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DEERE & CO (DE) Stock Fundamental Analysis

NYSE:DE - New York Stock Exchange, Inc. - US2441991054 - Common Stock - Currency: USD

514.66  -0.51 (-0.1%)

After market: 514.66 0 (0%)

Fundamental Rating

5

DE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. DE has an excellent profitability rating, but there are concerns on its financial health. DE is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year DE was profitable.
In the past year DE had a positive cash flow from operations.
Each year in the past 5 years DE has been profitable.
Each year in the past 5 years DE had a positive operating cash flow.
DE Yearly Net Income VS EBIT VS OCF VS FCFDE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

DE has a Return On Assets of 5.32%. This is comparable to the rest of the industry: DE outperforms 56.69% of its industry peers.
The Return On Equity of DE (23.27%) is better than 86.61% of its industry peers.
With a decent Return On Invested Capital value of 9.46%, DE is doing good in the industry, outperforming 63.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DE is in line with the industry average of 10.77%.
Industry RankSector Rank
ROA 5.32%
ROE 23.27%
ROIC 9.46%
ROA(3y)8.1%
ROA(5y)7.01%
ROE(3y)37.65%
ROE(5y)33.31%
ROIC(3y)12.67%
ROIC(5y)11.11%
DE Yearly ROA, ROE, ROICDE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

With an excellent Profit Margin value of 12.40%, DE belongs to the best of the industry, outperforming 81.10% of the companies in the same industry.
DE's Profit Margin has improved in the last couple of years.
The Operating Margin of DE (22.89%) is better than 95.28% of its industry peers.
In the last couple of years the Operating Margin of DE has grown nicely.
DE has a Gross Margin of 40.60%. This is in the better half of the industry: DE outperforms 74.80% of its industry peers.
DE's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 22.89%
PM (TTM) 12.4%
GM 40.6%
OM growth 3Y8.52%
OM growth 5Y11.73%
PM growth 3Y0.43%
PM growth 5Y10.67%
GM growth 3Y8.89%
GM growth 5Y6.87%
DE Yearly Profit, Operating, Gross MarginsDE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

2

2. Health

2.1 Basic Checks

DE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DE has less shares outstanding than it did 1 year ago.
DE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DE has an improved debt to assets ratio.
DE Yearly Shares OutstandingDE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
DE Yearly Total Debt VS Total AssetsDE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

An Altman-Z score of 2.52 indicates that DE is not a great score, but indicates only limited risk for bankruptcy at the moment.
DE has a worse Altman-Z score (2.52) than 60.63% of its industry peers.
The Debt to FCF ratio of DE is 15.31, which is on the high side as it means it would take DE, 15.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.31, DE is doing worse than 67.72% of the companies in the same industry.
A Debt/Equity ratio of 2.36 is on the high side and indicates that DE has dependencies on debt financing.
DE has a Debt to Equity ratio of 2.36. This is amonst the worse of the industry: DE underperforms 88.98% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.36
Debt/FCF 15.31
Altman-Z 2.52
ROIC/WACC1.01
WACC9.35%
DE Yearly LT Debt VS Equity VS FCFDE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B 40B

2.3 Liquidity

A Current Ratio of 0.94 indicates that DE may have some problems paying its short term obligations.
The Current ratio of DE (0.94) is worse than 92.13% of its industry peers.
A Quick Ratio of 0.72 indicates that DE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, DE is doing worse than 85.04% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.94
Quick Ratio 0.72
DE Yearly Current Assets VS Current LiabilitesDE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

5

3. Growth

3.1 Past

DE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.89%.
DE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.90% yearly.
Looking at the last year, DE shows a very negative growth in Revenue. The Revenue has decreased by -22.29% in the last year.
DE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.62% yearly.
EPS 1Y (TTM)-37.89%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-22.16%
Revenue 1Y (TTM)-22.29%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-17.92%

3.2 Future

The Earnings Per Share is expected to grow by 14.55% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y-24.47%
EPS Next 2Y-4.96%
EPS Next 3Y2.91%
EPS Next 5Y14.55%
Revenue Next Year-15.8%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.78%
Revenue Next 5Y8.39%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
DE Yearly Revenue VS EstimatesDE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
DE Yearly EPS VS EstimatesDE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10 20 30 40 50

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 24.90, the valuation of DE can be described as rather expensive.
DE's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of DE to the average of the S&P500 Index (27.35), we can say DE is valued inline with the index average.
DE is valuated rather expensively with a Price/Forward Earnings ratio of 22.26.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DE is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 37.54. DE is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 24.9
Fwd PE 22.26
DE Price Earnings VS Forward Price EarningsDE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DE is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as DE.
Industry RankSector Rank
P/FCF 32.18
EV/EBITDA 14.54
DE Per share dataDE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

The excellent profitability rating of DE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-4.96%
EPS Next 3Y2.91%

6

5. Dividend

5.1 Amount

DE has a Yearly Dividend Yield of 1.30%.
DE's Dividend Yield is a higher than the industry average which is at 1.87.
With a Dividend Yield of 1.30, DE pays less dividend than the S&P500 average, which is at 2.36.
Industry RankSector Rank
Dividend Yield 1.3%

5.2 History

On average, the dividend of DE grows each year by 14.18%, which is quite nice.
DE has paid a dividend for at least 10 years, which is a reliable track record.
DE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)14.18%
Div Incr Years4
Div Non Decr Years34
DE Yearly Dividends per shareDE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

