DE Deere & Company - Fundamental Analysis
AI Analysis
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Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
While Deere’s forward earnings multiple is in line with sector averages, its negative growth trajectory makes the current valuation less compelling compared to CAT, which combines higher growth and superior ROE.
- Forward P/E of 21.48 is below CAT's 28.48 and near sector average of 23.61
- Price/Sales of 2.91 offers relative value against high-growth industrial peers
- Current P/E of 24.88 appears stretched given negative earnings growth
- Price/Book of 5.11 is elevated relative to asset-intensive industrial peers
Near-term growth trajectory is negative across revenue and earnings, with no evidence of inflection in price momentum—6M return of -9.8% contrasts sharply with CAT’s +57.7%.
- Analyst target price of $527.21 implies confidence in recovery
- Long-term agricultural demand trends remain structurally supportive
- Revenue growth of -8.60% YoY and Q/Q earnings decline of -25.70% signal weakening demand
- No recent earnings surprises or upside momentum in guidance
Historically, Deere has delivered robust shareholder returns and margin discipline, but recent quarters show a clear deterioration in earnings performance and no positive surprises, breaking a prior pattern of consistency.
- 5-year total return of +96.1% demonstrates strong long-term compounding
- Consistent profitability with gross margin of 27.42% and operating margin of 15.09%
- Last 4 quarters have shown no earnings beats and declining YoY performance
- ROA of 3.74% lags behind asset efficiency of peers like CAT
Despite strong liquidity, Deere’s leverage is among the highest in the peer group, raising refinancing and interest rate sensitivity risks in a tighter credit environment.
- Current ratio of 2.23 and quick ratio of 2.00 indicate strong short-term liquidity
- No immediate solvency concerns given robust working capital position
- Debt/Equity of 2.67 is high for the sector and exceeds CAT's 2.01 and PCAR's 0.82
- Lack of cash flow data limits visibility into debt service capacity
Deere’s dividend is well-covered and consistent, offering income appeal in the industrials sector, though future growth depends on earnings stabilization.
- Dividend yield of 1.36% with a sustainable 33.05% payout ratio
- Long-standing history of dividend increases, signaling capital allocation discipline
- 5-year average yield unavailable, limiting trend assessment
- Dividend growth may be constrained if earnings pressure persists
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for DE and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
DE
Deere & Company
Primary
|
+96.1% | +21.9% | +22.4% | -9.8% | +6.2% | +1.8% |
|
HON
Honeywell International Inc.
Peer
|
+12.1% | +4.6% | -6.0% | -4.2% | +4.9% | +3.2% |
|
UNP
Union Pacific Corporation
Peer
|
+20.5% | +13.6% | -3.1% | -2.4% | -1.2% | +0.7% |
|
ETN
Eaton Corporation plc
Peer
|
+225.4% | +125.9% | -1.6% | +7.4% | -7.7% | -5.7% |
|
BA
The Boeing Company
Peer
|
-3.9% | +10.9% | +40.8% | -5.5% | -9.1% | -0.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Industrials Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
DE
Deere & Company
|
NEUTRAL | $128.74B | 24.88 | 21.4% | 11.8% | $476.23 | |
|
HON
Honeywell International Inc.
|
BULLISH | $126.89B | 21.02 | 34.6% | 15.1% | $199.04 | |
|
UNP
Union Pacific Corporation
|
BULLISH | $132.29B | 18.93 | 41.6% | 28.7% | $223.02 | |
|
ETN
Eaton Corporation plc
|
BULLISH | $137.52B | 35.34 | 20.7% | 14.7% | $352.39 | |
|
BA
The Boeing Company
|
NEUTRAL | $147.9B | - | -% | -12.2% | $194.52 |
Wall Street Analysts
Professional analyst ratings and price targets