DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DCO - US2441991054 - Common Stock
416.25 EUR
+3.2 (+0.77%)
DCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 108 industry peers in the Machinery industry. DCO scores excellent on profitability, but there are 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.
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
DCO has a better Return On Assets (4.74%) than 64.81% of its industry peers.
Looking at the Return On Equity, with a value of 19.37%, DCO belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
DCO has a better Return On Invested Capital (9.46%) than 76.85% of its industry peers.
DCO had an Average Return On Invested Capital over the past 3 years of 12.10%. This is above the industry average of 9.47%.
| 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
DCO has a better Profit Margin (11.00%) than 87.96% of its industry peers.
DCO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.63%, DCO belongs to the best of the industry, outperforming 93.52% of the companies in the same industry.
DCO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 38.36%, DCO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
DCO's Gross Margin has improved in the last couple of years.
| 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
DCO 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 DCO has been reduced compared to 1 year ago.
The number of shares outstanding for DCO has been reduced compared to 5 years ago.
Compared to 1 year ago, DCO has an improved debt to assets ratio.
2.2 Solvency
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.
DCO's Debt to FCF ratio of 19.79 is on the low side compared to the rest of the industry. DCO is outperformed by 73.15% of its industry peers.
DCO 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, DCO is doing worse than 87.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC8.99%
2.3 Liquidity
DCO has a Current Ratio of 0.88. This is a bad value and indicates that DCO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.88, DCO is doing worse than 93.52% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that DCO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, DCO is doing worse than 81.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
DCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.99%.
DCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.52% yearly.
Looking at the last year, DCO shows a very negative growth in Revenue. The Revenue has decreased by -11.66% in the last year.
The Revenue has been growing slightly by 5.15% on average over the past years.
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%14.06%
3.2 Future
DCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.20% yearly.
Based on estimates for the next years, DCO will show a quite strong growth in Revenue. The Revenue will grow by 15.43% on average per year.
EPS Next Y12.63%
EPS Next 2Y19.99%
EPS Next 3Y20.95%
EPS Next 5Y28.2%
Revenue Next Year4.76%
Revenue Next 2Y6.62%
Revenue Next 3Y5.78%
Revenue Next 5Y15.43%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 25.98 indicates a quite expensive valuation of DCO.
DCO's Price/Earnings ratio is in line with the industry average.
DCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.07, DCO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DCO indicates a slightly more expensive valuation: DCO is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. DCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 23.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
72.22% of the companies in the same industry are cheaper than DCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.63 | ||
| EV/EBITDA | 15.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DCO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DCO may justify a higher PE ratio.
DCO's earnings are expected to grow with 20.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.06
PEG (5Y)1.57
EPS Next 2Y19.99%
EPS Next 3Y20.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, DCO has a reasonable but not impressive dividend return.
DCO's Dividend Yield is comparable with the industry average which is at 2.40.
Compared to an average S&P500 Dividend Yield of 2.32, DCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of DCO grows each year by 15.79%, which is quite nice.
Dividend Growth(5Y)15.79%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
DCO pays out 34.22% of its income as dividend. This is a sustainable payout ratio.
The dividend of DCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.22%
EPS Next 2Y19.99%
EPS Next 3Y20.95%
FRA:DCO (12/5/2025, 7:00:00 PM)
416.25
+3.2 (+0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.4%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap112.52B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target448.88 (7.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend5.45
Dividend Growth(5Y)15.79%
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)-0.37%
PT rev (3m)-0.77%
EPS NQ rev (1m)-2.75%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-3.4%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 23.07 | ||
| P/S | 2.87 | ||
| P/FCF | 40.63 | ||
| P/OCF | 17.6 | ||
| P/B | 5.06 | ||
| P/tB | 6.29 | ||
| EV/EBITDA | 15.38 |
EPS(TTM)16.02
EY3.85%
EPS(NY)18.05
Fwd EY4.34%
FCF(TTM)10.25
FCFY2.46%
OCF(TTM)23.65
OCFY5.68%
SpS144.86
BVpS82.29
TBVpS66.18
PEG (NY)2.06
PEG (5Y)1.57
Graham Number172.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 19.37% | ||
| ROCE | 13.15% | ||
| ROIC | 9.46% | ||
| ROICexc | 10.58% | ||
| ROICexgc | 12.05% | ||
| 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)12.1%
ROIC(5y)11.63%
ROICexc(3y)13.35%
ROICexc(5y)12.84%
ROICexgc(3y)14.72%
ROICexgc(5y)14.18%
ROCE(3y)18.29%
ROCE(5y)17.42%
ROICexgc growth 3Y-4.95%
ROICexgc growth 5Y4.28%
ROICexc growth 3Y-5.45%
ROICexc growth 5Y4.33%
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%
F-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Debt/EBITDA | 4.3 | ||
| Cap/Depr | 189.68% | ||
| Cap/Sales | 9.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64% | ||
| Profit Quality | 64.27% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | N/A |
F-Score4
WACC8.99%
ROIC/WACC1.05
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)-26.99%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-13.63%
EPS Next Y12.63%
EPS Next 2Y19.99%
EPS Next 3Y20.95%
EPS Next 5Y28.2%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.33%
Revenue growth 5Y5.15%
Sales Q2Q%14.06%
Revenue Next Year4.76%
Revenue Next 2Y6.62%
Revenue Next 3Y5.78%
Revenue Next 5Y15.43%
EBIT growth 1Y-24.92%
EBIT growth 3Y-2.32%
EBIT growth 5Y10.52%
EBIT Next Year39.86%
EBIT Next 3Y31.29%
EBIT Next 5Y30.15%
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.
Can you provide the valuation status for DEERE & CO?
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.
Can you provide the financial health for DCO stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.
Can you provide the dividend sustainability for DCO stock?
The dividend rating of DEERE & CO (DCO.DE) is 5 / 10 and the dividend payout ratio is 34.22%.