0.38%
13.29%
18.61%
29.04%
21.95%
27.52%
202.68%

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.

Market Data

Last Price 479.99
Change Percentage 0.38%
Open 475.75
Previous Close 478.16
Market Cap ( Millions) 130726
Volume 908332
Year High 485.84
Year Low 340.2
M A 50 439.48
M A 200 399.87

Financial Ratios

FCF Yield 3.39%
Dividend Yield 1.26%
ROE 31.33%
Debt / Equity 286.67%
Net Debt / EBIDTA 429.74%
Price To Book 5.8
Price Earnings Ratio 18.66
Price To FCF 29.52
Price To sales 2.56
EV / EBITDA 13.96

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Production & Precision Agriculture

Expected Growth : 2.5 %

What the company do ?

Production & Precision Agriculture from Deere & Company refers to the use of advanced technology, such as GPS, sensors, and data analytics, to optimize crop yields, reduce waste, and promote sustainable farming practices.

Why we expect these perspectives ?

Deere & Company's Production & Precision Agriculture segment growth of 2.5% is driven by increasing adoption of precision farming technologies, rising global demand for food and agricultural products, and growing need for sustainable farming practices. Additionally, government initiatives and investments in agricultural infrastructure, as well as Deere's strategic acquisitions and product innovations, contribute to the segment's growth.

Segment nΒ°2 -> Construction and Forestry

Expected Growth : 1.8 %

What the company do ?

Construction and Forestry from Deere & Company provides equipment and technology for construction, forestry, and roadbuilding industries, offering a range of products and services to support customer needs.

Why we expect these perspectives ?

Deere & Company's Construction and Forestry segment growth of 1.8% is driven by increasing infrastructure investments, rising demand for housing and non-residential construction, and growing adoption of precision forestry technologies. Additionally, the company's focus on product innovation, cost management, and strategic acquisitions also contribute to the segment's growth.

Segment nΒ°3 -> Small Agriculture & Turf

Expected Growth : 1.2 %

What the company do ?

Small Agriculture & Turf from Deere & Company provides equipment and services for small-scale farmers, landscapers, and golf course managers to maintain and care for their properties.

Why we expect these perspectives ?

Deere & Company's Small Agriculture & Turf segment growth of 1.2% is driven by increasing global food demand, government subsidies for sustainable farming practices, and rising adoption of precision agriculture technology. Additionally, growing popularity of outdoor recreational activities and investments in turf care equipment for sports fields and golf courses contribute to the segment's growth.

Segment nΒ°4 -> Financial Services

Expected Growth : 1.5 %

What the company do ?

Deere & Company's Financial Services provide financing solutions for customers to acquire John Deere equipment, offering loans, leases, and other financial products.

Why we expect these perspectives ?

Deere & Company's Financial Services segment growth of 1.5% is driven by increasing demand for agricultural equipment, favorable interest rates, and a strong used equipment market. Additionally, the company's financing options and leasing programs contribute to growth, as well as its expanding presence in emerging markets.

Segment nΒ°5 -> Other

Expected Growth : 1.0 %

What the company do ?

The 'Other' segment from Deere & Company includes revenue from John Deere Financial, which provides financial services, and other businesses not related to agriculture, construction, or forestry.

Why we expect these perspectives ?

Deere & Company's 'Other' segment growth is driven by increasing demand for forestry and construction equipment, as well as growing sales of aftermarket parts and attachments. Additionally, the company's focus on precision agriculture and technology solutions contributes to growth, along with expansion into emerging markets and strategic acquisitions.

Deere & Company Products

Product Range What is it ?
Agricultural Tractors Deere & Company offers a wide range of agricultural tractors suitable for various farming applications, from small-scale to large-scale farming operations.
Combine Harvesters Deere & Company's combine harvesters are designed for efficient and effective harvesting of crops such as wheat, corn, soybeans, and more.
Forage Harvesters Deere & Company's forage harvesters are designed for harvesting and processing forage crops such as corn, alfalfa, and grass.
Hay and Forage Equipment Deere & Company offers a range of hay and forage equipment, including balers, mowers, and tedders.
Lawn and Garden Tractors Deere & Company's lawn and garden tractors are designed for residential and commercial lawn care applications.
Compact Utility Tractors Deere & Company's compact utility tractors are designed for small-scale farming, landscaping, and construction applications.
Skid-Steer Loaders Deere & Company's skid-steer loaders are designed for construction, landscaping, and agricultural applications.
Forestry Equipment Deere & Company's forestry equipment includes feller bunchers, harvesters, and skidders for logging and forestry applications.
Golf and Turf Equipment Deere & Company's golf and turf equipment includes mowers, aerators, and other equipment for golf courses, parks, and sports fields.
Construction and Forestry Technology Deere & Company's construction and forestry technology includes precision agriculture and construction solutions.

Deere & Company's Porter Forces

Deere & Company faces moderate threat from substitutes, as customers have limited alternatives for agricultural and construction equipment. However, the company's strong brand reputation and quality products help mitigate this threat.

Deere & Company's customers have limited bargaining power due to the company's strong market position and diverse customer base. Additionally, the company's products are often customized to meet specific customer needs, reducing the bargaining power of customers.

Deere & Company's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for critical components. However, the company's strong relationships with suppliers and its ability to negotiate prices help mitigate this threat.

Deere & Company faces a low threat from new entrants due to the high barriers to entry in the agricultural and construction equipment industries. The company's strong brand reputation, extensive distribution network, and significant research and development investments create significant entry barriers for new competitors.

Deere & Company operates in a highly competitive industry, with several established players competing for market share. The company faces intense rivalry from competitors such as Caterpillar, Kubota, and AGCO, which can lead to pricing pressure and increased marketing expenses.

Capital Structure

Value
Debt Weight 74.43%
Debt Cost 4.96%
Equity Weight 25.57%
Equity Cost 9.20%
WACC 6.05%
Leverage 291.08%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
PCAR PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, …
PAYX Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It …
CAT Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold …
REVG REV Group, Inc. designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, Europe, Africa, and internationally. It operates through three segments: Fire …
TDG TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
479.99$
Current Price
479.99$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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