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Deere

NYSE:DE
Snowflake Description

Established dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DE
NYSE
$48B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Deere & Company manufactures and distributes various equipment worldwide. The last earnings update was 17 days ago. More info.


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DE Share Price and Events
7 Day Returns
1.9%
NYSE:DE
0.3%
US Machinery
0.5%
US Market
1 Year Returns
1.9%
NYSE:DE
-2%
US Machinery
0.8%
US Market
DE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Deere (DE) 1.9% 12.4% -5.5% 1.9% 76.2% 64.6%
US Machinery 0.3% -0.1% 0.3% -2% 42.5% 20.2%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • DE outperformed the Machinery industry which returned -2% over the past year.
  • DE outperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
DE
Industry
5yr Volatility vs Market

DE Value

 Is Deere undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Deere to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Deere.

NYSE:DE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:DE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 21%) (93.46%))
1.568
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.57
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.568 * 5.96%)
12.08%

Discounted Cash Flow Calculation for NYSE:DE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Deere is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:DE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.08%)
2019 3,036.67 Analyst x6 2,709.49
2020 3,499.33 Analyst x6 2,785.91
2021 3,839.60 Analyst x5 2,727.46
2022 3,496.00 Analyst x1 2,215.82
2023 3,882.00 Analyst x1 2,195.38
2024 3,973.24 Est @ 2.35% 2,004.89
2025 4,071.16 Est @ 2.46% 1,832.97
2026 4,174.73 Est @ 2.54% 1,677.09
2027 4,283.26 Est @ 2.6% 1,535.30
2028 4,396.29 Est @ 2.64% 1,406.04
Present value of next 10 years cash flows $21,090.37
NYSE:DE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $4,396.29 × (1 + 2.73%) ÷ (12.08% – 2.73%)
$48,328.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $48,328.31 ÷ (1 + 12.08%)10
$15,456.52
NYSE:DE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $21,090.37 + $15,456.52
$36,546.89
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $36,546.89 / 317.00
$115.29
NYSE:DE Discount to Share Price
Calculation Result
Value per share (USD) From above. $115.29
Current discount Discount to share price of $151.51
= -1 x ($151.51 - $115.29) / $115.29
-31.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Deere is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Deere's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Deere's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:DE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-28) in USD $10.40
NYSE:DE Share Price ** NYSE (2019-06-14) in USD $151.51
United States of America Machinery Industry PE Ratio Median Figure of 99 Publicly-Listed Machinery Companies 20.41x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Deere.

NYSE:DE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DE Share Price ÷ EPS (both in USD)

= 151.51 ÷ 10.40

14.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deere is good value based on earnings compared to the US Machinery industry average.
  • Deere is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Deere's expected growth come at a high price?
Raw Data
NYSE:DE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.57x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
7.6%per year
United States of America Machinery Industry PEG Ratio Median Figure of 80 Publicly-Listed Machinery Companies 1.45x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:DE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.57x ÷ 7.6%

1.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deere is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Deere's assets?
Raw Data
NYSE:DE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-28) in USD $37.60
NYSE:DE Share Price * NYSE (2019-06-14) in USD $151.51
United States of America Machinery Industry PB Ratio Median Figure of 127 Publicly-Listed Machinery Companies 2.23x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:DE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DE Share Price ÷ Book Value per Share (both in USD)

= 151.51 ÷ 37.60

4.03x

* Primary Listing of Deere.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deere is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess Deere's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Deere has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DE Future Performance

 How is Deere expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Deere expected to grow at an attractive rate?
  • Deere's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Deere's earnings growth is positive but not above the United States of America market average.
  • Deere's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:DE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:DE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 7.6%
NYSE:DE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 0.1%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.2%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:DE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:DE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-10-31 35,513 1
2022-10-31 34,689 1
2021-10-31 35,922 4,997 3,871 4
2020-10-31 35,629 4,429 3,574 11
2019-10-31 34,918 4,177 3,303 11
NYSE:DE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-28 39,011 1,546 3,328
2019-01-27 38,388 1,466 3,402
2018-10-28 37,318 1,820 2,368
2018-07-29 35,566 797 2,093
2018-04-29 32,969 1,143 1,824
2018-01-28 30,360 1,641 1,425
2017-10-29 29,071 2,200 2,159
2017-07-30 27,874 3,175 1,934
2017-04-30 26,884 3,918 1,781
2017-01-29 26,757 3,811 1,468
2016-10-30 26,549 3,770 1,523
2016-07-31 26,804 3,872 1,589
2016-05-01 27,671 3,583 1,612

