DEERE & CO (DCO.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:DCO • US2441991054
440.4 EUR
-0.25 (-0.06%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to DCO. DCO was compared to 112 industry peers in the Machinery industry. While DCO belongs to the best of the industry regarding profitability, there are 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.
- Each year in the past 5 years DCO had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of DCO (4.74%) is better than 62.50% of its industry peers.
- With an excellent Return On Equity value of 19.37%, DCO belongs to the best of the industry, outperforming 83.93% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.78%, DCO is in the better half of the industry, outperforming 70.54% of the companies in the same industry.
- DCO had an Average Return On Invested Capital over the past 3 years of 11.93%. This is above the industry average of 9.21%.
| 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
- Looking at the Profit Margin, with a value of 11.00%, DCO belongs to the top of the industry, outperforming 84.82% of the companies in the same industry.
- DCO's Profit Margin has improved in the last couple of years.
- DCO has a Operating Margin of 20.63%. This is amongst the best in the industry. DCO outperforms 93.75% of its industry peers.
- In the last couple of years the Operating Margin of DCO has grown nicely.
- DCO's Gross Margin of 38.36% is in line compared to the rest of the industry. DCO outperforms 47.32% of its industry peers.
- In the last couple of years the Gross Margin of DCO has grown nicely.
| 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
- DCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for DCO has been reduced compared to 1 year ago.
- The number of shares outstanding for DCO has been reduced compared to 5 years ago.
- The debt/assets ratio for DCO has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.54 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 2.54, DCO perfoms like the industry average, outperforming 57.14% 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.
- The Debt to FCF ratio of DCO (19.79) is worse than 68.75% of its industry peers.
- DCO has a Debt/Equity ratio of 2.12. This is a high value indicating a heavy dependency on external financing.
- DCO has a worse Debt to Equity ratio (2.12) than 88.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.97
WACC9.07%
2.3 Liquidity
- DCO has a Current 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's Current ratio of 0.91 is on the low side compared to the rest of the industry. DCO is outperformed by 92.86% of its industry peers.
- A Quick Ratio of 0.69 indicates that DCO may have some problems paying its short term obligations.
- The Quick ratio of DCO (0.69) is worse than 77.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 |
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%.
- The Earnings Per Share has been growing by 16.52% on average over the past years. This is quite good.
- Looking at the last year, DCO shows a very negative growth in Revenue. The Revenue has decreased by -11.66% in the last year.
- 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-4.34%
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-8.84%
EPS Next 2Y9.97%
EPS Next 3Y14.22%
EPS Next 5Y23.15%
Revenue Next Year7.15%
Revenue Next 2Y8.17%
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.
- 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
- A Price/Earnings ratio of 28.09 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.
- The average S&P500 Price/Earnings ratio is at 28.32. DCO is around the same levels.
- With a Price/Forward Earnings ratio of 30.81, DCO can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DCO indicates a slightly more expensive valuation: DCO is more expensive than 75.89% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, DCO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 30.81 |
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 64.29% of the companies in the same industry.
- DCO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. DCO is more expensive than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.92 | ||
| EV/EBITDA | 15.97 |
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 14.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.7
EPS Next 2Y9.97%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
- DCO has a Yearly Dividend Yield of 1.22%.
- DCO's Dividend Yield is comparable with the industry average which is at 1.47.
- Compared to the average S&P500 Dividend Yield of 1.83, DCO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
- The dividend of DCO is nicely growing with an annual growth rate of 15.78%!
Dividend Growth(5Y)15.78%
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 2Y9.97%
EPS Next 3Y14.22%
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 28.09 and the Price/Book (PB) ratio is 5.47.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.