DEERE & CO (DCO.DE) Stock Fundamental Analysis
FRA:DCO • US2441991054
559.1 EUR
-7 (-1.24%)
Last: Feb 20, 2026, 07:00 PM
DCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 113 industry peers in the Machinery industry. DCO scores excellent on profitability, but 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
- DCO had positive earnings in the past year.
- In the past year DCO had a positive cash flow from operations.
- DCO had positive earnings in each of the past 5 years.
- 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 4.74%, DCO is in the better half of the industry, outperforming 65.18% of the companies in the same industry.
- The Return On Equity of DCO (19.37%) is better than 86.61% of its industry peers.
- The Return On Invested Capital of DCO (8.78%) is better than 74.11% of its industry peers.
- DCO had an Average Return On Invested Capital over the past 3 years of 11.93%. This is above the industry average of 8.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 19.37% | ||
| ROIC | 8.78% |
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
- DCO has a better Profit Margin (11.00%) than 85.71% of its industry peers.
- In the last couple of years the Profit Margin of DCO has grown nicely.
- Looking at the Operating Margin, with a value of 20.63%, DCO belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- In the last couple of years the Operating Margin of DCO has grown nicely.
- The Gross Margin of DCO (38.36%) is comparable to the rest of the industry.
- 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 3Y2.78%
OM growth 5Y5.53%
PM growth 3Y-6.96%
PM growth 5Y7.29%
GM growth 3Y7.3%
GM growth 5Y4.63%
2. Health
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
- 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 2.83 indicates that DCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.83, DCO is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- 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.
- DCO's Debt to FCF ratio of 19.79 is on the low side compared to the rest of the industry. DCO is outperformed by 67.86% of its industry peers.
- A Debt/Equity ratio of 2.12 is on the high side and indicates that DCO has dependencies on debt financing.
- The Debt to Equity ratio of DCO (2.12) is worse than 88.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | 2.83 |
ROIC/WACC1.01
WACC8.73%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that DCO may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.91, DCO is doing worse than 91.96% of the companies in the same industry.
- DCO has a Quick Ratio of 0.91. 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 has a Quick ratio of 0.69. This is in the lower half of the industry: DCO underperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- The earnings per share for DCO have decreased strongly by -26.99% in the last year.
- Measured over the past years, DCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.52% on average per year.
- The Revenue for DCO has decreased by -11.66% 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 5.15% 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-4.34%
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-8.86%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue Next Year5.95%
Revenue Next 2Y7.58%
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.
- 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
- DCO is valuated quite expensively with a Price/Earnings ratio of 35.16.
- DCO's Price/Earnings is on the same level as the industry average.
- DCO is valuated rather expensively when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 38.58, DCO can be considered very expensive at the moment.
- DCO's Price/Forward Earnings ratio is rather expensive when compared to the industry. DCO is more expensive than 81.25% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, DCO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.16 | ||
| Fwd PE | 38.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than the industry average as 72.32% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, DCO is valued a bit more expensive than 70.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.13 | ||
| EV/EBITDA | 19.27 |
4.3 Compensation for Growth
- DCO has an outstanding profitability rating, which 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)2.13
EPS Next 2Y9.96%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
- DCO has a yearly dividend return of 0.98%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.44, DCO has a dividend in line with its industry peers.
- With a Dividend Yield of 0.98, DCO pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
- On average, the dividend of DCO grows each year by 15.78%, which is quite nice.
Dividend Growth(5Y)15.78%
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 2Y9.96%
EPS Next 3Y14.21%
FRA:DCO (2/20/2026, 7:00:00 PM)
559.1
-7 (-1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-13 2026-05-13/bmo
Inst Owners75.5%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap151.56B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts75.88
Price Target447.07 (-20.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend5.39
Dividend Growth(5Y)15.78%
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)-1.2%
PT rev (3m)-0.97%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-28.33%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-19.09%
Revenue NQ rev (1m)-1.69%
Revenue NQ rev (3m)6.96%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.16 | ||
| Fwd PE | 38.58 | ||
| P/S | 3.9 | ||
| P/FCF | 55.13 | ||
| P/OCF | 23.88 | ||
| P/B | 6.86 | ||
| P/tB | 8.53 | ||
| EV/EBITDA | 19.27 |
EPS(TTM)15.9
EY2.84%
EPS(NY)14.49
Fwd EY2.59%
FCF(TTM)10.14
FCFY1.81%
OCF(TTM)23.41
OCFY4.19%
SpS143.39
BVpS81.45
TBVpS65.51
PEG (NY)N/A
PEG (5Y)2.13
Graham Number170.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 19.37% | ||
| ROCE | 12.93% | ||
| ROIC | 8.78% | ||
| ROICexc | 9.73% | ||
| ROICexgc | 10.92% | ||
| 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)11.93%
ROIC(5y)11.53%
ROICexc(3y)13.13%
ROICexc(5y)12.71%
ROICexgc(3y)14.32%
ROICexgc(5y)13.95%
ROCE(3y)18.3%
ROCE(5y)17.43%
ROICexgc growth 3Y-8.17%
ROICexgc growth 5Y2.14%
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 3Y7.3%
GM growth 5Y4.63%
F-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 19.79 | ||
| Debt/EBITDA | 4.72 | ||
| Cap/Depr | 189.68% | ||
| Cap/Sales | 9.26% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 64% | ||
| Profit Quality | 64.27% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.83 |
F-Score5
WACC8.73%
ROIC/WACC1.01
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-8.86%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%14.06%
Revenue Next Year5.95%
Revenue Next 2Y7.58%
Revenue Next 3Y7.96%
Revenue Next 5Y15.42%
EBIT growth 1Y-24.91%
EBIT growth 3Y-1.68%
EBIT growth 5Y10.96%
EBIT Next Year11.92%
EBIT Next 3Y19.46%
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 1 / 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 35.16 and the Price/Book (PB) ratio is 6.86.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 3 / 10.