DEERE & CO (DE)
US2441991054 - Common Stock
We assign a fundamental rating of 4 out of 10 to DE. DE was compared to 132 industry peers in the Machinery industry. While DE belongs to the best of the industry regarding profitability, there are concerns on its financial health. DE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DE was profitable.
In the past year DE had a positive cash flow from operations.
In the past 5 years DE has always been profitable.
In the past 5 years DE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.62%, DE is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 31.09%, DE belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.29%, DE is doing good in the industry, outperforming 78.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DE is in line with the industry average of 10.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 31.09% | ||
| ROIC | 12.29% |
ROA(3y)8.1%
ROA(5y)7.01%
ROE(3y)37.65%
ROE(5y)33.31%
ROIC(3y)12.67%
ROIC(5y)11.11%
1.3 Margins
With an excellent Profit Margin value of 13.73%, DE belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
In the last couple of years the Profit Margin of DE has grown nicely.
DE has a better Operating Margin (24.27%) than 96.15% of its industry peers.
In the last couple of years the Operating Margin of DE has grown nicely.
DE has a better Gross Margin (40.49%) than 76.92% of its industry peers.
In the last couple of years the Gross Margin of DE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.27% | ||
| PM (TTM) | 13.73% | ||
| GM | 40.49% |
OM growth 3Y8.52%
OM growth 5Y11.73%
PM growth 3Y0.43%
PM growth 5Y10.67%
GM growth 3Y8.89%
GM growth 5Y6.87%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DE is still creating some value.
DE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DE has less shares outstanding
Compared to 1 year ago, DE has an improved debt to assets ratio.
2.2 Solvency
DE has a debt to FCF ratio of 14.72. This is a negative value and a sign of low solvency as DE would need 14.72 years to pay back of all of its debts.
DE has a Debt to FCF ratio (14.72) which is in line with its industry peers.
A Debt/Equity ratio of 2.26 is on the high side and indicates that DE has dependencies on debt financing.
The Debt to Equity ratio of DE (2.26) is worse than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 14.72 | ||
| Altman-Z | N/A |
ROIC/WACC1.44
WACC8.51%
2.3 Liquidity
DE has a Current Ratio of 0.85. This is a bad value and indicates that DE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.85, DE is not doing good in the industry: 94.62% of the companies in the same industry are doing better.
DE has a Quick Ratio of 0.85. This is a bad value and indicates that DE is not financially healthy enough and could expect problems in meeting its short term obligations.
DE's Quick ratio of 0.66 is on the low side compared to the rest of the industry. DE is outperformed by 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for DE have decreased strongly by -26.27% in the last year.
Measured over the past years, DE shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.90% on average per year.
The Revenue for DE has decreased by -15.57% in the past year. This is quite bad
Measured over the past years, DE shows a small growth in Revenue. The Revenue has been growing by 5.62% on average per year.
EPS 1Y (TTM)-26.27%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-45.31%
Revenue 1Y (TTM)-15.57%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-32.79%
3.2 Future
Based on estimates for the next years, DE will show a small growth in Earnings Per Share. The EPS will grow by 6.06% on average per year.
DE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.21% yearly.
EPS Next Y-21.36%
EPS Next 2Y-4.64%
EPS Next 3Y-1.88%
EPS Next 5Y6.06%
Revenue Next Year-14.01%
Revenue Next 2Y-4.52%
Revenue Next 3Y-1.21%
Revenue Next 5YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.89, which indicates a correct valuation of DE.
Based on the Price/Earnings ratio, DE is valued a bit cheaper than 73.85% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, DE is valued a bit cheaper.
The Price/Forward Earnings ratio is 21.48, which indicates a rather expensive current valuation of DE.
The rest of the industry has a similar Price/Forward Earnings ratio as DE.
DE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 21.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DE indicates a somewhat cheap valuation: DE is cheaper than 67.69% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.52 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
The excellent profitability rating of DE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y-4.64%
EPS Next 3Y-1.88%
5. Dividend
5.1 Amount
DE has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
DE's Dividend Yield is a higher than the industry average which is at 1.69.
DE's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
The dividend of DE is nicely growing with an annual growth rate of 14.18%!
DE has paid a dividend for at least 10 years, which is a reliable track record.
DE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.18%
Div Incr Years3
Div Non Decr Years33
5.3 Sustainability
DE pays out 22.61% of its income as dividend. This is a sustainable payout ratio.
