DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DCO - US2441991054 - Common Stock
420.8 EUR
-8.95 (-2.08%)
Overall DCO gets a fundamental rating of 5 out of 10. We evaluated DCO against 114 industry peers in the Machinery industry. While DCO has a great profitability rating, there are quite some 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.
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
The Return On Assets of DCO (4.74%) is better than 62.28% of its industry peers.
The Return On Equity of DCO (19.37%) is better than 84.21% of its industry peers.
DCO has a better Return On Invested Capital (9.46%) than 74.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DCO is above the industry average of 9.14%.
| 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 85.96% of the companies in the same industry.
In the last couple of years the Profit Margin of DCO has grown nicely.
DCO has a Operating Margin of 20.63%. This is amongst the best in the industry. DCO outperforms 92.98% 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 38.36%, DCO is in line with its industry, outperforming 48.25% of the companies in the same 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 3Y2.1%
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DCO is still 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.
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.
The Debt to FCF ratio of DCO (19.79) is worse than 69.30% of its industry peers.
DCO has a Debt/Equity ratio of 1.93. This is a high value indicating a heavy dependency on external financing.
DCO has a worse Debt to Equity ratio (1.93) than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC8.98%
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: 93.86% 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.
DCO has a Quick ratio of 0.67. This is amonst the worse of the industry: DCO underperforms 80.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
DCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.99%.
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.
DCO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.66%.
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
The Earnings Per Share is expected to grow by 23.15% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.42% on average over the next years. This is quite good.
EPS Next Y-8.92%
EPS Next 2Y10%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
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.
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 26.22, 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.
Compared to an average S&P500 Price/Earnings ratio of 27.19, DCO is valued at the same level.
Based on the Price/Forward Earnings ratio of 28.78, the valuation of DCO can be described as expensive.
Based on the Price/Forward Earnings ratio, DCO is valued a bit more expensive than the industry average as 71.93% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.92. DCO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.22 | ||
| Fwd PE | 28.78 |
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 66.67% of the companies listed in the same industry.
68.42% 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 | 40.99 | ||
| EV/EBITDA | 15.57 |
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)1.59
EPS Next 2Y10%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
DCO has a Yearly Dividend Yield of 1.29%.
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 1.92, DCO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
On average, the dividend of DCO grows each year by 15.79%, which is quite nice.
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.
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 (1/9/2026, 7:00:00 PM)
420.8
-8.95 (-2.08%)
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 Cap113.75B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target452.49 (7.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend5.45
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)0.8%
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 | 26.22 | ||
| Fwd PE | 28.78 | ||
| P/S | 2.9 | ||
| P/FCF | 40.99 | ||
| P/OCF | 17.75 | ||
| P/B | 5.1 | ||
| P/tB | 6.35 | ||
| EV/EBITDA | 15.57 |
EPS(TTM)16.05
EY3.81%
EPS(NY)14.62
Fwd EY3.47%
FCF(TTM)10.27
FCFY2.44%
OCF(TTM)23.7
OCFY5.63%
SpS145.16
BVpS82.45
TBVpS66.31
PEG (NY)N/A
PEG (5Y)1.59
Graham Number172.56
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
WACC8.98%
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 5Y23.15%
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 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 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 26.22 and the Price/Book (PB) ratio is 5.1.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.