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Deere & Company

Fundamental data last updated:August 1, 2026

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company profile

SECTOR

Industrials

industry

Agricultural - Machinery

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/20/2026

Business Summary

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.

 


VALUATION

P/E

30.66

Market Cap ($M USD)

$146.66B

Forward P/E

19.29

PEG

0.33

PRICE TO SALES

3.13

PRICE TO BOOK

5.35

EV / EBITDA

18.63

5-Year Average P/E

Free Cash Flow Yield

2.57%

DCF Value

$208.99

Graham Number

$201.07

Price to FCF

38.92

EV to FCF

53.76

Earnings Yield

3.26%

FCF Yield

2.57%

DIVIDEND

Yield

1.19%

Annual Payout

$6.48

Payout Ratio

36.69%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$17.71

Next Year EPS Growth Estimate

$28.15

Next Year Revenue Growth Estimate

$4.91T

Return on Equity (ROE)

18.25%

FREE CASH FLOW

Operating Margin

18.38%

Debt-to-Equity

2.46

Piotroski F-Score

7

Altman Z-Score

2.52

Return on Invested Capital (ROIC)

12.00%

Current Ratio

0.79

Quick Ratio

0.55

Net Debt to EBITDA

5.14

Interest Coverage

2.88

Gross Profit margin

35.40%

FCF PER SHARE

$13.95

REVENUE PER SHARE

$173.48

Gainseekers Quantitative Analysis

Summary

Deere & Company appears to be significantly overvalued based on its DCF Value and Graham Number, with the market price extended well beyond these fundamental benchmarks. The Forward P/E of 18.73 suggests some optimism about future earnings growth, yet the Earnings Yield of 3.36% is underwhelming, indicating a potentially expensive stock. The Altman Z-score of 1.71 raises red flags about financial distress risk, hinting at a precarious balance sheet. Despite these concerns, the PEG ratio of 0.32 suggests that growth expectations might justify the price for some investors, but caution is warranted.

AI Exposure / Tech Reliance

In the agricultural machinery sector, Deere & Company is well-positioned to leverage AI and modern technology to enhance precision farming and operational efficiency. The industry's shift towards smart farming solutions could provide a competitive edge. However, the pace of tech adoption will be crucial in maintaining its market leadership.

The Bull Case

For the value or GARP investor, Deere & Company offers compelling reasons to consider a position. The ROIC of 12% indicates efficient capital use, while a Piotroski F-Score of 7 suggests strong financial health. Its operating margin of 18.38% reflects robust pricing power, and the Free Cash Flow Yield, although modest, underscores potential for future cash generation. These metrics collectively paint a picture of a company with solid fundamentals and strategic pricing leverage.

The Bear Case

Despite its strengths, Deere & Company faces significant structural risks. The Price/Book ratio of 5.20 and Price/Sales of 3.04 indicate a potentially overvalued stock, especially when juxtaposed with a low Free Cash Flow Yield. The Current Ratio of 0.79 and Quick Ratio of 0.55 highlight liquidity concerns, while a Net Debt to EBITDA of 5.14 suggests a heavy debt burden. These factors, combined with a stock price extended near its 52-week high, present a risky proposition for investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$690.00

Institutional Ownership %

1-Year Beta

0.97

Insider Buying % (6 Mo)

Distance to 52-Week High

24.17%

Distance to 52-Week Low

20.25%

EARNINGS SURPRISE %

14.91%

50-DAY SMA

$573.75

200-DAY SMA

$521.04

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.