One-glance verdict
Within fair range
$465.43 our estimate vs market $628.75
Wall Street consensus: $694.01 (49.1% higher than our fair-value estimate)
35% above our estimate
Fundamentals snapshot
Deere & Company
DE · NYQ · Industrials · Farm & Heavy Construction Machinery
Current price
$628.75
52-week range
$454.50 - $721.22
Market cap
$169.53B
Balance sheet
Distressed
2.65x Stretched
Net debt $57.64B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 5.0% last year.
- Reward Returns 18.2% on equity, ahead of 66% of its peers.
- Risk Stock trades 104.7% above its 5-year average P/E.
- Risk Net debt grew 16.9% over 3 years.
What this company does
Deere & Company
Deere & Company, known for its iconic green John Deere tractors, makes and sells heavy equipment used for farming, construction, and lawn care. Most of its money comes from selling large agricultural machinery to farms around the world, but it also provides financing (loans to help customers buy its products) to support these sales. The company's performance is often linked to the health of the global farming and construction industries, as strong demand for food and new buildings means more customers need Deere's machines.
How the company got here
Deere & Company started in 1837 when a blacksmith named John Deere created a steel plow that could easily cut through the tough soil of the American Midwest. Before this, farmers used iron or wooden plows that constantly got stuck, so Deere's invention was a major breakthrough. The company grew from making a few plows to producing a variety of farm equipment, and by the late 20th century, it had become the largest agricultural machinery company in the world. A key turning point was in 1918 when the company purchased the Waterloo Gasoline Engine Company and began mass-producing tractors, which became a huge success. Over the years, Deere expanded into construction and forestry equipment, often by acquiring other companies.
What it actually does
You probably know Deere & Company by its brand name, John Deere, which you might recognize from their iconic green and yellow tractors. They manufacture and sell heavy machinery used for farming, construction, and forestry. Think of the large tractors and combines you see in fields during harvest, the excavators and loaders at construction sites, or the specialized equipment used for logging. Beyond the big machines, they also make smaller equipment like riding lawn mowers and utility vehicles for homeowners and golf courses. The company also provides technology solutions to make farming more precise and efficient, and offers financing (loans and leases) to help customers buy their equipment.
Production and Precision Agriculture
This is Deere's largest business segment, making up about 40% of the company's revenue. It focuses on equipment for large-scale farming operations. This includes massive four-wheel-drive tractors, combines for harvesting crops like corn and wheat, cotton pickers, and sprayers for applying fertilizer and pesticides. The "Precision Agriculture" part refers to technology integrated into the machines, like GPS guidance and data analytics, that helps farmers plant seeds more accurately and use fewer resources. The customers for this segment are large farms and agricultural businesses that need powerful and efficient machinery to manage thousands of acres.
Small Agriculture and Turf
This segment caters to smaller farms, homeowners with large properties, and businesses that manage turf, like golf courses. It brings in roughly 20% of the company's revenue. The products here include smaller utility tractors, hay and forage equipment for livestock farms, and a wide range of lawn and garden equipment, including the riding mowers you might see in your neighborhood. Essentially, if the 'Production and Precision Agriculture' segment is for massive food production, this segment is for smaller-scale farming and maintaining green spaces.
Construction and Forestry
This part of the business, which accounts for about a quarter of revenue, makes heavy equipment for building and logging. For construction, they produce machines like backhoe loaders, excavators, and bulldozers that are used to build everything from roads to buildings. In the forestry business, they make specialized equipment like log harvesters and forwarders that are used to cut down and transport trees. The customers are construction companies, road-building crews, and logging operations.
Financial Services
This segment acts like a bank specifically for Deere customers and makes up a smaller portion of the company's revenue. When a farmer or construction company wants to buy a new piece of expensive equipment, this division offers them loans and leases to make the purchase more affordable. They also provide financing to dealerships (the local businesses that sell John Deere equipment) so they can stock their showrooms. This is a common practice for large equipment manufacturers as it helps drive sales of their core products.
What management is betting on now
Deere's current strategy, which they call their "Smart Industrial" model, is focused on integrating technology into their machines to make them more intelligent and connected. They are betting that the future of farming and construction isn't just about bigger and stronger equipment, but about machines that use data and automation to be more precise and efficient. This includes developing autonomous (self-driving) tractors and other equipment that can perform tasks with less human intervention. The goal is to move beyond just selling a machine one time and instead create ongoing relationships with customers through software, data services, and other recurring revenue (income that is predictable and likely to continue in the future).
