Machinery industry. DCO has an excellent profitability rating, but 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
DCO had positive earnings in the past year.
In the past year DCO had a positive cash flow from operations.
Each year in the past 5 years DCO has been profitable.
In the past 5 years DCO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DCO (4.83%) is better than 67.62% of its industry peers.
Looking at the Return On Equity, with a value of 20.68%, DCO belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
DCO's Return On Invested Capital of 9.38% is fine compared to the rest of the industry. DCO outperforms 80.00% of its industry peers.
DCO had an Average Return On Invested Capital over the past 3 years of 12.67%. This is above the industry average of 8.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 20.68% | ||
| ROIC | 9.38% |
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
The Profit Margin of DCO (11.72%) is better than 91.43% of its industry peers.
DCO's Profit Margin has improved in the last couple of years.
DCO's Operating Margin of 21.67% is amongst the best of the industry. DCO outperforms 94.29% of its industry peers.
DCO's Operating Margin has improved in the last couple of years.
DCO's Gross Margin of 39.71% is in line compared to the rest of the industry. DCO outperforms 54.29% of its industry peers.
DCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.67% | ||
| PM (TTM) | 11.72% | ||
| GM | 39.71% |
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.
DCO has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of DCO is 16.25, which is on the high side as it means it would take DCO, 16.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DCO (16.25) is worse than 67.62% of its industry peers.
DCO has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.07, DCO is doing worse than 89.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | N/A |
ROIC/WACC1
WACC9.42%
2.3 Liquidity
DCO has a Current Ratio of 0.93. This is a bad value and indicates that DCO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.93, DCO is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
A Quick Ratio of 0.71 indicates that DCO may have some problems paying its short term obligations.
DCO has a worse Quick ratio (0.71) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for DCO have decreased strongly by -34.25% in the last year.
Measured over the past years, DCO shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.90% on average per year.
Looking at the last year, DCO shows a very negative growth in Revenue. The Revenue has decreased by -20.63% in the last year.
The Revenue has been growing slightly by 5.62% on average over the past years.
EPS 1Y (TTM)-34.25%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-21.62%
Revenue 1Y (TTM)-20.63%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-9.05%
3.2 Future
The Earnings Per Share is expected to grow by 14.55% 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-25.45%
EPS Next 2Y-7.7%
EPS Next 3Y1.38%
EPS Next 5Y14.55%
Revenue Next Year-15.85%
Revenue Next 2Y-5.55%
Revenue Next 3Y-1.09%
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 24.54, DCO is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as DCO.
Compared to an average S&P500 Price/Earnings ratio of 27.30, DCO is valued at the same level.
The Price/Forward Earnings ratio is 21.73, which indicates a rather expensive current valuation of DCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DCO is on the same level as its industry peers.
DCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 21.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than the industry average as 64.76% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, DCO is valued a bit more expensive than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.3 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
The excellent profitability rating of DCO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y-7.7%
EPS Next 3Y1.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, DCO has a reasonable but not impressive dividend return.
DCO's Dividend Yield is comparable with the industry average which is at 2.92.
With a Dividend Yield of 1.36, DCO pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
32.36% of the earnings are spent on dividend by DCO. This is a low number and sustainable payout ratio.
DCO's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP32.36%
EPS Next 2Y-7.7%
EPS Next 3Y1.38%
FRA:DCO (9/11/2025, 7:00:00 PM)
405.6
+0.3 (+0.07%)
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 Cap109.85B
Analysts74.38
Price Target459.03 (13.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend4.96
Dividend Growth(5Y)14.18%
DP32.36%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.44%
Min EPS beat(2)3.35%
Max EPS beat(2)15.53%
EPS beat(4)3
Avg EPS beat(4)8.2%
Min EPS beat(4)-0.37%
Max EPS beat(4)15.53%
EPS beat(8)7
Avg EPS beat(8)8.86%
EPS beat(12)11
Avg EPS beat(12)9.72%
EPS beat(16)13
Avg EPS beat(16)8.27%
Revenue beat(2)1
Avg Revenue beat(2)-1%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)0.49%
Revenue beat(4)1
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-14.13%
Max Revenue beat(4)0.49%
Revenue beat(8)2
Avg Revenue beat(8)-2.63%
Revenue beat(12)5
Avg Revenue beat(12)0.29%
Revenue beat(16)8
Avg Revenue beat(16)1.58%
PT rev (1m)-4.65%
PT rev (3m)-5.77%
EPS NQ rev (1m)-7.9%
EPS NQ rev (3m)-16.19%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)-1.47%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 21.73 | ||
| P/S | 2.89 | ||
| P/FCF | 31.3 | ||
| P/OCF | 15 | ||
| P/B | 5.1 | ||
| P/tB | 6.41 | ||
| EV/EBITDA | 15.13 |
EPS(TTM)16.53
EY4.08%
EPS(NY)18.67
Fwd EY4.6%
FCF(TTM)12.96
FCFY3.19%
OCF(TTM)27.04
OCFY6.67%
SpS140.4
BVpS79.55
TBVpS63.32
PEG (NY)N/A
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 20.68% | ||
| ROCE | 13.37% | ||
| ROIC | 9.38% | ||
| ROICexc | 10.51% | ||
| ROICexgc | 11.98% | ||
| OM | 21.67% | ||
| PM (TTM) | 11.72% | ||
| GM | 39.71% | ||
| FCFM | 9.23% |
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-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 16.25 | ||
| Debt/EBITDA | 4.4 | ||
| Cap/Depr | 203.61% | ||
| Cap/Sales | 10.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.42% | ||
| Profit Quality | 78.76% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | N/A |
F-Score5
WACC9.42%
ROIC/WACC1
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)-34.25%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-21.62%
EPS Next Y-25.45%
EPS Next 2Y-7.7%
EPS Next 3Y1.38%
EPS Next 5Y14.55%
Revenue 1Y (TTM)-20.63%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-9.05%
Revenue Next Year-15.85%
Revenue Next 2Y-5.55%
Revenue Next 3Y-1.09%
Revenue Next 5Y8.39%
EBIT growth 1Y-31.33%
EBIT growth 3Y14.52%
EBIT growth 5Y18.01%
EBIT Next Year-9.56%
EBIT Next 3Y4.76%
EBIT Next 5Y13.77%
FCF growth 1Y44.05%
FCF growth 3Y-4.88%
FCF growth 5YN/A
OCF growth 1Y19.21%
OCF growth 3Y6.11%
OCF growth 5Y22.02%