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Deere's earnings are expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
  • Deere's revenue is expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:DE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Deere Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-10-31
2022-10-31
2021-10-31 13.04 15.95 10.64 7.00
2020-10-31 11.39 12.50 10.16 14.00
2019-10-31 10.24 10.40 10.00 14.00
NYSE:DE Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-28 10.40
2019-01-27 10.58
2018-10-28 7.34
2018-07-29 6.48
2018-04-29 5.66
2018-01-28 4.44
2017-10-29 6.76
2017-07-30 6.09
2017-04-30 5.63
2017-01-29 4.66
2016-10-30 4.83
2016-07-31 5.01
2016-05-01 5.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Deere is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Deere's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Deere has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DE Past Performance

  How has Deere performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Deere's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Deere's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Deere's 1-year earnings growth exceeds its 5-year average (82.9% vs -4.5%)
  • Deere's earnings growth has exceeded the US Machinery industry average in the past year (82.9% vs 28.5%).
Earnings and Revenue History
Deere's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Deere Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-28 39,011.20 3,328.10 2,946.70 1,749.40
2019-01-27 38,387.80 3,401.50 2,951.20 1,707.60
2018-10-28 37,317.70 2,368.00 2,897.60 1,657.60
2018-07-29 35,565.50 2,093.40 2,815.42 1,569.68
2018-04-29 32,969.00 1,824.40 2,693.82 1,490.68
2018-01-28 30,360.00 1,424.50 2,538.32 1,400.88
2017-10-29 29,070.70 2,158.50 2,493.52 1,356.18
2017-07-30 27,873.60 1,933.60 2,448.80 1,360.20
2017-04-30 26,884.20 1,780.90 2,375.70 1,362.30
2017-01-29 26,756.90 1,467.80 2,320.30 1,381.90
2016-10-30 26,549.00 1,523.20 2,275.30 1,393.70
2016-07-31 26,803.70 1,589.00 2,235.90 1,407.10
2016-05-01 27,671.00 1,611.90 2,295.90 1,415.10
2016-01-31 27,816.00 1,806.80 2,327.10 1,411.20
2015-11-01 28,780.80 1,939.20 2,386.00 1,425.10
2015-07-31 31,046.30 2,237.20 2,503.70 1,433.20
2015-04-30 32,956.70 2,576.30 2,554.00 1,448.50
2015-01-31 34,777.00 2,866.50 2,653.10 1,461.50
2014-10-31 36,049.90 3,160.70 2,755.20 1,452.00
2014-07-31 36,537.60 3,318.40 2,866.50 1,445.10
2014-04-30 37,047.40 3,464.10 2,978.40 1,421.80
2014-01-31 38,013.00 3,567.70 3,095.40 1,444.50
2013-10-31 37,780.40 3,536.40 3,125.30 1,477.30
2013-07-31 38,122.50 3,417.20 3,135.00 1,473.40
2013-04-30 37,703.00 3,208.80 3,109.00 1,502.40
2013-01-31 36,798.00 3,180.80 3,040.00 1,477.60
2012-10-31 36,143.10 3,063.90 2,977.70 1,433.60
2012-07-31 34,977.20 3,045.80 2,907.40 1,379.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Deere has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Deere used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.
  • Deere has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Deere's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Deere has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DE Health

 How is Deere's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Deere's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Deere is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Deere's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Deere's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Deere Company Filings, last reported 1 month ago.

