DEERE & CO (DE) Stock Fundamental Analysis
NYSE:DE - New York Stock Exchange, Inc. - US2441991054 - Common Stock
Taking everything into account, DE scores 4 out of 10 in our fundamental rating. DE was compared to 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
DE had positive earnings in each of the past 5 years.
DE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DE's Return On Assets of 6.62% is fine compared to the rest of the industry. DE outperforms 64.57% of its industry peers.
With an excellent Return On Equity value of 31.09%, DE belongs to the best of the industry, outperforming 93.70% of the companies in the same industry.
DE has a Return On Invested Capital of 12.29%. This is in the better half of the industry: DE outperforms 77.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DE is in line with the industry average of 11.19%.
| 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
DE has a Profit Margin of 13.73%. This is amongst the best in the industry. DE outperforms 85.83% of its industry peers.
In the last couple of years the Profit Margin of DE has grown nicely.
The Operating Margin of DE (24.27%) is better than 95.28% of its industry peers.
In the last couple of years the Operating Margin of DE has grown nicely.
With a decent Gross Margin value of 40.49%, DE is doing good in the industry, outperforming 75.59% 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 | 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.
Compared to 1 year ago, DE has less shares outstanding
Compared to 5 years ago, DE has less shares outstanding
The debt/assets ratio for DE has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of DE is 14.72, which is on the high side as it means it would take DE, 14.72 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DE (14.72) is worse than 60.63% of its industry peers.
A Debt/Equity ratio of 2.26 is on the high side and indicates that DE has dependencies on debt financing.
DE's Debt to Equity ratio of 2.26 is on the low side compared to the rest of the industry. DE is outperformed by 92.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 14.72 | ||
| Altman-Z | N/A |
ROIC/WACC1.36
WACC9.07%
2.3 Liquidity
A Current Ratio of 0.85 indicates that DE may have some problems paying its short term obligations.
DE has a Current ratio of 0.85. This is amonst the worse of the industry: DE underperforms 95.28% of its industry peers.
A Quick Ratio of 0.66 indicates that DE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.66, DE is doing worse than 88.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
DE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.27%.
DE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.90% yearly.
DE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.57%.
DE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.62% yearly.
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
DE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.06% yearly.
The Revenue is expected to decrease by -1.21% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 18.09, the valuation of DE can be described as rather expensive.
Based on the Price/Earnings ratio, DE is valued a bit cheaper than 74.80% of the companies in the same industry.
DE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 23.01, the valuation of DE can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DE is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of DE to the average of the S&P500 Index (24.44), we can say DE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 23.01 |
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 68.50% 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 | 28.4 | ||
| EV/EBITDA | 11.94 |
4.3 Compensation for Growth
The excellent profitability rating of DE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.87
EPS Next 2Y-4.64%
EPS Next 3Y-1.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.48%, DE has a reasonable but not impressive dividend return.
DE's Dividend Yield is a higher than the industry average which is at 1.65.
Compared to the average S&P500 Dividend Yield of 2.28, DE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
On average, the dividend of DE grows each year by 14.18%, which is quite nice.
DE has paid a dividend for at least 10 years, which is a reliable track record.
DE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The dividend of DE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.61%
EPS Next 2Y-4.64%
EPS Next 3Y-1.88%
DEERE & CO
NYSE:DE (1/21/2025, 8:04:00 PM)
After market: 463.15 0 (0%)463.15
+7.71 (+1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners79.8%
Inst Owner Change-0.42%
Ins Owners0.15%
Ins Owner Change0.07%
Market Cap125.78B
Analysts75
Price Target476.92 (2.97%)
Short Float %1.97%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend5.8
Dividend Growth(5Y)14.18%
DP22.61%
Div Incr Years3
Div Non Decr Years33
Ex-DateN/A
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)1.83%
PT rev (3m)12.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 23.01 | ||
| P/S | 2.43 | ||
| P/FCF | 28.4 | ||
| P/OCF | 13.63 | ||
| P/B | 5.51 | ||
| P/tB | 7.04 | ||
| EV/EBITDA | 11.94 |
EPS(TTM)25.6
EY5.53%
EPS(NY)20.13
Fwd EY4.35%
FCF(TTM)16.31
FCFY3.52%
OCF(TTM)33.99
OCFY7.34%
SpS190.42
BVpS84.09
TBVpS65.83
PEG (NY)N/A
PEG (5Y)0.87
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
WACC9.07%
ROIC/WACC1.36
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 Year-7.24%
EBIT Next 3Y2.83%
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%