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Deere & Co DE

Morningstar Rating
$410.74 +1.60 (0.39%)
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Company Report

Deere: We Expect Near-Term Demand To Be Challenged, but We Remain Positive on Long-Term Demand

Deere offers customers an extensive portfolio of agriculture and construction products. We think it will continue to be the leader in the agriculture industry and one of the top players in construction. For over a century, the company has been the pre-eminent manufacturer of mission-critical agricultural equipment, which has led to its place as one of the world’s most valuable brands. Deere’s strong brand is underpinned by its high-quality, extremely durable, and efficient products. Customers in developed markets also value Deere’s ability to reduce the total cost of ownership.

Price vs Fair Value

DE is trading at a 16% premium.
Price
$398.03
Fair Value
$839.00
Uncertainty
Medium
1-Star Price
$378.20
5-Star Price
$279.80
Economic Moat
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Capital Allocation
Nzwsfgklf

Bulls Say, Bears Say

Bulls

Higher crop prices encourage farmers to grow more crops and will lead to more farming equipment purchases, substantially boosting Deere's revenue growth.

Bears

China could pull back on agriculture imports, weakening global demand for crops. The fallout would lead to lower crop prices, largely due to higher supply, pushing farmers to delay equipment purchases.

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News

Trading Information

Previous Close Price
$409.14
Day Range
$408.58413.32
52-Week Range
$345.55450.00
Bid/Ask
$404.75 / $415.24
Market Cap
$114.33 Bil
Volume/Avg
1.4 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
11.95
Price/Sales
1.99
Dividend Yield (Trailing)
1.35%
Dividend Yield (Forward)
1.43%
Total Yield
7.74%

Company Profile

Deere is the world’s leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through an extensive dealer network, which includes over 2,000 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.
Sector
Industrials
Industry
Farm & Heavy Construction Machinery
Stock Style Box
Large Value
Total Number of Employees
83,000

Competitors

Valuation

Metric
DE
CNHI
AGCO
Price/Earnings (Normalized)
11.957.567.91
Price/Book Value
5.182.061.97
Price/Sales
1.990.710.64
Price/Cash Flow
10.055.997.58
Price/Earnings
DE
CNHI
AGCO

Financial Strength

Metric
DE
CNHI
AGCO
Quick Ratio
1.811.670.51
Current Ratio
2.052.021.46
Interest Coverage
5.593.0119.45
Quick Ratio
DE
CNHI
AGCO

Profitability

Metric
DE
CNHI
AGCO
Return on Assets (Normalized)
9.82%5.45%10.57%
Return on Equity (Normalized)
44.28%30.55%27.52%
Return on Invested Capital (Normalized)
14.47%10.29%18.89%
Return on Assets
DE
CNHI
AGCO
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Farm & Heavy Construction Machinery Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
CAT
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PCAR
PACCAR IncYkbzndnrjKzyyywv$64.9 Bil
VOLVF
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VOLAF
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VLVLY
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CNHI
CNH Industrial NVNpkvzlzzFbkqptn$16.1 Bil
AGCO
AGCO CorpKjbgjldWbs$9.2 Bil
OSK
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TEX
Terex CorpBfwyvllqfPlfkgx$4.3 Bil

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