DEERE & CO (DCO.DE) Fundamental Analysis & Valuation
FRA:DCO • US2441991054
510.1 EUR
-3.7 (-0.72%)
Last: Mar 12, 2026, 07:00 PM
This DCO.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
DCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 109 industry peers in the Machinery industry. DCO has an excellent profitability rating, but there are concerns on its financial health. DCO is quite expensive at the moment. It does show a decent growth rate.
1. DCO.DE Profitability Analysis
1.1 Basic Checks
- In the past year DCO was profitable.
- DCO had a positive operating cash flow in the past year.
- In the past 5 years DCO has always been profitable.
- Each year in the past 5 years DCO had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 4.65%, DCO is doing good in the industry, outperforming 65.14% of the companies in the same industry.
- With an excellent Return On Equity value of 18.30%, DCO belongs to the best of the industry, outperforming 85.32% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 9.51%, DCO is in the better half of the industry, outperforming 77.98% 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 8.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 18.3% | ||
| ROIC | 9.51% |
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 (10.29%) than 83.49% of its industry peers.
- DCO's Profit Margin has improved in the last couple of years.
- DCO has a Operating Margin of 19.79%. This is amongst the best in the industry. DCO outperforms 92.66% of its industry peers.
- In the last couple of years the Operating Margin of DCO has grown nicely.
- DCO has a Gross Margin of 37.15%. This is comparable to the rest of the industry: DCO outperforms 42.20% of its industry peers.
- DCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.79% | ||
| PM (TTM) | 10.29% | ||
| GM | 37.15% |
OM growth 3Y2.78%
OM growth 5Y5.53%
PM growth 3Y-6.96%
PM growth 5Y7.29%
GM growth 3Y5.48%
GM growth 5Y2.6%
2. DCO.DE Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DCO is creating some value.
- Compared to 1 year ago, DCO has less shares outstanding
- Compared to 5 years ago, DCO has less shares outstanding
- Compared to 1 year ago, DCO has an improved debt to assets ratio.
2.2 Solvency
- DCO has a debt to FCF ratio of 17.47. This is a negative value and a sign of low solvency as DCO would need 17.47 years to pay back of all of its debts.
- DCO has a Debt to FCF ratio of 17.47. This is in the lower half of the industry: DCO underperforms 68.81% of its industry peers.
- DCO has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.83, DCO is not doing good in the industry: 88.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | 17.47 | ||
| Altman-Z | N/A |
ROIC/WACC1.07
WACC8.91%
2.3 Liquidity
- DCO has a Current Ratio of 0.90. This is a bad value and indicates that DCO is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of DCO (0.90) is worse than 92.66% of its industry peers.
- DCO has a Quick Ratio of 0.90. 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 0.65. This is amonst the worse of the industry: DCO underperforms 81.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.65 |
3. DCO.DE Growth Analysis
3.1 Past
- The earnings per share for DCO have decreased strongly by -20.57% in the last year.
- DCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.52% yearly.
- The Revenue has decreased by -2.61% in the past 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)-20.57%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-24.14%
Revenue 1Y (TTM)-2.61%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%17.51%
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 22.83% on average per year.
- 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-1.43%
EPS Next 2Y12.84%
EPS Next 3Y16.85%
EPS Next 5Y22.83%
Revenue Next Year7.55%
Revenue Next 2Y8.56%
Revenue Next 3Y9.12%
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. DCO.DE Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 32.87, which means the current valuation is very expensive for DCO.
- The rest of the industry has a similar Price/Earnings ratio as DCO.
- Compared to an average S&P500 Price/Earnings ratio of 25.71, DCO is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 24.75, DCO is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, DCO is valued a bit more expensive than 65.14% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DCO to the average of the S&P500 Index (23.82), we can say DCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.87 | ||
| Fwd PE | 24.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than the industry average as 67.89% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, DCO is valued a bit more expensive than 69.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.49 | ||
| EV/EBITDA | 18.09 |
4.3 Compensation for Growth
- DCO has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as DCO's earnings are expected to grow with 16.85% in the coming years.
