Company Overview
Deere & Co makes machinery and equipment used in agriculture and related work. The business is built around selling equipment and supporting that installed base over time. It operates at large scale, with a market value around USD 157 billion. For investors, the trade-off often sits between the company’s earning power and the balance-sheet load that comes with a capital-intensive model.
Analysis of recent data
FundamentalsIn its latest reported year (USD reporting), Deere generated USD 44.0 billion of revenue, with EBIT of USD 5.9 billion and net income of USD 6.0 billion. Revenue grew 23.9% versus the prior annual period, while trailing margins show 37.15% gross margin, 19.79% operating margin, and a 10.29% net profit margin.
Cash and leverage sit prominently beside those earnings. Cash was USD 8.0 billion against USD 32.9 billion of total debt, and the cash-flow proxy was USD 5.9 billion after adding USD 2.1 billion of depreciation and amortization and subtracting USD 848 million of capital spending. ROE over the trailing period was 18.93%, putting profitability alongside a balance sheet that remains meaningfully debt-funded.
Valuation
DCF / MultiplesAt USD 581.19 per share, the price sits above the DCF’s central estimate of USD 419.22, near the stronger-case value of USD 577.20, and above the weaker scenario of USD 268.61. The stock also trades at 32.55× trailing earnings and 18.42× EV/EBITDA, framing the current quote as a high-multiple setup relative to the DCF range.
Conclusion
TakeawayThe price puts little emphasis on balance-sheet heaviness. The case relies on cash staying resilient through cycles. Debt becomes uncomfortable if earnings soften. If margins hold, the business can carry the load. If they slip, valuation support looks thin.