DEERE & CO (DCO.DE) Stock Fundamental Analysis
FRA:DCO - Deutsche Boerse Ag - US2441991054 - Common Stock - Currency: EUR
DCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 105 industry peers in the Machinery industry. DCO scores excellent on profitability, 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.
DCO had positive earnings in each of the past 5 years.
DCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DCO has a better Return On Assets (6.03%) than 75.96% of its industry peers.
DCO has a Return On Equity of 27.66%. This is amongst the best in the industry. DCO outperforms 93.27% of its industry peers.
With an excellent Return On Invested Capital value of 10.53%, DCO belongs to the best of the industry, outperforming 81.73% of the companies in the same industry.
DCO had an Average Return On Invested Capital over the past 3 years of 12.67%. This is above the industry average of 8.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 27.66% | ||
| ROIC | 10.53% |
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
The Profit Margin of DCO (12.94%) is better than 93.27% of its industry peers.
In the last couple of years the Profit Margin of DCO has grown nicely.
The Operating Margin of DCO (23.44%) is better than 97.12% of its industry peers.
In the last couple of years the Operating Margin of DCO has grown nicely.
DCO has a Gross Margin (40.44%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.44% | ||
| PM (TTM) | 12.94% | ||
| GM | 40.44% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DCO is 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.
DCO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.57 indicates that DCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.57, DCO is doing good in the industry, outperforming 67.31% of the companies in the same industry.
DCO has a debt to FCF ratio of 15.22. This is a negative value and a sign of low solvency as DCO would need 15.22 years to pay back of all of its debts.
The Debt to FCF ratio of DCO (15.22) is worse than 62.50% of its industry peers.
DCO has a Debt/Equity ratio of 2.44. This is a high value indicating a heavy dependency on external financing.
DCO has a Debt to Equity ratio of 2.44. This is amonst the worse of the industry: DCO underperforms 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 15.22 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.03
WACC10.25%
2.3 Liquidity
DCO has a Current Ratio of 0.97. 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 0.97, DCO is doing worse than 85.58% of the companies in the same industry.
A Quick Ratio of 0.73 indicates that DCO may have some problems paying its short term obligations.
DCO has a worse Quick ratio (0.73) than 71.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
DCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.42%.
The Earnings Per Share has been growing by 20.90% on average over the past years. This is a very strong growth
Looking at the last year, DCO shows a very negative growth in Revenue. The Revenue has decreased by -20.97% in the last year.
Measured over the past years, DCO shows a small growth in Revenue. The Revenue has been growing by 5.62% on average per year.
EPS 1Y (TTM)-34.42%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-48.8%
Revenue 1Y (TTM)-20.97%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-35.07%
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 13.58% 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-22.92%
EPS Next 2Y-6.22%
EPS Next 3Y0.39%
EPS Next 5Y13.58%
Revenue Next Year-15.88%
Revenue Next 2Y-5.04%
Revenue Next 3Y-0.89%
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
The Price/Earnings ratio is 21.67, which indicates a rather expensive current valuation of DCO.
DCO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, DCO is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 21.72, 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 63.46% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DCO to the average of the S&P500 Index (22.10), we can say DCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 21.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than 65.38% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DCO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.37 | ||
| EV/EBITDA | 13.37 |
4.3 Compensation for Growth
The excellent profitability rating of DCO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y-6.22%
EPS Next 3Y0.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, DCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.07, DCO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, 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 14.18%, which is quite nice.
Dividend Growth(5Y)14.18%
Div Incr Years3
Div Non Decr Years5
5.3 Sustainability
26.09% of the earnings are spent on dividend by DCO. This is a low number and sustainable payout ratio.
DCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.09%
EPS Next 2Y-6.22%
EPS Next 3Y0.39%
FRA:DCO (3/7/2025, 7:00:00 PM)
450.35
+16.6 (+3.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner ChangeN/A
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap122.23B
Analysts75
Price Target482.95 (7.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend5.34
Dividend Growth(5Y)14.18%
DP26.09%
Div Incr Years3
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.96%
Min EPS beat(2)-0.37%
Max EPS beat(2)14.29%
EPS beat(4)3
Avg EPS beat(4)6.93%
Min EPS beat(4)-0.37%
Max EPS beat(4)14.29%
EPS beat(8)7
Avg EPS beat(8)10.23%
EPS beat(12)9
Avg EPS beat(12)7.14%
EPS beat(16)13
Avg EPS beat(16)9.17%
Revenue beat(2)0
Avg Revenue beat(2)-8.83%
Min Revenue beat(2)-14.13%
Max Revenue beat(2)-3.54%
Revenue beat(4)1
Avg Revenue beat(4)-4.05%
Min Revenue beat(4)-14.13%
Max Revenue beat(4)1.98%
Revenue beat(8)2
Avg Revenue beat(8)-2.06%
Revenue beat(12)5
Avg Revenue beat(12)0.71%
Revenue beat(16)9
Avg Revenue beat(16)2.99%
PT rev (1m)5.79%
PT rev (3m)8.24%
EPS NQ rev (1m)-2.06%
EPS NQ rev (3m)-4.45%
EPS NY rev (1m)-1.32%
EPS NY rev (3m)-6.47%
Revenue NQ rev (1m)-2%
Revenue NQ rev (3m)-2.55%
Revenue NY rev (1m)-1.92%
Revenue NY rev (3m)-5.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 21.72 | ||
| P/S | 2.76 | ||
| P/FCF | 31.37 | ||
| P/OCF | 14.73 | ||
| P/B | 5.9 | ||
| P/tB | 7.51 | ||
| EV/EBITDA | 13.37 |
EPS(TTM)20.78
EY4.61%
EPS(NY)20.74
Fwd EY4.6%
FCF(TTM)14.36
FCFY3.19%
OCF(TTM)30.57
OCFY6.79%
SpS163.02
BVpS76.29
TBVpS59.97
PEG (NY)N/A
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 27.66% | ||
| ROCE | 15.7% | ||
| ROIC | 10.53% | ||
| ROICexc | 11.44% | ||
| ROICexgc | 12.67% | ||
| OM | 23.44% | ||
| PM (TTM) | 12.94% | ||
| GM | 40.44% | ||
| FCFM | 8.81% |
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 15.22 | ||
| Debt/EBITDA | 4.09 | ||
| Cap/Depr | 222.5% | ||
| Cap/Sales | 9.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.18% | ||
| Profit Quality | 68.03% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.57 |
F-Score6
WACC10.25%
ROIC/WACC1.03
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)-34.42%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-48.8%
EPS Next Y-22.92%
EPS Next 2Y-6.22%
EPS Next 3Y0.39%
EPS Next 5Y13.58%
Revenue 1Y (TTM)-20.97%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-35.07%
Revenue Next Year-15.88%
Revenue Next 2Y-5.04%
Revenue Next 3Y-0.89%
Revenue Next 5Y8.39%
EBIT growth 1Y-27.44%
EBIT growth 3Y14.52%
EBIT growth 5Y18.01%
EBIT Next Year-7.08%
EBIT Next 3Y2.67%
EBIT Next 5Y12.72%
FCF growth 1Y112.56%
FCF growth 3Y-4.88%
FCF growth 5YN/A
OCF growth 1Y49.97%
OCF growth 3Y6.11%
OCF growth 5Y22.02%