A Business at a Glance
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DEERE & CO
DE
$170.7B
Mkt Cap
$628.16
+2.97%
DEERE & CO (DE) has a current P/E ratio of 35.4, compared to its historical median P/E of 18.2. The stock is currently considered Expensive based on its historical valuation range.
DEERE & CO (DE) has a 5-year average return on invested capital (ROIC) of 22.8%. This indicates strong capital allocation and a potential competitive advantage.
DEERE & CO (DE) has a market capitalization of $169.6B. It is classified as a large-cap stock.
Yes, DEERE & CO (DE) pays a dividend with a trailing twelve-month yield of 1.03%. The company also returns capital through share buybacks, with a buyback yield of 0.67%.
Based on historical P/E analysis, DEERE & CO (DE) appears expensive. The current P/E of 35.4 is 95% above its historical median of 18.2. The estimated fair value CAGR (P/E method) is 22.2%.
DEERE & CO (DE) operates in the Farm Machinery & Equipment industry, within the Industrials sector.
DEERE & CO (DE) reported annual revenue of $45.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Deere & Company manufactures and distributes agricultural, turf, and construction equipment through four business segments: Production & Precision Agriculture (PPA), Small Agriculture & Turf (SAT), Construction & Forestry (CF), and Financial Services. PPA serves large-scale crop producers with 4WD/track and row crop tractors, harvesters, cotton and sugarcane equipment, and soil preparation and application machinery, generating 45% of equipment operations net sales in fiscal 2025. SAT addresses dairy, livestock, and specialty crop producers with compact and utility tractors, hay and forage equipment, and turf maintenance equipment, representing 26% of equipment operations net sales and sold through independent retail dealers and mass retailers including The Home Depot and Lowe's. CF provides earthmoving, forestry, and road-building equipment including backhoe loaders, dozers, skid steers, and excavators, accounting for 29% of equipment operations net sales. The company's Smart Industrial Operating Model emphasizes production systems alignment, technology stack development (including precision guidance, telematics, automation, and machine learning), and lifecycle solutions to enhance customer value across equipment ownership. Financial Services provides retail notes, revolving charge accounts, wholesale receivables, leases, and extended warranties to support equipment sales. The company operates globally with significant presence in North America, Europe, South America, and Asia, with sales and marketing organized around four geographic regions, and has manufactured agricultural equipment since 1837.
【Cycle recovery positioning】 Management expects large agricultural equipment markets in North America to remain subdued in fiscal 2026 with industry sales declining 15%-20%, while construction and turf markets show signs of recovery with modest growth anticipated. The company is strategically positioned with low new field inventory levels, improved used equipment markets, and strong order books across multiple segments, particularly in Small Ag & Turf and Construction & Forestry, supporting confidence in delivering structurally higher performance as markets recover. Pricing realization is expected to remain positive across segments, with favorable cost comparisons anticipated in the fourth quarter, while tariff headwinds of approximately $1.2 billion annually are being managed through operational execution and cost control. The company continues to invest in advanced technology solutions including precision guidance, autonomy, digitalization, and Solutions as a Service capabilities to drive future growth aligned with 2030 Leap Ambitions, while maintaining double-digit operating margins across all business segments.
| Metric | Target | Period |
|---|---|---|
| Net Income | $4.5 billion to $5 billion | FY2026 |
| Production & Precision Agriculture Operating Margin | 11%-13% | FY2026 |
| Small Agriculture & Turf Net Sales | Up approximately 15% | FY2026 |
| Construction & Forestry Net Sales | Up approximately 20% | FY2026 |
| Construction & Forestry Operating Margin | 10%-12% | FY2026 |
| Financial Services Net Income | $860 million | FY2026 |
| Effective Tax Rate | 24%-26% | FY2026 |
| Operating Cash Flow | $4.5 billion to $5.5 billion | FY2026 |
Net Income (FY2026): “For fiscal year 2026, our net income forecast remains unchanged between $4.5 billion and $5 billion.”
Production & Precision Agriculture Operating Margin (FY2026): “Our full-year forecast for the segment's operating margin is also unchanged and remains between 11% and 13%.”
