DEERE & CO (DCO.DE) Fundamental Analysis & Valuation
FRA:DCO • US2441991054
500.6 EUR
-11.5 (-2.25%)
Last: Mar 6, 2026, 07:00 PM
This DCO.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
DCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 107 industry peers in the Machinery industry. DCO has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, DCO is valued expensive at the moment.
1. DCO.DE Profitability Analysis
1.1 Basic Checks
- DCO had positive earnings in the past year.
- 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 has a better Return On Assets (4.65%) than 66.36% of its industry peers.
- With an excellent Return On Equity value of 18.30%, DCO belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 9.51%, DCO is in the better half of the industry, outperforming 79.44% 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 8.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 18.3% | ||
| ROIC | 9.51% |
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
- With an excellent Profit Margin value of 10.29%, DCO belongs to the best of the industry, outperforming 85.05% 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 19.79%. This is amongst the best in the industry. DCO outperforms 94.39% of its industry peers.
- DCO's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 37.15%, DCO perfoms like the industry average, outperforming 44.86% of the companies in the same industry.
- DCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.79% | ||
| PM (TTM) | 10.29% | ||
| GM | 37.15% |
OM growth 3Y2.78%
OM growth 5Y5.53%
PM growth 3Y-6.96%
PM growth 5Y7.29%
GM growth 3Y5.48%
GM growth 5Y2.6%
2. DCO.DE Health Analysis
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.
- DCO has less shares outstanding than it did 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
- The Debt to FCF ratio of DCO is 17.47, which is on the high side as it means it would take DCO, 17.47 years of fcf income to pay off all of its debts.
- DCO has a Debt to FCF ratio of 17.47. This is in the lower half of the industry: DCO underperforms 66.36% of its industry peers.
- DCO has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
- DCO has a worse Debt to Equity ratio (1.83) than 86.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | 17.47 | ||
| Altman-Z | N/A |
ROIC/WACC1.09
WACC8.71%
2.3 Liquidity
- DCO has a Current Ratio of 0.90. 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 0.90, DCO is doing worse than 91.59% of the companies in the same industry.
- A Quick Ratio of 0.65 indicates that DCO may have some problems paying its short term obligations.
- DCO has a Quick ratio of 0.65. This is amonst the worse of the industry: DCO underperforms 80.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.65 |
3. DCO.DE Growth Analysis
3.1 Past
- DCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.57%.
- Measured over the past years, DCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.52% on average per year.
- Looking at the last year, DCO shows a decrease in Revenue. The Revenue has decreased by -2.61% 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)-20.57%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-24.14%
Revenue 1Y (TTM)-2.61%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%17.51%
3.2 Future
- DCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.15% yearly.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. DCO.DE Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 32.46, 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 26.29, DCO is valued a bit more expensive.
- A Price/Forward Earnings ratio of 25.74 indicates a quite expensive valuation of DCO.
- 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 71.03% of the companies listed in the same industry.
- DCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 25.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than the industry average as 68.22% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DCO indicates a slightly more expensive valuation: DCO is more expensive than 66.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.09 | ||
| EV/EBITDA | 18.28 |
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 14.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.96
EPS Next 2Y9.96%
EPS Next 3Y14.21%
5. DCO.DE Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.05%, DCO has a reasonable but not impressive dividend return.
- DCO's Dividend Yield is comparable with the industry average which is at 1.45.
- With a Dividend Yield of 1.05, DCO pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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
- 36.52% of the earnings are spent on dividend by DCO. This is a low number and sustainable payout ratio.
- DCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.52%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
DCO.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:DCO (3/6/2026, 7:00:00 PM)
500.6
-11.5 (-2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-13 2026-05-13/bmo
Inst Owners75.5%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap135.70B
Revenue(TTM)46.79B
Net Income(TTM)4.81B
Analysts75.88
Price Target571.9 (14.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend5.38
Dividend Growth(5Y)15.78%
DP36.52%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.92%
Min EPS beat(2)-0.87%
Max EPS beat(2)14.71%
EPS beat(4)3
Avg EPS beat(4)8.18%
Min EPS beat(4)-0.87%
Max EPS beat(4)15.53%
EPS beat(8)6
Avg EPS beat(8)7.56%
EPS beat(12)10
Avg EPS beat(12)9.54%
EPS beat(16)12
Avg EPS beat(16)7.4%
Revenue beat(2)2
Avg Revenue beat(2)2.69%
Min Revenue beat(2)1.06%
Max Revenue beat(2)4.32%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)4.32%
Revenue beat(8)4
Avg Revenue beat(8)-1.6%
Revenue beat(12)5
Avg Revenue beat(12)-1.09%
Revenue beat(16)8
Avg Revenue beat(16)0.74%
PT rev (1m)24.67%
PT rev (3m)25.55%
EPS NQ rev (1m)3.78%
EPS NQ rev (3m)-13.84%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-19.09%
Revenue NQ rev (1m)-0.88%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 25.74 | ||
| P/S | 3.37 | ||
| P/FCF | 44.09 | ||
| P/OCF | 20.47 | ||
| P/B | 5.99 | ||
| P/tB | 7.46 | ||
| EV/EBITDA | 18.28 |
EPS(TTM)15.42
EY3.08%
EPS(NY)19.45
Fwd EY3.89%
FCF(TTM)11.35
FCFY2.27%
OCF(TTM)24.45
OCFY4.88%
SpS148.56
BVpS83.51
TBVpS67.13
PEG (NY)N/A
PEG (5Y)1.96
Graham Number170.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 18.3% | ||
| ROCE | 13.18% | ||
| ROIC | 9.51% | ||
| ROICexc | 10.43% | ||
| ROICexgc | 11.92% | ||
| OM | 19.79% | ||
| PM (TTM) | 10.29% | ||
| GM | 37.15% | ||
| FCFM | 7.64% |
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)14.42%
ROICexgc(5y)13.98%
ROCE(3y)18.3%
ROCE(5y)17.43%
ROICexgc growth 3Y-7.7%
ROICexgc growth 5Y2.28%
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 3Y5.48%
GM growth 5Y2.6%
F-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | 17.47 | ||
| Debt/EBITDA | 4.17 | ||
| Cap/Depr | 181.72% | ||
| Cap/Sales | 8.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.81% | ||
| Profit Quality | 74.28% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | N/A |
F-Score5
WACC8.71%
ROIC/WACC1.09
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)-20.57%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-24.14%
EPS Next Y-8.86%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue 1Y (TTM)-2.61%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%17.51%
Revenue Next Year5.95%
Revenue Next 2Y7.58%
Revenue Next 3Y7.96%
Revenue Next 5Y15.42%
EBIT growth 1Y-17.8%
EBIT growth 3Y-1.68%
EBIT growth 5Y10.96%
EBIT Next Year19.39%
EBIT Next 3Y22.71%
EBIT Next 5Y23.17%
FCF growth 1Y-19.73%
FCF growth 3Y52.5%
FCF growth 5Y-7.71%
OCF growth 1Y-13.73%
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 5.99.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.