DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DCO - US2441991054 - Common Stock
430.3 EUR
+0.55 (+0.13%)
We assign a fundamental rating of 5 out of 10 to DCO. DCO was compared to 109 industry peers in the Machinery industry. While DCO belongs to the best of the industry regarding profitability, 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
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's Return On Assets of 4.74% is fine compared to the rest of the industry. DCO outperforms 64.22% of its industry peers.
The Return On Equity of DCO (19.37%) is better than 84.40% of its industry peers.
DCO has a better Return On Invested Capital (9.46%) than 75.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DCO is above the industry average of 8.86%.
| 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
With an excellent Profit Margin value of 11.00%, DCO belongs to the best of the industry, outperforming 85.32% of the companies in the same industry.
DCO's Profit Margin has improved in the last couple of years.
The Operating Margin of DCO (20.63%) is better than 92.66% of its industry peers.
In the last couple of years the Operating Margin of DCO has grown nicely.
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 3Y2.1%
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
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
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 Debt to FCF ratio of 19.79. This is in the lower half of the industry: DCO underperforms 72.48% of its industry peers.
A Debt/Equity ratio of 1.93 is on the high side and indicates that DCO has dependencies on debt financing.
DCO has a worse Debt to Equity ratio (1.93) than 88.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.03
WACC9.16%
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.
With a Current ratio value of 0.88, DCO is not doing good in the industry: 93.58% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.67, DCO is not doing good in the industry: 81.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for DCO have decreased strongly by -26.99% in the last year.
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.
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)-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 28.20% 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-8.92%
EPS Next 2Y10%
EPS Next 3Y14.21%
EPS Next 5Y28.2%
Revenue Next Year7.54%
Revenue Next 2Y8.34%
Revenue Next 3Y7.68%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.88, DCO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as DCO.
The average S&P500 Price/Earnings ratio is at 27.00. DCO is around the same levels.
With a Price/Forward Earnings ratio of 29.51, DCO can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, DCO is valued a bit more expensive than 73.39% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, DCO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.88 | ||
| Fwd PE | 29.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than the industry average as 66.97% of the companies are valued more cheaply.
69.72% of the companies in the same industry are cheaper than DCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.03 | ||
| EV/EBITDA | 15.85 |
4.3 Compensation for Growth
The excellent profitability rating of DCO 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)1.63
EPS Next 2Y10%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
DCO has a Yearly Dividend Yield of 1.39%.
Compared to an average industry Dividend Yield of 1.55, DCO has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 1.94, DCO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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
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 2Y10%
EPS Next 3Y14.21%
FRA:DCO (1/9/2026, 11:00:02 AM)
430.3
+0.55 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.5%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap116.32B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target452.49 (5.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend5.4
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)-0.66%
PT rev (3m)-1.03%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-31.17%
EPS NY rev (1m)-6.5%
EPS NY rev (3m)-21.63%
Revenue NQ rev (1m)2.35%
Revenue NQ rev (3m)6.55%
Revenue NY rev (1m)1.64%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.88 | ||
| Fwd PE | 29.51 | ||
| P/S | 2.97 | ||
| P/FCF | 42.03 | ||
| P/OCF | 18.21 | ||
| P/B | 5.23 | ||
| P/tB | 6.51 | ||
| EV/EBITDA | 15.85 |
EPS(TTM)16.01
EY3.72%
EPS(NY)14.58
Fwd EY3.39%
FCF(TTM)10.24
FCFY2.38%
OCF(TTM)23.63
OCFY5.49%
SpS144.74
BVpS82.22
TBVpS66.13
PEG (NY)N/A
PEG (5Y)1.63
Graham Number172.1
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
WACC9.16%
ROIC/WACC1.03
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 5Y28.2%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.33%
Revenue growth 5Y5.15%
Sales Q2Q%14.06%
Revenue Next Year7.54%
Revenue Next 2Y8.34%
Revenue Next 3Y7.68%
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 5Y28.77%
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 26.88 and the Price/Book (PB) ratio is 5.23.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.