DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:DCO • US2441991054
440.4 EUR
-0.25 (-0.06%)
Last: Jan 30, 2026, 07:00 PM
DCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 111 industry peers in the Machinery industry. DCO scores excellent on profitability, but there are concerns on its financial health. DCO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DCO was profitable.
- DCO had a positive operating cash flow in the past year.
- Each year in the past 5 years DCO has been profitable.
- DCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- DCO's Return On Assets of 4.74% is fine compared to the rest of the industry. DCO outperforms 63.06% of its industry peers.
- DCO has a Return On Equity of 19.37%. This is amongst the best in the industry. DCO outperforms 84.68% of its industry peers.
- DCO's Return On Invested Capital of 9.46% is fine compared to the rest of the industry. DCO outperforms 73.87% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DCO is above the industry average of 9.21%.
| 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
- With an excellent Profit Margin value of 11.00%, DCO belongs to the best of the industry, outperforming 85.59% of the companies in the same industry.
- In the last couple of years the Profit Margin of DCO has grown nicely.
- DCO has a Operating Margin of 20.63%. This is amongst the best in the industry. DCO outperforms 92.79% of its industry peers.
- 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 46.85% 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.
- Compared to 1 year ago, DCO has less shares outstanding
- Compared to 5 years ago, DCO has less shares outstanding
- The debt/assets ratio for DCO has been reduced compared to a year ago.
2.2 Solvency
- DCO has a debt to FCF ratio of 19.79. This is a negative value and a sign of low solvency as DCO would need 19.79 years to pay back of all of its debts.
- The Debt to FCF ratio of DCO (19.79) is worse than 68.47% 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 88.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.04
WACC9.12%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that DCO may have some problems paying its short term obligations.
- DCO has a Current ratio of 0.88. This is amonst the worse of the industry: DCO underperforms 92.79% of its industry peers.
- DCO has a Quick 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 Quick ratio, with a value of 0.67, DCO is doing worse than 79.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- The earnings per share for DCO have decreased strongly by -26.99% in the last year.
- 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
- 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-8.84%
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 5Y15.42%
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
- With a Price/Earnings ratio of 28.19, DCO can be considered very expensive at the moment.
- DCO's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, DCO is valued at the same level.
- With a Price/Forward Earnings ratio of 30.94, DCO can be considered very expensive at the moment.
- DCO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DCO is more expensive than 75.68% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DCO to the average of the S&P500 Index (25.57), we can say DCO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.19 | ||
| Fwd PE | 30.94 |
4.2 Price Multiples
- DCO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DCO is more expensive than 65.77% of the companies in the same industry.
- DCO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. DCO is more expensive than 67.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.1 | ||
| EV/EBITDA | 16.44 |
4.3 Compensation for Growth
- The excellent profitability rating of DCO may justify a higher PE ratio.
- DCO'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)1.71
EPS Next 2Y9.97%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
- DCO has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.48, DCO has a dividend in line with its industry peers.
- DCO's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
- On average, the dividend of DCO grows each year by 15.78%, which is quite nice.
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.
- The dividend of DCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.22%
EPS Next 2Y9.97%
EPS Next 3Y14.22%
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 28.19 and the Price/Book (PB) ratio is 5.49.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.