DEERE & CO (DE) Stock Fundamental Analysis
NYSE:DE - New York Stock Exchange, Inc. - US2441991054 - Common Stock - Currency: USD
Overall DE gets a fundamental rating of 5 out of 10. We evaluated DE against 128 industry peers in the Machinery industry. DE scores excellent on profitability, but there are concerns on its financial health. DE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DE was profitable.
DE had a positive operating cash flow in the past year.
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
DE has a better Return On Assets (6.03%) than 61.72% of its industry peers.
DE's Return On Equity of 27.66% is amongst the best of the industry. DE outperforms 91.41% of its industry peers.
DE has a better Return On Invested Capital (10.53%) than 71.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DE is in line with the industry average of 10.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 27.66% | ||
| ROIC | 10.53% |
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
DE has a better Profit Margin (12.94%) than 82.81% of its industry peers.
DE's Profit Margin has improved in the last couple of years.
DE has a better Operating Margin (23.44%) than 95.31% of its industry peers.
DE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 40.44%, DE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
DE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.44% | ||
| PM (TTM) | 12.94% | ||
| GM | 40.44% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DE is 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 has been reduced compared to a year ago.
2.2 Solvency
DE has an Altman-Z score of 2.48. 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.
DE's Altman-Z score of 2.48 is on the low side compared to the rest of the industry. DE is outperformed by 61.72% of its industry peers.
The Debt to FCF ratio of DE is 15.22, which is on the high side as it means it would take DE, 15.22 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DE (15.22) is worse than 64.06% of its industry peers.
DE has a Debt/Equity ratio of 2.44. This is a high value indicating a heavy dependency on external financing.
DE has a worse Debt to Equity ratio (2.44) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 15.22 | ||
| Altman-Z | 2.48 |
ROIC/WACC1.12
WACC9.42%
2.3 Liquidity
A Current Ratio of 0.97 indicates that DE may have some problems paying its short term obligations.
With a Current ratio value of 0.97, DE is not doing good in the industry: 91.41% of the companies in the same industry are doing better.
A Quick Ratio of 0.73 indicates that DE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, DE is doing worse than 83.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The earnings per share for DE have decreased strongly by -34.42% 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 -20.97% in the past year. This is quite bad
DE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.62% yearly.
EPS 1Y (TTM)-34.42%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-48.8%
Revenue 1Y (TTM)-20.97%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-35.07%
3.2 Future
Based on estimates for the next years, DE will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.05% on average per year.
DE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.39% yearly.
EPS Next Y-24.16%
EPS Next 2Y-6.37%
EPS Next 3Y1.36%
EPS Next 5Y13.05%
Revenue Next Year-15.97%
Revenue Next 2Y-5.1%
Revenue Next 3Y-0.95%
Revenue Next 5Y8.39%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 19.57 indicates a rather expensive valuation of DE.
DE's Price/Earnings ratio is in line with the industry average.
DE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.63.
DE is valuated rather expensively with a Price/Forward Earnings ratio of 19.68.
DE's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of DE to the average of the S&P500 Index (20.85), we can say DE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.57 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DE is on the same level as its industry peers.
DE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.33 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
The excellent profitability rating of DE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y-6.37%
EPS Next 3Y1.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, DE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.12, DE pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.43, DE pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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
26.09% of the earnings are spent on dividend by DE. This is a low number and sustainable payout ratio.
DE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.09%
EPS Next 2Y-6.37%
EPS Next 3Y1.36%
441.56
-10.51 (-2.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners74.44%
Inst Owner Change0.87%
Ins Owners0.16%
Ins Owner Change0%
Market Cap119.84B
Analysts73.75
Price Target503.79 (14.09%)
Short Float %1.81%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend5.8
Dividend Growth(5Y)14.18%
DP26.09%
Div Incr Years3
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.96%
Min EPS beat(2)-0.37%
Max EPS beat(2)14.29%
EPS beat(4)3
Avg EPS beat(4)6.93%
Min EPS beat(4)-0.37%
Max EPS beat(4)14.29%
EPS beat(8)7
Avg EPS beat(8)10.23%
EPS beat(12)9
Avg EPS beat(12)7.14%
EPS beat(16)13
Avg EPS beat(16)9.17%
Revenue beat(2)0
Avg Revenue beat(2)-8.83%
Min Revenue beat(2)-14.13%
Max Revenue beat(2)-3.54%
Revenue beat(4)1
Avg Revenue beat(4)-4.05%
Min Revenue beat(4)-14.13%
Max Revenue beat(4)1.98%
Revenue beat(8)2
Avg Revenue beat(8)-2.06%
Revenue beat(12)5
Avg Revenue beat(12)0.71%
Revenue beat(16)9
Avg Revenue beat(16)2.99%
PT rev (1m)0%
PT rev (3m)5.64%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)-5.33%
EPS NY rev (1m)-1.61%
EPS NY rev (3m)-3.55%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.57 | ||
| Fwd PE | 19.68 | ||
| P/S | 2.49 | ||
| P/FCF | 28.33 | ||
| P/OCF | 13.31 | ||
| P/B | 5.33 | ||
| P/tB | 6.78 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)22.56
EY5.11%
EPS(NY)22.44
Fwd EY5.08%
FCF(TTM)15.59
FCFY3.53%
OCF(TTM)33.19
OCFY7.52%
SpS176.99
BVpS82.82
TBVpS65.1
PEG (NY)N/A
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 27.66% | ||
| ROCE | 15.7% | ||
| ROIC | 10.53% | ||
| ROICexc | 11.44% | ||
| ROICexgc | 12.67% | ||
| OM | 23.44% | ||
| PM (TTM) | 12.94% | ||
| GM | 40.44% | ||
| FCFM | 8.81% |
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.44 | ||
| Debt/FCF | 15.22 | ||
| Debt/EBITDA | 4.09 | ||
| Cap/Depr | 222.5% | ||
| Cap/Sales | 9.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.18% | ||
| Profit Quality | 68.03% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.48 |
F-Score6
WACC9.42%
ROIC/WACC1.12
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)-34.42%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-48.8%
EPS Next Y-24.16%
EPS Next 2Y-6.37%
EPS Next 3Y1.36%
EPS Next 5Y13.05%
Revenue 1Y (TTM)-20.97%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-35.07%
Revenue Next Year-15.97%
Revenue Next 2Y-5.1%
Revenue Next 3Y-0.95%
Revenue Next 5Y8.39%
EBIT growth 1Y-27.44%
EBIT growth 3Y14.52%
EBIT growth 5Y18.01%
EBIT Next Year-11.82%
EBIT Next 3Y3.43%
EBIT Next 5Y12.14%
FCF growth 1Y112.56%
FCF growth 3Y-4.88%
FCF growth 5YN/A
OCF growth 1Y49.97%
OCF growth 3Y6.11%
OCF growth 5Y22.02%