company background image
DE

Deere NYSE:DE Stock Report

Last Price

US$334.22

Market Cap

US$100.9b

7D

-5.7%

1Y

-4.3%

Updated

25 Sep, 2022

Data

Company Financials +
DE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends3/6

DE Stock Overview

Deere & Company manufactures and distributes various equipment worldwide.

Deere Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Deere
Historical stock prices
Current Share PriceUS$334.22
52 Week HighUS$446.76
52 Week LowUS$283.81
Beta1.06
1 Month Change-11.90%
3 Month Change5.99%
1 Year Change-4.30%
3 Year Change101.02%
5 Year Change166.12%
Change since IPO3,095.73%

Recent News & Updates

Sep 23

Deere & Company: Structural Tailwinds Could Push The Stock Higher

Summary Deere & Company is the world’s largest manufacturer and vendor of agricultural machinery. I am bullish on Deere, as I believe the company is poised to benefit from structural tailwinds, most notably price inflation, population growth and climate change. New product initiatives in sustainable and digital farming should likely support a multi-year growth story. Personally, I believe that Deere should be valued at about $437.65/share, which would imply more than 25% upside. Deere stock has outperformed the S&P 500 YTD by about 22 percentage points. Thesis Deere & Co (DE) benefitted from the agriculture boom in 2022, which was amongst others provoked by the war in Ukraine. But at a one-year forward P/E of about x14 and a P/B of about x2.5, DE stock is still trading relatively cheap. Investors should consider that the agriculture boom, contrary to the energy boom, is likely sustainable and should bolster Deere’s financials well into 2023 and 2024. Moreover, new product initiatives in sustainable and digital farming should likely support a multi-year growth story (remember that Cathy Wood’s ARKX fund has invested). Personally, I value Deere & Co at $437.65/share. My calculation is supported by a residual earnings model anchored on analyst consensus EPS. For reference, Deere stock has lost less than 1% YTD, versus a loss of about 22% for the S&P 500 (SPX). Seeking Alpha About Deere & Co. Deere & Co is the world’s largest manufacturer and vendor of agricultural machinery. The company designs, develops, manufactures and markets leading producers of equipment for agriculture, construction and forestry industry, and recently has also ventured in road-building equipment through the acquisition of the German brand Wirtgen. That said, Deere owns more than 5 brands, including notable names such as Hagie, Mazzotti, Blue River technology and Harvest Profit. Deere operates four key segments: 1) production and precision agriculture, which accounts for more than 35% of total sales; 2) the small agriculture and turf segment, which is responsible for about 25% of total sales; 3) the construction and forestry segment with another 25% of sales; and 4) the financial services segment with less than 10% of revenues. Geographically, Deere sells worldwide, but generates more than 60% of revenues in the U.S. Europe accounts for 20% and ROW for the remainder. Structural Tailwinds In my opinion, there are two major structural tailwinds for Deere’s business growth: food price inflation and climate change. After almost half a decade of falling agricultural market prices (from 2016 to 2020), food price inflation is back. And while restrictive monetary policy can dampen demand for many consumer goods, the need for basic food remains independent from interest rate levels. Food inflation is not merely a function of the Russia-Ukraine war, but also a function of a structural supply shortage. Notably, in 2022, more than 800 million people do not have enough to eat. And with another two billion people expected to be born by 2050, the World Resources Institute estimates a 56% food gap between the crop calories produced in 2010 and the crop calories needed in 2050. The resulting potential tailwind for Deere is obvious. Moreover, I argue that climate change is another structural tailwind for the agriculture industry. The global food system is responsible for a third of man-made greenhouse gas emissions. And the hidden costs associated with the food industry are estimated at US$4.8 trillion. According, as ESG trends are accelerating, Deere’s equipment and other technology solutions will play a key role to transition towards more sustainable food ecosystem. Strong Fundamentals Given elevated crop prices, which were amongst others caused by the Ukraine-war induced "food shortage," Deere has seen an enormous tailwind. On August 19, Deere reported earnings for the June quarter and announced, in my opinion, strong results. Net income for the period between April to end of June increased by 22% year-over-year to $14.1 billion. Net income increase by 13% year-over-year to $1.88 billion. Operating costs were much higher than what I personally would have anticipated. In that context, the company argued as follows: our results reflected higher costs and production inefficiencies driven by the difficult supply-chain situation. CEO John C May commented: Looking ahead, we believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs… … We are working closely with our factories and suppliers to meet higher levels of customer demand next year. Additionally, we are confident the company’s smart industrial strategy and leap ambitions will continue unlocking new value for customers through Deere’s advanced technologies and solutions

Sep 13
These 4 Measures Indicate That Deere (NYSE:DE) Is Using Debt Reasonably Well

These 4 Measures Indicate That Deere (NYSE:DE) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Sep 02
What Is Deere & Company's (NYSE:DE) Share Price Doing?