DE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.61%
EPS Next 2Y-4.64%
EPS Next 3Y-1.88%
DEERE & CO
NYSE:DE (12/20/2024, 8:05:00 PM)
After market: 432.49 0 (0%)432.49
+5.86 (+1.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners79.8%
Inst Owner Change1.86%
Ins Owners0.15%
Ins Owner Change0.09%
Market Cap117.46B
Analysts76.25
Price Target468.34 (8.29%)
Short Float %1.86%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Dividend Growth(5Y)14.18%
DP22.61%
Div Incr Years3
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.39%
Min EPS beat(2)8.49%
Max EPS beat(2)14.29%
EPS beat(4)4
Avg EPS beat(4)11.05%
Min EPS beat(4)5.32%
Max EPS beat(4)16.1%
EPS beat(8)8
Avg EPS beat(8)12.06%
EPS beat(12)10
Avg EPS beat(12)9.27%
EPS beat(16)14
Avg EPS beat(16)13.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.78%
Min Revenue beat(2)-3.54%
Max Revenue beat(2)1.98%
Revenue beat(4)1
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-3.54%
Max Revenue beat(4)1.98%
Revenue beat(8)3
Avg Revenue beat(8)0.86%
Revenue beat(12)6
Avg Revenue beat(12)3.01%
Revenue beat(16)10
Avg Revenue beat(16)5.29%
PT rev (1m)8.53%
PT rev (3m)9.22%
EPS NQ rev (1m)-10.57%
EPS NQ rev (3m)-33.98%
EPS NY rev (1m)-11.83%
EPS NY rev (3m)-14.33%
Revenue NQ rev (1m)-3.34%
Revenue NQ rev (3m)-17.9%
Revenue NY rev (1m)-8.23%
Revenue NY rev (3m)-8.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 21.48 | ||
| P/S | 2.27 | ||
| P/FCF | 26.52 | ||
| P/OCF | 12.72 | ||
| P/B | 5.14 | ||
| P/tB | 6.57 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)25.6
EY5.92%
EPS(NY)20.13
Fwd EY4.65%
FCF(TTM)16.31
FCFY3.77%
OCF(TTM)33.99
OCFY7.86%
SpS190.42
BVpS84.09
TBVpS65.83
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 31.09% | ||
| ROCE | 17.73% | ||
| ROIC | 12.29% | ||
| ROICexc | 13.54% | ||
| ROICexgc | 15.21% | ||
| OM | 24.27% | ||
| PM (TTM) | 13.73% | ||
| GM | 40.49% | ||
| FCFM | 8.56% |
ROA(3y)8.1%
ROA(5y)7.01%
ROE(3y)37.65%
ROE(5y)33.31%
ROIC(3y)12.67%
ROIC(5y)11.11%
ROICexc(3y)13.82%
ROICexc(5y)12.29%
ROICexgc(3y)15.19%
ROICexgc(5y)13.56%
ROCE(3y)19.77%
ROCE(5y)16.94%
ROICexcg growth 3Y3.38%
ROICexcg growth 5Y8.81%
ROICexc growth 3Y3.46%
ROICexc growth 5Y9.63%
OM growth 3Y8.52%
OM growth 5Y11.73%
PM growth 3Y0.43%
PM growth 5Y10.67%
GM growth 3Y8.89%
GM growth 5Y6.87%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 14.72 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 226.72% | ||
| Cap/Sales | 9.29% | ||
| Interest Coverage | 3.81 | ||
| Cash Conversion | 62.92% | ||
| Profit Quality | 62.38% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | N/A |
F-Score6
WACC8.51%
ROIC/WACC1.44
Cap/Depr(3y)216.52%
Cap/Depr(5y)180.17%
Cap/Sales(3y)7.95%
Cap/Sales(5y)7.44%
Profit Quality(3y)38.56%
Profit Quality(5y)75.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-26.27%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-45.31%
EPS Next Y-21.36%
EPS Next 2Y-4.64%
EPS Next 3Y-1.88%
EPS Next 5Y6.06%
Revenue 1Y (TTM)-15.57%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-32.79%
Revenue Next Year-14.01%
Revenue Next 2Y-4.52%
Revenue Next 3Y-1.21%
Revenue Next 5YN/A
EBIT growth 1Y-19.34%
EBIT growth 3Y14.52%
EBIT growth 5Y18.01%
EBIT Next Year6.1%
EBIT Next 3Y6%
EBIT Next 5Y4.34%
FCF growth 1Y7.47%
FCF growth 3Y-4.88%
FCF growth 5YN/A
OCF growth 1Y7.47%
OCF growth 3Y6.11%
OCF growth 5Y22.02%