DEERE & CO (DE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DE - US2441991054 - Common Stock
508.68 USD
-5.72 (-1.11%)
508.68 USD
0 (0%)
Taking everything into account, DE scores 4 out of 10 in our fundamental rating. DE was compared to 132 industry peers in the Machinery industry. DE scores excellent on profitability, 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
- DE had positive earnings in the past year.
- DE had a positive operating cash flow in the past year.
- Each year in the past 5 years DE has been profitable.
- In the past 5 years DE always reported a positive cash flow from operatings.
1.2 Ratios
- DE has a Return On Assets of 4.74%. This is comparable to the rest of the industry: DE outperforms 57.58% of its industry peers.
- With an excellent Return On Equity value of 19.37%, DE belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
- 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.
- The Average Return On Invested Capital over the past 3 years for DE is in line with the industry average of 10.24%.
| 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 has a Profit Margin of 11.00%. This is in the better half of the industry: DE outperforms 77.27% of its industry peers.
- DE's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 20.63%, DE belongs to the best of the industry, outperforming 90.15% of the companies in the same industry.
- DE's Operating Margin has improved in the last couple of years.
- DE has a better Gross Margin (38.36%) than 73.48% of its industry peers.
- In the last couple of years the Gross Margin of DE has grown nicely.
| 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.
- The debt/assets ratio for DE has been reduced compared to a year ago.
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.
- With a Debt to FCF ratio value of 19.79, DE is not doing good in the industry: 65.15% of the companies in the same industry are doing better.
- DE has a Debt/Equity ratio of 1.93. This is a high value indicating a heavy dependency on external financing.
- DE has a Debt to Equity ratio of 1.93. This is amonst the worse of the industry: DE underperforms 85.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.02
WACC9.29%
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.
- Looking at the Current ratio, with a value of 0.88, DE is doing worse than 90.15% of the companies in the same industry.
- A Quick Ratio of 0.67 indicates that DE may have some problems paying its short term obligations.
- DE has a worse Quick ratio (0.67) than 84.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- DE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.99%.
- Measured over the past years, DE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.52% on average per year.
- Looking at the last year, DE shows a very negative growth in Revenue. The Revenue has decreased by -11.66% in the last year.
- The Revenue has been growing slightly by 5.15% on average over the past years.
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 23.15% on average per year.
- The Revenue is expected to grow by 15.42% on average over the next years. This is quite good.
EPS Next Y-8.84%
EPS Next 2Y9.97%
EPS Next 3Y14.22%
EPS Next 5Y23.15%
Revenue Next Year7.15%
Revenue Next 2Y8.17%
Revenue Next 3Y7.96%
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
- A Price/Earnings ratio of 27.22 indicates a quite expensive valuation of DE.
- DE's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, DE is valued at the same level.
- DE is valuated quite expensively with a Price/Forward Earnings ratio of 29.86.
- Based on the Price/Forward Earnings ratio, DE is valued a bit more expensive than 62.12% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DE to the average of the S&P500 Index (23.94), we can say DE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 29.86 |
4.2 Price Multiples
- DE's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, DE is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.56 | ||
| EV/EBITDA | 16.14 |
4.3 Compensation for Growth
- The decent profitability rating of DE may justify a higher PE ratio.
- A more expensive valuation may be justified as DE's earnings are expected to grow with 14.22% in the coming years.
PEG (NY)N/A
PEG (5Y)1.65
EPS Next 2Y9.97%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
- DE has a Yearly Dividend Yield of 1.26%. 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 0.98.
- Compared to the average S&P500 Dividend Yield of 1.83, DE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
- The dividend of DE is nicely growing with an annual growth rate of 15.79%!
- 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)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 2Y9.97%
EPS Next 3Y14.22%
508.68
-5.72 (-1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-26 2025-11-26/bmo
Earnings (Next)02-11 2026-02-11/bmo
Inst Owners75.5%
Inst Owner Change0.06%
Ins Owners0.12%
Ins Owner Change0.04%
Market Cap137.51B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target529.82 (4.16%)
Short Float %2.34%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)0.93%
PT rev (3m)-0.26%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-31.09%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-21.56%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)5.35%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 29.86 | ||
| P/S | 3.01 | ||
| P/FCF | 42.56 | ||
| P/OCF | 18.44 | ||
| P/B | 5.3 | ||
| P/tB | 6.59 | ||
| EV/EBITDA | 16.14 |
EPS(TTM)18.69
EY3.67%
EPS(NY)17.04
Fwd EY3.35%
FCF(TTM)11.95
FCFY2.35%
OCF(TTM)27.59
OCFY5.42%
SpS168.99
BVpS95.99
TBVpS77.2
PEG (NY)N/A
PEG (5Y)1.65
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
WACC9.29%
ROIC/WACC1.02
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-8.84%
EPS Next 2Y9.97%
EPS Next 3Y14.22%
EPS Next 5Y23.15%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.33%
Revenue growth 5Y5.15%
Sales Q2Q%14.06%
Revenue Next Year7.15%
Revenue Next 2Y8.17%
Revenue Next 3Y7.96%
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 5Y23.17%
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 27.22 and the Price/Book (PB) ratio is 5.3.
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 -8.84% in the next year.