Deere & Company
Exchange: NYSESector: IndustrialsIndustry: Farm & Heavy Construction Machinery
It doesn't matter if you've never driven a tractor, mowed a lawn, or operated a dozer. With John Deere's role in helping produce food, fiber, fuel, and infrastructure, we work for every single person on the planet. It all started nearly 200 years ago with a steel plow. Today, John Deere drives innovation in agriculture, construction, forestry, turf, power systems, and more.
Did you know?
Trading 37% above its estimated fair value of $360.74.
Current Price
$575.71
+0.88%GoodMoat Value
$360.74
37.3% overvaluedProfile
Valuation (TTM)
Market Cap$155.70B
P/E32.34
EV$209.57B
P/B6.00
Shares Out270.45M
P/Sales3.33
Revenue$46.79B
EV/EBITDA18.27
Deere & Company (DE) Stock Analysis
GoodMoat Analysis
Deere & Company is a world-leading manufacturer of agricultural and construction equipment with a strong competitive moat. However, its current stock price appears significantly overvalued relative to the GoodMoat target, presenting a high valuation risk for value investors.
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Deere & Company is a dominant player in the farm and heavy construction machinery industry. Its competitive moat is built on several durable advantages, including a powerful brand, high switching costs for farmers due to integrated technology and data platforms (Proprietary Data), and a global scale and dealer network that creates significant Scale Privilege. Applying the GoodMoat framework, Deere likely meets at least 5 of the 14 moat criteria, passing the initial gate for further analysis. The business also demonstrates strong quality indicators, such as a robust 20.6% operating margin and an 18.6% return on equity, which exceeds the 15-20% high-quality threshold for ROIC. However, the valuation assessment is highly unfavourable. The stock trades at a P/E of 32.5, which is elevated for a company with 13% revenue growth, and the GoodMoat target price of $360.74 suggests the current price of $575.29 is approximately 60% above that fair value estimate. This indicates a negative margin of safety. Following the Decision Framework, while Deere passes the Moat & Quality Gate, it likely fails the Valuation & Risk Gate. The extreme premium to the target price and a P/E that may be at the high end of its historical range represent significant red flags for a value investor seeking a margin of safety. The company warrants investigation only for those with a very high-conviction view on sustained, accelerated growth to justify its price. Analysis based on data as of 2024-05-15.
Market Cap$155.70B
Current Price$575.71
P/E Ratio32.34
Forward P/E—
PEG Ratio-1.34
EPS$18.50
Book Value$95.95
P/B Ratio6.00
DE Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 21.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 55.7B
Revenue
39.3B
FY19
35.5B
FY20
44.0B
FY21
52.6B
FY22
61.3B
FY23
51.7B
FY24
45.7B
FY25
Net Income
3.3B
FY19
2.8B
FY20
6.0B
FY21
7.1B
FY22
10.2B
FY23
7.1B
FY24
5.0B
FY25
DE 52-Week Range
$407.63
$660.59
50-Day MA: $580.57200-Day MA: $505.65
Did you know?
Earnings per share grew at a 21.4% CAGR.
Deere & Company (DE) Financial Summary
Deere & Company (DE) is a Industrials company in the Farm & Heavy Construction Machinery industry, listed on NYSE. The stock currently trades at $575.71 with a market capitalization of $155.70B.
Key valuation metrics include a P/E ratio of 32.34, price-to-book ratio of 6.00, and EPS of $18.50. The company reports a profit margin of 10.3% and return on equity of 18.6%.
DE Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $155.70B |
| P/E Ratio | 32.34 |
| EPS | $18.50 |
| P/B Ratio | 6.00 |
| P/S Ratio | 3.33 |
| EV/EBITDA | 18.27 |
| Dividend Yield | 1.10% |
| Profit Margin | 10.3% |
| Return on Equity | 18.6% |
| Debt/Equity | 2.46 |
DE Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $39.26B | $3.25B |
| FY20 | $35.54B | $2.75B |
| FY21 | $44.02B | $5.96B |
| FY22 | $52.58B | $7.13B |
| FY23 | $61.25B | $10.17B |
| FY24 | $51.72B | $7.10B |
| FY25 | $45.68B | $5.03B |
Deere & Company (DE) Valuation
Based on GoodMoat's DCF model, Deere & Company has a fair value estimate of $360.74. At the current price of $575.71, the stock appears 59.6% overvalued relative to our intrinsic value estimate.
DE Quality Indicators
Deere & Company maintains a profit margin of 10.3% and an operating margin of 20.6%. Return on equity stands at 18.6%. Debt-to-equity ratio is 2.46.
About Deere & Company
It doesn't matter if you've never driven a tractor, mowed a lawn, or operated a dozer. With John Deere's role in helping produce food, fiber, fuel, and infrastructure, we work for every single person on the planet. It all started nearly 200 years ago with a steel plow. Today, John Deere drives innovation in agriculture, construction, forestry, turf, power systems, and more.
DE Free Cash Flow
Deere & Company generated $5.15B in trailing twelve-month free cash flow, representing an FCF yield of 3.31%. This moderate FCF yield indicates reasonable cash generation.
DE Shares Outstanding
Deere & Company has 0.27 billion shares outstanding at a share price of $575.71, giving it a market capitalization of $155.70B.
DE Recent Insider Trades
Recent insider transactions at Deere & Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Reed Cory J (Pres, Life Sol Cust Sup & S.M.) | SELL | 12,000 | $6.12M |
| May John C II (Chairman & CEO) | SELL | 15,504 | $7.76M |