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Deere (DE) Stock Analysis

Here is a fundamental analysis of Deere (DE), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

DE
GSPC
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Deere (DE) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Deere (DE) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Deere (DE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: DEIndustry group median
1-Year Return13.19%25.11%

Risk

Drawdown

DE
GSPC
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Deere (DE) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Deere (DE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: DEIndustry group median
1-Year Volatility30.07%41.58%
Beta0.901.19

Company Profile

Company profile fields for Deere (DE)
Profile ItemDE
NameDeere & Company
Country/RegionUnited States
GICS SectorIndustrials
GICS Industry GroupCapital Goods
GICS IndustryMachinery
GICS Sub-IndustryAgricultural & Farm Machinery
Market Capitalization155.88 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJune 1, 1972
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Deere (DE) trades at P/E ratio of 32.68, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

DE

Capital Goods industry group

32.68

Group distribution
Max
89.57
Q3
49.59
DE
32.68
Median
32.68
Q1
22.67
Min
6.05
Largest peers
BA
86.92
CAT
45.26
GE
41.65
ETN
38.30
RTX
34.50
DE
32.68
GEV
27.47
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Where Deere (DE) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Deere (DE) trades at 3.29 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

DE

Capital Goods industry group

3.29

Group distribution
Max
10.21
Q3
4.95
DE
3.29
Median
2.70
Q1
1.31
Min
0.05
Largest peers
GE
7.25
GEV
6.42
CAT
5.93
ETN
5.33
DE
3.29
RTX
2.73
BA
1.87
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Where Deere (DE) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Deere (DE) trades at 5.69 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

DE

Capital Goods industry group

5.69

Group distribution
Max
14.00
Q3
7.07
DE
5.69
Median
3.83
Q1
2.13
Min
-4.80
Largest peers
BA
28.86
CAT
22.48
GE
18.83
GEV
18.16
ETN
7.71
DE
5.69
RTX
3.73
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Where Deere (DE) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Deere (DE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: DEIndustry group median
Price-to-Earnings Ratio (TTM)32.6832.68
Price-to-Sales Ratio (TTM)3.292.70
Price-to-Book Ratio (MRQ)5.693.83
Free Cash Flow Yield0.70%2.07%

Profitability

Return on Equity (TTM)

Deere (DE) posts ROE of 18.35%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

DE

Capital Goods industry group

18.35%

Group distribution
Max
46.13%
Q3
20.05%
DE
18.35%
Median
11.19%
Q1
2.17%
Min
-23.78%
Largest peers
BA
169.95%
GEV
75.71%
CAT
51.33%
GE
45.43%
ETN
20.85%
DE
18.35%
RTX
11.57%
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Where Deere (DE) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Deere (DE) keeps 10.10% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

DE

Capital Goods industry group

10.10%

Group distribution
Max
24.69%
Q3
11.55%
DE
10.10%
Median
5.77%
Q1
0.30%
Min
-13.94%
Largest peers
GEV
23.81%
GE
17.86%
ETN
13.99%
CAT
13.33%
DE
10.10%
RTX
8.03%
BA
2.46%
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Where Deere (DE) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Deere (DE) turns 17.48% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

DE

Capital Goods industry group

17.48%

Group distribution
Max
29.84%
DE
17.48%
Q3
15.85%
Median
8.19%
Q1
1.80%
Min
-17.50%
Largest peers
GE
20.21%
CAT
18.18%
DE
17.48%
ETN
16.11%
RTX
13.18%
GEV
5.46%
BA
1.72%
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Where Deere (DE) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Deere (DE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: DEIndustry group median
Return on Equity (TTM)18.35%11.19%
Return on Assets (TTM)3.83%5.15%
Net Profit Margin (TTM)10.10%5.77%
Operating Profit Margin (TTM)17.48%8.19%
Gross Profit Margin (TTM)25.97%29.80%

Financial Strength

Current Ratio (MRQ)

Deere (DE) has current ratio of 2.21, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

DE

Capital Goods industry group

2.21

Group distribution
Max
5.24
Q3
2.98
DE
2.21
Median
2.12
Q1
1.45
Min
0.71
Largest peers
DE
2.21
CAT
1.35
ETN
1.19
BA
1.18
RTX
1.02
GE
1.01
GEV
0.89
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Where Deere (DE) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Deere (DE) has debt-to-equity ratio of 3.76, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

DE

Capital Goods industry group

3.76

Group distribution
DE
3.76
Max
2.29
Q3
1.08
Median
0.62
Q1
0.27
Min
0.00
Largest peers
BA
8.29
DE
3.76
CAT
2.31
GE
1.17
ETN
1.10
RTX
0.57
GEV
0.25
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Where Deere (DE) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Deere (DE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: DEIndustry group median
Current Ratio (MRQ)2.212.12
Debt-to-Equity Ratio (MRQ)3.760.62
Net Debt / EBITDA4.602.03

Dividends

Dividend Yield (TTM)

Deere (DE) has dividend yield of 1.12%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

DE

Capital Goods industry group

1.12%

Group distribution
Max
2.69%
DE
1.12%
Q3
1.09%
Median
0.20%
Q1
0.00%
Min
0.00%
Largest peers
RTX
1.51%
DE
1.12%
ETN
1.12%
CAT
0.72%
GE
0.56%
GEV
0.21%
BA
0.00%
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Where Deere (DE) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Deere (DE) has payout ratio of 36.71%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

DE

Capital Goods industry group

36.71%

Group distribution
Max
72.02%
DE
36.71%
Q3
29.49%
Median
6.03%
Q1
0.00%
Min
0.00%
Largest peers
RTX
51.03%
ETN
41.29%
DE
36.71%
CAT
29.58%
GE
19.25%
GEV
5.11%
BA
0.00%
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Where Deere (DE) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Deere (DE) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: DEIndustry group median
Dividend Yield (TTM)1.12%0.20%
Dividend Payout Ratio (TTM)36.71%6.03%