NYSE:DE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-28 11,938.30 44,886.40 3,041.30
2019-01-27 11,346.70 43,290.70 2,758.10
2018-10-28 11,305.20 42,606.10 3,288.00
2018-07-29 10,379.90 42,702.20 2,888.30
2018-04-29 10,434.60 41,917.30 3,098.80
2018-01-28 9,278.90 40,843.60 2,736.70
2017-10-29 9,574.50 40,177.30 8,315.60
2017-07-30 8,588.90 37,559.60 5,511.80
2017-04-30 7,707.80 35,522.30 3,617.90
2017-01-29 6,849.70 34,680.40 2,865.00
2016-10-30 6,544.80 35,640.50 3,489.70
2016-07-31 7,454.10 37,266.40 3,687.10
2016-05-01 7,190.70 37,914.80 3,303.00
2016-01-31 6,603.80 36,300.20 2,850.50
2015-11-01 6,757.60 36,909.40 3,325.70
2015-07-31 7,725.00 37,227.20 3,322.50
2015-04-30 8,176.00 37,386.50 3,528.90
2015-01-31 8,248.80 36,697.30 3,444.40
2014-10-31 9,065.50 37,039.40 3,604.60
2014-07-31 10,832.50 36,861.10 3,191.40
2014-04-30 10,667.60 36,395.40 3,292.50
2014-01-31 10,257.80 34,557.30 4,015.80
2013-10-31 10,267.70 34,612.70 4,592.40
2013-07-31 8,591.60 33,886.80 4,373.50
2013-04-30 8,266.80 34,075.30 4,149.40
2013-01-31 7,485.50 32,653.80 4,177.10
2012-10-31 6,862.00 32,551.40 5,629.40
2012-07-31 7,414.60 31,383.20 4,117.30
  • Deere's level of debt (376%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (341.1% vs 376% today).
  • Debt is not well covered by operating cash flow (3.4%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.7x coverage).
X
Financial health checks
We assess Deere's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Deere has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DE Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.01%
Current annual income from Deere dividends. Estimated to be 2.06% next year.
If you bought $2,000 of Deere shares you are expected to receive $40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Deere's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Deere's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

Purchase Deere before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:DE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:DE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-10-31
2022-10-31
2021-10-31 3.31 7.00
2020-10-31 3.20 11.00
2019-10-31 2.91 11.00
NYSE:DE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-29 3.040 2.076
2019-02-27 3.040 1.936
2018-12-06 3.040 1.956
2018-08-29 2.760 1.879
2018-05-30 2.760 1.923
2018-02-28 2.400 1.598
2017-12-06 2.400 1.490
2017-08-30 2.400 1.852
2017-05-31 2.400 1.923
2017-02-22 2.400 2.150
2016-12-07 2.400 2.269
2016-08-31 2.400 2.723
2016-05-25 2.400 2.925
2016-02-24 2.400 2.964
2015-12-02 2.400 3.133
2015-08-26 2.400 3.085
2015-05-27 2.400 2.576
2015-02-25 2.400 2.679
2014-12-03 2.400 2.713
2014-08-27 2.400 2.842
2014-05-28 2.400 2.716
2014-02-26 2.040 2.251
2013-12-04 2.040 2.329
2013-08-28 2.040 2.451
2013-05-30 2.040 2.439
2013-02-27 2.040 2.322
2012-12-05 1.840 2.065
2012-08-29 1.840 2.229
2012-05-30 1.840 2.408
2012-02-29 1.840 2.305
2011-12-07 1.640 1.988
2011-08-31 1.640 2.236
2011-05-24 1.640 2.072
2011-02-23 1.400 1.525
2010-12-01 1.400 1.613
2010-08-25 1.200 1.645
2010-05-26 1.200 1.975
2010-02-24 1.120 1.888
2009-12-02 1.120 2.064
2009-08-26 1.120 2.445

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Deere's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).
X
Income/ dividend checks
We assess Deere's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Deere afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Deere has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DE Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sam Allen
COMPENSATION $18,525,667
AGE 64
TENURE AS CEO 9.8 years
CEO Bio

Mr. Samuel R. Allen, also known as Sam, has been Chairman of Deere & Company since February 2010. Mr. Allen is Chief Executive Officer of Deere & Company since August 2009. He serves as Chairman and Chief Executive Officer of Deere & Company at John Deere Financial Services, Inc. He served as President of Deere & Company since June 2009 until February 2010 and also served as its Chief Operating Officer since June 2009 until August 2009. He is member of the Deere & Company Board of Directors since June 2009. Previously, he served as President, Worldwide Construction & Forestry Division since March 2005 until June 2009 and was responsible for the global operations of John Deere Power Systems. He served as President of Global Financial Services at John Deere Power Systems and Corporate Human Resources since November 2003 to March 2005. He was also responsible for Deere's intelligent mobile equipment technologies and for Deere's advanced technology and engineering. He has served as a senior officer of the company since 2001, with additional responsibilities in human resources, industrial relations, and John Deere Credit's global operations. Since joining John Deere in 1975, he has worked in positions of increasing responsibility in the Consumer Products Division, Worldwide Construction & Forestry Division, John Deere Power Systems, and the Worldwide Agricultural Division including managing operations in Latin America, China & East Asia, and Australia. In addition, he has served as Chairman of the Council on Competitiveness since January 2010. He is Director of Whirlpool Corporation since June 2010 and serves as its Presiding Director. He is graduate from Purdue University with a bachelor's degree in industrial management in 1975.

