Deere (DE) AI Stock Analysis

• Market Cap: $127.26B
• Dividend Yield: 1.34%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.73
• Revenue Growth: -11.66%
• EPS Growth: -27.80%
• Country: US
• Employees: 35,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 3.93
• Shares Outstanding: 270,445,430
• 10 Day Avg. Volume: 1,568,677
• 30 Day Avg. Volume: 1,572,222
• PEG Ratio: -0.89
• Price to Book (P/B): 4.82
• Price to Sales (P/S): 2.74
• P/FCF Ratio: 38.73
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 4.01
• Enterprise Value/Gross Profit: 10.74
• Enterprise Value/Ebitda: 15.49
• 1Y Price Target: $510.62
• Price Target Upside: 8.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 16.88
• Revenue Forecast (FY): $40.06B

• Rating: 66 Neutral
• Price Target: $504.00 ▲(7.10% Upside)

Deere's overall stock score reflects strong financial performance and strategic initiatives in technology and innovation. However, high leverage, declining large agricultural equipment sales, and tariff impacts present significant challenges. The stock's technical indicators suggest caution, and while valuation is fair, the modest dividend yield limits its appeal. The recent board appointment is a positive strategic move.

Positive Factors

Technology and Innovation Advancements

Deere's advancements in precision agriculture technology enhance operational efficiency and customer value, supporting long-term growth.

Growth in Construction and Forestry Segment

Strong growth in the Construction and Forestry segment indicates robust demand and strengthens Deere's market position in this area.

Strategic Board Appointment

Brian Sikes' expertise in agriculture and sustainability aligns with Deere's strategic goals, supporting its transformation towards sustainable solutions.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting Deere's ability to invest in growth opportunities or weather economic downturns.

Decline in Large Agricultural Equipment Sales

A decline in large agricultural equipment sales could impact Deere's revenue and market share in its largest segment, affecting long-term growth.

Impact of Tariffs on Profitability

Significant tariff expenses could erode profit margins, challenging Deere's ability to maintain profitability and invest in future growth.

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 machinery and equipment across its three segments. The Agriculture and Turf segment constitutes the largest share of revenue, driven by strong demand for agricultural machinery, particularly in times of favorable crop prices and increasing global agricultural productivity. The Construction and Forestry segment contributes through the sale of construction equipment such as excavators and loaders, which are influenced by infrastructure spending and economic conditions. Additionally, Deere's Financial Services segment provides financing solutions for customers purchasing its equipment, creating a steady revenue stream from interest and fees. The company also capitalizes on partnerships with technology firms to enhance its precision agriculture offerings, further driving sales and customer loyalty.

Deere Financial Statement Overview

Summary

Deere demonstrates strong financial health with consistent revenue growth and profitability. However, high leverage and recent decline in free cash flow growth highlight areas of concern. The company needs to focus on improving operational efficiency and managing debt levels to sustain its financial stability.

Income Statement

Deere's income statement shows a strong performance with consistent revenue growth over the years, except for a slight dip in 2024. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. However, the declining EBIT and EBITDA margins in recent years suggest potential pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which poses a risk of financial leverage. Despite this, Deere has shown a strong return on equity, indicating effective use of shareholder funds. The equity ratio is stable, but the high leverage could be a concern if not managed properly.

Cash Flow

Deere's cash flow statement reveals a mixed picture. While the operating cash flow remains positive, the free cash flow has shown volatility, with a significant decline in recent years. The free cash flow to net income ratio is reasonable, but the negative growth in free cash flow suggests potential challenges in cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.68B	50.52B	60.25B	51.28B	43.03B
Gross Profit	17.52B	19.50B	22.31B	15.73B	13.71B
EBITDA	11.66B	14.67B	17.48B	12.08B	10.64B
Net Income	5.03B	7.10B	10.17B	7.13B	5.96B
Balance Sheet
Total Assets	106.00B	107.32B	104.09B	90.03B	84.11B
Cash, Cash Equivalents and Short-Term Investments	9.69B	8.48B	8.40B	5.51B	8.74B
Total Debt	63.94B	65.46B	63.69B	52.20B	48.73B
Total Liabilities	79.99B	84.39B	82.20B	69.67B	65.68B
Stockholders Equity	25.95B	22.84B	21.79B	20.26B	18.43B
Cash Flow
Free Cash Flow	3.23B	4.43B	4.12B	911.00M	5.15B
Operating Cash Flow	7.46B	9.23B	8.59B	4.70B	7.73B
Investing Cash Flow	-2.06B	-6.46B	-8.75B	-8.48B	-5.75B
Financing Cash Flow	-4.58B	-2.72B	2.81B	826.00M	-1.08B

Deere Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 470.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 470.57 is below the 20-day moving average (MA) of 477.16, below the 50-day MA of 470.90, and below the 200-day MA of 482.02, indicating a bearish trend. The MACD of 1.25 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 56.89 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
CAT	76 Outperform	$269.66B	29.57	46.30%	0.98%	-1.51%	-9.69%
PCAR	74 Outperform	$58.60B	21.84	14.15%	3.83%	-15.29%	-42.93%
OSK	71 Outperform	$8.25B	12.71	15.42%	1.56%	-2.28%	-0.53%
DE	66 Neutral	$127.26B	25.43	20.61%	1.34%	-11.66%	-27.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGCO	59 Neutral	$7.89B	21.07	8.69%	1.10%	-20.09%	121.28%
CNH	55 Neutral	$11.98B	20.15	7.77%	2.60%	-18.10%	-65.24%

Deere Corporate Events

Deere Appoints Brian Sikes to Board of Directors

On December 4, 2025, Deere & Company announced the appointment of Brian Sikes, the board chair and CEO of Cargill, to its board of directors. Sikes’ extensive experience in the agricultural sector and his commitment to innovation and sustainability are expected to enhance Deere’s strategic direction and support its transformation towards more sustainable solutions. His appointment increases the board size to 11 members, with 10 being independent, non-employee directors.

Deere Subsidiary Sells $500M in Notes Due 2030

On October 2, 2025, Deere Funding Canada Corporation, a subsidiary of Deere & Company, agreed to sell $500 million in 4.150% Notes due in 2030. These Notes are guaranteed by Deere & Company on a senior unsecured basis, aligning with their other senior unsecured debts. This financial move, facilitated by major underwriters including Goldman Sachs and RBC Capital Markets, reflects Deere’s strategic positioning in the financial markets, potentially impacting its financial flexibility and stakeholder confidence.