DE : NYSE : Industrial Goods
$127.9 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 2561600.0
07/25/17 - 4:02 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 has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not.

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)1828.51312.0
EBIT ($mil)1401.1924.4
Net Income ($mil)802.4495.4


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)4549.84194.2
Total Assets ($mil)58968.859183.3
Total Debt ($mil)35441.337865.8
Equity ($mil)7684.77164.3


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin35.330.12
EBITDA Margin22.0616.65
Operating Margin16.9111.74
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 Coverage6.184.84


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)319.86314.26
Div / share0.60.6
EPS2.491.56
Book value / share24.0322.8
Institutional Own % n/a n/a
Avg Daily Volume2581639.02232215.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 28.53 for the Machinery industry and a discount compared to the S&P 500 average of 24.66. Conducting a second comparison, its price-to-book ratio of 5.23 indicates a significant premium versus the S&P 500 average of 3.07 and a premium versus the industry average of 5.05. 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 22.63 Peers 28.53   DE 10.12 Peers 16.51

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 17.94 Peers 22.36   DE 0.70 Peers 1.28

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

DE is trading at a discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DE 5.23 Peers 5.05   DE 11.67 Peers 24.25

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 1.48 Peers 2.09   DE -2.27 Peers 12.41

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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