DEERE & CO (DCO.DE) Stock Fundamental Analysis
FRA:DCO - Deutsche Boerse Ag - US2441991054 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to DCO. DCO was compared to 106 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
In the past year DCO was profitable.
In the past year DCO had a positive cash flow from operations.
Each year in the past 5 years DCO has been profitable.
In the past 5 years DCO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.32%, DCO is in the better half of the industry, outperforming 69.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.27%, DCO belongs to the top of the industry, outperforming 89.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.46%, DCO is in the better half of the industry, outperforming 78.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DCO is above the industry average of 8.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 23.27% | ||
| ROIC | 9.46% |
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
With an excellent Profit Margin value of 12.40%, DCO belongs to the best of the industry, outperforming 92.45% of the companies in the same industry.
In the last couple of years the Profit Margin of DCO has grown nicely.
The Operating Margin of DCO (22.89%) is better than 95.28% of its industry peers.
DCO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 40.60%, DCO perfoms like the industry average, outperforming 53.77% of the companies in the same industry.
In the last couple of years the Gross Margin of DCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.89% | ||
| PM (TTM) | 12.4% | ||
| GM | 40.6% |
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
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.
The number of shares outstanding for DCO has been reduced compared to 5 years ago.
DCO has a better debt/assets ratio than last year.
2.2 Solvency
DCO has an Altman-Z score of 2.55. This is not the best score and indicates that DCO is in the grey zone with still only limited risk for bankruptcy at the moment.
DCO has a better Altman-Z score (2.55) than 60.38% of its industry peers.
DCO has a debt to FCF ratio of 15.31. This is a negative value and a sign of low solvency as DCO would need 15.31 years to pay back of all of its debts.
With a Debt to FCF ratio value of 15.31, DCO is not doing good in the industry: 68.87% of the companies in the same industry are doing better.
DCO has a Debt/Equity ratio of 2.36. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.36, DCO is not doing good in the industry: 91.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 15.31 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.01
WACC9.35%
2.3 Liquidity
DCO has a Current Ratio of 0.94. 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 Current ratio (0.94) than 91.51% of its industry peers.
DCO has a Quick Ratio of 0.94. 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 (0.72) than 79.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for DCO have decreased strongly by -37.89% in the last year.
DCO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.90% yearly.
DCO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.29%.
DCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.62% yearly.
EPS 1Y (TTM)-37.89%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-22.16%
Revenue 1Y (TTM)-22.29%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-17.92%
3.2 Future
Based on estimates for the next years, DCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.55% on average per year.
Based on estimates for the next years, DCO will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
EPS Next Y-24.57%
EPS Next 2Y-4.99%
EPS Next 3Y2.91%
EPS Next 5Y14.55%
Revenue Next Year-15.84%
Revenue Next 2Y-4.64%
Revenue Next 3Y-0.83%
Revenue Next 5Y8.39%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 24.94 indicates a rather expensive valuation of DCO.
The rest of the industry has a similar Price/Earnings ratio as DCO.
DCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.31, the valuation of DCO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DCO is valued a bit more expensive than 66.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, DCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 22.31 |
4.2 Price Multiples
69.81% 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 60.38% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.29 | ||
| EV/EBITDA | 14.87 |
4.3 Compensation for Growth
DCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-4.99%
EPS Next 3Y2.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, DCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.89, DCO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, DCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of DCO is nicely growing with an annual growth rate of 14.18%!
Dividend Growth(5Y)14.18%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
29.23% of the earnings are spent on dividend by DCO. This is a low number and sustainable payout ratio.
DCO's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP29.23%
EPS Next 2Y-4.99%
EPS Next 3Y2.91%
FRA:DCO (7/11/2025, 7:00:00 PM)
440.2
-11.7 (-2.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.35%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap119.22B
Analysts73.94
Price Target482.52 (9.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend4.97
Dividend Growth(5Y)14.18%
DP29.23%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.58%
Min EPS beat(2)-0.37%
Max EPS beat(2)15.53%
EPS beat(4)3
Avg EPS beat(4)9.49%
Min EPS beat(4)-0.37%
Max EPS beat(4)15.53%
EPS beat(8)7
Avg EPS beat(8)11.03%
EPS beat(12)10
Avg EPS beat(12)8.56%
EPS beat(16)13
Avg EPS beat(16)8.76%
Revenue beat(2)1
Avg Revenue beat(2)-6.82%
Min Revenue beat(2)-14.13%
Max Revenue beat(2)0.49%
Revenue beat(4)2
Avg Revenue beat(4)-3.8%
Min Revenue beat(4)-14.13%
Max Revenue beat(4)1.98%
Revenue beat(8)2
Avg Revenue beat(8)-2.66%
Revenue beat(12)6
Avg Revenue beat(12)1.09%
Revenue beat(16)9
Avg Revenue beat(16)2.26%
PT rev (1m)8.22%
PT rev (3m)4.8%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-15.95%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 22.31 | ||
| P/S | 3.07 | ||
| P/FCF | 32.29 | ||
| P/OCF | 15.8 | ||
| P/B | 5.76 | ||
| P/tB | 7.28 | ||
| EV/EBITDA | 14.87 |
EPS(TTM)17.65
EY4.01%
EPS(NY)19.73
Fwd EY4.48%
FCF(TTM)13.63
FCFY3.1%
OCF(TTM)27.86
OCFY6.33%
SpS143.38
BVpS76.42
TBVpS60.51
PEG (NY)N/A
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 23.27% | ||
| ROCE | 14.7% | ||
| ROIC | 9.46% | ||
| ROICexc | 10.44% | ||
| ROICexgc | 11.7% | ||
| OM | 22.89% | ||
| PM (TTM) | 12.4% | ||
| GM | 40.6% | ||
| FCFM | 9.51% |
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-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 15.31 | ||
| Debt/EBITDA | 4.55 | ||
| Cap/Depr | 207.76% | ||
| Cap/Sales | 9.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.25% | ||
| Profit Quality | 76.65% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.55 |
F-Score6
WACC9.35%
ROIC/WACC1.01
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)-37.89%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-22.16%
EPS Next Y-24.57%
EPS Next 2Y-4.99%
EPS Next 3Y2.91%
EPS Next 5Y14.55%
Revenue 1Y (TTM)-22.29%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-17.92%
Revenue Next Year-15.84%
Revenue Next 2Y-4.64%
Revenue Next 3Y-0.83%
Revenue Next 5Y8.39%
EBIT growth 1Y-30.73%
EBIT growth 3Y14.52%
EBIT growth 5Y18.01%
EBIT Next Year-9.32%
EBIT Next 3Y5.68%
EBIT Next 5Y13.77%
FCF growth 1Y109.99%
FCF growth 3Y-4.88%
FCF growth 5YN/A
OCF growth 1Y40.24%
OCF growth 3Y6.11%
OCF growth 5Y22.02%