DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - FRA:DCO - US2441991054 - Common Stock
414.2 EUR
+6.5 (+1.59%)
Taking everything into account, DCO scores 5 out of 10 in our fundamental rating. DCO was compared to 107 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 valied quite expensively at the moment, while 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.
In the past 5 years DCO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.83%, DCO is in the better half of the industry, outperforming 69.16% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.68%, DCO belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.58%, DCO is doing good in the industry, outperforming 74.77% 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 8.77%.
The 3 year average ROIC (12.67%) for DCO is well above the current ROIC(8.58%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 20.68% | ||
| ROIC | 8.58% |
ROA(3y)8.1%
ROA(5y)7.01%
ROE(3y)37.65%
ROE(5y)33.31%
ROIC(3y)12.67%
ROIC(5y)11.11%
1.3 Margins
Looking at the Profit Margin, with a value of 11.72%, DCO belongs to the top of the industry, outperforming 88.78% of the companies in the same industry.
DCO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.67%, DCO belongs to the best of the industry, outperforming 94.39% of the companies in the same industry.
In the last couple of years the Operating Margin of DCO has grown nicely.
DCO has a Gross Margin of 39.71%. This is comparable to the rest of the industry: DCO outperforms 50.47% of its industry peers.
In the last couple of years the Gross Margin of DCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.67% | ||
| PM (TTM) | 11.72% | ||
| GM | 39.71% |
OM growth 3Y8.52%
OM growth 5Y11.73%
PM growth 3Y0.43%
PM growth 5Y10.67%
GM growth 3Y8.89%
GM growth 5Y6.87%
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
An Altman-Z score of 2.38 indicates that DCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.38, DCO perfoms like the industry average, outperforming 57.01% of the companies in the same industry.
The Debt to FCF ratio of DCO is 16.25, which is on the high side as it means it would take DCO, 16.25 years of fcf income to pay off all of its debts.
DCO's Debt to FCF ratio of 16.25 is on the low side compared to the rest of the industry. DCO is outperformed by 70.09% of its industry peers.
DCO has a Debt/Equity ratio of 2.31. This is a high value indicating a heavy dependency on external financing.
DCO has a Debt to Equity ratio of 2.31. This is amonst the worse of the industry: DCO underperforms 85.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.95
WACC9.03%
2.3 Liquidity
DCO has a Current Ratio of 0.96. 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 0.96 is on the low side compared to the rest of the industry. DCO is outperformed by 85.05% of its industry peers.
DCO has a Quick Ratio of 0.96. 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 (0.74) is worse than 76.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
DCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.25%.
Measured over the past years, DCO shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.90% on average per year.
The Revenue for DCO has decreased by -20.63% in the past year. This is quite bad
DCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.62% yearly.
EPS 1Y (TTM)-34.25%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-21.62%
Revenue 1Y (TTM)-20.63%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-9.05%
3.2 Future
DCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.55% yearly.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y-25.82%
EPS Next 2Y-9.22%
EPS Next 3Y1.62%
EPS Next 5Y14.55%
Revenue Next Year-15.83%
Revenue Next 2Y-6.07%
Revenue Next 3Y-1.48%
Revenue Next 5Y8.39%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
The Price/Earnings ratio is 24.65, which indicates a rather expensive current valuation of DCO.
The rest of the industry has a similar Price/Earnings ratio as DCO.
The average S&P500 Price/Earnings ratio is at 26.13. DCO is around the same levels.
Based on the Price/Forward Earnings ratio of 22.56, the valuation of DCO can be described as rather expensive.
66.36% of the companies in the same industry are cheaper than DCO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.35. DCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 22.56 |
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 62.62% 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 64.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.38 | ||
| EV/EBITDA | 14.48 |
4.3 Compensation for Growth
The excellent profitability rating of DCO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-9.22%
EPS Next 3Y1.62%
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.
DCO's Dividend Yield is comparable with the industry average which is at 2.62.
With a Dividend Yield of 1.39, DCO pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
On average, the dividend of DCO grows each year by 14.18%, which is quite nice.
Dividend Growth(5Y)14.18%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
DCO pays out 32.36% of its income as dividend. This is a sustainable payout ratio.