29.23% of the earnings are spent on dividend by DE. This is a low number and sustainable payout ratio.
DE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP29.23%
EPS Next 2Y-4.96%
EPS Next 3Y2.91%
DE Yearly Income VS Free CF VS DividendDE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B
DE Dividend Payout.DE Dividend Payout, showing the Payout Ratio.DE Dividend Payout.PayoutRetained Earnings

DEERE & CO

NYSE:DE (7/24/2025, 8:04:00 PM)

After market: 514.66 0 (0%)

514.66

-0.51 (-0.1%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)05-15 2025-05-15/bmo
Earnings (Next)08-14 2025-08-14/amc
Inst Owners75.35%
Inst Owner Change-1.03%
Ins Owners0.15%
Ins Owner Change-0.08%
Market Cap139.39B
Analysts73.94
Price Target551.37 (7.13%)
Short Float %1.85%
Short Ratio4.09
Dividend
Industry RankSector Rank
Dividend Yield 1.3%
Yearly Dividend5.8
Dividend Growth(5Y)14.18%
DP29.23%
Div Incr Years4
Div Non Decr Years34
Ex-Date06-30 2025-06-30 (1.62)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.58%
Min EPS beat(2)-0.37%
Max EPS beat(2)15.53%
EPS beat(4)3
Avg EPS beat(4)9.49%
Min EPS beat(4)-0.37%
Max EPS beat(4)15.53%
EPS beat(8)7
Avg EPS beat(8)11.03%
EPS beat(12)10
Avg EPS beat(12)8.56%
EPS beat(16)13
Avg EPS beat(16)8.76%
Revenue beat(2)1
Avg Revenue beat(2)-6.82%
Min Revenue beat(2)-14.13%
Max Revenue beat(2)0.49%
Revenue beat(4)2
Avg Revenue beat(4)-3.8%
Min Revenue beat(4)-14.13%
Max Revenue beat(4)1.98%
Revenue beat(8)2
Avg Revenue beat(8)-2.66%
Revenue beat(12)6
Avg Revenue beat(12)1.09%
Revenue beat(16)9
Avg Revenue beat(16)2.26%
PT rev (1m)-0.13%
PT rev (3m)9.44%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-15.41%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.2%
Valuation
Industry RankSector Rank
PE 24.9
Fwd PE 22.26
P/S 3.06
P/FCF 32.18
P/OCF 15.74
P/B 5.74
P/tB 7.25
EV/EBITDA 14.54
EPS(TTM)20.67
EY4.02%
EPS(NY)23.12
Fwd EY4.49%
FCF(TTM)16
FCFY3.11%
OCF(TTM)32.7
OCFY6.35%
SpS168.25
BVpS89.68
TBVpS71
PEG (NY)N/A
PEG (5Y)1.19
Profitability
Industry RankSector Rank
ROA 5.32%
ROE 23.27%
ROCE 14.7%
ROIC 9.46%
ROICexc 10.44%
ROICexgc 11.7%
OM 22.89%
PM (TTM) 12.4%
GM 40.6%
FCFM 9.51%
ROA(3y)8.1%
ROA(5y)7.01%
ROE(3y)37.65%
ROE(5y)33.31%
ROIC(3y)12.67%
ROIC(5y)11.11%
ROICexc(3y)13.82%
ROICexc(5y)12.29%
ROICexgc(3y)15.19%
ROICexgc(5y)13.56%
ROCE(3y)19.77%
ROCE(5y)16.94%
ROICexcg growth 3Y3.38%
ROICexcg growth 5Y8.81%
ROICexc growth 3Y3.46%
ROICexc growth 5Y9.63%
OM growth 3Y8.52%
OM growth 5Y11.73%
PM growth 3Y0.43%
PM growth 5Y10.67%
GM growth 3Y8.89%
GM growth 5Y6.87%
F-Score6
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 2.36
Debt/FCF 15.31
Debt/EBITDA 4.55
Cap/Depr 207.76%
Cap/Sales 9.93%
Interest Coverage 250
Cash Conversion 70.25%
Profit Quality 76.65%
Current Ratio 0.94
Quick Ratio 0.72
Altman-Z 2.52
F-Score6
WACC9.35%
ROIC/WACC1.01
Cap/Depr(3y)216.52%
Cap/Depr(5y)180.17%
Cap/Sales(3y)7.95%
Cap/Sales(5y)7.44%
Profit Quality(3y)38.56%
Profit Quality(5y)75.49%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.89%
EPS 3Y10.6%
EPS 5Y20.9%
EPS Q2Q%-22.16%
EPS Next Y-24.47%
EPS Next 2Y-4.96%
EPS Next 3Y2.91%
EPS Next 5Y14.55%
Revenue 1Y (TTM)-22.29%
Revenue growth 3Y5.54%
Revenue growth 5Y5.62%
Sales Q2Q%-17.92%
Revenue Next Year-15.8%
Revenue Next 2Y-4.68%
Revenue Next 3Y-0.78%
Revenue Next 5Y8.39%
EBIT growth 1Y-30.73%
EBIT growth 3Y14.52%
EBIT growth 5Y18.01%
EBIT Next Year-9.32%
EBIT Next 3Y5.68%
EBIT Next 5Y13.77%
FCF growth 1Y109.99%
FCF growth 3Y-4.88%
FCF growth 5YN/A
OCF growth 1Y40.24%
OCF growth 3Y6.11%
OCF growth 5Y22.02%