What Is Deere & Company's (NYSE:DE) Share Price Doing?

Deere & Company ( NYSE:DE ) led the NYSE gainers with a relatively large price hike in the past couple of weeks. With...

Shareholder Returns

DEUS MachineryUS Market
7D-5.7%-5.4%-5.2%
1Y-4.3%-19.5%-23.0%

Return vs Industry: DE exceeded the US Machinery industry which returned -19.5% over the past year.

Return vs Market: DE exceeded the US Market which returned -23% over the past year.

Price Volatility

Is DE's price volatile compared to industry and market?
DE volatility
DE Average Weekly Movement4.1%
Machinery Industry Average Movement5.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: DE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
183775,550John Mayhttps://www.deere.com

Deere & Company manufactures and distributes various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides mid-size tractors, combines, cotton pickers and strippers, sugarcane harvesters, harvesting front-end equipment, sugarcane loaders, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers.

Deere Fundamentals Summary

How do Deere's earnings and revenue compare to its market cap?
DE fundamental statistics
Market CapUS$100.87b
Earnings (TTM)US$6.17b
Revenue (TTM)US$48.33b

16.4x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DE income statement (TTM)
RevenueUS$48.33b
Cost of RevenueUS$32.76b
Gross ProfitUS$12.94b
Other ExpensesUS$6.77b
EarningsUS$6.17b

Last Reported Earnings

Jul 31, 2022

Next Earnings Date

Nov 23, 2022

Earnings per share (EPS)20.44
Gross Margin26.78%
Net Profit Margin12.76%
Debt/Equity Ratio270.4%

How did DE perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

21%

Payout Ratio

Does DE pay a reliable dividends?

See DE dividend history and benchmarks
When do you need to buy DE by to receive an upcoming dividend?
Deere dividend dates
Ex Dividend DateSep 29 2022
Dividend Pay DateNov 08 2022
Days until Ex dividend3 days
Days until Dividend pay date43 days

Does DE pay a reliable dividends?

See DE dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is DE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DE?

Other financial metrics that can be useful for relative valuation.

DE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.1x
Enterprise Value/EBITDA16.5x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

How does DE's PE Ratio compare to its peers?

DE PE Ratio vs Peers
The above table shows the PE ratio for DE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.4x
CNHI CNH Industrial
8.6x4.9%US$15.0b
TTC Toro
23.2x13.6%US$9.0b
AGCO AGCO
9.1x5.4%US$7.2b
CAT Caterpillar
12.8x7.6%US$86.7b
DE Deere
16.4x4.9%US$100.9b

Price-To-Earnings vs Peers: DE is expensive based on its Price-To-Earnings Ratio (16.4x) compared to the peer average (13.4x).


Price to Earnings Ratio vs Industry

How does DE's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: DE is good value based on its Price-To-Earnings Ratio (16.4x) compared to the US Machinery industry average (18.4x)


Price to Earnings Ratio vs Fair Ratio

What is DE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.4x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: DE is good value based on its Price-To-Earnings Ratio (16.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).


Share Price vs Fair Value

What is the Fair Price of DE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DE ($334.22) is trading below our estimate of fair value ($372.34)

Significantly Below Fair Value: DE is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Deere forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DE's forecast earnings growth (4.9% per year) is above the savings rate (1.9%).

Earnings vs Market: DE's earnings (4.9% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: DE's revenue (6.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: DE's revenue (6.5% 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 (27.5%)


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Past Performance

How has Deere performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DE has high quality earnings.

Growing Profit Margin: DE's current net profit margins (12.8%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: DE's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: DE's earnings growth over the past year (13.6%) is below its 5-year average (24.6% per year).

Earnings vs Industry: DE earnings growth over the past year (13.6%) exceeded the Machinery industry 9.4%.


