DEERE & CO (DCO.DE) Stock Fundamental Analysis
FRA:DCO • US2441991054
528.2 EUR
+2.6 (+0.49%)
Last: Feb 27, 2026, 07:00 PM
Overall DCO gets a fundamental rating of 5 out of 10. We evaluated DCO against 109 industry peers in the Machinery industry. While DCO has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, DCO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- DCO had positive earnings in the past year.
- DCO had a positive operating cash flow in the past year.
- In the past 5 years DCO has always been profitable.
- DCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of DCO (4.74%) is better than 65.14% of its industry peers.
- DCO's Return On Equity of 19.37% is amongst the best of the industry. DCO outperforms 85.32% of its industry peers.
- The Return On Invested Capital of DCO (8.78%) is better than 74.31% of its industry peers.
- DCO had an Average Return On Invested Capital over the past 3 years of 11.93%. This is above the industry average of 8.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 19.37% | ||
| ROIC | 8.78% |
ROA(3y)7.04%
ROA(5y)7.23%
ROE(3y)32.38%
ROE(5y)32.94%
ROIC(3y)11.93%
ROIC(5y)11.53%
1.3 Margins
- DCO has a better Profit Margin (11.00%) than 87.16% of its industry peers.
- DCO's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 20.63%, DCO belongs to the top of the industry, outperforming 94.50% of the companies in the same industry.
- DCO's Operating Margin has improved in the last couple of years.
- DCO has a Gross Margin of 38.36%. This is comparable to the rest of the industry: DCO outperforms 47.71% of its industry peers.
- In the last couple of years the Gross Margin of DCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.63% | ||
| PM (TTM) | 11% | ||
| GM | 38.36% |
OM growth 3Y2.78%
OM growth 5Y5.53%
PM growth 3Y-6.96%
PM growth 5Y7.29%
GM growth 3Y7.3%
GM growth 5Y4.63%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DCO is still creating some value.
- The number of shares outstanding for DCO has been reduced compared to 1 year ago.
- DCO has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for DCO has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.74 indicates that DCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.74, DCO is in the better half of the industry, outperforming 62.39% of the companies in the same industry.
- The Debt to FCF ratio of DCO is 19.79, which is on the high side as it means it would take DCO, 19.79 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of DCO (19.79) is worse than 69.72% of its industry peers.
- A Debt/Equity ratio of 2.12 is on the high side and indicates that DCO has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.12, DCO is not doing good in the industry: 88.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | 2.74 |
ROIC/WACC1
WACC8.74%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that DCO may have some problems paying its short term obligations.
- DCO has a Current ratio of 0.91. This is amonst the worse of the industry: DCO underperforms 92.66% of its industry peers.
- DCO has a Quick Ratio of 0.91. This is a bad value and indicates that DCO is not financially healthy enough and could expect problems in meeting its short term obligations.
- DCO has a worse Quick ratio (0.69) than 78.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- DCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.57%.
- Measured over the past years, DCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.52% on average per year.
- The Revenue for DCO has decreased by -11.55% in the past year. This is quite bad
- Measured over the past years, DCO shows a small growth in Revenue. The Revenue has been growing by 5.15% on average per year.
EPS 1Y (TTM)-20.57%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-24.14%
Revenue 1Y (TTM)-11.55%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%17.51%
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
- DCO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.42% yearly.
EPS Next Y-8.86%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue Next Year5.95%
Revenue Next 2Y7.58%
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
- DCO is valuated quite expensively with a Price/Earnings ratio of 34.82.
- Compared to the rest of the industry, the Price/Earnings ratio of DCO is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of DCO to the average of the S&P500 Index (27.10), we can say DCO is valued slightly more expensively.
- A Price/Forward Earnings ratio of 27.61 indicates a quite expensive valuation of DCO.
- Based on the Price/Forward Earnings ratio, DCO is valued a bit more expensive than the industry average as 71.56% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, DCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.82 | ||
| Fwd PE | 27.61 |
4.2 Price Multiples
- 69.72% of the companies in the same industry are cheaper than DCO, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, DCO is valued a bit more expensive than the industry average as 70.64% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.35 | ||
| EV/EBITDA | 18.23 |
4.3 Compensation for Growth
- DCO has an outstanding profitability rating, which may justify a higher PE ratio.
