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Deere & Co (DE)

Fair Value
IndustrialsFarm & Heavy Construction MachineryUnited States

Fundamental

60

Price

$620.93

Market Cap

$184.10B

Part 1 · What the company is worth

Overview

Deere & Company engages in the manufacture and distribution of 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 four-wheel-drive track and row crop tractors, harvesters, cotton pickers and strippers, sugarcane harvesters and loaders, soil preparation, tillage, seeding, and crop care equipment, as well as application equipment, including sprayers and nutrient management, soil preparation machinery, and related attachments and service parts. The Small Agriculture and Turf segment offers specialty, utility, and compact tractors; self-propelled forage harvesters and attachments; rotary mowers, hay and forage equipment, and utility vehicles; turf and utility equipment, including riding lawn, commercial mowing, and golf course equipment, and utility vehicles, as well as implements for mowing, tilling, snow and debris handling, aerating, residential, commercial, golf, and sports turf care applications. The Construction and Forestry segment provides backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, skid-steer loaders, milling machines, recyclers, slipform and asphalt pavers, surface miners, compactors, tandem, static rollers, mobile crushers and screens, mobile and stationary asphalt plants, and log harvesters; and road building and rehabilitation equipment. The Financial Services segment finances sales and leases agriculture and turf, and construction and forestry equipment. It also offers wholesale financing to dealers of the foregoing equipment; and extended equipment warranties. Deere & Company has a strategic partnership with Tarter USA to develop and produce flex wing rotary cutters. The company was founded in 1837 and is headquartered in Moline, Illinois.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users

P/E: 34.5Score: 76Market cap: $396.90B

Caterpillar competes with Deere's construction and forestry division on excavators, loaders and dozers sold to contractors and road-building firms, the business Deere enlarged with the purchase of Wirtgen.

CNH Industrial N.V.CNH

CNH sells tractors, combines and precision-farming systems under the Case IH and New Holland brands through its own dealer network, competing with Deere for the same large-farm customers in North America, Europe and Brazil.

AGCO CorporationAGCO

AGCO's Fendt, Massey Ferguson and Valtra lines cover the same full range of tractors and harvesting equipment, and its Fuse/PTx precision-agriculture offer targets the same customers as Deere's John Deere Operations Center.

Kubota Corporation (株式会社クボタ)Not tracked

Kubota is the main rival in compact tractors, utility vehicles and small construction machines sold to hobby farmers, landscapers and contractors, the segment Deere serves with its small agriculture and turf line.

CLAAS KGaA mbHNot tracked

The German family-owned group is Deere's closest competitor in combine harvesters and forage harvesters in Europe, where the two split most of the professional harvesting market.

Mahindra & Mahindra LimitedNot tracked

Mahindra is the world's largest tractor maker by units and Deere's direct rival in India and other emerging markets, as well as in the low-horsepower tractors sold in the United States.

Balance Sheet & Liquidity

Revenue

$47.98B

Trailing 12 months (through 8/2/2026)

Net Income

$4.87B

Trailing 12 months (through 8/2/2026)

Free Cash Flow

$6.10B

Total Equity

$25.95B

Total Liabilities

$79.99B

Current Ratio

0.91

Interest Coverage

-

Debt/EBITDA

0.75

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$666.37

Current Price

$620.93

Margin of Safety

+6.8%

Fair Value Range

$496.98 - $835.77

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$691.83
Discounted cash flow (DCF):$893.31
Earnings multiple (P/E):$546.65
Graham growth formula:$619.80
Earnings power value (EPV):$289.46
Justified P/B:$250.16
Dividend discount (Gordon):$121.90
P/FFO, funds from operations:$430.58
Mid-cycle earnings:$482.23
Revenue multiple:$498.56
Analyst Consensus:Buy (22B / 12H / 0S)
Last Earnings Surprise:+5.38%

Valuation Metrics

P/E Ratio

34.52

ROE

19.4%

P/B Ratio

5.98

P/FCF

27.81

Gross Margin

-

ROIC

-

Profitability Radar

Value Creation (Economic Moat)

ROIC

-

WACC

9.6%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (17)

  • EPS shows upward trend
  • EPS CAGR 7.96%
  • Price CAGR 20.69%
  • P/FCF 27.81
  • Debt/equity ratio
  • Positive free cash flow
  • CapEx intensity
  • Debt/EBITDA
  • Return on tangible assets
  • Low reliance on intangibles
  • ROE 18.1%
  • Revenue growth 5Y 5.2%
  • Analyst consensus: 65% buy
  • Earnings surprise, average 7.7%
  • Earnings quality (operating cash flow / net income) 1.49
  • Share dilution -1.9%
  • Piotroski F-Score 5/9

Failed (5)

  • P/B ratio 5.98
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • PEG ratio 2.34
  • Net margin trend 10.2% vs 11.7%

Unavailable (6)

  • ROIC –
  • Gross margin –
  • Dividend payout –
  • Operating margin –
  • Current ratio
  • Interest coverage

Piotroski F-Score

5/9

Mixed signals: some areas need attention

ROA > 0
Operating cash flow > 0
ΔROA > 0
Cash flow > net income
Leverage ↓
Current ratio ↑
No dilution
Gross margin ↑
Asset turnover ↑