CEO Compensation
  • Sam's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Sam's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Deere management team in years:

3.3
Average Tenure
50
Average Age
  • The tenure for the Deere management team is about average.
Management Team

Sam Allen

TITLE
Chairman & CEO
COMPENSATION
$19M
AGE
64
TENURE
9.8 yrs

John May

TITLE
President & COO
COMPENSATION
$4M
AGE
49
TENURE
0.2 yrs

Rajesh Kalathur

TITLE
President of John Deere Financial & Chief Information Officer
COMPENSATION
$4M
AGE
50
TENURE
0.6 yrs

Jim Field

TITLE
President of Worldwide Construction & Forestry Division and Power Systems
COMPENSATION
$5M
AGE
55
TENURE
6.8 yrs

Ryan Campbell

TITLE
Senior VP & CFO
AGE
43
TENURE
0.2 yrs

Jeffrey Trahan

TITLE
Vice President of Pension Fund & Investments
TENURE
4.3 yrs

Marc Howze

TITLE
Senior VP & Chief Administrative Officer
AGE
55
TENURE
2.6 yrs

Mary K. Jones

TITLE
Chief Legal Officer
AGE
50

Renee Mailhot

TITLE
VP & Chief Compliance Officer
TENURE
4.1 yrs

Ken Golden

TITLE
Director of Global Public Relations
Board of Directors Tenure

Average tenure and age of the Deere board of directors in years:

5.4
Average Tenure
66
Average Age
  • The tenure for the Deere board of directors is about average.
Board of Directors

Sam Allen

TITLE
Chairman & CEO
COMPENSATION
$19M
AGE
64
TENURE
9.3 yrs

Dipak Jain

TITLE
Director
COMPENSATION
$313K
AGE
61
TENURE
17.4 yrs

Vance Coffman

TITLE
Presiding Director
COMPENSATION
$330K
AGE
74
TENURE
3.4 yrs

Clay Jones

TITLE
Director
COMPENSATION
$296K
AGE
69
TENURE
11.8 yrs

Sherry Smith

TITLE
Director
COMPENSATION
$296K
AGE
56
TENURE
7.5 yrs

Greg Page

TITLE
Director
COMPENSATION
$286K
AGE
67
TENURE
6.4 yrs

Chad Holliday

TITLE
Director
COMPENSATION
$282K
AGE
70
TENURE
1.4 yrs

Mike Johanns

TITLE
Independent Director
COMPENSATION
$286K
AGE
67
TENURE
4.4 yrs

Dmitri Stockton

TITLE
Director
COMPENSATION
$280K
AGE
54
TENURE
4.4 yrs

Sheila Talton

TITLE
Director
COMPENSATION
$270K
AGE
65
TENURE
3.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Deere's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Deere has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DE News

Simply Wall St News

Should You Worry About Deere & Company's (NYSE:DE) CEO Pay?

See our latest analysis for Deere How Does Sam Allen's Compensation Compare With Similar Sized Companies? … At the time of writing our data says that Deere & Company has a market cap of US$45b, and is paying total annual CEO compensation of US$19m. … Boasting a total shareholder return of 74% over three years, Deere & Company has done well by shareholders.

Simply Wall St -

Can Deere & Company's (NYSE:DE) ROE Continue To Surpass The Industry Average?

That means that for every $1 worth of shareholders' equity, it generated $0.28 in profit. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Deere: 28% = US$3.3b ÷ US$12b (Based on the trailing twelve months to April 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Deere's Debt And Its 28% ROE We think Deere uses a lot of debt to boost returns, as it has a relatively high debt to equity ratio of 3.75.

