DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DCO - US2441991054 - Common Stock
443.55 EUR
-2.55 (-0.57%)
Taking everything into account, DCO scores 5 out of 10 in our fundamental rating. DCO was compared to 114 industry peers in the Machinery industry. While DCO has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, DCO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year DCO was profitable.
- DCO had a positive operating cash flow in the past year.
- DCO had positive earnings in each of the past 5 years.
- In the past 5 years DCO always reported a positive cash flow from operatings.
1.2 Ratios
- DCO's Return On Assets of 4.74% is fine compared to the rest of the industry. DCO outperforms 62.28% of its industry peers.
- DCO has a Return On Equity of 19.37%. This is amongst the best in the industry. DCO outperforms 84.21% of its industry peers.
- DCO has a better Return On Invested Capital (9.46%) than 74.56% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- DCO's Profit Margin of 11.00% is amongst the best of the industry. DCO outperforms 85.96% of its industry peers.
- DCO's Profit Margin has improved in the last couple of years.
- DCO has a better Operating Margin (20.63%) than 92.98% of its industry peers.
- 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 3Y2.1%
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.
- DCO has less shares outstanding than it did 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.
- 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 69.30% 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.
- Looking at the Debt to Equity ratio, with a value of 1.93, DCO is doing worse than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC9%
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.
- Looking at the Quick ratio, with a value of 0.67, DCO is doing worse than 80.70% of the companies in the same industry.
| 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.
- The Revenue for DCO has decreased by -11.66% in the past year. This is quite bad
- 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
- 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 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.
- 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
- Based on the Price/Earnings ratio of 27.58, the valuation of DCO can be described as expensive.
- DCO's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.47. DCO is around the same levels.
- The Price/Forward Earnings ratio is 30.29, which means the current valuation is very expensive for DCO.
- DCO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DCO is more expensive than 78.07% of the companies in the same industry.
- DCO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.58 | ||
| Fwd PE | 30.29 |
4.2 Price Multiples
- DCO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DCO is more expensive than 67.54% of the companies 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 69.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.14 | ||
| EV/EBITDA | 16.24 |
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)1.67
EPS Next 2Y10%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
- DCO has a Yearly Dividend Yield of 1.29%.
- DCO's Dividend Yield is comparable with the industry average which is at 1.55.
- Compared to the average S&P500 Dividend Yield of 1.89, DCO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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 (1/16/2026, 5:14:31 PM)
443.55
-2.55 (-0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-26 2025-11-26/bmo
Earnings (Next)02-11 2026-02-11/bmo
Inst Owners75.5%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap119.90B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target452.49 (2.02%)
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 | 27.58 | ||
| Fwd PE | 30.29 | ||
| P/S | 3.05 | ||
| P/FCF | 43.14 | ||
| P/OCF | 18.69 | ||
| P/B | 5.37 | ||
| P/tB | 6.68 | ||
| EV/EBITDA | 16.24 |
EPS(TTM)16.08
EY3.63%
EPS(NY)14.64
Fwd EY3.3%
FCF(TTM)10.28
FCFY2.32%
OCF(TTM)23.74
OCFY5.35%
SpS145.38
BVpS82.58
TBVpS66.42
PEG (NY)N/A
PEG (5Y)1.67
Graham Number172.85
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%
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 27.58 and the Price/Book (PB) ratio is 5.37.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.