Deere (DE) AI Stock Analysis

• Market Cap: $122.12B
• Dividend Yield: 1.43%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.84
• Revenue Growth: -20.63%
• EPS Growth: -34.82%
• Country: US
• Employees: 35,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 4.75
• Shares Outstanding: 270,329,400
• 10 Day Avg. Volume: 1,517,632
• 30 Day Avg. Volume: 1,355,470
• PEG Ratio: -0.61
• Price to Book (P/B): 4.98
• Price to Sales (P/S): 2.25
• P/FCF Ratio: 25.70
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 4.55
• Enterprise Value/Gross Profit: 12.07
• Enterprise Value/Ebitda: 16.71
• 1Y Price Target: $512.58
• Price Target Upside: 13.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 63 Neutral
• Price Target: $508.00 ▲(12.46% Upside)

Deere's overall stock score reflects a combination of strong operational efficiency and strategic focus on innovation, offset by challenges in revenue growth and high leverage. Technical indicators suggest bearish momentum, while valuation metrics indicate moderate upside potential. The earnings call underscores strategic initiatives but also highlights significant market challenges, particularly in North America.

Positive Factors

Strong Operating Margin

Maintaining a strong operating margin in tough conditions shows Deere's disciplined execution and cost management, supporting long-term profitability.

International Market Trends

Positive trends in international markets can offset domestic challenges, providing growth opportunities and revenue diversification.

Leadership Changes

Strategic leadership changes align with Deere's focus on innovation and customer success, potentially enhancing its competitive position and operational efficiency.

Negative Factors

Revenue Decline

A decline in revenue indicates potential market challenges and could impact future growth prospects if not addressed effectively.

High Leverage

High leverage poses risks to financial stability, potentially limiting flexibility in investment and operational decisions if not managed well.

North American Market Challenges

Challenges in the North American market, a key region for Deere, could affect sales and profitability, necessitating strategic adjustments.

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 equipment and machinery across its Agriculture & Turf and Construction & Forestry segments. The Agriculture & Turf segment includes a variety of agricultural machinery, such as tractors and harvesters, which are sold directly to farmers and agricultural businesses. The Construction & Forestry segment offers equipment used in construction and forestry applications. Additionally, Deere earns revenue from its Financial Services segment, which provides financing solutions for equipment purchases, leases, and related services. This includes loans and leases to customers and dealers, contributing a stable revenue stream. Moreover, the company benefits from parts sales and aftermarket services, which provide ongoing revenue after the initial equipment sale. Strategic partnerships with technology firms also enhance its product offerings, particularly in precision agriculture, thereby driving additional revenue through advanced solutions and services.

Deere Financial Statement Overview

Summary

Deere's financial performance shows strong profitability and operational efficiency, but recent declines in revenue and profitability margins highlight potential challenges. The balance sheet indicates high leverage, posing risks if not managed effectively. Cash flow generation remains adequate, though declining free cash flow growth suggests the need for careful liquidity management.

Income Statement

Deere's income statement shows a strong gross profit margin of 37.71% for TTM, indicating efficient production. However, the net profit margin has decreased to 11.99% from 16.87% in 2023, reflecting reduced profitability. Revenue has declined by 2.40% in the TTM, a concern given the previous growth trend. The EBIT and EBITDA margins remain healthy at 22.19% and 27.23%, respectively, but have slightly decreased from prior periods, suggesting some operational challenges.

Balance Sheet

Deere's balance sheet reveals a high debt-to-equity ratio of 2.65, indicating significant leverage, which could pose risks if not managed carefully. The return on equity is strong at 21.98% for TTM, though it has decreased from 46.67% in 2023, showing reduced efficiency in generating profits from shareholders' equity. The equity ratio stands at 23.36%, reflecting a stable capital structure but with room for improvement in reducing debt levels.

Cash Flow

The cash flow statement indicates a decline in free cash flow growth by 5.33% in the TTM, highlighting potential liquidity challenges. The operating cash flow to net income ratio is 0.24, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.48, indicating that a significant portion of net income is converted into free cash flow, though this has slightly decreased from previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.40B	50.52B	60.25B	51.28B	43.03B	34.72B
Gross Profit	16.36B	19.50B	22.31B	15.73B	13.71B	10.86B
EBITDA	11.82B	14.67B	17.48B	12.08B	10.64B	7.25B
Net Income	5.21B	7.10B	10.17B	7.13B	5.96B	2.75B
Balance Sheet
Total Assets	107.82B	107.32B	104.09B	90.03B	84.11B	75.09B
Cash, Cash Equivalents and Short-Term Investments	9.99B	8.48B	8.40B	5.51B	8.74B	7.71B
Total Debt	66.65B	65.46B	63.69B	52.20B	48.73B	46.30B
Total Liabilities	82.55B	84.39B	82.20B	69.67B	65.68B	62.15B
Stockholders Equity	25.18B	22.84B	21.79B	20.26B	18.43B	12.94B
Cash Flow
Free Cash Flow	4.10B	4.43B	4.12B	911.00M	5.15B	4.83B
Operating Cash Flow	8.56B	9.23B	8.59B	4.70B	7.73B	7.48B
Investing Cash Flow	-3.59B	-6.46B	-8.75B	-8.48B	-5.75B	-3.32B
Financing Cash Flow	-3.48B	-2.72B	2.81B	826.00M	-1.08B	-980.00M

Deere Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 451.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 451.73 is below the 20-day moving average (MA) of 468.08, below the 50-day MA of 485.88, and below the 200-day MA of 476.93, indicating a bearish trend. The MACD of -7.32 indicates Positive momentum. The RSI at 31.96 is Neutral, neither overbought nor oversold. The STOCH value of 10.99 is Positive, 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
OSK	71 Outperform	$8.24B	13.02	14.60%	1.55%	0.41%	-3.90%
PCAR	71 Outperform	$51.31B	16.85	16.22%	4.08%	-11.92%	-38.21%
CAT	66 Neutral	$225.25B	24.26	50.57%	1.19%	-4.87%	-10.47%
DE	63 Neutral	$122.12B	23.90	21.59%	1.43%	-20.63%	-34.82%
AGCO	63 Neutral	$7.83B	80.49	2.39%	1.45%	-24.27%	-76.31%
CNH	56 Neutral	$13.21B	16.51	10.67%	2.37%	-21.70%	-57.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Deere Corporate Events

Deere Announces Leadership Changes for Strategic Growth

On September 2, 2025, Deere & Company announced significant leadership changes as part of its Smart Industrial Strategy to enhance customer economic value through intelligent, connected machines and solutions. Cory Reed was elected as President of Lifecycle Solutions, Supply Management, and Customer Success, effective November 3, 2025, while Deanna Kovar and Justin Rose were appointed to new roles overseeing different divisions within the company. These changes reflect Deere’s commitment to building a purpose-driven leadership team focused on innovation and customer success, potentially impacting its operations and market positioning globally.

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.