NYSE:DE

Stock Analysis Report

Executive Summary

Deere & Company manufactures and distributes various equipment worldwide.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Deere's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

DE

3.3%

US Machinery

0.07%

US Market


1 Year Return

25.4%

DE

15.1%

US Machinery

8.9%

US Market

Return vs Industry: DE exceeded the US Machinery industry which returned 15.1% over the past year.

Return vs Market: DE exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

DEIndustryMarket
7 Day1.5%3.3%0.07%
30 Day6.8%3.5%-0.3%
90 Day4.8%-0.5%-1.6%
1 Year27.9%25.4%17.5%15.1%11.3%8.9%
3 Year114.4%102.4%55.1%45.1%46.3%36.8%
5 Year129.9%104.9%56.6%37.5%62.1%44.3%

Price Volatility Vs. Market

How volatile is Deere's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Deere undervalued compared to its fair value and its price relative to the market?

16.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DE ($175.15) is trading above our estimate of fair value ($133.7)

Significantly Below Fair Value: DE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DE is good value based on its PE Ratio (16.8x) compared to the Machinery industry average (20.6x).

PE vs Market: DE is good value based on its PE Ratio (16.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: DE is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: DE is overvalued based on its PB Ratio (4.5x) compared to the US Machinery industry average (2.3x).


Next Steps

Future Growth

How is Deere forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DE's forecast earnings growth (7.2% per year) is above the savings rate (2.7%).

Earnings vs Market: DE's earnings (7.2% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: DE's earnings are forecast to grow, but not significantly.

Revenue vs Market: DE's revenue (0.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: DE's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DE's Return on Equity is forecast to be high in 3 years time (25.2%)


Next Steps

Past Performance

How has Deere performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DE's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: DE's earnings growth over the past year (58.6%) exceeds its 5-year average (0.9% per year).

Earnings vs Industry: DE earnings growth over the past year (58.6%) exceeded the Machinery industry 16.7%.


Return on Equity

High ROE: Whilst DE's Return on Equity (27.02%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: DE's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: DE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Deere's financial position?


Financial Position Analysis

Short Term Liabilities: DE's short term assets ($51.6B) exceeds its short term liabilities ($25.6B)

Long Term Liabilities: DE's short term assets (51.6B) exceeds its long term liabilities (35.7B)


Debt to Equity History and Analysis

Debt Level: DE's debt to equity ratio (370.7%) is considered high

Reducing Debt: DE's debt to equity ratio has increased from 340.3% to 370.7% over the past 5 years.

Debt Coverage: DE's debt is not well covered by operating cash flow (6.4%).

Interest Coverage: DE's interest payments on its debt are well covered by EBIT (19.9x coverage).


Balance Sheet

Inventory Level: DE has a low level of unsold assets or inventory.

Debt Coverage by Assets: DE's debt is covered by short term assets (assets are 1.133480x debt).


Next Steps

Dividend

What is Deere's current dividend yield, its reliability and sustainability?

1.74%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DE's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: DE's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: DE's dividends per share have been stable in the past 10 years.

Growing Dividend: DE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.5%), DE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DE's dividends in 3 years are forecast to be well covered by earnings (26.7% payout ratio).


Next Steps

Management

What is the CEO of Deere's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Sam Allen (65yo)

10.2yrs

Tenure

US$18,525,667

Compensation

Mr. Samuel R. Allen, also known as Sam, has been Director of Dow Inc. since August 1, 2019. Mr. Allen has been Chairman of Deere & Company since February 2010. Mr. Allen is Chief Executive Officer of Deere ...


CEO Compensation Analysis

Compensation vs. Market: Sam's total compensation ($USD18.53M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Sam's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

51yo

Average Age

Experienced Management: DE's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: DE's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Sam Allen (65yo)

    Chairman & CEO

    • Tenure: 10.2yrs
    • Compensation: US$18.53m
  • Jim Field (56yo)

    President of Worldwide Construction & Forestry Division and Power Systems

    • Tenure: 7.1yrs
    • Compensation: US$4.58m
  • Marc Howze (56yo)

    Senior VP & Chief Administrative Officer

    • Tenure: 2.9yrs
  • Mary K. Jones (51yo)

    Chief Legal Officer

    • Tenure: 6.8yrs
  • Rajesh Kalathur (51yo)

    President of John Deere Financial & Chief Information Officer

    • Tenure: 0.9yrs
    • Compensation: US$4.34m
  • John May (50yo)

    President

    • Tenure: 0.2yrs
    • Compensation: US$4.27m
  • Jeffrey Trahan

    Vice President of Pension Fund & Investments

    • Tenure: 4.7yrs
  • Renee Mailhot

    VP & Chief Compliance Officer

    • Tenure: 4.4yrs
  • Ryan Campbell (44yo)

    Senior VP & CFO

    • Tenure: 0.5yrs
  • Josh Jepsen

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Chad Holliday (71yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$281.72k
  • Vance Coffman (75yo)

    Presiding Director

    • Tenure: 3.8yrs
    • Compensation: US$329.93k
  • Sherry Smith (57yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$296.50k
  • Clay Jones (70yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$296.27k
  • Greg Page (68yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$285.64k
  • Dipak Jain (62yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$313.12k
  • Sam Allen (65yo)

    Chairman & CEO

    • Tenure: 10.2yrs
    • Compensation: US$18.53m
  • Dmitri Stockton (55yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$279.58k
  • John May (50yo)

    President

    • Tenure: 0.2yrs
    • Compensation: US$4.27m
  • Mike Johanns (68yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$286.44k

Company Information

Deere & Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deere & Company
  • Ticker: DE
  • Exchange: NYSE
  • Founded: 1837
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Market Cap: US$55.150b
  • Shares outstanding: 314.87m
  • Website: https://www.deere.com

Number of Employees


Location

  • Deere & Company
  • One John Deere Place
  • Moline
  • Illinois
  • 61265
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DENYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
DCODB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
DCOXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1968
DESWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1968
0R2PLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
DEERWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1968
DE *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
DEBASE (Buenos Aires Stock Exchange)CEDEAR EACH 2 REPR 1 ORD (USD)ARARSNov 2002
DEEC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.5 COM USD1BRBRLMay 2019

Biography

Deere & Company manufactures and distributes various equipment worldwide. The company operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services. The Agricultu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:34
End of Day Share Price2019/10/22 00:00
Earnings2019/07/28
Annual Earnings2018/10/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.