Simply Wall St -

Calculating The Fair Value Of Deere & Company (NYSE:DE)

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $3.36k $3.87k $4.17k $4.42k $4.65k $4.85k $5.04k $5.21k $5.39k $5.55k Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x5 Est @ 6.04% Est @ 5.05% Est @ 4.35% Est @ 3.86% Est @ 3.52% Est @ 3.29% Est @ 3.12% Present Value ($, Millions) Discounted @ 11.77% $3.01k $3.10k $2.99k $2.83k $2.66k $2.49k $2.31k $2.14k $1.98k $1.83k Present Value of 10-year Cash Flow (PVCF)= $25.34b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$5.6b × (1 + 2.7%) ÷ (11.8% – 2.7%) = US$63b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$63b ÷ ( 1 + 11.8%)10 = $20.74b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $46.08b. … NYSE:DE Intrinsic value, May 13th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Is Deere & Company's (NYSE:DE) P/E Ratio Really That Good?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll apply a basic P/E ratio analysis to Deere & Company's (NYSE:DE), to help you decide if the stock is worth further research. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Now The Time To Put Deere (NYSE:DE) On Your Watchlist?

I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … Deere maintained stable EBIT margins over the last year, all while growing revenue 27% to US$38b. … You can take a look at the company's revenue and earnings growth trend, in the chart below.

Simply Wall St -

What Type Of Shareholder Owns Deere & Company's (NYSE:DE)?

Every investor in Deere & Company (NYSE:DE) should be aware of the most powerful shareholder groups. … Deere is a pretty big company. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Here’s why Deere & Company’s (NYSE:DE) Returns On Capital Matters So Much

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is It Too Late To Consider Buying Deere & Company (NYSE:DE)?

The company's stock. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

Why Deere & Company (NYSE:DE) Looks Like A Quality Company

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.21 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should Investors Know About Deere & Company's (NYSE:DE) Future?

The most recent earnings release Deere & Company's (NYSE:DE) announced in October 2018a … suggested

Simply Wall St -

DE Company Info

Description

Deere & Company manufactures and distributes various equipment worldwide. The company operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services. The Agriculture and Turf segment offers agriculture and turf equipment, and related parts, including large, medium, and utility tractors; tractor loaders; combines, cotton pickers, cotton strippers, and sugarcane harvesters; harvesting front-end equipment; sugarcane loaders and pull-behind scrapers; and tillage, seeding, and application equipment. It also provides hay and forage equipment, such as self-propelled forage harvesters and attachments, balers, and mowers; turf and utility equipment, including riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, and commercial mowing equipment; integrated agricultural management systems technology and solutions; and other outdoor power products. The Construction and Forestry segment manufactures and distributes backhoe loaders; crawler dozers and loaders; four-wheel-drive loaders; excavators; motor graders; articulated dump trucks; landscape loaders; skid-steer loaders; milling machines; recyclers; slipform pavers; surface miners; asphalt pavers; compactors; tandem and static rollers; mobile crushers and screens; mobile and stationary asphalt plants; and log skidders, loaders, forwarders, and harvesters, as well as feller bunchers and related attachments used in construction, earthmoving, road building, material handling, and timber harvesting applications. The Financial Services segment finances sales and leases agriculture and turf, and construction and forestry equipment. This segment also offers wholesale financing to dealers of the foregoing equipment; finances retail revolving charge accounts; and provides extended equipment warranties. It markets its products through independent retail dealer networks and retail outlets. The company was founded in 1837 and is based in Moline, Illinois.

Details
Name: Deere & Company
DE
Exchange: NYSE
Founded: 1837
$48,027,993,659
316,995,536
Website: http://www.deere.com
Address: Deere & Company
One John Deere Place,
Moline,
Illinois, 61265,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE DE Common Shares New York Stock Exchange US USD 02. Jan 1968
DB DCO Common Shares Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA DCO Common Shares XETRA Trading Platform DE EUR 02. Jan 1968
LSE 0R2P Common Shares London Stock Exchange GB USD 02. Jan 1968
SWX DE Common Shares SIX Swiss Exchange CH CHF 02. Jan 1968
WBAG DEER Common Shares Wiener Boerse AG AT EUR 02. Jan 1968
BMV DE * Common Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BASE DE CEDEAR EACH 2 REPR 1 ORD COM STK Buenos Aires Stock Exchange AR ARS 25. Nov 2002
Number of employees
Current staff
Staff numbers
74,413
Deere employees.
Industry
Agricultural and Farm Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:35
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/13
Last earnings filing: 2019/05/30
Last earnings reported: 2019/04/28
Last annual earnings reported: 2018/10/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.