Small Agriculture & Turf Net Sales (FY2026): “We continue to expect net sales to be up approximately 15% for the full year.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 0 | 45.7B | 51.7B | 61.3B | 52.6B | 44.0B |
| Net Income | 0 | 5.0B | 7.1B | 10.2B | 7.1B | 6.0B |
| EPS | $0.00 | $18.50 | $25.62 | $34.63 | $23.28 | $18.99 |
| Free Cash Flow | 0 | 3.2B | 4.4B | 4.1B | 911M | 5.1B |
| ROIC | 0.0% | 24.8% | 27.5% | 34.9% | 16.1% | 10.4% |
| Gross Margin | - | 40.8% | 42.2% | 39.6% | 34.0% | 35.5% |
| Debt/Equity | 0.65 | 0.53 | 0.60 | 0.83 | 0.62 | 2.38 |
| Dividends/Share | $0.00 | $6.48 | $5.88 | $5.05 | $4.36 | $3.61 |
| Operating Income | 0 | 9.5B | 9.0B | 13.0B | 9.5B | 8.0B |
| Operating Margin | 0.0% | 20.7% | 17.5% | 21.2% | 18.1% | 18.2% |
| ROE | 0.0% | 20.6% | 31.8% | 48.4% | 36.9% | 38.0% |
| Shares Outstanding | 270M | 272M | 277M | 294M | 306M | 314M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 36.1B | 28.9B | 26.6B | 29.7B | 37.4B | 39.3B | 35.5B | 44.0B | 52.6B | 61.3B | 51.7B | 45.7B | 0 |
| Gross Margin | 30.4% | 29.6% | 30.8% | 32.3% | 33.0% | 32.9% | 34.8% | 35.5% | 34.0% | 39.6% | 42.2% | 40.8% | N/A |
| R&D | 1.5B | 1.4B | 1.4B | 1.4B | 1.7B | 1.8B | 1.6B | 1.6B | 1.9B | 2.2B | 2.3B | 2.3B | 2.3B |
| SG&A | 3.3B | 2.9B | 2.8B | 3.1B | 3.5B | 3.6B | 3.5B | 3.4B | 3.9B | 4.6B | 4.8B | 4.7B | 4.7B |
| EBIT | 5.2B | 3.1B | 2.6B | 3.6B | 4.5B | 4.4B | 4.3B | 8.0B | 9.5B | 13.0B | 9.0B | 9.5B | 0 |
| Op. Margin | 14.5% | 10.9% | 9.7% | 12.0% | 12.0% | 11.2% | 12.1% | 18.2% | 18.1% | 21.2% | 17.5% | 20.7% | 0.0% |
| Net Income | 3.2B | 1.9B | 1.5B | 2.2B | 2.4B | 3.3B | 2.8B | 6.0B | 7.1B | 10.2B | 7.1B | 5.0B | 0 |
| Net Margin | 8.8% | 6.7% | 5.7% | 7.3% | 6.3% | 8.3% | 7.7% | 13.5% | 13.6% | 16.6% | 13.7% | 11.0% | 0.0% |
| Non-Recurring | 96M | 35M | 85M | 40M | 25M | 72M | 170M | 50M | 88M | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 11.0% | 6.8% | 6.0% | 8.3% | 8.9% | 7.5% | 6.1% | 10.4% | 16.1% | 34.9% | 27.5% | 24.8% | 0.0% |
| ROE | 32.7% | 24.5% | 23.0% | 26.9% | 22.7% | 28.7% | 22.6% | 38.0% | 36.9% | 48.4% | 31.8% | 20.6% | 0.0% |
| ROA | 5.2% | 3.3% | 2.6% | 3.5% | 3.5% | 4.5% | 3.7% | 7.5% | 8.2% | 10.5% | 6.7% | 4.7% | 0.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 3.5B | 3.8B | 3.8B | 2.2B | 1.8B | 3.4B | 7.5B | 7.7B | 4.7B | 8.6B | 9.2B | 7.5B | 0 |
| Free Cash Flow | 867M | 933M | 809M | -396M | -1.1B | -37M | 4.8B | 5.1B | 911M | 4.1B | 4.4B | 3.2B | 0 |
| Owner Earnings | 2.1B | 2.3B | 2.1B | 412M | -189M | 1.3B | 5.3B | 5.6B | 2.7B | 6.5B | 6.9B | 5.1B | -2.4B |
| CapEx | 2.7B | 2.8B | 3.0B | 2.6B | 3.0B | 3.4B | 2.7B | 2.6B | 3.8B | 4.5B | 4.8B | 4.2B | 0 |
| Maint. CapEx | 1.3B | 1.4B | 1.6B | 1.7B | 1.9B | 2.0B | 2.1B | 2.0B | 1.9B | 2.0B | 2.1B | 2.2B | 2.2B |
| Growth CapEx | 1.4B | 1.4B | 1.4B | 876M | 1.0B | 1.4B | 538M | 530M | 1.9B | 2.5B | 2.7B | 2.0B | 0 |
| D&A | 1.3B | 1.4B | 1.6B | 1.7B | 1.9B | 2.0B | 2.1B | 2.0B | 1.9B | 2.0B | 2.1B | 2.2B | 2.2B |
| CapEx/OCF | 75.4% | 75.2% | 78.5% | 118.0% | 161.9% | 101.1% | 35.5% | 33.4% | 80.6% | 52.0% | 52.0% | 56.7% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 786M | 816M | 761M | 764M | 806M | 943M | 956M | 1.0B | 1.3B | 1.4B | 1.6B | 1.7B | 0 |
| Dividend Yield | 3.0% | 3.4% | 3.4% | 2.3% | 1.8% | 2.0% | 1.8% | 1.0% | 1.2% | 1.3% | 1.5% | 1.3% | N/A |
| Share Buybacks | 2.7B | 2.8B | 205M | 6.0M | 958M | 1.3B | 750M | 2.5B | 3.6B | 7.2B | 4.0B | 1.1B | 1.1B |
