DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DCO - US2441991054 - Common Stock
416.25 EUR
+3.2 (+0.77%)
Taking everything into account, DCO scores 5 out of 10 in our fundamental rating. DCO was compared to 109 industry peers in the Machinery industry. While DCO has a great profitability rating, there are quite some 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.
In the past year DCO had a positive cash flow from operations.
DCO had positive earnings in each of the past 5 years.
In the past 5 years DCO always reported a positive cash flow from operatings.
1.2 Ratios
DCO has a Return On Assets of 4.74%. This is in the better half of the industry: DCO outperforms 64.22% of its industry peers.
DCO has a better Return On Equity (19.37%) than 85.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.46%, DCO is in the better half of the industry, outperforming 76.15% of the companies in the same industry.
DCO had an Average Return On Invested Capital over the past 3 years of 12.10%. This is above the industry average of 8.83%.
| 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
DCO has a better Profit Margin (11.00%) than 88.07% of its industry peers.
In the last couple of years the Profit Margin of DCO has grown nicely.
DCO's Operating Margin of 20.63% is amongst the best of the industry. DCO outperforms 93.58% of its industry peers.
In the last couple of years the Operating Margin of DCO has grown nicely.
DCO has a Gross Margin of 38.36%. This is comparable to the rest of the industry: DCO outperforms 50.46% of its industry peers.
DCO's Gross Margin has improved in the last couple of years.
| 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
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.
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
The Debt to FCF ratio of DCO is 19.79, which is on the high side as it means it would take DCO, 19.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DCO (19.79) is worse than 73.39% of its industry peers.
DCO has a Debt/Equity ratio of 1.93. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.93, DCO is not doing good in the industry: 87.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC8.99%
2.3 Liquidity
A Current Ratio of 0.88 indicates that DCO may have some problems paying its short term obligations.
DCO has a Current ratio of 0.88. This is amonst the worse of the industry: DCO underperforms 93.58% of its industry peers.
A Quick Ratio of 0.67 indicates that DCO may have some problems paying its short term obligations.
With a Quick ratio value of 0.67, DCO is not doing good in the industry: 81.65% of the companies in the same industry are doing better.
| 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.
DCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.52% yearly.
The Revenue for DCO has decreased by -11.66% in the past year. This is quite bad
Measured over the past years, DCO shows a small growth in Revenue. The Revenue has been growing by 5.15% on average per year.
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 28.20% 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 15.42% on average per year.
EPS Next Y-2.59%
EPS Next 2Y13.88%
EPS Next 3Y14%
EPS Next 5Y28.2%
Revenue Next Year5.8%
Revenue Next 2Y7.61%
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.
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
DCO is valuated quite expensively with a Price/Earnings ratio of 25.93.
DCO's Price/Earnings is on the same level as the industry average.
DCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.49.
A Price/Forward Earnings ratio of 26.62 indicates a quite expensive valuation of DCO.
Based on the Price/Forward Earnings ratio, DCO is valued a bit more expensive than the industry average as 70.64% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of DCO to the average of the S&P500 Index (23.69), we can say DCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 26.62 |
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 66.97% of the companies in the same industry.
72.48% of the companies in the same industry are cheaper than DCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.56 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
DCO has an outstanding profitability rating, which may justify a higher PE ratio.
DCO's earnings are expected to grow with 13.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.57
EPS Next 2Y13.88%
EPS Next 3Y14%
5. Dividend
5.1 Amount
DCO has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
DCO's Dividend Yield is comparable with the industry average which is at 2.37.
Compared to an average S&P500 Dividend Yield of 2.31, DCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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
DCO pays out 34.22% of its income as dividend. This is a sustainable payout ratio.
The dividend of DCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.22%
EPS Next 2Y13.88%
EPS Next 3Y14%
FRA:DCO (12/5/2025, 7:00:00 PM)
416.25
+3.2 (+0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.4%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap112.52B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target448.88 (7.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)-0.88%
PT rev (3m)-2.21%
EPS NQ rev (1m)-28.38%
EPS NQ rev (3m)-31.02%
EPS NY rev (1m)-13.52%
EPS NY rev (3m)-16.53%
Revenue NQ rev (1m)7.51%
Revenue NQ rev (3m)4.41%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 26.62 | ||
| P/S | 2.87 | ||
| P/FCF | 40.56 | ||
| P/OCF | 17.57 | ||
| P/B | 5.05 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 15.45 |
EPS(TTM)16.05
EY3.86%
EPS(NY)15.63
Fwd EY3.76%
FCF(TTM)10.26
FCFY2.47%
OCF(TTM)23.69
OCFY5.69%
SpS145.12
BVpS82.43
TBVpS66.3
PEG (NY)N/A
PEG (5Y)1.57
Graham Number172.54
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
WACC8.99%
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-2.59%
EPS Next 2Y13.88%
EPS Next 3Y14%
EPS Next 5Y28.2%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.33%
Revenue growth 5Y5.15%
Sales Q2Q%14.06%
Revenue Next Year5.8%
Revenue Next 2Y7.61%
Revenue Next 3Y7.68%
Revenue Next 5Y15.42%
EBIT growth 1Y-24.92%
EBIT growth 3Y-2.32%
EBIT growth 5Y10.52%
EBIT Next Year10.64%
EBIT Next 3Y18.8%
EBIT Next 5Y28.77%
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.
Can you provide the valuation status for DEERE & CO?
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.
Can you provide the financial health for DCO stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.
Can you provide the dividend sustainability for DCO stock?
The dividend rating of DEERE & CO (DCO.DE) is 5 / 10 and the dividend payout ratio is 34.22%.