DCO's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP32.36%
EPS Next 2Y-9.22%
EPS Next 3Y1.62%
FRA:DCO (11/6/2025, 10:55:10 AM)
414.2
+6.5 (+1.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.29%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap111.97B
Revenue(TTM)44.43B
Net Income(TTM)5.21B
Analysts74.38
Price Target452.87 (9.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend5.02
Dividend Growth(5Y)14.18%
DP32.36%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.44%
Min EPS beat(2)3.35%
Max EPS beat(2)15.53%
EPS beat(4)3
Avg EPS beat(4)8.2%
Min EPS beat(4)-0.37%
Max EPS beat(4)15.53%
EPS beat(8)7
Avg EPS beat(8)8.86%
EPS beat(12)11
Avg EPS beat(12)9.72%
EPS beat(16)13
Avg EPS beat(16)8.27%
Revenue beat(2)1
Avg Revenue beat(2)-1%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)0.49%
Revenue beat(4)1
Avg Revenue beat(4)-4.91%
Min Revenue beat(4)-14.13%
Max Revenue beat(4)0.49%
Revenue beat(8)2
Avg Revenue beat(8)-2.63%
Revenue beat(12)5
Avg Revenue beat(12)0.29%
Revenue beat(16)8
Avg Revenue beat(16)1.58%
PT rev (1m)0.14%
PT rev (3m)-5.93%
EPS NQ rev (1m)-3.21%
EPS NQ rev (3m)-11.76%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-1.79%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 22.56 | ||
| P/S | 2.9 | ||
| P/FCF | 31.38 | ||
| P/OCF | 15.04 | ||
| P/B | 5.11 | ||
| P/tB | 6.42 | ||
| EV/EBITDA | 14.48 |
EPS(TTM)16.8
EY4.06%
EPS(NY)18.36
Fwd EY4.43%
FCF(TTM)13.2
FCFY3.19%
OCF(TTM)27.54
OCFY6.65%
SpS143.02
BVpS81.04
TBVpS64.51
PEG (NY)N/A
PEG (5Y)1.18
Graham Number175.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 20.68% | ||
| ROCE | 13.11% | ||
| ROIC | 8.58% | ||
| ROICexc | 9.52% | ||
| ROICexgc | 10.67% | ||
| OM | 21.67% | ||
| PM (TTM) | 11.72% | ||
| GM | 39.71% | ||
| FCFM | 9.23% |
ROA(3y)8.1%
ROA(5y)7.01%
ROE(3y)37.65%
ROE(5y)33.31%
ROIC(3y)12.67%
ROIC(5y)11.11%
ROICexc(3y)13.82%
ROICexc(5y)12.29%
ROICexgc(3y)15.19%
ROICexgc(5y)13.56%
ROCE(3y)19.77%
ROCE(5y)16.94%
ROICexgc growth 3Y3.38%
ROICexgc growth 5Y8.81%
ROICexc growth 3Y3.46%
ROICexc growth 5Y9.63%
OM growth 3Y8.52%
OM growth 5Y11.73%
PM growth 3Y0.43%
PM growth 5Y10.67%
GM growth 3Y8.89%
GM growth 5Y6.87%
F-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 16.25 | ||
| Debt/EBITDA | 4.91 | ||
| Cap/Depr | 203.61% | ||
| Cap/Sales | 10.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.42% | ||
| Profit Quality | 78.76% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.38 |
F-Score5
WACC9.03%
ROIC/WACC0.95
Cap/Depr(3y)216.52%
Cap/Depr(5y)180.17%
Cap/Sales(3y)7.95%
Cap/Sales(5y)7.44%
Profit Quality(3y)38.56%
Profit Quality(5y)75.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.25%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-21.62%
EPS Next Y-25.82%
EPS Next 2Y-9.22%
EPS Next 3Y1.62%
EPS Next 5Y14.55%
Revenue 1Y (TTM)-20.63%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-9.05%
Revenue Next Year-15.83%
Revenue Next 2Y-6.07%
Revenue Next 3Y-1.48%
Revenue Next 5Y8.39%
EBIT growth 1Y-31.33%
EBIT growth 3Y14.52%
EBIT growth 5Y18.01%
EBIT Next Year-18.77%
EBIT Next 3Y3.7%
EBIT Next 5Y13.77%
FCF growth 1Y44.05%
FCF growth 3Y-4.88%
FCF growth 5YN/A
OCF growth 1Y19.21%
OCF growth 3Y6.11%
OCF growth 5Y22.02%
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 4 / 10 and the dividend payout ratio is 32.36%.