Earnings Quality

1.49

High quality: earnings backed by cash

Share Dilution

-1.9%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. John C. May IIChairman, President & CEO56
Mr. Ryan D. CampbellPresident of Worldwide Construction, Forestry & Power Systems50
Ms. Deanna M. KovarPresident of Worldwide Ag & Turf Div, Production and Precision Ag and Americas and Australia46
Mr. T. Brent NorwoodCFO & Senior VP43
Mr. Jahmy J. HindmanSenior VP & CTO49
Christopher SeibertDirector of Investor Relations-
Ms. Renee A. MailhotVP & Chief Compliance Officer-
Ms. Felecia J. Pryor J.D.Senior VP & Chief People Officer50
Dr. J. B. PennChief Economist-
Mr. Andrew C. TraegerChief Risk Officer & Senior VP of International Business at John Deere Financial-

Audit Risk

7

Board Risk

5

Compensation Risk

4

Shareholder Rights Risk

7

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2025-12-18

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-27

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-20

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for DE, sourced from Markets Gazette.

  • 4d agoNEGATIVE
    Farm Machinery Firms Plunge as US Examines Market Practices

    Deere & Company shares experienced a significant decline following the announcement of an investigation by the Federal Trade Commission (FTC) and the US Department of Agriculture (USDA) into market practices within the farm equipment sector. The inquiry specifically targets potential anticompetitive conduct, raising concerns among investors about future regulatory actions and potential fines. This scrutiny could impact Deere's pricing strategies and market share. The investigation's broad scope suggests a potentially lengthy and complex process, casting a shadow over the company's near-to-medium term outlook and prompting a sell-off in its stock.

  • 8/20/2026POSITIVE
    Risultati Deere: Cramer dice di comprare DE - ma non oggi

    Deere & Company (DE) shares extended gains following a strong Q3 earnings report, with revenue climbing 5% year-over-year to $12.61 billion and earnings per share (EPS) reaching $5.1, up nearly 7% from the previous year. This performance exceeded analyst expectations and has garnered positive attention from market commentators like Jim Cramer, who expressed optimism about the company's outlook. Management commentary suggests the agricultural machinery sector downturn is nearing its end, signaling potential recovery and future growth for Deere. Investors should note the positive earnings surprise and the potential for a sector turnaround.

  • 8/20/2026NEUTRAL
    Deere Narrows Profit Outlook as Farm Recovery Seen in 2027

    Deere & Company has revised its annual profit forecast downwards, citing a stabilizing agriculture sector that is now expected to see a more significant recovery in farm machinery demand by 2027. While the immediate outlook is tempered, the company's forward-looking statement suggests a potential turnaround in the medium term. Investors will monitor upcoming earnings reports for signs of this projected rebound and assess the company's ability to navigate current market conditions.

  • 8/20/2026POSITIVE
    Deere Rallies as Machine Orders Raise Farm Recovery Optimism

    Deere & Co. experienced a significant share price increase following the announcement of a surge in machinery orders. This development signals growing optimism for a recovery within the broader agriculture sector. Investors are interpreting the boosted order book as a strong indicator of renewed demand for farm equipment, suggesting that farmers are increasing capital expenditures. This positive trend could translate into higher revenues and improved profitability for Deere, making it an attractive prospect for those looking to capitalize on a potential agricultural rebound.

  • 6/13/2026NEGATIVE
    Prices Likely to Stay Higher Even If Conflict Ends, Nagel Says

    Bundesbank President Joachim Nagel indicated that elevated prices are likely to persist even if the conflict in Iran concludes shortly. This suggests that inflationary pressures may not abate as quickly as anticipated, potentially impacting consumer spending and corporate profitability. For investors, this outlook implies a continued need for caution regarding inflation-sensitive assets and a potential for prolonged higher interest rate environments, which could dampen economic growth and equity valuations.

  • 5/27/2026NEGATIVE
    Deere's Stock Momentum Drops Amid Agricultural Weakness And Fertilizer Cost Pressures From Iran War

    Deere & Company (DE) is experiencing a decline in stock momentum, primarily attributed to prevailing weakness in the agricultural sector and increased fertilizer costs stemming from geopolitical tensions, specifically the Iran war. While construction demand offers some support, with Freedom Broker raising its price target to $590, the overarching agricultural headwinds are casting a shadow over the company's outlook. Investors are advised to monitor the interplay between these opposing forces, with the agricultural downturn posing a significant risk to Deere's near-term performance.

  • 5/21/2026NEUTRAL
    Deere Gets Lift From Construction as Farmers Still Struggle

    Deere & Co. is experiencing a mixed performance, with its construction and forestry segments providing a significant uplift. This growth is crucial in counterbalancing the ongoing challenges within the agriculture markets, which are currently limiting farmer expenditures. The company's diversified revenue streams are demonstrating resilience, but the persistent struggles in its core agricultural business suggest a cautious outlook for overall performance. Investors are watching to see if the construction segment's strength can sustain the company through the agricultural downturn.

via Markets Gazette