Deere CDR (DEER.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DEER -
26.53 CAD
-0.46 (-1.7%)
Taking everything into account, DEER scores 6 out of 10 in our fundamental rating. DEER was compared to 23 industry peers in the Machinery industry. While DEER has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DEER.
1. Profitability
1.1 Basic Checks
- In the past year DEER was profitable.
- DEER had a positive operating cash flow in the past year.
- DEER had positive earnings in each of the past 5 years.
- Each year in the past 5 years DEER had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.74%, DEER belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
- DEER has a better Return On Equity (19.37%) than 95.65% of its industry peers.
- With an excellent Return On Invested Capital value of 9.46%, DEER belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for DEER is significantly above the industry average of 6.48%.
| 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
- Looking at the Profit Margin, with a value of 11.00%, DEER belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- In the last couple of years the Profit Margin of DEER has grown nicely.
- With an excellent Operating Margin value of 20.63%, DEER belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- DEER's Operating Margin has improved in the last couple of years.
- DEER has a Gross Margin of 38.36%. This is in the better half of the industry: DEER outperforms 78.26% of its industry peers.
- In the last couple of years the Gross Margin of DEER 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) well above the Cost of Capital (WACC), DEER is creating value.
- Compared to 1 year ago, DEER has less shares outstanding
- The number of shares outstanding for DEER has been reduced compared to 5 years ago.
- DEER has a better debt/assets ratio than last year.
2.2 Solvency
- DEER has a debt to FCF ratio of 19.79. This is a negative value and a sign of low solvency as DEER would need 19.79 years to pay back of all of its debts.
- DEER's Debt to FCF ratio of 19.79 is fine compared to the rest of the industry. DEER outperforms 69.57% of its industry peers.
- DEER has a Debt/Equity ratio of 1.93. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.93, DEER is in line with its industry, outperforming 43.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.85
WACC5.12%
2.3 Liquidity
- DEER has a Current Ratio of 0.88. This is a bad value and indicates that DEER is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of DEER (0.88) is worse than 82.61% of its industry peers.
- DEER has a Quick Ratio of 0.88. This is a bad value and indicates that DEER is not financially healthy enough and could expect problems in meeting its short term obligations.
- DEER's Quick ratio of 0.67 is on the low side compared to the rest of the industry. DEER is outperformed by 69.57% 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 DEER have decreased strongly by -26.99% in the last year.
- DEER shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.52% yearly.
- DEER shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.66%.
- DEER shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.15% yearly.
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%-5.06%
3.2 Future
- The Earnings Per Share is expected to grow by 23.15% on average over the next years. This is a very strong growth
- DEER is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.96% yearly.
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 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
- The Price/Earnings ratio is 1.03, which indicates a rather cheap valuation of DEER.
- DEER's Price/Earnings ratio is rather cheap when compared to the industry. DEER is cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DEER to the average of the S&P500 Index (27.21), we can say DEER is valued rather cheaply.
- With a Price/Forward Earnings ratio of 1.13, the valuation of DEER can be described as very cheap.
- DEER's Price/Forward Earnings ratio is rather cheap when compared to the industry. DEER is cheaper than 100.00% of the companies in the same industry.
- DEER is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.03 | ||
| Fwd PE | 1.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DEER is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
- DEER's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DEER is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.61 | ||
| EV/EBITDA | 4.66 |
4.3 Compensation for Growth
- The excellent profitability rating of DEER may justify a higher PE ratio.
- DEER's earnings are expected to grow with 14.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y9.97%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
- DEER has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
- DEER's Dividend Yield is a higher than the industry average which is at 0.91.
- DEER's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
- On average, the dividend of DEER grows each year by 15.79%, which is quite nice.
- DEER does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)15.79%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- DEER pays out 34.22% of its income as dividend. This is a sustainable payout ratio.
- DEER's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.22%
EPS Next 2Y9.97%
EPS Next 3Y14.22%
Deere CDR / DEER.CA FAQ
What is the ChartMill fundamental rating of Deere CDR (DEER.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to DEER.CA.
Can you provide the valuation status for Deere CDR ?
ChartMill assigns a valuation rating of 8 / 10 to Deere CDR (DEER.CA). This can be considered as Undervalued.
Can you provide the profitability details for Deere CDR ?
Deere CDR (DEER.CA) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for DEER stock?
The Earnings per Share (EPS) of Deere CDR (DEER.CA) is expected to decline by -8.84% in the next year.
Is the dividend of Deere CDR sustainable?
The dividend rating of Deere CDR (DEER.CA) is 4 / 10 and the dividend payout ratio is 34.22%.