Return on Equity

High ROE: Whilst DE's Return on Equity (32.25%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is Deere's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DE's short term assets ($63.5B) exceed its short term liabilities ($32.1B).

Long Term Liabilities: DE's short term assets ($63.5B) exceed its long term liabilities ($35.6B).


Debt to Equity History and Analysis

Debt Level: DE's net debt to equity ratio (250.6%) is considered high.

Reducing Debt: DE's debt to equity ratio has reduced from 436.9% to 270.4% over the past 5 years.

Debt Coverage: DE's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: DE's interest payments on its debt are well covered by EBIT (34.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.35%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 26 2022Ex Dividend DateSep 29 2022Dividend Pay DateNov 08 202240 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: DE's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: DE's dividend (1.35%) is low compared to the top 25% of dividend payers in the US market (4.57%).


Stability and Growth of Payments

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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.3%), DE's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (213.5%), DE's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

John May (53 yo)

2.83yrs

Tenure

US$19,912,826

Compensation

Mr. John C. May II is Chairman of the Board of Directors and Chief Executive Officer of Deere & Company. He is responsible for leading a team of more than 75,000 employees in 30+ countries across the globe...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD19.91M) is above average for companies of similar size in the US market ($USD13.05M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DE's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: DE's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

NYSE:DE Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
14 Mar 22SellUS$3,939,039Markwart von PentzIndividual10,023US$393.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 48.74% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
7.25%
The Vanguard Group, Inc.
21,885,768$7.3b0.95%0.17%
6.55%
Cascade Investment, L.L.C.
19,771,964$6.6b-25.24%17.32%
6.24%
BlackRock, Inc.
18,827,918$6.3b3.21%0.16%
3.9%
J.P. Morgan Asset Management, Inc.
11,772,532$3.9b0.56%0.75%
3.62%
State Street Global Advisors, Inc.
10,917,127$3.6b-3.34%0.21%
2.04%
Wellington Management Group LLP
6,163,801$2.1b-2.85%0.38%
1.56%
FMR LLC
4,717,805$1.6b6.48%0.15%
1.55%
Janus Henderson Group plc
4,666,234$1.6b3.46%0.9%
1.53%
Geode Capital Management, LLC
4,625,571$1.5b2.25%0.21%
1.3%
Bill & Melinda Gates Foundation Asset Trust
3,917,693$1.3b335.47%5.48%
1.22%
Parnassus Investments, LLC
3,686,964$1.2b2.23%3.14%
1.1%
Capital Research and Management Company
3,326,784$1.1b-0.04%0.08%
1.09%
Northern Trust Global Investments
3,302,899$1.1b-1.84%0.23%
1.03%
State Farm Insurance Companies, Asset Management Arm
3,096,934$1.0b0%1.21%
1%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
3,012,114$1.0b-0.14%0.35%
0.96%
BNY Mellon Asset Management
2,892,190$966.6m3.24%0.22%
0.95%
Morgan Stanley, Investment Banking and Brokerage Investments
2,856,940$954.8m1.38%0.19%
0.93%
Norges Bank Investment Management
2,798,997$935.5m0%0.13%
0.75%
Managed Account Advisors LLC
2,251,470$752.5m-21.22%0.22%
0.74%
Columbia Management Investment Advisers, LLC
2,242,914$749.6m-13.72%0.23%
0.73%
Union Asset Management Holding AG
2,207,959$737.9m-5.68%0.88%
0.71%
Loomis Sayles & Company, L.P.
2,136,885$714.2m-42.2%1.35%
0.67%
UBS Asset Management
2,031,537$679.0m8.02%0.13%
0.67%
Legal & General Investment Management Limited
2,025,822$677.1m0.45%0.21%
0.65%
Invesco Ltd.
1,955,296$653.5m-8.87%0.23%

Company Information

Deere & Company's 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
  • Implied Market Cap: US$100.874b
  • Shares outstanding: 301.82m
  • 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
DCOETLX (Eurotlx)YesCommon SharesITEURJan 1968
DE *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
DEBASE (Buenos Aires Stock Exchange)CEDEAR EACH 10 REP 1ARARSNov 2002
DEDBASE (Buenos Aires Stock Exchange)CEDEAR EACH 10 REP 1ARUSDNov 2002
DEEC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REP 1 COMBRBRLMay 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/07/31
Annual Earnings2021/10/31


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.