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$4.50B
FY2025 Q1
$-1.48B
FY2025 Q2
$1.50B
FY2025 Q3
$2.60B
FY2025 Q4
$3.49B
FY2026 Q1
$-1.15B
FY2026 Q2
$1.74B
FY2026 Q3
$1.94B
Revenue
$12.61B
Net income
$1.38B
Diluted EPS
5.10
Operating cash flow
$2.21B
Free cash flow
$1.94B
Fetching…
Sources
Revenue
$13.37B
Net income
$1.77B
Diluted EPS
6.55
Operating cash flow
$1.93B
Free cash flow
$1.74B
Fetching…
Sources
Revenue
$9.61B
Net income
$656.00M
Diluted EPS
2.42
Operating cash flow
$-890.00M
Free cash flow
$-1.15B
Fetching…
Sources
Revenue
$12.39B
Net income
$1.06B
Diluted EPS
3.92
Operating cash flow
$4.00B
Free cash flow
$3.49B
Fetching…
Sources
Revenue
$12.02B
Net income
$1.29B
Diluted EPS
4.75
Operating cash flow
$2.90B
Free cash flow
$2.60B
Fetching…
Sources
Revenue
$12.76B
Net income
$1.80B
Diluted EPS
6.64
Operating cash flow
$1.70B
Free cash flow
$1.50B
Fetching…
Sources
Revenue
$8.51B
Net income
$869.00M
Diluted EPS
3.19
Operating cash flow
$-1.13B
Free cash flow
$-1.48B
Fetching…
Sources
Revenue
$11.14B
Net income
$1.25B
Diluted EPS
4.57
Operating cash flow
$5.09B
Free cash flow
$4.50B
Fetching…
Sources
Is it cheap or expensive?
Fair value $465.43 vs current price $628.75
Wall Street consensus is the average analyst price target: $694.01 (49.1% higher than our fair-value estimate).
Our most-likely fair value is $465.43 a share — about 26.0% away from today's price of $628.75, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $57.6B. Interest coverage 2.7x.
Net debt
$57.64B
Interest coverage
2.65x
Deere & Company's profit covers its interest bill about 2.7 times over.
Distressed
Worse cushion
Baseline
Better cushion
DE
BASELINE
Deere & Company
Total debt $64.58B Interest coverage 2.65x This is the baseline the peer rows are being compared against.
Total debt $45.15B Interest coverage 22.21x +737% vs DE Carries about 8.4x more debt cushion than DE.
Total debt $2.89B Interest coverage 5.68x +114% vs DE Carries about 2.1x more debt cushion than DE.
Total debt $26.31B Interest coverage 1.89x -29% vs DE Carries about 1.4x less debt cushion than DE.
Total debt $14.82B Interest coverage 10.42x +292% vs DE Carries about 3.9x more debt cushion than DE.
Total debt $1.10B Interest coverage 8.04x +203% vs DE Carries about 3.0x more debt cushion than DE.
What you should know
The case for and against DE
3 Rewards
3 Risks
Rewards
-
Revenue grew 5.0% last year.
-
Returns 18.2% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 104.7% above its 5-year average P/E.
-
Net debt grew 16.9% over 3 years.
-
Operating margin compressed from 17.6% to 13.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
34.95x
Forward P/E
27.61x
P/B
6.06x
P/S
3.54x
EV/EBITDA
26.83x
PEG ratio
1.49x
Profitability
How much profit each dollar creates
Gross margin
25.2%
Operating margin
13.4%
Net margin
10.2%
ROE
18.2%
ROA
3.8%
Health
Liquidity and balance-sheet strength
Debt / equity
2.30x
Current ratio
2.13x
Quick ratio
1.91x
Total debt
$64.58B
Total cash
$6.94B
Growth
How the business has been compounding
Revenue TTM
$47.98B
Revenue 5Y CAGR
0.9%
EPS TTM
17.99
EPS 5Y CAGR
-7.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$7.25B
Free CF TTM
$6.10B
FCF margin
12.7%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
36.0%
Last ex-div date
2026-09-30