DEERE & CO (DCO.DE) Stock Fundamental Analysis
FRA:DCO • US2441991054
552 EUR
-7.1 (-1.27%)
Last: Feb 23, 2026, 12:07 PM
DCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 109 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.
- In the past year DCO had a positive cash flow from operations.
- DCO had positive earnings in each of the past 5 years.
- DCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 4.74%, DCO is doing good in the industry, outperforming 65.14% of the companies in the same industry.
- DCO has a better Return On Equity (19.37%) than 85.32% of its industry peers.
- DCO's Return On Invested Capital of 8.78% is fine compared to the rest of the industry. DCO outperforms 74.31% of its industry peers.
- DCO had an Average Return On Invested Capital over the past 3 years of 11.93%. This is above the industry average of 8.82%.
| 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
- DCO's Profit Margin of 11.00% is amongst the best of the industry. DCO outperforms 87.16% of its industry peers.
- 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 94.50% of its industry peers.
- DCO's Operating Margin has improved in the last couple of years.
- DCO has a Gross Margin of 38.36%. This is comparable to the rest of the industry: DCO outperforms 47.71% 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 3Y2.78%
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
- 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
- DCO has less shares outstanding than it did 5 years ago.
- DCO has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.82 indicates that DCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of DCO (2.82) is better than 63.30% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 19.79, DCO is doing worse than 69.72% of the companies in the same industry.
- 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 88.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 19.79 | ||
| Altman-Z | 2.82 |
ROIC/WACC1
WACC8.79%
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 has a Current ratio of 0.91. This is amonst the worse of the industry: DCO underperforms 92.66% of its industry peers.
- DCO has a Quick 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 has a worse Quick ratio (0.69) than 78.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 |
3. Growth
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 for DCO has decreased by -11.55% in the past year. This is quite bad
- The Revenue has been growing slightly by 5.15% on average over the past years.
EPS 1Y (TTM)-20.57%
EPS 3Y-7.13%
EPS 5Y16.52%
EPS Q2Q%-24.14%
Revenue 1Y (TTM)-11.55%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%17.51%
3.2 Future
- DCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.15% yearly.
- 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-8.86%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue Next Year5.95%
Revenue Next 2Y7.58%
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
- The Price/Earnings ratio is 36.24, 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.
- When comparing the Price/Earnings ratio of DCO to the average of the S&P500 Index (26.99), we can say DCO is valued slightly more expensively.
- A Price/Forward Earnings ratio of 28.74 indicates a quite expensive valuation of DCO.
- 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 71.56% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.02. DCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.24 | ||
| Fwd PE | 28.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DCO is valued a bit more expensive than 70.64% of the companies in the same industry.
- 71.56% 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 | 54.49 | ||
| EV/EBITDA | 19.09 |
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 14.21% in the coming years.
PEG (NY)N/A
PEG (5Y)2.19
EPS Next 2Y9.96%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
- DCO has a yearly dividend return of 0.98%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.42, DCO has a dividend in line with its industry peers.
- With a Dividend Yield of 0.98, DCO pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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 2Y9.96%
EPS Next 3Y14.21%
FRA:DCO (2/23/2026, 12:07:31 PM)
552
-7.1 (-1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)05-13 2026-05-13/bmo
Inst Owners75.5%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap149.63B
Revenue(TTM)45.67B
Net Income(TTM)5.03B
Analysts75.88
Price Target447.07 (-19.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend5.39
Dividend Growth(5Y)15.78%
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)-2.54%
PT rev (3m)-1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.47%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-19.09%
Revenue NQ rev (1m)-1.69%
Revenue NQ rev (3m)7.48%
Revenue NY rev (1m)-1.12%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.24 | ||
| Fwd PE | 28.74 | ||
| P/S | 3.85 | ||
| P/FCF | 54.49 | ||
| P/OCF | 23.61 | ||
| P/B | 6.78 | ||
| P/tB | 8.44 | ||
| EV/EBITDA | 19.09 |
EPS(TTM)15.23
EY2.76%
EPS(NY)19.21
Fwd EY3.48%
FCF(TTM)10.13
FCFY1.84%
OCF(TTM)23.38
OCFY4.24%
SpS143.22
BVpS81.36
TBVpS65.43
PEG (NY)N/A
PEG (5Y)2.19
Graham Number166.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 19.37% | ||
| ROCE | 12.93% | ||
| ROIC | 8.78% | ||
| ROICexc | 9.73% | ||
| ROICexgc | 10.92% | ||
| 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)11.93%
ROIC(5y)11.53%
ROICexc(3y)13.13%
ROICexc(5y)12.71%
ROICexgc(3y)14.32%
ROICexgc(5y)13.95%
ROCE(3y)18.3%
ROCE(5y)17.43%
ROICexgc growth 3Y-8.17%
ROICexgc growth 5Y2.14%
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 3Y7.3%
GM growth 5Y4.63%
F-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 19.79 | ||
| Debt/EBITDA | 4.72 | ||
| Cap/Depr | 189.68% | ||
| Cap/Sales | 9.26% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 64% | ||
| Profit Quality | 64.27% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.82 |
F-Score5
WACC8.79%
ROIC/WACC1
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-8.86%
EPS Next 2Y9.96%
EPS Next 3Y14.21%
EPS Next 5Y23.15%
Revenue 1Y (TTM)-11.55%
Revenue growth 3Y-4.34%
Revenue growth 5Y5.15%
Sales Q2Q%17.51%
Revenue Next Year5.95%
Revenue Next 2Y7.58%
Revenue Next 3Y7.96%
Revenue Next 5Y15.42%
EBIT growth 1Y-24.91%
EBIT growth 3Y-1.68%
EBIT growth 5Y10.96%
EBIT Next Year11.92%
EBIT Next 3Y19.46%
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 36.24 and the Price/Book (PB) ratio is 6.78.
What is the financial health of DEERE & CO (DCO.DE) stock?
The financial health rating of DEERE & CO (DCO.DE) is 3 / 10.