DEERE & CO's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not.
At the same time, stockholders' equity ("net worth") has significantly decreased by 25.59% from the same quarter last year.
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|Income Statement||Q4 FY15||Q4 FY14|
|Net Sales ($mil)||6715.3||8964.8|
|Net Income ($mil)||351.2||649.2|
|Balance Sheet||Q4 FY15||Q4 FY14|
|Cash & Equiv. ($mil)||4212.2||4510.0|
|Total Assets ($mil)||57947.6||61336.4|
|Total Debt ($mil)||36849.4||36958.4|
|Profitability||Q4 FY15||Q4 FY14|
|Gross Profit Margin||31.21||32.3|
|Return on Assets||3.34||5.15|
|Return on Equity||28.76||34.88|
|Debt||Q4 FY15||Q4 FY14|
|Share Data||Q4 FY15||Q4 FY14|
|Shares outstanding (mil)||316.69||345.5|
|Div / share||0.6||0.6|
|Book value / share||21.29||26.23|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3446065.0||3842797.0|
HOLD. This stock's P/E ratio indicates a discount compared to an average of 18.15 for the Machinery industry and a discount compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 3.70 indicates a premium versus the S&P 500 average of 2.51 and a premium versus the industry average of 3.22. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, DEERE & CO seems to be trading at a discount to investment alternatives within the industry.
|DE 13.66||Peers 18.15||DE 6.66||Peers 11.17|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
DE is trading at a discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
DE is trading at a significant discount to its peers.
|DE 17.75||Peers 16.17||DE NM||Peers 4.22|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
DE is trading at a premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
DE's negative PEG ratio makes this valuation measure meaningless.
|DE 3.70||Peers 3.22||DE -33.18||Peers -14.18|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
DE is trading at a premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, DE is expected to significantly trail its peers on the basis of its earnings growth rate.
|DE 0.86||Peers 1.35||DE -20.10||Peers -5.74|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
DE is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
DE significantly trails its peers on the basis of sales growth
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