DEERE & CO (DCO.DE) Stock Fundamental Analysis
FRA:DCO • US2441991054
540.1 EUR
-13.4 (-2.42%)
Last: Feb 24, 2026, 05:24 PM
DCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 109 industry peers in the Machinery industry. While DCO has a great profitability rating, there are quite some 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
- DCO had positive earnings in the past year.
- In the past year DCO had a positive cash flow from operations.
- 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's Return On Assets of 4.74% is fine compared to the rest of the industry. DCO outperforms 65.14% of its industry peers.
- With an excellent Return On Equity value of 19.37%, DCO belongs to the best of the industry, outperforming 85.32% of the companies in the same industry.
- DCO has a Return On Invested Capital of 8.78%. This is in the better half of the industry: DCO outperforms 74.31% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DCO is above the industry average of 8.82%.
| 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 has a better Profit Margin (11.00%) than 87.16% of its industry peers.
- DCO's Profit Margin has improved in the last couple of years.
- DCO's Operating Margin of 20.63% is amongst the best of the industry. DCO outperforms 94.50% of its industry peers.
- 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 47.71% of its industry peers.
- 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 3Y2.78%
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
- 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
- DCO has less shares outstanding than it did 5 years ago.
- DCO has a better debt/assets ratio than last year.
2.2 Solvency
- DCO has an Altman-Z score of 2.81. 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 2.81. This is in the better half of the industry: DCO outperforms 63.30% of its industry peers.
- 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 69.72% 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 88.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | 2.81 |
ROIC/WACC1
WACC8.8%
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.
- The Current ratio of DCO (0.91) is worse than 92.66% of its industry peers.
- 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 78.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- DCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.57%.
- The Earnings Per Share has been growing by 16.52% on average over the past years. This is quite good.
- Looking at the last year, DCO shows a very negative growth in Revenue. The Revenue has decreased by -11.55% 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)-11.55%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%17.51%
3.2 Future
- Based on estimates for the next years, DCO will show a very strong growth in Earnings Per Share. The EPS will grow by 23.15% 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 15.42% on average per year.
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
- With a Price/Earnings ratio of 35.51, DCO can be considered very expensive at the moment.
- DCO's Price/Earnings is on the same level as the industry average.
- DCO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.64.
- The Price/Forward Earnings ratio is 28.16, which means the current valuation is very expensive for 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 72.48% 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 27.75, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.51 | ||
| Fwd PE | 28.16 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than 70.64% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DCO is valued a bit more expensive than the industry average as 71.56% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.4 | ||
| EV/EBITDA | 18.96 |
4.3 Compensation for Growth
- DCO has an outstanding profitability rating, which 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)2.15
EPS Next 2Y9.96%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
- DCO has a yearly dividend return of 0.98%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.42, DCO has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.80, DCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
- The dividend of DCO is nicely growing with an annual growth rate of 15.78%!
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.
- DCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.22%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
FRA:DCO (2/24/2026, 5:24:54 PM)
540.1
-13.4 (-2.42%)
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 Cap146.40B
Revenue(TTM)45.67B
Net Income(TTM)5.03B
Analysts75.88
Price Target447.07 (-17.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend5.39
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)-2.54%
PT rev (3m)-1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.47%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-19.09%
Revenue NQ rev (1m)-1.69%
Revenue NQ rev (3m)7.48%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.51 | ||
| Fwd PE | 28.16 | ||
| P/S | 3.78 | ||
| P/FCF | 53.4 | ||
| P/OCF | 23.13 | ||
| P/B | 6.65 | ||
| P/tB | 8.27 | ||
| EV/EBITDA | 18.96 |
EPS(TTM)15.21
EY2.82%
EPS(NY)19.18
Fwd EY3.55%
FCF(TTM)10.11
FCFY1.87%
OCF(TTM)23.35
OCFY4.32%
SpS143.01
BVpS81.24
TBVpS65.34
PEG (NY)N/A
PEG (5Y)2.15
Graham Number166.74
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 | 2.81 |
F-Score5
WACC8.8%
ROIC/WACC1
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)-11.55%
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-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 35.51 and the Price/Book (PB) ratio is 6.65.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 3 / 10.