DEERE & CO (DE)
US2441991054 - Common Stock
Overall DE gets a fundamental rating of 5 out of 10. We evaluated DE against 131 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
DE had positive earnings in the past year.
DE had a positive operating cash flow in the past year.
Each year in the past 5 years DE has been profitable.
In the past 5 years DE always reported a positive cash flow from operatings.
1.2 Ratios
DE's Return On Assets of 7.63% is fine compared to the rest of the industry. DE outperforms 72.44% of its industry peers.
DE has a Return On Equity of 35.66%. This is amongst the best in the industry. DE outperforms 94.49% of its industry peers.
The Return On Invested Capital of DE (12.79%) is better than 80.31% of its industry peers.
DE had an Average Return On Invested Capital over the past 3 years of 12.21%. This is in line with the industry average of 11.01%.
The 3 year average ROIC (12.21%) for DE is below the current ROIC(12.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.63% | ||
| ROE | 35.66% | ||
| ROIC | 12.79% |
ROA(3y)8.26%
ROA(5y)6.58%
ROE(3y)38.07%
ROE(5y)32.8%
ROIC(3y)12.21%
ROIC(5y)10.33%
1.3 Margins
With an excellent Profit Margin value of 14.69%, DE belongs to the best of the industry, outperforming 90.55% of the companies in the same industry.
DE's Profit Margin has improved in the last couple of years.
The Operating Margin of DE (25.04%) is better than 96.06% of its industry peers.
DE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 39.93%, DE is doing good in the industry, outperforming 76.38% of the companies in the same industry.
In the last couple of years the Gross Margin of DE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.04% | ||
| PM (TTM) | 14.69% | ||
| GM | 39.93% |
OM growth 3Y16.53%
OM growth 5Y13.02%
PM growth 3Y28.97%
PM growth 5Y21.24%
GM growth 3Y8.13%
GM growth 5Y5.96%
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.
Compared to 1 year ago, DE has less shares outstanding
DE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DE is higher compared to a year ago.
2.2 Solvency
DE has an Altman-Z score of 2.41. This is not the best score and indicates that DE is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of DE (2.41) is comparable to the rest of the industry.
The Debt to FCF ratio of DE is 13.14, which is on the high side as it means it would take DE, 13.14 years of fcf income to pay off all of its debts.
DE's Debt to FCF ratio of 13.14 is in line compared to the rest of the industry. DE outperforms 40.16% of its industry peers.
A Debt/Equity ratio of 2.45 is on the high side and indicates that DE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.45, DE is doing worse than 92.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 13.14 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.54
WACC8.32%
2.3 Liquidity
DE has a Current Ratio of 0.90. 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 0.90, DE is not doing good in the industry: 94.49% of the companies in the same industry are doing better.
DE has a Quick Ratio of 0.90. This is a bad value and indicates that DE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DE (0.69) is worse than 85.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for DE have decreased strongly by -13.21% in the last year.
The Earnings Per Share has been growing by 30.03% on average over the past years. This is a very strong growth
DE shows a decrease in Revenue. In the last year, the revenue decreased by -8.79%.
DE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.38% yearly.
EPS 1Y (TTM)-13.21%
EPS 3Y58.62%
EPS 5Y30.03%
EPS Q2Q%-38.33%
Revenue 1Y (TTM)-8.79%
Revenue growth 3Y19.87%
Revenue growth 5Y10.38%
Sales Q2Q%-20.28%
3.2 Future
DE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.91% yearly.
DE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.27% yearly.
EPS Next Y-26.15%
EPS Next 2Y-18.9%
EPS Next 3Y-9.59%
EPS Next 5Y-1.91%
Revenue Next Year-18.66%
Revenue Next 2Y-12.71%
Revenue Next 3Y-7.27%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.79, which indicates a correct valuation of DE.
81.10% of the companies in the same industry are more expensive than DE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DE to the average of the S&P500 Index (28.65), we can say DE is valued rather cheaply.
DE is valuated rather expensively with a Price/Forward Earnings ratio of 17.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DE indicates a somewhat cheap valuation: DE is cheaper than 67.72% of the companies listed in the same industry.
DE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 17.74 |
4.2 Price Multiples
78.74% of the companies in the same industry are more expensive than DE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DE is valued a bit cheaper than 67.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.11 | ||
| EV/EBITDA | 9.68 |
4.3 Compensation for Growth
DE has an outstanding profitability rating, which may justify a higher PE ratio.
DE's earnings are expected to decrease with -9.59% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-18.9%
EPS Next 3Y-9.59%
5. Dividend
5.1 Amount
DE has a Yearly Dividend Yield of 1.49%.
DE's Dividend Yield is rather good when compared to the industry average which is at 1.54. DE pays more dividend than 80.31% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.23, DE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of DE is nicely growing with an annual growth rate of 14.31%!
DE has been paying a dividend for at least 10 years, so it has a reliable track record.
DE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.31%
Div Incr Years3
Div Non Decr Years33
5.3 Sustainability
DE pays out 19.02% of its income as dividend. This is a sustainable payout ratio.
DP19.02%
EPS Next 2Y-18.9%
EPS Next 3Y-9.59%
DEERE & CO
NYSE:DE (11/20/2024, 8:16:18 PM)
Premarket: 407.6 +2.64 (+0.65%)404.96
+4.87 (+1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap110.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 17.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.63% | ||
| ROE | 35.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.04% | ||
| PM (TTM) | 14.69% | ||
| GM | 39.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-13.21%
EPS 3Y58.62%
EPS 5Y
EPS Q2Q%
EPS Next Y-26.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.79%
Revenue growth 3Y19.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y