DE : NYSE : Industrial Goods
$86.99 -0.01 | -0.01%
Today's Range: 86.68 - 87.60
Avg. Daily Volume: 3,041,600
10/28/16 - 2:19 PM ET

Financial Analysis

DEERE & CO's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.81% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)6649.57592.7
EBITDA ($mil)1227.31255.3
EBIT ($mil)830.7909.0
Net Income ($mil)488.8511.6

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)4359.04170.8
Total Assets ($mil)58606.458932.2
Total Debt ($mil)37219.437144.2
Equity ($mil)7428.47723.1

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin34.2231.05
EBITDA Margin18.4516.53
Operating Margin12.4911.97
Sales Turnover0.460.53
Return on Assets2.713.79
Return on Equity21.428.97
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Interest Expense200.6171.5
Interest Coverage4.145.3

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)314.42328.17
Div / share0.60.6
Book value / share23.6323.53
Institutional Own % n/a n/a
Avg Daily Volume3253978.03112773.0


HOLD. This stock's P/E ratio indicates a discount compared to an average of 25.78 for the Machinery industry and a discount compared to the S&P 500 average of 24.64. To use another comparison, its price-to-book ratio of 3.64 indicates a premium versus the S&P 500 average of 2.73 and a discount versus the industry average of 4.02. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, DEERE & CO proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DE 17.26 Peers 25.78   DE 6.96 Peers 18.17

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

DE is trading at a significant 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
DE 22.86 Peers 21.21   DE NM Peers 8.06

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
DE 3.64 Peers 4.02   DE -23.35 Peers -26.76

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DE 1.01 Peers 1.80   DE -13.86 Peers -5.06

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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