DEERE & CO (DE) Stock Fundamental Analysis
NYSE:DE - US2441991054 - Common Stock
487.76 USD
-0.14 (-0.03%)
487.76 USD
0 (0%)
Overall DE gets a fundamental rating of 5 out of 10. We evaluated DE against 127 industry peers in the Machinery industry. While DE has a great profitability rating, there are quite some concerns on its financial health. DE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DE was profitable.
In the past year DE had a positive cash flow from operations.
In the past 5 years DE has always been profitable.
DE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DE has a Return On Assets (4.83%) which is comparable to the rest of the industry.
DE's Return On Equity of 20.68% is amongst the best of the industry. DE outperforms 85.04% of its industry peers.
DE has a better Return On Invested Capital (9.38%) than 65.35% of its industry peers.
DE had an Average Return On Invested Capital over the past 3 years of 12.67%. This is above the industry average of 10.48%.
| 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
DE has a Profit Margin of 11.72%. This is amongst the best in the industry. DE outperforms 80.31% of its industry peers.
DE's Profit Margin has improved in the last couple of years.
The Operating Margin of DE (21.67%) is better than 92.91% of its industry peers.
In the last couple of years the Operating Margin of DE has grown nicely.
The Gross Margin of DE (39.71%) is better than 72.44% of its industry peers.
In the last couple of years the Gross Margin of DE has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DE is creating some value.
DE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DE has been reduced compared to 5 years ago.
Compared to 1 year ago, DE has an improved debt to assets ratio.
2.2 Solvency
DE has a debt to FCF ratio of 16.25. This is a negative value and a sign of low solvency as DE would need 16.25 years to pay back of all of its debts.
DE has a worse Debt to FCF ratio (16.25) than 70.08% of its industry peers.
DE has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
DE has a worse Debt to Equity ratio (2.07) than 88.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | N/A |
ROIC/WACC1
WACC9.41%
2.3 Liquidity
A Current Ratio of 0.93 indicates that DE may have some problems paying its short term obligations.
With a Current ratio value of 0.93, DE is not doing good in the industry: 91.34% of the companies in the same industry are doing better.
A Quick Ratio of 0.71 indicates that DE may have some problems paying its short term obligations.
DE has a Quick ratio of 0.71. This is amonst the worse of the industry: DE underperforms 83.46% 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 DE have decreased strongly by -34.25% in the last year.
DE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.90% yearly.
Looking at the last year, DE shows a very negative growth in Revenue. The Revenue has decreased by -20.63% in the last year.
Measured over the past years, DE shows a small growth in Revenue. The Revenue has been growing by 5.62% on average per year.
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.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 25.26 indicates a quite expensive valuation of DE.
DE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.08. DE is around the same levels.
Based on the Price/Forward Earnings ratio of 22.36, the valuation of DE can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as DE.
DE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 22.36 |
4.2 Price Multiples
DE's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.21 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
DE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y-7.7%
EPS Next 3Y1.38%
5. Dividend
5.1 Amount
DE has a Yearly Dividend Yield of 1.33%. 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 1.87.
With a Dividend Yield of 1.33, DE pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
On average, the dividend of DE grows each year by 14.18%, 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)14.18%
Div Incr Years4
Div Non Decr Years34
5.3 Sustainability
32.36% of the earnings are spent on dividend by DE. This is a low number and sustainable payout ratio.
The dividend of DE is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP32.36%
EPS Next 2Y-7.7%
EPS Next 3Y1.38%
487.76
-0.14 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.5%
Inst Owner Change-3.65%
Ins Owners0.15%
Ins Owner Change0.01%
Market Cap132.10B
Analysts73.75
Price Target535.83 (9.86%)
Short Float %1.78%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend5.8
Dividend Growth(5Y)14.18%
DP32.36%
Div Incr Years4
Div Non Decr Years34
Ex-Date
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)-2.82%
PT rev (3m)6.53%
EPS NQ rev (1m)-8.15%
EPS NQ rev (3m)-16.12%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)-1.47%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 22.36 | ||
| P/S | 2.97 | ||
| P/FCF | 32.21 | ||
| P/OCF | 15.44 | ||
| P/B | 5.25 | ||
| P/tB | 6.59 | ||
| EV/EBITDA | 15.45 |
EPS(TTM)19.31
EY3.96%
EPS(NY)21.81
Fwd EY4.47%
FCF(TTM)15.14
FCFY3.1%
OCF(TTM)31.59
OCFY6.48%
SpS164.06
BVpS92.95
TBVpS73.99
PEG (NY)N/A
PEG (5Y)1.21
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
WACC9.41%
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%