Deere (DE) AI Stock Analysis

• Market Cap: $134.33B
• Dividend Yield: 1.3%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.91
• Revenue Growth: -20.63%
• EPS Growth: -34.82%
• Country: US
• Employees: 35,200
• Sector: Industrials
• Sector Strength: 79
• Industry: Agricultural - Machinery
• EPS (TTM): 4.75
• Shares Outstanding: 270,827,060
• 10 Day Avg. Volume: 1,831,641
• 30 Day Avg. Volume: 1,351,483
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 4.43
• Enterprise Value/Gross Profit: 11.50
• Enterprise Value/Ebitda: 15.64
• 1Y Price Target: $544.00
• Price Target Upside: 11.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 68 Neutral
• Price Target: $532.00 ▲(9.04% Upside)

Deere's overall stock score reflects strong financial performance and strategic focus on innovation and international markets. However, technical indicators and valuation suggest caution, with challenges in North America and leadership changes adding to the uncertainty.

Positive Factors

Brazil Market Growth

Deere has established a dominant position in the Brazilian Large Agriculture market, which was underestimated.

Market Leadership

Deere & Company shows strong margin execution and market leadership, making it a core player in the industrial sector.

Technological Advancements

The company's products include advanced technology such as software, sensors, and cloud-based systems, enhancing performance and customer value.

Negative Factors

Demand Pressure

Preliminary FY26 read throughs from its North America Early Order Programs indicate continued demand pressure.

Global Agricultural Equipment Downturn

The downturn in global agricultural equipment affects the company's performance, particularly in the US where it generates significant revenue.

High Interest Rates

High interest rates continue to be an issue in the farm sector, with little relief expected in government programs.

Deere Business Overview & Revenue Model

Company Description

Deere & Company manufactures and distributes 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 mid-size tractors, combines, cotton pickers and strippers, sugarcane harvesters, harvesting front-end equipment, sugarcane loaders, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers. The Small Agriculture and Turf segment offers utility tractors, and related loaders and attachments; turf and utility equipment, including riding lawn equipment, commercial mowing equipment, 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; other outdoor power products; and hay and forage equipment. This segment also resells products from other manufacturers. It serves dairy and livestock producers, crop producers, and turf and utility customers. The Construction and Forestry segment provides a range of backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, landscape and skid-steer loaders, milling machines, pavers, compactors, rollers, crushers, screens, asphalt plants, log skidders, log feller bunchers, log loaders and forwarders, log harvesters, and attachments; and roadbuilding 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, as well as finances retail revolving charge accounts. Deere & Company was founded in 1837 and is headquartered in Moline, Illinois.

How the Company Makes Money

Deere generates revenue primarily through the sale of its equipment and machinery across its Agriculture & Turf and Construction & Forestry segments. The Agriculture & Turf segment includes a variety of agricultural machinery, such as tractors and harvesters, which are sold directly to farmers and agricultural businesses. The Construction & Forestry segment offers equipment used in construction and forestry applications. Additionally, Deere earns revenue from its Financial Services segment, which provides financing solutions for equipment purchases, leases, and related services. This includes loans and leases to customers and dealers, contributing a stable revenue stream. Moreover, the company benefits from parts sales and aftermarket services, which provide ongoing revenue after the initial equipment sale. Strategic partnerships with technology firms also enhance its product offerings, particularly in precision agriculture, thereby driving additional revenue through advanced solutions and services.

Deere Financial Statement Overview

Summary

Deere's financial performance is solid, marked by strong profitability and efficient cash flow management. Despite facing revenue contraction, the company maintains healthy operating margins and a strong return on equity. However, high debt levels could pose risks if not managed effectively in the long term.

Income Statement

Deere shows strong profitability with a consistent gross profit margin of over 38% and a solid net profit margin of around 13% in the TTM (Trailing-Twelve-Months). However, revenue has declined over the past year, impacting overall growth prospects. The EBIT and EBITDA margins remain healthy, indicating operating efficiency.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio exceeding 0.96 in the TTM. Return on Equity stands at a strong 23.3%, reflecting effective use of equity to generate profits. However, the equity ratio of 22.8% suggests a reliance on debt financing, which poses a potential risk in economic downturns.

Cash Flow

Deere demonstrates robust cash flow management with a strong operating cash flow to net income ratio of 1.57, indicating efficient cash generation from operations. The free cash flow to net income ratio is 0.77, highlighting good conversion of earnings into free cash flow. Despite a slight decline in free cash flow growth, the company maintains healthy liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.46B	50.52B	60.25B	51.28B	43.03B	34.72B
Gross Profit	17.15B	19.50B	22.31B	15.73B	13.71B	10.86B
EBITDA	12.61B	14.67B	17.48B	12.08B	10.64B	7.25B
Net Income	5.65B	7.10B	10.17B	7.13B	5.96B	2.75B
Balance Sheet
Total Assets	106.30B	107.32B	104.09B	90.03B	84.11B	75.09B
Cash, Cash Equivalents and Short-Term Investments	9.26B	8.48B	8.40B	5.51B	8.74B	7.71B
Total Debt	66.60B	65.46B	63.69B	52.20B	48.73B	46.30B
Total Liabilities	81.92B	84.39B	82.20B	69.67B	65.68B	62.15B
Stockholders Equity	24.29B	22.84B	21.79B	20.26B	18.43B	12.94B
Cash Flow
Free Cash Flow	4.33B	4.43B	4.12B	911.00M	5.15B	4.83B
Operating Cash Flow	8.86B	9.23B	8.59B	4.70B	7.73B	7.48B
Investing Cash Flow	-4.01B	-6.46B	-8.75B	-8.48B	-5.75B	-3.32B
Financing Cash Flow	-2.38B	-2.72B	2.81B	826.00M	-1.08B	-980.00M

Deere Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 487.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE, the sentiment is Negative. The current price of 487.9 is below the 20-day moving average (MA) of 501.47, below the 50-day MA of 507.38, and above the 200-day MA of 472.32, indicating a neutral trend. The MACD of -5.35 indicates Positive momentum. The RSI at 43.05 is Neutral, neither overbought nor oversold. The STOCH value of 44.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE.

Deere Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCAR	80 Outperform	$53.30B	17.40	16.77%	3.93%	-11.92%	-38.21%
OSK	78 Outperform	$9.10B	14.26	15.52%	1.40%	0.41%	-3.90%
CAT	69 Neutral	$204.10B	22.15	52.73%	1.33%	-4.87%	-10.47%
DE	68 Neutral	$134.33B	25.93	21.59%	1.30%	-20.63%	-34.82%
AGCO	68 Neutral	$8.71B	87.76	2.42%	1.32%	-24.27%	-76.31%
Sector *	64 Neutral	$10.82B	16.31	8.85%	2.03%	2.58%	-16.43%
CNH	56 Neutral	$15.47B	18.82	10.79%	2.02%	-21.70%	-57.68%

Deere Corporate Events

Deere Announces Board Changes After Sherry M. Smith’s Passing

On July 7, 2025, Deere & Company announced the passing of Sherry M. Smith, a valued board member since 2011. Her leadership and strategic vision significantly impacted the company, and her absence will be deeply felt. In response, the board reduced its size to ten members and appointed R. Preston Feight as the new Lead Director.