DE : NYSE : Industrial Goods
$122.79 | %
Today's Range: 122.3589 - 123.59
Avg. Daily Volume: 2294000.0
05/26/17 - 4:00 PM ET

Financial Analysis


DEERE & CO's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

During the same period, stockholders' equity ("net worth") has increased by 7.26% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)8287.07875.4
EBITDA ($mil)1823.51312.0
EBIT ($mil)1396.1924.4
Net Income ($mil)802.4495.4


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)4525.84194.2
Total Assets ($mil)58968.859183.3
Total Debt ($mil)35441.337865.8
Equity ($mil)7684.77164.3


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin35.2730.12
EBITDA Margin22.016.65
Operating Margin16.8511.74
Sales Turnover0.460.47
Return on Assets3.02.72
Return on Equity23.0322.5
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.820.84
Interest Expense226.8191.1
Interest Coverage6.164.84


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)318.28314.26
Div / share0.60.6
EPS2.491.56
Book value / share24.1422.8
Institutional Own % n/a n/a
Avg Daily Volume2300924.03137723.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 26.93 for the Machinery industry and a discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 5.01 indicates a significant premium versus the S&P 500 average of 3.02 and a premium versus the industry average of 4.87. The price-to-sales ratio is well below both the S&P 500 average and 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DE 21.78 Peers 26.93   DE 9.75 Peers 15.73

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DE 21.34 Peers 22.00   DE 5.51 Peers 1.72

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

DE is trading at a valuation on par with its peers.

 

Premium. 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 trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DE 5.01 Peers 4.87   DE 11.67 Peers 24.95

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

DE is trading at a valuation on par with 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DE 1.42 Peers 2.01   DE -2.27 Peers 12.54

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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