DE : NYSE : Industrial Goods
$109.16 up 0.98 | 0.91%
Today's Range: 108.25 - 109.43
Avg. Daily Volume: 2393900.0
03/30/17 - 3:59 PM ET

Financial Analysis


DEERE & CO's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.57% from the same quarter last year.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)5625.25524.5
EBITDA ($mil)1045.8898.6
EBIT ($mil)630.1524.4
Net Income ($mil)193.8254.4


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)3917.03507.9
Total Assets ($mil)56296.656036.2
Total Debt ($mil)34578.436238.2
Equity ($mil)6825.56590.2


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin34.6732.78
EBITDA Margin18.5916.26
Operating Margin11.29.49
Sales Turnover0.470.5
Return on Assets2.593.22
Return on Equity21.4327.42
Debt Q1 FY17 Q1 FY16
Current Ratio0.00.0
Debt/Capital0.840.85
Interest Expense208.1173.2
Interest Coverage3.033.03


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)318.28315.33
Div / share0.60.6
EPS0.610.8
Book value / share21.4420.9
Institutional Own % n/a n/a
Avg Daily Volume2351793.03149589.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 28.29 for the Machinery industry and a discount compared to the S&P 500 average of 26.33. Conducting a second comparison, its price-to-book ratio of 5.11 indicates a significant premium versus the S&P 500 average of 2.93 and a premium versus the industry average of 4.86. 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 23.71 Peers 28.29   DE 9.06 Peers 15.54

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 19.81 Peers 22.43   DE NM Peers 1.85

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.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DE 5.11 Peers 4.86   DE -15.08 Peers -12.52

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 1.31 Peers 1.93   DE -4.63 Peers -1.99

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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