DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DCO - US2441991054 - Common Stock
438.55 EUR
-5.7 (-1.28%)
Taking everything into account, DCO scores 5 out of 10 in our fundamental rating. DCO was compared to 115 industry peers in the Machinery industry. DCO has an excellent profitability rating, 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.
- In the past year DCO had a positive cash flow from operations.
- Each year in the past 5 years DCO has been profitable.
- Each year in the past 5 years DCO had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 4.74%, DCO is doing good in the industry, outperforming 63.48% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 19.37%, DCO belongs to the top of the industry, outperforming 83.48% of the companies in the same industry.
- With a decent Return On Invested Capital value of 9.46%, DCO is doing good in the industry, outperforming 76.52% 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 8.97%.
| 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
- Looking at the Profit Margin, with a value of 11.00%, DCO belongs to the top of the industry, outperforming 86.09% of the companies in the same industry.
- DCO's Profit Margin has improved in the last couple of years.
- DCO has a better Operating Margin (20.63%) than 91.30% of its industry peers.
- DCO's Operating Margin has improved in the last couple of years.
- DCO has a Gross Margin of 38.36%. This is comparable to the rest of the industry: DCO outperforms 49.57% 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 3Y2.1%
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.
- The number of shares outstanding for DCO has been reduced compared to 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
- 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.
- DCO has a worse Debt to FCF ratio (19.79) than 69.57% 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.
- DCO has a Debt to Equity ratio of 1.93. This is amonst the worse of the industry: DCO underperforms 87.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.02
WACC9.24%
2.3 Liquidity
- DCO has a Current 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.
- DCO's Current ratio of 0.88 is on the low side compared to the rest of the industry. DCO is outperformed by 93.04% 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.
- The Quick ratio of DCO (0.67) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- DCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.99%.
- 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.
- DCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.15% yearly.
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
- 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.
- 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-8.92%
EPS Next 2Y10%
EPS Next 3Y14.21%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- DCO is valuated quite expensively with a Price/Earnings ratio of 27.26.
- Compared to the rest of the industry, the Price/Earnings ratio of DCO is on the same level as its industry peers.
- DCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- DCO is valuated quite expensively with a Price/Forward Earnings ratio of 29.93.
- 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 73.91% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, DCO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 29.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than 66.09% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DCO is valued a bit more expensive than 68.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.63 | ||
| EV/EBITDA | 16.18 |
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)1.65
EPS Next 2Y10%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
- DCO has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
- DCO's Dividend Yield is comparable with the industry average which is at 1.50.
- Compared to the average S&P500 Dividend Yield of 1.84, DCO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
- The dividend of DCO is nicely growing with an annual growth rate of 15.79%!
Dividend Growth(5Y)15.79%
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 2Y10%
EPS Next 3Y14.21%
FRA:DCO (1/19/2026, 7:00:00 PM)
438.55
-5.7 (-1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-26 2025-11-26/bmo
Earnings (Next)02-13 2026-02-13/bmo
Inst Owners75.5%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap118.55B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target458.74 (4.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend5.46
Dividend Growth(5Y)15.79%
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)2.19%
PT rev (3m)0.33%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-27.75%
EPS NY rev (1m)-6.5%
EPS NY rev (3m)-21.63%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)7.82%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 29.93 | ||
| P/S | 3.01 | ||
| P/FCF | 42.63 | ||
| P/OCF | 18.46 | ||
| P/B | 5.31 | ||
| P/tB | 6.6 | ||
| EV/EBITDA | 16.18 |
EPS(TTM)16.09
EY3.67%
EPS(NY)14.65
Fwd EY3.34%
FCF(TTM)10.29
FCFY2.35%
OCF(TTM)23.75
OCFY5.42%
SpS145.47
BVpS82.63
TBVpS66.46
PEG (NY)N/A
PEG (5Y)1.65
Graham Number172.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 19.37% | ||
| ROCE | 13.15% | ||
| ROIC | 9.46% | ||
| ROICexc | 10.58% | ||
| ROICexgc | 12.05% | ||
| 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)12.1%
ROIC(5y)11.63%
ROICexc(3y)13.35%
ROICexc(5y)12.84%
ROICexgc(3y)14.72%
ROICexgc(5y)14.18%
ROCE(3y)18.29%
ROCE(5y)17.42%
ROICexgc growth 3Y-4.95%
ROICexgc growth 5Y4.28%
ROICexc growth 3Y-5.45%
ROICexc growth 5Y4.33%
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%
F-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Debt/EBITDA | 4.3 | ||
| Cap/Depr | 189.68% | ||
| Cap/Sales | 9.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64% | ||
| Profit Quality | 64.27% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | N/A |
F-Score4
WACC9.24%
ROIC/WACC1.02
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-8.92%
EPS Next 2Y10%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.33%
Revenue growth 5Y5.15%
Sales Q2Q%14.06%
Revenue Next Year7.15%
Revenue Next 2Y8.17%
Revenue Next 3Y7.96%
Revenue Next 5Y15.42%
EBIT growth 1Y-24.92%
EBIT growth 3Y-2.32%
EBIT growth 5Y10.52%
EBIT Next Year11.24%
EBIT Next 3Y18.98%
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 27.26 and the Price/Book (PB) ratio is 5.31.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.