Deere (DE) AI Stock Analysis

• Market Cap: $137.94B
• Dividend Yield: 1.25%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.93
• Revenue Growth: -22.26%
• EPS Growth: -37.83%
• Country: US
• Employees: 35,200
• Sector: Industrials
• Sector Strength: 92
• Industry: Agricultural - Machinery
• EPS (TTM): 6.64
• Shares Outstanding: 270,827,060
• 10 Day Avg. Volume: 1,091,040
• 30 Day Avg. Volume: 1,090,072
• PEG Ratio: -2.89
• Price to Book (P/B): 5.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.82
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 9.04
• Enterprise Value/Ebitda: 2.73
• 1Y Price Target: $555.63
• Price Target Upside: 8.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 71 Outperform
• Price Target: $564.00 ▲(10.07%Upside)

Deere's overall stock score is driven by solid financial performance and strategic investments in technology, despite facing declining sales and macroeconomic challenges. The technical analysis suggests stability without strong upward momentum, and the valuation indicates moderate attractiveness. Earnings calls reflect both operational strengths and market headwinds.

Positive Factors

Growth Strategy

Deere aims to continue to grow share with Brazil-specific equipment, more technology and expanding dealership support.

Market Position

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

Technology Advancements

The company's growing Precision Agriculture capabilities and investments in the region position it to outperform peers in Brazil.

Negative Factors

Capital Purchases Skepticism

There is skepticism about whether growers will broadly return to make large capital purchases soon, leading to a neutral stance on the current valuation.

Interest Rates

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

Tariff Impact

China announced retaliatory tariffs on US goods totaling $14B in annual sales, primarily targeting farm equipment.

Deere Business Overview & Revenue Model

Company Description

Deere & Company (DE), commonly known as John Deere, is a global leader in the manufacturing of agricultural, construction, and forestry machinery. The company operates through three primary segments: Agriculture and Turf, Construction and Forestry, and Financial Services. Deere's core products include a wide range of equipment such as tractors, combine harvesters, cotton pickers, and lawn care equipment, as well as advanced technology solutions for precision agriculture and construction management.

How the Company Makes Money

Deere & Company generates revenue primarily through the sale of its agricultural, construction, and forestry machinery. The Agriculture and Turf segment is the largest contributor, driven by the demand for agricultural equipment and technology solutions that enhance farming efficiency and productivity. The Construction and Forestry segment supports revenue through the sale of heavy equipment used in construction, road building, and forestry operations. Additionally, Deere provides financial services, including leasing and financing options to customers purchasing equipment, which also contributes to its revenue streams. The company benefits from strong brand recognition, a global dealer network, and technological innovations that enhance equipment performance and integration.

Deere Financial Statement Overview

Summary

Deere's financial performance is solid, highlighted 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	23.47B	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: Positive
• Last Price: 512.41
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 512.41 is below the 20-day moving average (MA) of 513.88, above the 50-day MA of 506.96, and above the 200-day MA of 456.87, indicating a neutral trend. The MACD of 1.82 indicates Positive momentum. The RSI at 50.98 is Neutral, neither overbought nor oversold. The STOCH value of 57.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE.

Deere Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSK	77 Outperform	$8.15B	13.53	15.24%	1.61%	5.95%	-10.59%
PCAR	75 Outperform	$52.09B	15.05	19.90%	1.36%	-8.64%	-31.57%
DE	71 Outperform	$137.94B	25.12	24.07%	1.25%	-22.26%	-37.83%
Sector *	71 Outperform	¥254.22B	13.37	8.49%	3.04%	6.33%	12.89%
CAT	70 Outperform	$192.04B	19.90	55.67%	1.38%	-5.58%	-7.37%
CNH	66 Neutral	$17.24B	16.61	13.26%	1.81%	-21.99%	-52.11%
AGCO	58 Neutral	$8.49B	46.40	-13.60%	1.02%	-23.02%	-152.78%

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.

The most recent analyst rating on (DE) stock is a Hold with a $400.00 price target. To see the full list of analyst forecasts on Deere stock, see the DE Stock Forecast page.