DE : NYSE : Industrial Goods
$123.94 up 0.86 | 0.7%
Today's Range: 122.91 - 124.11
Avg. Daily Volume: 2441700.0
09/20/17 - 3:59 PM ET

Financial Analysis


DEERE & CO's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged 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 15.39% from the same quarter last year.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)7713.86649.5
EBITDA ($mil)1450.21227.3
EBIT ($mil)1014.3830.7
Net Income ($mil)641.8488.8


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)6559.44359.0
Total Assets ($mil)62349.958606.4
Total Debt ($mil)37474.637219.4
Equity ($mil)8572.27428.4


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin33.3834.22
EBITDA Margin18.818.45
Operating Margin13.1512.49
Sales Turnover0.450.46
Return on Assets3.12.71
Return on Equity22.5621.4
Debt Q3 FY17 Q3 FY16
Current Ratio0.00.0
Debt/Capital0.810.83
Interest Expense216.4200.6
Interest Coverage4.694.14


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)321.3314.42
Div / share0.60.6
EPS1.971.55
Book value / share26.6823.63
Institutional Own % n/a n/a
Avg Daily Volume2486262.02380826.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 125.40 for the Machinery industry and a discount compared to the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 4.44 indicates a premium versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 6.16. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
DE 19.70 Peers 125.40   DE 11.80 Peers 19.02

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
DE 16.61 Peers 22.16   DE 0.56 Peers 1.21

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 4.44 Peers 6.16   DE 20.44 Peers 16.67

Discount. 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 significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

DE is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
DE 1.36 Peers 2.07   DE 4.10 Peers 6.91

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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