DEERE & CO (DCO.DE) Fundamental Analysis & Valuation
FRA:DCO • US2441991054
Current stock price
482.9 EUR
+0.1 (+0.02%)
Last:
This DCO.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. DCO.DE Profitability Analysis
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
- Looking at the Return On Assets, with a value of 4.65%, DCO is in the better half of the industry, outperforming 67.68% of the companies in the same industry.
- DCO has a better Return On Equity (18.30%) than 88.89% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.51%, DCO belongs to the top of the industry, outperforming 82.83% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for DCO is above the industry average of 7.88%.
| 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
- Looking at the Profit Margin, with a value of 10.29%, DCO belongs to the top of the industry, outperforming 89.90% of the companies in the same industry.
- In the last couple of years the Profit Margin of DCO has grown nicely.
- DCO's Operating Margin of 19.79% is amongst the best of the industry. DCO outperforms 92.93% of its industry peers.
- In the last couple of years the Operating Margin of DCO has grown nicely.
- Looking at the Gross Margin, with a value of 37.15%, DCO is in line with its industry, outperforming 41.41% of the companies in the same industry.
- In the last couple of years the Gross Margin of DCO has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DCO is still creating some value.
- Compared to 1 year ago, DCO has less shares outstanding
- 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
- 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.
- Looking at the Debt to FCF ratio, with a value of 17.47, DCO is doing worse than 60.61% of the companies in the same industry.
- DCO has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
- DCO's Debt to Equity ratio of 1.83 is on the low side compared to the rest of the industry. DCO is outperformed by 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | 17.47 | ||
| Altman-Z | N/A |
ROIC/WACC0.96
WACC9.9%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that DCO may have some problems paying its short term obligations.
- DCO's Current ratio of 0.90 is on the low side compared to the rest of the industry. DCO is outperformed by 93.94% of its industry peers.
- A Quick Ratio of 0.65 indicates that DCO may have some problems paying its short term obligations.
- DCO's Quick ratio of 0.65 is on the low side compared to the rest of the industry. DCO is outperformed by 83.84% 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%.
- DCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.52% yearly.
- DCO shows a decrease in Revenue. In the last year, the revenue decreased by -2.61%.
- 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
- Based on estimates for the next years, DCO will show a very strong growth in Earnings Per Share. The EPS will grow by 22.83% 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-1.43%
EPS Next 2Y12.47%
EPS Next 3Y16.95%
EPS Next 5Y22.83%
Revenue Next Year7.65%
Revenue Next 2Y8.52%
Revenue Next 3Y9.23%
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.
- 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. DCO.DE Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 31.48, which means the current valuation is very expensive for DCO.
- 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 26.91, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 23.86, which indicates a rather expensive current valuation of DCO.
- Based on the Price/Forward Earnings ratio, DCO is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of DCO to the average of the S&P500 Index (21.99), we can say DCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.48 | ||
| Fwd PE | 23.86 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DCO indicates a slightly more expensive valuation: DCO is more expensive than 69.70% of the companies listed in the same industry.
- 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 60.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.6 | ||
| EV/EBITDA | 17.5 |
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 16.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.91
EPS Next 2Y12.47%
EPS Next 3Y16.95%
5. DCO.DE Dividend Analysis
5.1 Amount
- DCO has a Yearly Dividend Yield of 1.09%.
- DCO's Dividend Yield is comparable with the industry average which is at 1.39.
- DCO's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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 Years5
Div Non Decr Years7
5.3 Sustainability
- 36.52% 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.
DP36.52%
EPS Next 2Y12.47%
EPS Next 3Y16.95%
DCO.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:DCO (4/28/2026, 7:00:00 PM)
482.9
+0.1 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Industry Strength49.07
Industry Growth24.22
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-21 2026-05-21/bmo
Inst Owners75.68%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap130.44B
Revenue(TTM)46.79B
Net Income(TTM)4.81B
Analysts74.71
Price Target564.74 (16.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend5.42
Dividend Growth(5Y)15.78%
DP36.52%
Div Incr Years5
Div Non Decr Years7
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)-1.25%
PT rev (3m)23.11%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)4.82%
EPS NY rev (1m)0%
EPS NY rev (3m)8.14%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.48 | ||
| Fwd PE | 23.86 | ||
| P/S | 3.26 | ||
| P/FCF | 42.6 | ||
| P/OCF | 19.78 | ||
| P/B | 5.79 | ||
| P/tB | 7.21 | ||
| EV/EBITDA | 17.5 |
EPS(TTM)15.34
EY3.18%
EPS(NY)20.24
Fwd EY4.19%
FCF(TTM)11.33
FCFY2.35%
OCF(TTM)24.41
OCFY5.05%
SpS148.3
BVpS83.36
TBVpS67.01
PEG (NY)N/A
PEG (5Y)1.91
Graham Number169.625 (-64.87%)
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
WACC9.9%
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)-20.57%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-24.14%
EPS Next Y-1.43%
EPS Next 2Y12.47%
EPS Next 3Y16.95%
EPS Next 5Y22.83%
Revenue 1Y (TTM)-2.61%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%17.51%
Revenue Next Year7.65%
Revenue Next 2Y8.52%
Revenue Next 3Y9.23%
Revenue Next 5Y15.42%
EBIT growth 1Y-17.8%
EBIT growth 3Y-1.68%
EBIT growth 5Y10.96%
EBIT Next Year20.6%
EBIT Next 3Y22.91%
EBIT Next 5Y23.02%
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 Fundamental Analysis 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.
How profitable is DEERE & CO (DCO.DE) stock?
DEERE & CO (DCO.DE) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for DCO stock?
The Earnings per Share (EPS) of DEERE & CO (DCO.DE) is expected to decline by -1.43% in the next year.
Is the dividend of DEERE & CO sustainable?
The dividend rating of DEERE & CO (DCO.DE) is 5 / 10 and the dividend payout ratio is 36.52%.