DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:DCO • US2441991054
509.9 EUR
+13.8 (+2.78%)
Last: Feb 11, 2026, 05:28 PM
Overall DCO gets a fundamental rating of 5 out of 10. We evaluated DCO against 112 industry peers in the Machinery industry. DCO has an excellent profitability rating, but there are concerns on its financial health. DCO is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- In the past 5 years DCO always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of DCO (4.74%) is better than 66.07% of its industry peers.
- The Return On Equity of DCO (19.37%) is better than 88.39% of its industry peers.
- DCO's Return On Invested Capital of 8.78% is fine compared to the rest of the industry. DCO outperforms 75.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DCO is above the industry average of 8.65%.
| 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's Profit Margin of 11.00% is amongst the best of the industry. DCO outperforms 88.39% of its industry peers.
- In the last couple of years the Profit Margin of DCO has grown nicely.
- Looking at the Operating Margin, with a value of 20.63%, DCO belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
- DCO's Operating Margin has improved in the last couple of years.
- DCO's Gross Margin of 38.36% is in line compared to the rest of the industry. DCO outperforms 48.21% 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.
- DCO has less shares outstanding than it did 1 year ago.
- 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 an Altman-Z score of 2.68. 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 Altman-Z score of 2.68. This is in the better half of the industry: DCO outperforms 62.50% of its industry peers.
- 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 has a Debt to FCF ratio of 19.79. This is in the lower half of the industry: DCO underperforms 66.96% 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.
- Looking at the Debt to Equity ratio, with a value of 2.12, DCO is doing worse than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.96
WACC9.1%
2.3 Liquidity
- DCO has a Current 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.
- Looking at the Current ratio, with a value of 0.91, DCO is doing worse than 92.86% of the companies in the same industry.
- A Quick Ratio of 0.69 indicates that DCO may have some problems paying its short term obligations.
- DCO's Quick ratio of 0.69 is on the low side compared to the rest of the industry. DCO is outperformed by 77.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 |
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.
- 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)-26.99%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-13.63%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.34%
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-8.86%
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
- 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
- Based on the Price/Earnings ratio of 32.46, the valuation of DCO can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of DCO is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.03, DCO is valued at the same level.
- Based on the Price/Forward Earnings ratio of 35.60, the valuation of DCO can be described as expensive.
- DCO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DCO is more expensive than 78.57% of the companies in the same industry.
- DCO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 27.97, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 35.6 |
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 66.96% of the companies in the same industry.
- 68.75% 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 | 50.74 | ||
| EV/EBITDA | 17.48 |
4.3 Compensation for Growth
- The excellent profitability rating of DCO may justify a higher PE ratio.
- A more expensive valuation may be justified as DCO's earnings are expected to grow with 14.21% in the coming years.
PEG (NY)N/A
PEG (5Y)1.96
EPS Next 2Y9.96%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
- DCO has a Yearly Dividend Yield of 1.15%.
- Compared to an average industry Dividend Yield of 1.45, DCO has a dividend in line with its industry peers.
- DCO's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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
- 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 2Y9.96%
EPS Next 3Y14.21%
FRA:DCO (2/11/2026, 5:28:21 PM)
509.9
+13.8 (+2.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-26 2025-11-26/bmo
Earnings (Next)02-19 2026-02-19/bmo
Inst Owners75.5%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap137.84B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target447.07 (-12.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend5.38
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)-1.2%
PT rev (3m)-1.28%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-28.33%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-19.09%
Revenue NQ rev (1m)-2.8%
Revenue NQ rev (3m)6.96%
Revenue NY rev (1m)-1.48%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 35.6 | ||
| P/S | 3.59 | ||
| P/FCF | 50.74 | ||
| P/OCF | 21.98 | ||
| P/B | 6.32 | ||
| P/tB | 7.86 | ||
| EV/EBITDA | 17.48 |
EPS(TTM)15.71
EY3.08%
EPS(NY)14.32
Fwd EY2.81%
FCF(TTM)10.05
FCFY1.97%
OCF(TTM)23.2
OCFY4.55%
SpS142.08
BVpS80.71
TBVpS64.91
PEG (NY)N/A
PEG (5Y)1.96
Graham Number168.9
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 | 2.68 |
F-Score5
WACC9.1%
ROIC/WACC0.96
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 Y-8.86%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%14.06%
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 32.46 and the Price/Book (PB) ratio is 6.32.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 3 / 10.