Deere & Company (DE) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Deere & Company (DE) Industrial Operations Profile

Deere & Company, a global leader in agricultural machinery and equipment, provides solutions across production, small agriculture, construction, and forestry. With a strong focus on precision agriculture and a robust financial services arm, Deere serves diverse customer segments worldwide, maintaining a significant presence in the industrials sector.

What Is the Investment Thesis for DE?

With a current P/E ratio of 37.48 and a profit margin of 10.5%, Deere demonstrates solid financial performance. The company's focus on precision agriculture and smart technology solutions positions it to capitalize on the growing demand for efficient and sustainable farming practices. Key growth catalysts include the increasing global population, rising demand for food, and adoption of advanced agricultural technologies. However, potential risks include economic downturns, fluctuations in commodity prices, and increasing competition. Deere's strong brand reputation, extensive dealer network, and commitment to innovation provide a competitive edge, supporting long-term value creation.

Based on FMP financials and quantitative analysis

DE Key Highlights

Market Cap of $183B reflects Deere's significant presence and investor confidence in the agricultural machinery market.

• P/E Ratio of 37.48 indicates the price investors are willing to pay for each dollar of Deere's earnings.
• Profit Margin of 10.5% demonstrates Deere's ability to generate profit from its revenues.
• Gross Margin of 35.6% reflects Deere's efficiency in managing production costs.
• Dividend Yield of 1.13% provides investors with a steady income stream.

Who Are DE's Competitors?

DE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are DE's Key Strengths?

Strong brand reputation and customer loyalty.

• Extensive dealer network.
• Technological innovation and leadership in precision agriculture.
• Diversified business model across multiple segments.

What Are DE's Weaknesses?

Dependence on agricultural cycles and commodity prices.

• Exposure to economic downturns and trade policies.
• High capital expenditure requirements.
• Competition from established players and emerging market entrants.

What Could Drive DE Stock Higher?

Launch of new precision agriculture technologies and solutions.

• Expansion into emerging markets and developing regions.
• Increasing demand for sustainable farming practices and environmentally friendly equipment.
• Infrastructure development and construction activities driving demand for construction equipment.

What Are the Key Risks for DE?

Rich valuation — a P/E of 37.48 runs well above the Industrials sector’s ~27.60x, leaving little room for a miss.

• Insider selling — insiders were net sellers of roughly $18.8M recently.
• Economic downturns and fluctuations in commodity prices impacting demand for agricultural equipment.
• Increasing competition from low-cost manufacturers and emerging market entrants.
• Government regulations and environmental concerns impacting farming practices.
• Disruptive technologies and changing customer preferences requiring continuous innovation.

What Are the Growth Opportunities for DE?

• Growth opportunity 1: Precision Agriculture Technology: Deere's investment in precision agriculture technology, including GPS-guided systems, data analytics, and automation, offers significant growth potential. The precision agriculture market is projected to reach $12.9 billion by 2027, driven by the need for increased efficiency and sustainability in farming practices. Deere's advanced technology solutions enable farmers to optimize resource utilization, reduce waste, and increase yields, providing a competitive advantage.
• Growth opportunity 2: Emerging Markets Expansion: Expanding into emerging markets, such as Asia and Africa, presents a significant growth opportunity for Deere. These regions are experiencing rapid population growth and increasing demand for food, driving the need for advanced agricultural machinery and equipment. Deere's established brand reputation and extensive dealer network position it to capitalize on this growing demand and expand its market share.
• Growth opportunity 3: Construction and Forestry Equipment: Deere's Construction and Forestry segment offers growth potential driven by infrastructure development and timber harvesting activities. The global construction equipment market is projected to reach $230 billion by 2028, fueled by increasing urbanization and infrastructure investments. Deere's range of backhoe loaders, excavators, and forestry equipment caters to this growing demand.
• Growth opportunity 4: Financial Services: Deere's Financial Services segment supports sales and leases of its equipment, providing a competitive advantage. By offering financing solutions to customers, Deere facilitates equipment purchases and fosters customer loyalty. The financial services market in the agricultural sector is expected to grow, driven by the increasing cost of equipment and the need for flexible financing options.
• Growth opportunity 5: Sustainable Farming Practices: Deere's commitment to sustainable farming practices aligns with the growing demand for environmentally friendly agricultural solutions. By developing equipment and technologies that reduce emissions, conserve resources, and minimize environmental impact, Deere can attract environmentally conscious customers and enhance its brand reputation. The market for sustainable agricultural solutions is expected to grow as consumers and governments prioritize environmental sustainability.

