DEERE & CO (DE)
US2441991054 - Common Stock
DE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. While DE belongs to the best of the industry regarding profitability, there are concerns on its financial health. DE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DE had positive earnings in the past year.
In the past year DE had a positive cash flow from operations.
Each year in the past 5 years DE has been profitable.
DE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DE's Return On Assets of 9.82% is fine compared to the rest of the industry. DE outperforms 78.29% of its industry peers.
DE has a Return On Equity of 45.11%. This is amongst the best in the industry. DE outperforms 96.12% of its industry peers.
DE's Return On Invested Capital of 17.88% is amongst the best of the industry. DE outperforms 90.70% of its industry peers.
DE had an Average Return On Invested Capital over the past 3 years of 12.21%. This is in line with the industry average of 10.77%.
The last Return On Invested Capital (17.88%) for DE is above the 3 year average (12.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 45.11% | ||
| ROIC | 17.88% |
ROA(3y)8.26%
ROA(5y)6.58%
ROE(3y)38.07%
ROE(5y)32.8%
ROIC(3y)12.21%
ROIC(5y)10.33%
1.3 Margins
With an excellent Profit Margin value of 16.38%, DE belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
DE's Profit Margin has improved in the last couple of years.
DE has a Operating Margin of 25.53%. This is amongst the best in the industry. DE outperforms 96.90% of its industry peers.
DE's Operating Margin has improved in the last couple of years.
DE's Gross Margin of 39.16% is fine compared to the rest of the industry. DE outperforms 78.29% of its industry peers.
DE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.53% | ||
| PM (TTM) | 16.38% | ||
| GM | 39.16% |
OM growth 3Y16.53%
OM growth 5Y13.02%
PM growth 3Y28.97%
PM growth 5Y21.24%
GM growth 3Y8.13%
GM growth 5Y5.96%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DE is creating value.
Compared to 1 year ago, DE has less shares outstanding
Compared to 5 years ago, DE has less shares outstanding
DE has a worse debt/assets ratio than last year.
2.2 Solvency
DE has an Altman-Z score of 2.43. This is not the best score and indicates that DE is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of DE (2.43) is comparable to the rest of the industry.
DE has a debt to FCF ratio of 14.18. This is a negative value and a sign of low solvency as DE would need 14.18 years to pay back of all of its debts.
DE's Debt to FCF ratio of 14.18 is in line compared to the rest of the industry. DE outperforms 43.41% of its industry peers.
DE has a Debt/Equity ratio of 2.48. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DE (2.48) is worse than 92.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 14.18 | ||
| Altman-Z | 2.43 |
ROIC/WACC2.14
WACC8.36%
2.3 Liquidity
A Current Ratio of 0.62 indicates that DE may have some problems paying its short term obligations.
With a Current ratio value of 0.62, DE is not doing good in the industry: 93.80% of the companies in the same industry are doing better.
DE has a Quick Ratio of 0.62. This is a bad value and indicates that DE is not financially healthy enough and could expect problems in meeting its short term obligations.
DE has a Quick ratio of 0.44. This is amonst the worse of the industry: DE underperforms 89.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
DE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.60%, which is quite impressive.
DE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.03% yearly.
Looking at the last year, DE shows a quite strong growth in Revenue. The Revenue has grown by 9.85% in the last year.
Measured over the past years, DE shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)27.6%
EPS 3Y58.62%
EPS 5Y30.03%
EPS growth Q2Q-4.89%
Revenue 1Y (TTM)9.85%
Revenue growth 3Y19.87%
Revenue growth 5Y10.38%
Revenue growth Q2Q-3.69%
3.2 Future
Based on estimates for the next years, DE will show a decrease in Earnings Per Share. The EPS will decrease by -0.87% on average per year.
DE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.05% yearly.
EPS Next Y-19.14%
EPS Next 2Y-9.5%
EPS Next 3Y-4.52%
EPS Next 5Y-0.87%
Revenue Next Year-13.41%
Revenue Next 2Y-6.8%
Revenue Next 3Y-4.05%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.51, the valuation of DE can be described as reasonable.
85.27% of the companies in the same industry are more expensive than DE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.55. DE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 13.92, DE is valued correctly.
Based on the Price/Forward Earnings ratio, DE is valued a bit cheaper than 77.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, DE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.51 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DE indicates a somewhat cheap valuation: DE is cheaper than 79.84% of the companies listed in the same industry.
DE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.74 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
The excellent profitability rating of DE may justify a higher PE ratio.
A cheap valuation may be justified as DE's earnings are expected to decrease with -4.52% in the coming years.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-9.5%
EPS Next 3Y-4.52%
5. Dividend
5.1 Amount
DE has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
DE's Dividend Yield is a higher than the industry average which is at 1.71.
Compared to the average S&P500 Dividend Yield of 2.39, DE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
On average, the dividend of DE grows each year by 14.31%, which is quite nice.
DE has been paying a dividend for at least 10 years, so it has a reliable track record.
DE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.31%
Div Incr Years3
Div Non Decr Years15
5.3 Sustainability
14.78% of the earnings are spent on dividend by DE. This is a low number and sustainable payout ratio.
DP14.78%
EPS Next 2Y-9.5%
EPS Next 3Y-4.52%
DEERE & CO
NYSE:DE (5/2/2024, 2:42:04 PM)
After market: 395.96 0 (0%)395.96
+8.46 (+2.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap110.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.51 | ||
| Fwd PE | 13.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.82% | ||
| ROE | 45.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.53% | ||
| PM (TTM) | 16.38% | ||
| GM | 39.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)27.6%
EPS 3Y58.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y-19.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.85%
Revenue growth 3Y19.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y