DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DCO - US2441991054 - Common Stock
402.95 EUR
-10.8 (-2.61%)
Overall DCO gets a fundamental rating of 5 out of 10. We evaluated DCO against 113 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.
In the past year DCO had a positive cash flow from operations.
Each year in the past 5 years DCO has been profitable.
Each year in the past 5 years DCO had a positive operating cash flow.
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 66.37% of the companies in the same industry.
DCO has a better Return On Equity (19.37%) than 86.73% of its industry peers.
DCO has a better Return On Invested Capital (9.46%) than 76.99% 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 8.69%.
| 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
Looking at the Profit Margin, with a value of 11.00%, DCO belongs to the top of the industry, outperforming 88.50% of the companies in the same industry.
DCO's Profit Margin has improved in the last couple of years.
DCO's Operating Margin of 20.63% is amongst the best of the industry. DCO outperforms 92.92% of its industry peers.
In the last couple of years the Operating Margin of DCO has grown nicely.
DCO has a Gross Margin of 38.36%. This is comparable to the rest of the industry: DCO outperforms 48.67% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DCO 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
DCO has a better debt/assets ratio than last year.
2.2 Solvency
DCO has a debt to FCF ratio of 19.79. This is a negative value and a sign of low solvency as DCO would need 19.79 years to pay back of all of its debts.
With a Debt to FCF ratio value of 19.79, DCO is not doing good in the industry: 73.45% 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's Debt to Equity ratio of 1.93 is on the low side compared to the rest of the industry. DCO is outperformed by 88.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.04
WACC9.1%
2.3 Liquidity
A Current Ratio of 0.88 indicates that DCO may have some problems paying its short term obligations.
The Current ratio of DCO (0.88) is worse than 93.81% of its industry peers.
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 worse Quick ratio (0.67) than 79.65% 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.
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 28.20% 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-2.59%
EPS Next 2Y13.88%
EPS Next 3Y14%
EPS Next 5Y28.2%
Revenue Next Year5.8%
Revenue Next 2Y7.61%
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.
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
A Price/Earnings ratio of 25.26 indicates a quite expensive valuation of DCO.
Compared to the rest of the industry, the Price/Earnings ratio of DCO is on the same level as its industry peers.
DCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.94, which means the current valuation is very expensive for DCO.
Based on the Price/Forward Earnings ratio, DCO is valued a bit more expensive than 75.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DCO to the average of the S&P500 Index (23.83), we can say DCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 25.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than the industry average as 69.03% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, DCO is valued a bit more expensive than the industry average as 72.57% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.51 | ||
| EV/EBITDA | 15.46 |
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 13.99% in the coming years.
PEG (NY)N/A
PEG (5Y)1.53
EPS Next 2Y13.88%
EPS Next 3Y14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, DCO has a reasonable but not impressive dividend return.
DCO's Dividend Yield is comparable with the industry average which is at 1.59.
DCO's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
DCO pays out 34.22% of its income as dividend. This is a sustainable payout ratio.
DCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.22%
EPS Next 2Y13.88%
EPS Next 3Y14%
FRA:DCO (12/19/2025, 7:00:00 PM)
402.95
-10.8 (-2.61%)
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 Cap108.93B
Revenue(TTM)45.68B
Net Income(TTM)5.03B
Analysts76.36
Price Target448.88 (11.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend5.42
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)-0.88%
PT rev (3m)-0.74%
EPS NQ rev (1m)-28.38%
EPS NQ rev (3m)-31.15%
EPS NY rev (1m)-13.52%
EPS NY rev (3m)-16.53%
Revenue NQ rev (1m)7.51%
Revenue NQ rev (3m)4.11%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 25.94 | ||
| P/S | 2.79 | ||
| P/FCF | 39.51 | ||
| P/OCF | 17.11 | ||
| P/B | 4.92 | ||
| P/tB | 6.12 | ||
| EV/EBITDA | 15.46 |
EPS(TTM)15.95
EY3.96%
EPS(NY)15.54
Fwd EY3.86%
FCF(TTM)10.2
FCFY2.53%
OCF(TTM)23.54
OCFY5.84%
SpS144.2
BVpS81.91
TBVpS65.88
PEG (NY)N/A
PEG (5Y)1.53
Graham Number171.45
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
WACC9.1%
ROIC/WACC1.04
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-2.59%
EPS Next 2Y13.88%
EPS Next 3Y14%
EPS Next 5Y28.2%
Revenue 1Y (TTM)-11.66%
Revenue growth 3Y-4.33%
Revenue growth 5Y5.15%
Sales Q2Q%14.06%
Revenue Next Year5.8%
Revenue Next 2Y7.61%
Revenue Next 3Y7.68%
Revenue Next 5Y15.42%
EBIT growth 1Y-24.92%
EBIT growth 3Y-2.32%
EBIT growth 5Y10.52%
EBIT Next Year10.64%
EBIT Next 3Y18.8%
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%.