(DE) Deere - Overview
Sector: Industrials | Industry: Farm & Heavy Construction Machinery | Exchange: NYSE (USA) | Market Cap: 142.927m USD | Total Return: 9.1% in 12m
Avg Turnover: 578M
EPS Trend: -97.2%
Qual. Beats: 1
Rev. Trend: -90.2%
Qual. Beats: 3
Warnings
Beneish M-Score -1.49 > -1.5 - likely earnings manipulation
Tailwinds
No distinct edge detected
Deere & Company (DE) is a global manufacturer of heavy machinery operating through four primary segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The company produces a wide range of equipment, including tractors, harvesters, excavators, and road-building machinery, while providing integrated financing solutions to dealers and customers. Founded in 1837, the firm maintains a strategic partnership with Tarter USA to expand its product offerings in the rotary cutter market.
The business model relies on a robust dealer network and high capital intensity, where precision technology integration serves as a key competitive moat in the agricultural sector. As global food demand increases, the industry is shifting toward autonomous and data-driven farming equipment to optimize crop yields. Investors may find it useful to examine ValueRay for deeper insights into these industry trends.
- Lower net farm income reduces demand for high-margin precision agriculture equipment
- High interest rates increase financing costs and pressure financial services segment margins
- Global infrastructure spending initiatives drive revenue growth in construction and forestry segments
- Precision technology adoption rates determine long-term software and services revenue expansion
- Fluctuating agricultural commodity prices dictate replacement cycles for large-scale farming machinery
| Net Income: 4.78b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -0.55 > 1.0 |
| NWC/Revenue: -16.09% < 20% (prev 94.37%; Δ -110.5% < -1%) |
| CFO/TA 0.07 > 3% & CFO 7.93b > Net Income 4.78b |
| Net Debt (54.8b) to EBITDA (10.8b): 5.06 < 3 |
| Current Ratio: 0.79 > 1.5 & < 3 |
| Outstanding Shares: last quarter (270.8m) vs 12m ago -0.37% < -2% |
| Gross Margin: 35.40% > 18% (prev 0.39%; Δ 3.50k% > 0.5%) |
| Asset Turnover: 43.93% > 50% (prev 41.83%; Δ 2.11% > 0%) |
| Interest Coverage Ratio: 2.88 > 6 (EBITDA TTM 10.8b / Interest Expense TTM 2.99b) |
| A: -0.07 (Total Current Assets 27.7b - Total Current Liabilities 35.2b) / Total Assets 107b |
| B: 0.56 (Retained Earnings 59.7b / Total Assets 107b) |
| C: 0.08 (EBIT TTM 8.61b / Avg Total Assets 107b) |
| D: 0.78 (Book Value of Equity 62.3b / Total Liabilities 79.5b) |
| Altman-Z'' = 2.72 = A |
| DSRI: 0.16 (Receivables 10.2b/60.5b, Revenue 46.9b/44.5b) |
| GMI: 1.09 (GM 35.40% / 38.57%) |
| AQI: 4.60 (AQ_t 0.60 / AQ_t-1 0.13) |
| SGI: 1.05 (Revenue 46.9b / 44.5b) |
| TATA: -0.03 (NI 4.78b - CFO 7.93b) / TA 107b) |
| Beneish M = -1.49 (Cap -4..+1) = D |
As of May 30, 2026, the stock is trading at USD 542.18 with a total of 2,271,078 shares traded.
Over the past week, the price has changed by +2.04%,
over one month by -3.19%,
over three months by -13.65% and
over the past year by +9.10%.
Deere has received a consensus analysts rating of 3.63. Therefore, it is recommended to hold DE.
- StrongBuy: 5
- Buy: 5
- Hold: 14
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 643.9 | 18.8% |
P/E Trailing = 29.9462
P/E Forward = 29.7619
P/S = 3.0194
P/B = 5.2152
P/EG = 1.5959
Revenue TTM = 46.9b USD
EBIT TTM = 8.61b USD
EBITDA TTM = 10.8b USD
Long Term Debt = 43.5b USD (from longTermDebt, last fiscal year)
Short Term Debt = 21.6b USD (from shortTermDebt, last quarter)
Debt = 64.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 358.0m
Net Debt = 54.8b USD (calculated: Debt 64.2b - CCE 9.34b)
Enterprise Value = 198b USD (143b + Debt 64.2b - CCE 9.34b)
Interest Coverage Ratio = 2.88 (Ebit TTM 8.61b / Interest Expense TTM 2.99b)
EV/FCF = 52.49x (Enterprise Value 198b / FCF TTM 3.77b)
FCF Yield = 1.91% (FCF TTM 3.77b / Enterprise Value 198b)
FCF Margin = 8.04% (FCF TTM 3.77b / Revenue TTM 46.9b)
Net Margin = 10.21% (Net Income TTM 4.78b / Revenue TTM 46.9b)
Gross Margin = 35.40% ((Revenue TTM 46.9b - Cost of Revenue TTM 30.3b) / Revenue TTM)
Gross Margin QoQ = 38.17% (prev 34.66%)
Tobins Q-Ratio = 1.85 (Enterprise Value 198b / Total Assets 107b)
Interest Expense / Debt = 4.65% (Interest Expense 2.99b / Debt 64.2b)
Taxrate = 22.64% (518.0m / 2.29b)
NOPAT = 6.66b (EBIT 8.61b * (1 - 22.64%))
Current Ratio = 0.79 (Total Current Assets 27.7b / Total Current Liabilities 35.2b)
Debt / Equity = 2.34 (Debt 64.2b / totalStockholderEquity, last quarter 27.4b)
Debt / EBITDA = 5.06 (Net Debt 54.8b / EBITDA 10.8b)
Debt / FCF = 14.56 (Net Debt 54.8b / FCF TTM 3.77b)
Total Stockholder Equity = 26.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.48% (Net Income 4.78b / Total Assets 107b)
RoE = 18.25% (Net Income TTM 4.78b / Total Stockholder Equity 26.2b)
RoCE = 12.35% (EBIT 8.61b / Capital Employed (Equity 26.2b + L.T.Debt 43.5b))
RoIC = 7.14% (NOPAT 6.66b / Invested Capital 93.3b)
WACC = 6.72% (E(143b)/V(207b) * Re(8.12%) + D(64.2b)/V(207b) * Rd(4.65%) * (1-Tc(0.23)))
Discount Rate = 8.12% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -1.65%
[DCF] Terminal Value 73.45% ; FCFF base≈3.99b ; Y1≈3.57b ; Y5≈3.00b
[DCF] Fair Price = N/A (negative equity: EV 47.9b - Net Debt 54.8b = -6.97b; debt exceeds intrinsic value)
EPS Correlation: -97.16 | EPS CAGR: -25.92% | SUE: 2.23 | # QB: 1
Revenue Correlation: -90.23 | Revenue CAGR: -12.27% | SUE: 0.85 | # QB: 3
EPS current Quarter (2026-07-31): EPS=4.74 | Chg30d=-6.70% | Revisions=-65% | Analysts=16
EPS current Year (2026-10-31): EPS=18.06 | Chg30d=+0.89% | Revisions=+18% | GrowthEPS=-2.4% | GrowthRev=+6.4%
EPS next Year (2027-10-31): EPS=22.86 | Chg30d=-0.68% | Revisions=-25% | GrowthEPS=+26.6% | GrowthRev=+8.2%
[Analyst] Revisions Ratio: -65%