What Are DE's Competitive Advantages?

• Strong brand reputation and customer loyalty.
• Extensive dealer network.
• Technological innovation and leadership in precision agriculture.
• Diversified business model across multiple segments.
• Financial services arm that supports equipment sales.

What Does DE Do?

Founded in 1837 by John Deere, Deere & Company has evolved from a small blacksmith shop into a global leader in agricultural machinery and equipment. Initially focused on manufacturing steel plows that were better suited for the tough prairie soils of the American Midwest, the company expanded its product line to include tractors, combines, and other farm equipment. Over the years, Deere has strategically diversified its operations through four key segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment caters to large-scale grain growers with advanced machinery and technology solutions. The Small Agriculture and Turf segment serves smaller farms, dairy and livestock producers, and turf care professionals. The Construction and Forestry segment provides equipment for infrastructure development and timber harvesting. The Financial Services segment supports sales and leases of Deere equipment. Headquartered in Moline, Illinois, Deere & Company operates worldwide, serving customers across diverse geographic regions and agricultural landscapes. Deere's commitment to innovation and technological advancement has solidified its position as a dominant player in the agricultural machinery industry, competing with companies like Eaton Corporation plc and Honeywell International Inc.

What Products and Services Does DE Offer?

• Manufactures and distributes agricultural equipment worldwide.
• Provides mid-size tractors, combines, and harvesting equipment for grain growers.
• Offers utility tractors, lawn equipment, and implements for turf and utility customers.
• Supplies construction and forestry equipment, including loaders, excavators, and pavers.
• Finances sales and leases of agriculture, turf, and construction equipment.
• Provides wholesale financing to dealers of its equipment.
• Offers extended equipment warranties and retail revolving charge accounts.

How Does DE Make Money?

• Sales of agricultural machinery and equipment.
• Sales of construction and forestry equipment.
• Financial services, including financing and leasing.
• Extended equipment warranties and retail revolving charge accounts.

What Industry Does DE Operate In?

Deere & Company operates within the agricultural machinery industry, a sector driven by increasing global population, rising demand for food, and technological advancements. The industry is characterized by intense competition, with companies like Eaton Corporation plc and Honeywell International Inc. vying for market share. Precision agriculture, driven by data analytics and automation, is transforming farming practices, creating opportunities for companies like Deere to offer innovative solutions. The market is also influenced by government regulations, trade policies, and environmental concerns. Deere's focus on sustainable farming practices and technological innovation positions it to capitalize on these trends and maintain its competitive edge.

Who Are DE's Key Customers?

• Large-scale grain growers.
• Dairy and livestock producers.
• Turf and utility customers.
• Construction and forestry companies.
• Dealers of Deere equipment.

Over the past six months, Deere & Company insiders filed 30 SEC Form 4 transactions — 22 sales and 8 purchases. On net that is roughly 25K shares disposed (about $18.8M), a signal worth weighing alongside the fundamentals.

Quarterly Financial Performance: Deere & Company

Revenue for Deere & Company came in at $12.61B during Q3 FY2026, a 5.7% contraction versus the preceding quarter. The company recorded net income of $1.38B, with diluted EPS of $5.10. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Industrials. Across the four most recent quarters, DE averaged $4.50 in diluted EPS.

DE Valuation & Market Position

With a $183B market cap, Deere & Company sits in the large-cap segment of the market. Analyst price targets span from $570.00 to $804.00, with a consensus of $712.40. At the current price of $676.08, that implies approximately 5% upside potential. Relative to its peer group, DE's quantitative score of 60/100 is roughly in line with the peer average of 64/100.

Return on equity for Deere & Company stands at 18.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.5%, showing how much profit it generates from its asset base. DE trades at a trailing price-to-earnings ratio of 37.48, above the Industrials sector average of ~27.60x. Its free cash flow yield is 2.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.79 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 2.9%, the inverse of the P/E and a quick read on earnings relative to price.

Deere & Company's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.81 places it in the grey zone, a middle ground that warrants monitoring.

Deere & Company has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 11.1% above estimates on average.

Company Profile

Deere & Company operates in the Agricultural - Machinery industry within the Industrials sector. It is headquartered in Moline, US. The company is led by CEO John C. May. DE has traded publicly since 1972.

DE Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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