DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DCO - US2441991054 - Common Stock
397.25 EUR
-3 (-0.75%)
Overall DCO gets a fundamental rating of 5 out of 10. We evaluated DCO against 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. While showing a medium growth rate, DCO is valued expensive at the moment.
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.
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 63.30% of its industry peers.
Looking at the Return On Equity, with a value of 19.37%, DCO belongs to the top of the industry, outperforming 84.40% of the companies in the same industry.
DCO has a Return On Invested Capital of 9.46%. This is in the better half of the industry: DCO outperforms 76.15% of its industry peers.
DCO had an Average Return On Invested Capital over the past 3 years of 12.10%. This is above the industry average of 8.95%.
| 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
DCO's Profit Margin of 11.00% is amongst the best of the industry. DCO outperforms 87.16% of its industry peers.
DCO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.63%, DCO belongs to the best of the industry, outperforming 93.58% of the companies in the same industry.
DCO's Operating Margin has improved in the last couple of years.
DCO has a Gross Margin (38.36%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DCO has grown nicely.
| 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.
Compared to 5 years ago, DCO has less shares outstanding
Compared to 1 year ago, DCO has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of DCO is 19.79, which is on the high side as it means it would take DCO, 19.79 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 19.79, DCO is not doing good in the industry: 73.39% of the companies in the same industry are doing better.
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 88.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC8.97%
2.3 Liquidity
A Current Ratio of 0.88 indicates that DCO may have some problems paying its short term obligations.
DCO has a worse Current ratio (0.88) than 93.58% of its industry peers.
A Quick Ratio of 0.67 indicates that DCO may have some problems paying its short term obligations.
DCO has a Quick ratio of 0.67. This is amonst the worse of the industry: DCO underperforms 80.73% of its industry peers.
| 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.
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 -11.66% in the last year.
The Revenue has been growing slightly by 5.15% on average over the past years.
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
DCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.20% yearly.
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
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
With a Price/Earnings ratio of 25.05, DCO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of DCO is on the same level as its industry peers.
DCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.84.
DCO is valuated quite expensively with a Price/Forward Earnings ratio of 27.51.
Based on the Price/Forward Earnings ratio, DCO is valued a bit more expensive than 74.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. DCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 27.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than the industry average as 66.06% of the companies are valued more cheaply.
71.56% 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 | 39.18 | ||
| EV/EBITDA | 15.07 |
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)1.52
EPS Next 2Y10%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
DCO has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.56, DCO has a dividend in line with its industry peers.
DCO's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| 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
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 (12/23/2025, 7:00:00 PM)
397.25
-3 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.4%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap107.39B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target452.49 (13.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend5.38
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)0.06%
EPS NQ rev (1m)-26.37%
EPS NQ rev (3m)-31.17%
EPS NY rev (1m)-19.14%
EPS NY rev (3m)-21.63%
Revenue NQ rev (1m)10.62%
Revenue NQ rev (3m)6.55%
Revenue NY rev (1m)2.69%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 27.51 | ||
| P/S | 2.77 | ||
| P/FCF | 39.18 | ||
| P/OCF | 16.97 | ||
| P/B | 4.88 | ||
| P/tB | 6.07 | ||
| EV/EBITDA | 15.07 |
EPS(TTM)15.86
EY3.99%
EPS(NY)14.44
Fwd EY3.64%
FCF(TTM)10.14
FCFY2.55%
OCF(TTM)23.41
OCFY5.89%
SpS143.37
BVpS81.44
TBVpS65.5
PEG (NY)N/A
PEG (5Y)1.52
Graham Number170.48
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
WACC8.97%
ROIC/WACC1.05
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.
Can you provide the valuation status for DEERE & CO?
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.
Can you provide the financial health for DCO stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.
Can you provide the dividend sustainability for DCO stock?
The dividend rating of DEERE & CO (DCO.DE) is 5 / 10 and the dividend payout ratio is 34.22%.