| Buyback Yield | 10.5% | 12.4% | 0.7% | 0.0% | 2.1% | 2.5% | 1.0% | 2.4% | 2.8% | 7.1% | 3.2% | 0.9% | 0.7% |
| Stock-Based Comp | 79M | 66M | 71M | 68M | 84M | 82M | 81M | 82M | 85M | 130M | 208M | 151M | 151M |
| Debt Repayment | 5.2B | 4.9B | 5.3B | 5.4B | 6.2B | 6.4B | 7.4B | 7.1B | 8.4B | 7.9B | 13.2B | 12.3B | 12.3B |
| Balance Sheet | |||||||||||||
| Net Debt | 19.4B | 19.3B | 19.0B | 16.2B | 22.9B | 25.9B | 33.7B | 35.1B | 7.1B | 9.6B | 5.1B | 4.2B | 8.5B |
| Cash & Equiv. | 3.8B | 4.2B | 4.3B | 9.3B | 3.9B | 3.9B | 7.1B | 8.0B | 4.8B | 7.5B | 7.3B | 8.3B | 9.3B |
| Long-Term Debt | 24.4B | 23.8B | 23.7B | 25.9B | 27.2B | 30.2B | 32.7B | 32.9B | 30M | 49M | 72M | 73M | 73M |
| Debt/Equity | 2.69 | 3.53 | 3.64 | 2.71 | 2.41 | 2.65 | 3.19 | 2.38 | 0.62 | 0.83 | 0.60 | 0.53 | 0.65 |
| Interest Coverage | 7.9 | 4.6 | 3.4 | 4.0 | 3.7 | 3.0 | 3.5 | 8.1 | 9.0 | 5.3 | 2.7 | 3.0 | 3.0 |
| Equity | 9.1B | 6.7B | 6.5B | 9.6B | 11.3B | 11.4B | 12.9B | 18.4B | 20.3B | 21.8B | 22.8B | 25.9B | 27.4B |
| Total Assets | 61.3B | 57.9B | 57.9B | 65.8B | 70.1B | 73.0B | 75.1B | 84.1B | 90.0B | 104.1B | 107.3B | 106.0B | 107.0B |
| Total Liabilities | 52.3B | 51.2B | 51.4B | 56.2B | 58.8B | 61.6B | 62.1B | 65.7B | 69.7B | 82.2B | 84.4B | 80.0B | 79.5B |
| Intangibles | 69M | 64M | 104M | 218M | 1.6B | 1.4B | 1.3B | 1.3B | 1.2B | 1.1B | 999M | 892M | 975M |
| Retained Earnings | 22.0B | 23.1B | 23.9B | 25.3B | 27.6B | 29.9B | 31.6B | 36.4B | 42.2B | 50.9B | 56.4B | 59.7B | 61.2B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 13.7B |
| Per Share Data | |||||||||||||
| EPS | 8.63 | 5.77 | 4.81 | 6.68 | 7.24 | 10.15 | 8.69 | 18.99 | 23.28 | 34.63 | 25.62 | 18.50 | 0.00 |
| Owner EPS | 5.85 | 6.87 | 6.74 | 1.28 | -0.58 | 4.09 | 16.69 | 17.81 | 8.88 | 21.99 | 24.92 | 18.69 | -8.82 |
| Book Value | 24.74 | 20.06 | 20.59 | 29.58 | 34.51 | 35.61 | 40.87 | 58.70 | 66.15 | 74.21 | 82.40 | 95.50 | 101.53 |
| Cash Flow/Share | 9.63 | 11.18 | 11.89 | 6.80 | 5.57 | 10.65 | 23.64 | 24.60 | 15.34 | 29.26 | 33.31 | 27.45 | 8.26 |
| Dividends/Share | 2.22 | 2.40 | 2.40 | 2.40 | 2.58 | 3.04 | 3.04 | 3.61 | 4.36 | 5.05 | 5.88 | 6.48 | 0.00 |
| Shares Out. | 366.2M | 336.1M | 316.7M | 323.1M | 327.1M | 320.5M | 316.6M | 314.0M | 306.3M | 293.6M | 277.1M | 271.7M | 269.9M |
| Valuation | |||||||||||||
| P/E Ratio | 8.2 | 11.5 | 18.3 | 19.8 | 18.9 | 15.3 | 28.2 | 17.9 | 18.1 | 10.1 | 17.9 | 25.0 | N/A |
| P/FCF | 29.9 | 23.9 | 34.5 | N/A | N/A | N/A | 16.0 | 20.7 | 141.9 | 24.8 | 28.7 | 38.9 | N/A |
| EV/EBIT | 8.9 | 13.4 | N/A | 16.6 | 15.2 | 17.2 | 24.0 | 17.8 | 14.4 | 10.9 | 15.0 | 19.8 | N/A |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 4.7 | 5.6 | 4.8 | 6.2 |
| Price/Sales | 0.7 | 0.8 | 0.8 | 1.1 | 1.2 | 1.2 | 1.5 | 2.3 | 2.0 | 1.9 | 2.0 | 2.8 | N/A |
| FCF Yield | 3.3% | 4.2% | 2.9% | -0.9% | -2.5% | -0.1% | 6.2% | 4.8% | 0.7% | 4.0% | 3.5% | 2.6% | N/A |
| Market Cap | 25.9B | 22.3B | 27.9B | 42.7B | 44.7B | 49.7B | 77.5B | 106.5B | 129.2B | 102.3B | 126.9B | 125.8B | 169.6B |
| Avg. Price | 70.81 | 72.31 | 69.94 | 103.21 | 134.00 | 145.50 | 165.44 | 321.86 | 348.77 | 386.69 | 378.45 | 472.67 | 628.16 |
| Year-End Price | 70.78 | 66.45 | 88.04 | 132.09 | 136.75 | 155.03 | 244.70 | 339.31 | 421.91 | 348.61 | 457.96 | 462.89 | 628.16 |
DEERE & CO passes 6 of 9 quality checks, suggesting mixed fundamentals.
