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Deere & Co DE

Morningstar Rating
$375.04 −6.49 (1.70%)
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Company Report

Despite Near-Term Demand Slump, Deere Is Well-Positioned to Benefit Long Term From Precision Ag

Deere offers customers an extensive portfolio of agriculture and construction equipment. 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 leading brand recognition. 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 their total cost of ownership through productivity and other efficiency enhancements.

Price vs Fair Value

DE is trading at a 568% premium.
Price
$375.04
Fair Value
$393.00
Uncertainty
Medium
1-Star Price
$599.18
5-Star Price
$432.30
Economic Moat
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Capital Allocation
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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 could lead to lower crop prices, pushing farmers to delay equipment purchases.

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News

Trading Information

Previous Close Price
$381.53
Day Range
$374.01380.00
52-Week Range
$353.15450.00
Bid/Ask
$374.30 / $375.99
Market Cap
$103.35 Bil
Volume/Avg
2.5 Mil / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
11.56
Price/Sales
1.85
Dividend Yield (Trailing)
1.48%
Dividend Yield (Forward)
1.57%
Total Yield
8.37%

Company Profile

Deere is the world’s leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry in their green and yellow livery. 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
CNH
CAT
Price/Earnings (Normalized)
11.565.9414.97
Price/Book Value
4.561.609.09
Price/Sales
1.850.552.49
Price/Cash Flow
9.224.8112.79
Price/Earnings
DE
CNH
CAT

Financial Strength

Metric
DE
CNH
CAT
Quick Ratio
1.805.290.73
Current Ratio
2.016.611.35
Interest Coverage
4.952.6926.54
Quick Ratio
DE
CNH
CAT

Profitability

Metric
DE
CNH
CAT
Return on Assets (Normalized)
9.09%5.17%13.02%
Return on Equity (Normalized)
41.64%29.09%59.16%
Return on Invested Capital (Normalized)
13.75%10.13%19.73%
Return on Assets
DE
CNH
CAT
See how this stock stacks up to its competitors with Morningstar Investor

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