DEERE & CO (DE) Stock Fundamental Analysis
USA - NYSE:DE - US2441991054 - Common Stock
448.49 USD
+0.54 (+0.12%)
Overall DE gets a fundamental rating of 5 out of 10. We evaluated DE against 129 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.
1. Profitability
1.1 Basic Checks
In the past year DE was profitable.
DE had a positive operating cash flow in the past year.
In the past 5 years DE has always 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 (4.83%) which is in line with its industry peers.
DE has a Return On Equity of 20.68%. This is amongst the best in the industry. DE outperforms 86.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.58%, DE is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DE is above the industry average of 10.01%.
The last Return On Invested Capital (8.58%) for DE is well below the 3 year average (12.67%), which needs to be investigated, but indicates that DE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 20.68% | ||
| ROIC | 8.58% |
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 better Profit Margin (11.72%) than 82.17% of its industry peers.
In the last couple of years the Profit Margin of DE has grown nicely.
DE has a better Operating Margin (21.67%) than 93.80% of its industry peers.
DE's Operating Margin has improved in the last couple of years.
DE has a Gross Margin of 39.71%. This is in the better half of the industry: DE outperforms 72.09% of its industry peers.
DE's Gross Margin has improved in the last couple of years.
| 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
DE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DE has been reduced compared to 1 year ago.
The number of shares outstanding for DE has been reduced compared to 5 years ago.
DE has a better debt/assets ratio than last year.
2.2 Solvency
DE has an Altman-Z score of 2.34. 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.
DE has a worse Altman-Z score (2.34) than 60.47% of its industry peers.
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 Debt to FCF ratio of 16.25. This is in the lower half of the industry: DE underperforms 66.67% of its industry peers.
A Debt/Equity ratio of 2.31 is on the high side and indicates that DE has dependencies on debt financing.
The Debt to Equity ratio of DE (2.31) is worse than 88.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.95
WACC9.03%
2.3 Liquidity
DE has a Current Ratio of 0.96. 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 (0.96) than 89.15% of its industry peers.
A Quick Ratio of 0.74 indicates that DE may have some problems paying its short term obligations.
The Quick ratio of DE (0.74) is worse than 82.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
DE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.25%.
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.
DE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.62% yearly.
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-7.89%
EPS Next 3Y2.48%
EPS Next 5Y14.55%
Revenue Next Year-15.83%
Revenue Next 2Y-5.67%
Revenue Next 3Y-1.05%
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.
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 23.23, DE is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as DE.
The average S&P500 Price/Earnings ratio is at 27.49. DE is around the same levels.
The Price/Forward Earnings ratio is 20.65, which indicates a rather expensive current valuation of DE.
DE's Price/Forward Earnings ratio is in line with the industry average.
DE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 20.65 |
4.2 Price Multiples
DE's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.56 | ||
| EV/EBITDA | 14.01 |
4.3 Compensation for Growth
DE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y-7.89%
EPS Next 3Y2.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, DE has a reasonable but not impressive dividend return.
DE's Dividend Yield is a higher than the industry average which is at 1.81.
Compared to an average S&P500 Dividend Yield of 2.43, DE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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-7.89%
EPS Next 3Y2.48%
NYSE:DE (10/15/2025, 10:48:53 AM)
448.49
+0.54 (+0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.29%
Inst Owner Change-0.3%
Ins Owners0.15%
Ins Owner Change-0.01%
Market Cap121.24B
Analysts74.38
Price Target531.21 (18.44%)
Short Float %1.6%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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)-0.89%
PT rev (3m)-3.56%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-8.9%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 20.65 | ||
| P/S | 2.73 | ||
| P/FCF | 29.56 | ||
| P/OCF | 14.17 | ||
| P/B | 4.82 | ||
| P/tB | 6.05 | ||
| EV/EBITDA | 14.01 |
EPS(TTM)19.31
EY4.31%
EPS(NY)21.72
Fwd EY4.84%
FCF(TTM)15.17
FCFY3.38%
OCF(TTM)31.65
OCFY7.06%
SpS164.36
BVpS93.13
TBVpS74.13
PEG (NY)N/A
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 20.68% | ||
| ROCE | 13.11% | ||
| ROIC | 8.58% | ||
| ROICexc | 9.52% | ||
| ROICexgc | 10.67% | ||
| 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 | 2.31 | ||
| Debt/FCF | 16.25 | ||
| Debt/EBITDA | 4.91 | ||
| Cap/Depr | 203.61% | ||
| Cap/Sales | 10.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.42% | ||
| Profit Quality | 78.76% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.34 |
F-Score5
WACC9.03%
ROIC/WACC0.95
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-7.89%
EPS Next 3Y2.48%
EPS Next 5Y14.55%
Revenue 1Y (TTM)-20.63%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-9.05%
Revenue Next Year-15.83%
Revenue Next 2Y-5.67%
Revenue Next 3Y-1.05%
Revenue Next 5Y8.39%
EBIT growth 1Y-31.33%
EBIT growth 3Y14.52%
EBIT growth 5Y18.01%
EBIT Next Year-18.77%
EBIT Next 3Y3.7%
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%