DEERE & CO trades at 35.4x trailing earnings, compared to its 15-year median P/E of 18.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 26.4x vs a median of 26.7x. The company's 5-year average ROIC is 22.8% with a gross margin of 38.4%. Total shareholder yield (dividends + buybacks) is 1.7%. At current prices, the estimated annualized return to fair value is +20.7%.
DEERE & CO (DE) has a net profit margin of 11.0%. This is a healthy margin.
DEERE & CO (DE) generated $3.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
DEERE & CO (DE) has a debt-to-equity ratio of 0.53. This indicates moderate leverage.
DEERE & CO (DE) reported earnings per share (EPS) of $18.50 in its most recent fiscal year.
DEERE & CO (DE) has a return on equity (ROE) of 20.6%. This indicates the company generates strong returns for shareholders.
DEERE & CO (DE) has a 5-year average gross margin of 38.4%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for DEERE & CO (DE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
DEERE & CO (DE) has a book value per share of $95.50, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects large agricultural equipment markets in North America to remain subdued in fiscal 2026 with industry sales declining 15%-20%, while construction and turf markets show signs of recovery with modest growth anticipated. The company is strategically positioned with low new field inventory levels, improved used equipment markets, and strong order books across multiple segments, particularly in Small Ag & Turf and Construction & Forestry, supporting confidence in delivering structurally higher performance as markets recover. Pricing realization is expected to remain positive across segments, with favorable cost comparisons anticipated in the fourth quarter, while tariff headwinds of approximately $1.2 billion annually are being managed through operational execution and cost control. The company continues to invest in advanced technology solutions including precision guidance, autonomy, digitalization, and Solutions as a Service capabilities to drive future growth aligned with 2030 Leap Ambitions, while maintaining double-digit operating margins across all business segments.
Based on recent SEC filings and earnings calls, DEERE & CO (DE) has provided the following forward guidance: Net Income: $4.5 billion to $5 billion (FY2026); Production & Precision Agriculture Operating Margin: 11%-13% (FY2026); Small Agriculture & Turf Net Sales: Up approximately 15% (FY2026); Construction & Forestry Net Sales: Up approximately 20% (FY2026); Construction & Forestry Operating Margin: 10%-12% (FY2026), plus 3 additional metrics.
Construction & Forestry Net Sales (FY2026): “The 2026 net sales are now forecasted to be up approximately 20% for the full year.”
Construction & Forestry Operating Margin (FY2026): “The segment's operating margin has also been increased and is now projected to be between 10% and 12% for the full year.”
Financial Services Net Income (FY2026): “For fiscal year 2026, we raised our full-year outlook to $860 million, primarily driven by favorable fair value adjustment and improved provision for credit losses.”
Effective Tax Rate (FY2026): “Next, our guidance now incorporates an effective tax rate between 24%-26%.”
Operating Cash Flow (FY2026): “Cash flow from the equipment operations remains projected between $4.5 billion and $5.5 billion.”