- DCO'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)2.11
EPS Next 2Y9.96%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.98%, DCO is not a good candidate for dividend investing.
- DCO's Dividend Yield is comparable with the industry average which is at 1.42.
- With a Dividend Yield of 0.98, DCO pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
- The dividend of DCO is nicely growing with an annual growth rate of 15.78%!
Dividend Growth(5Y)15.78%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
- 34.22% of the earnings are spent on dividend by DCO. This is a low number and sustainable payout ratio.
- DCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.22%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
FRA:DCO (2/27/2026, 7:00:00 PM)
528.2
+2.6 (+0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-13 2026-05-13/bmo
Inst Owners75.5%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap143.18B
Revenue(TTM)45.67B
Net Income(TTM)5.03B
Analysts75.88
Price Target447.07 (-15.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend5.39
Dividend Growth(5Y)15.78%
DP34.22%
Div Incr Years4
Div Non Decr Years6
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)-2.54%
PT rev (3m)-1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.47%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-19.09%
Revenue NQ rev (1m)-1.69%
Revenue NQ rev (3m)7.48%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.82 | ||
| Fwd PE | 27.61 | ||
| P/S | 3.7 | ||
| P/FCF | 52.35 | ||
| P/OCF | 22.68 | ||
| P/B | 6.52 | ||
| P/tB | 8.11 | ||
| EV/EBITDA | 18.23 |
EPS(TTM)15.17
EY2.87%
EPS(NY)19.13
Fwd EY3.62%
FCF(TTM)10.09
FCFY1.91%
OCF(TTM)23.29
OCFY4.41%
SpS142.65
BVpS81.03
TBVpS65.17
PEG (NY)N/A
PEG (5Y)2.11
Graham Number166.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 19.37% | ||
| ROCE | 12.93% | ||
| ROIC | 8.78% | ||
| ROICexc | 9.73% | ||
| ROICexgc | 10.92% | ||
| 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)11.93%
ROIC(5y)11.53%
ROICexc(3y)13.13%
ROICexc(5y)12.71%
ROICexgc(3y)14.32%
ROICexgc(5y)13.95%
ROCE(3y)18.3%
ROCE(5y)17.43%
ROICexgc growth 3Y-8.17%
ROICexgc growth 5Y2.14%
ROICexc growth 3Y-7.44%
ROICexc growth 5Y3.01%
OM growth 3Y2.78%
OM growth 5Y5.53%
PM growth 3Y-6.96%
PM growth 5Y7.29%
GM growth 3Y7.3%
GM growth 5Y4.63%
F-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 19.79 | ||
| Debt/EBITDA | 4.72 | ||
| Cap/Depr | 189.68% | ||
| Cap/Sales | 9.26% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 64% | ||
| Profit Quality | 64.27% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.74 |
F-Score5
WACC8.74%
ROIC/WACC1
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)-20.57%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-24.14%
EPS Next Y-8.86%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue 1Y (TTM)-11.55%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%17.51%
Revenue Next Year5.95%
Revenue Next 2Y7.58%
Revenue Next 3Y7.96%
Revenue Next 5Y15.42%
EBIT growth 1Y-24.91%
EBIT growth 3Y-1.68%
EBIT growth 5Y10.96%
EBIT Next Year11.92%
EBIT Next 3Y19.46%
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 / DCO.DE FAQ
What is the ChartMill fundamental rating of DEERE & CO (DCO.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DCO.DE.
What is the valuation status for DCO stock?
ChartMill assigns a valuation rating of 2 / 10 to DEERE & CO (DCO.DE). This can be considered as Overvalued.
What is the profitability of DCO stock?
DEERE & CO (DCO.DE) has a profitability rating of 8 / 10.
What is the valuation of DEERE & CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DEERE & CO (DCO.DE) is 34.82 and the Price/Book (PB) ratio is 6.52.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 3 / 10.