DEERE & CO (DE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DE - US2441991054 - Common Stock
488.08 USD
-12.72 (-2.54%)
488.2 USD
+0.12 (+0.02%)
Overall DE gets a fundamental rating of 4 out of 10. We evaluated DE against 132 industry peers in the Machinery industry. DE has an excellent profitability rating, but there are concerns on its financial health. DE is quite expensive at the moment. It does show a decent growth rate. Finally DE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year DE was profitable.
DE had a positive operating cash flow in the past year.
DE had positive earnings in each of the past 5 years.
Each year in the past 5 years DE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DE (4.74%) is comparable to the rest of the industry.
DE has a Return On Equity of 19.37%. This is amongst the best in the industry. DE outperforms 85.61% of its industry peers.
With a decent Return On Invested Capital value of 9.46%, DE is doing good in the industry, outperforming 69.70% of the companies in the same industry.
DE had an Average Return On Invested Capital over the past 3 years of 12.10%. This is in line with the industry average of 10.22%.
| 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
DE's Profit Margin of 11.00% is fine compared to the rest of the industry. DE outperforms 78.03% of its industry peers.
In the last couple of years the Profit Margin of DE has grown nicely.
Looking at the Operating Margin, with a value of 20.63%, DE belongs to the top of the industry, outperforming 90.15% of the companies in the same industry.
In the last couple of years the Operating Margin of DE has grown nicely.
DE has a better Gross Margin (38.36%) than 72.73% of its industry peers.
DE'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DE is creating some value.
Compared to 1 year ago, DE has less shares outstanding
DE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DE has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of DE is 19.79, which is on the high side as it means it would take DE, 19.79 years of fcf income to pay off all of its debts.
DE has a Debt to FCF ratio of 19.79. This is in the lower half of the industry: DE underperforms 64.39% of its industry peers.
DE has a Debt/Equity ratio of 1.93. This is a high value indicating a heavy dependency on external financing.
DE's Debt to Equity ratio of 1.93 is on the low side compared to the rest of the industry. DE is outperformed by 85.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.03
WACC9.21%
2.3 Liquidity
DE has a Current Ratio of 0.88. 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 worse Current ratio (0.88) than 90.15% of its industry peers.
DE has a Quick Ratio of 0.88. This is a bad value and indicates that DE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DE (0.67) is worse than 84.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for DE have decreased strongly by -26.99% in the last year.
DE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.52% yearly.
DE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.66%.
Measured over the past years, DE 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, DE 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, DE will show a quite strong growth in Revenue. The Revenue will grow by 15.42% on average per year.
EPS Next Y-8.92%
EPS Next 2Y10%
EPS Next 3Y14.21%
EPS Next 5Y28.2%
Revenue Next Year7.54%
Revenue Next 2Y8.34%
Revenue Next 3Y7.68%
Revenue Next 5Y15.42%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 26.11, DE can be considered very expensive at the moment.
DE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. DE is around the same levels.
Based on the Price/Forward Earnings ratio of 28.67, the valuation of DE can be described as expensive.
62.12% of the companies in the same industry are cheaper than DE, based on the Price/Forward Earnings ratio.
DE is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 28.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DE is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as DE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.84 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
The decent profitability rating of DE may justify a higher PE ratio.
DE'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)1.58
EPS Next 2Y10%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
DE has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.85, DE pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.94, DE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
On average, the dividend of DE grows each year by 15.79%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.79%
Div Incr Years4
Div Non Decr Years34
5.3 Sustainability
34.22% of the earnings are spent on dividend by DE. This is a low number and sustainable payout ratio.
The dividend of DE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.22%
EPS Next 2Y10%
EPS Next 3Y14.21%
488.08
-12.72 (-2.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.5%
Inst Owner Change0%
Ins Owners0.12%
Ins Owner Change0.04%
Market Cap131.94B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target528.43 (8.27%)
Short Float %2.08%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend6.35
Dividend Growth(5Y)15.79%
DP34.22%
Div Incr Years4
Div Non Decr Years34
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)0.21%
PT rev (3m)-1.41%
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)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 28.67 | ||
| P/S | 2.89 | ||
| P/FCF | 40.84 | ||
| P/OCF | 17.69 | ||
| P/B | 5.08 | ||
| P/tB | 6.32 | ||
| EV/EBITDA | 15.83 |
EPS(TTM)18.69
EY3.83%
EPS(NY)17.02
Fwd EY3.49%
FCF(TTM)11.95
FCFY2.45%
OCF(TTM)27.59
OCFY5.65%
SpS168.99
BVpS95.99
TBVpS77.2
PEG (NY)N/A
PEG (5Y)1.58
Graham Number200.92
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
WACC9.21%
ROIC/WACC1.03
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 5Y28.2%
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 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 / DE FAQ
What is the fundamental rating for DE stock?
ChartMill assigns a fundamental rating of 4 / 10 to DE.
What is the valuation status of DEERE & CO (DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to DEERE & CO (DE). This can be considered as Overvalued.
Can you provide the profitability details for DEERE & CO?
DEERE & CO (DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of DEERE & CO (DE) stock?
The Price/Earnings (PE) ratio for DEERE & CO (DE) is 26.11 and the Price/Book (PB) ratio is 5.08.
What is the expected EPS growth for DEERE & CO (DE) stock?
The Earnings per Share (EPS) of DEERE & CO (DE) is expected to decline by -8.92% in the next year.