PEG (NY)N/A
PEG (5Y)1.99
EPS Next 2Y12.84%
EPS Next 3Y16.85%
5. DCO.DE Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.10%, DCO has a reasonable but not impressive dividend return.
- DCO's Dividend Yield is comparable with the industry average which is at 1.45.
- DCO's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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
- DCO pays out 36.52% 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.
DP36.52%
EPS Next 2Y12.84%
EPS Next 3Y16.85%
DCO.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:DCO (3/12/2026, 7:00:00 PM)
510.1
-3.7 (-0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-21 2026-05-21/bmo
Inst Owners75.61%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap137.78B
Revenue(TTM)46.79B
Net Income(TTM)4.81B
Analysts74.71
Price Target571.9 (12.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend5.49
Dividend Growth(5Y)15.78%
DP36.52%
Div Incr Years4
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.92%
Min EPS beat(2)-0.87%
Max EPS beat(2)14.71%
EPS beat(4)3
Avg EPS beat(4)8.18%
Min EPS beat(4)-0.87%
Max EPS beat(4)15.53%
EPS beat(8)6
Avg EPS beat(8)7.56%
EPS beat(12)10
Avg EPS beat(12)9.54%
EPS beat(16)12
Avg EPS beat(16)7.4%
Revenue beat(2)2
Avg Revenue beat(2)2.69%
Min Revenue beat(2)1.06%
Max Revenue beat(2)4.32%
Revenue beat(4)3
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)4.32%
Revenue beat(8)4
Avg Revenue beat(8)-1.6%
Revenue beat(12)5
Avg Revenue beat(12)-1.09%
Revenue beat(16)8
Avg Revenue beat(16)0.74%
PT rev (1m)27.92%
PT rev (3m)27.41%
EPS NQ rev (1m)5.14%
EPS NQ rev (3m)5.13%
EPS NY rev (1m)8.16%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.87 | ||
| Fwd PE | 24.75 | ||
| P/S | 3.4 | ||
| P/FCF | 44.49 | ||
| P/OCF | 20.66 | ||
| P/B | 6.05 | ||
| P/tB | 7.53 | ||
| EV/EBITDA | 18.09 |
EPS(TTM)15.52
EY3.04%
EPS(NY)20.61
Fwd EY4.04%
FCF(TTM)11.47
FCFY2.25%
OCF(TTM)24.69
OCFY4.84%
SpS150.01
BVpS84.32
TBVpS67.78
PEG (NY)N/A
PEG (5Y)1.99
Graham Number171.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 18.3% | ||
| ROCE | 13.18% | ||
| ROIC | 9.51% | ||
| ROICexc | 10.43% | ||
| ROICexgc | 11.92% | ||
| OM | 19.79% | ||
| PM (TTM) | 10.29% | ||
| GM | 37.15% | ||
| FCFM | 7.64% |
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)14.42%
ROICexgc(5y)13.98%
ROCE(3y)18.3%
ROCE(5y)17.43%
ROICexgc growth 3Y-7.7%
ROICexgc growth 5Y2.28%
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 3Y5.48%
GM growth 5Y2.6%
F-Score5
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | 17.47 | ||
| Debt/EBITDA | 4.17 | ||
| Cap/Depr | 181.72% | ||
| Cap/Sales | 8.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.81% | ||
| Profit Quality | 74.28% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | N/A |
F-Score5
WACC8.91%
ROIC/WACC1.07
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)-20.57%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-24.14%
EPS Next Y-1.43%
EPS Next 2Y12.84%
EPS Next 3Y16.85%
EPS Next 5Y22.83%
Revenue 1Y (TTM)-2.61%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%17.51%
Revenue Next Year7.55%
Revenue Next 2Y8.56%
Revenue Next 3Y9.12%
Revenue Next 5Y15.42%
EBIT growth 1Y-17.8%
EBIT growth 3Y-1.68%
EBIT growth 5Y10.96%
EBIT Next Year21.5%
EBIT Next 3Y23.55%
EBIT Next 5Y23.02%
FCF growth 1Y-19.73%
FCF growth 3Y52.5%
FCF growth 5Y-7.71%
OCF growth 1Y-13.73%
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 32.87 and the Price/Book (PB) ratio is 6.05.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 2 / 10.