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Deere & Company
NYSE: DE Industrials Infra 🔎 Screen
S&P 500
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$175.5B
Market Cap
25.0
P/E
4.00
PEG
9.4%
ROCE
20.5%
ROE
2.46
D/E
20.6%
OPM
-4.3%
% from 52W High
77
α RS
🔍 DE is showing a high-conviction setup because it matches 10 of 37 tracked screener presets, RS Rating is 77, and it's within 4.3% of its 52-week high. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating 52W High
Sources
Conviction 10/37 · RS Rating 77 · 4.3% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for DE including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Deere & Company engages in the manufacture and distribution of various equipment worldwide.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding DE
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Manager Shares Value % of Fund Period
Cathie Wood ARK Investment Management 399.1K $224.8M 1.75% Mar 2026
Jim Simons Renaissance Technologies LLC 181.9K $102.5M 0.16% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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🎙 Management Tone Confident Specific ↑ Improving 4 quarters Full tone analysis in Intelligence →
In-line quarter Investor Presentation One-Pager? Q2 2026
Revenue
$13.369B
+5% YoY
Operating Income (Equipment Ops)
$1.986B
N/A (segments sum)
Operating Margin (Equipment Ops)
16.9%
N/A (not given YoY)
Net Income
$1.773B
-2% YoY
What Went Right
  • Small Ag & Turf sales up 16% YoY to $3.485B, operating margin 20.6%.
  • Construction & Forestry sales up 29% YoY to $3.79B, operating margin 14.8%, full-year sales guide raised to +20%.
  • Tariff refund of $272M lifted equipment ops margin by ~2.5 points.
  • Used large ag inventories down >50% from mid-2024 peak; combine inventories down mid-teens from peak.
What to Watch
  • Production & Precision Ag sales down 14% YoY, operating profit down 39% to $706M.
  • South America ag industry outlook revised to down ~15% from down 5% due to Brazil headwinds.
  • Direct tariff expense for FY2026 remains ~$1.2B (net ~$900M after refund), a ~3% margin headwind.
  • Elevated input costs (fertilizer, fuel) and high interest rates pressuring farmer margins globally.
Management Guidance
  • Full-year net income unchanged at $4.5B - $5.0B.
  • Production & Precision Ag net sales down 5-10% (unchanged), operating margin 11-13%.
  • Small Ag & Turf net sales up ~15% (unchanged), operating margin 13.5-15%.
  • Construction & Forestry net sales raised to up ~20%, operating margin raised to 10-12%.
  • Financial Services net income raised to ~$860M; effective tax rate 24-26%; cash flow from equipment ops $4.5-5.5B.
Investor Lens
The thesis is largely unchanged but slightly stronger on diversification. Large ag remains in trough but small ag and construction are outperforming, offsetting headwinds. Management maintained full-year guidance despite tariff and Brazil challenges, highlighting confidence in trough-year performance. The recovery narrative for 2027 is intact, supported by aging fleets and improving used inventory. Tariff mitigation through cost actions (no customer surcharges) and continued structural margin improvement versus prior cycles are key positives.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Diversified portfolio delivers in-line quarter despite ag headwinds.
Revenue
Total net sales and revenues rose 5% to $13.369B. Equipment net sales were $11.778B, up 5% YoY. Growth was driven by Small Ag & Turf (+16%) and Construction & Forestry (+29%), while Production & Precision Ag declined 14%.
Profitability
Net income attributable to Deere was $1.773B ($6.55 EPS), down 2% YoY from $1.804B ($6.64). Segment operating profits: PPA $706M (-39%), SAT $719M (+25%), C&F $561M (+48%).
Margins
Equipment operations margin was 16.9%, lifted ~2.5 points by a $272M IEEPA tariff refund. PPA margin 15.7%, SAT margin 20.6%, C&F margin 14.8%. Full-year tariff expense remains ~$1.2B (3% margin headwind).
Balance Sheet
Not discussed in detail. The company returned $635M to shareholders via buybacks and dividends in Q2. Cash flow from equipment ops guided at $4.5-5.5B for FY2026.
Key Risks
1) Tariff uncertainty: ongoing Section 122 and 232 tariffs create a $1.2B headwind; mitigation via cost actions not surcharges. 2) Brazil weakness: industry down 15%, Real strength, high interest rates, and input cost pressure. 3) Elevated input costs (fertilizer, fuel) and high interest rates globally continue to pressure farmer margins and delay replacement demand.
Outlook
Full-year net income guidance maintained at $4.5-5.0B. Management expects 2026 to be the bottom of the ag cycle with recovery in 2027. Back-half revenue should be higher than first half, with favorable price-cost comparisons in Q4.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-05-21
Second quarter net sales grew 5% year-over-year, with strong margins and a $272 million one-time tariff refund boosting results. Construction & Forestry and Small Ag & Turf segments offset Large Ag softness, while guidance for fiscal 2026 net income remains unchanged.
Q1 2026 Q1 2026 2026-02-19
First quarter results exceeded expectations with 13% revenue growth and strong performance across all segments, especially Small Ag, Turf, and Construction & Forestry. Fiscal 2026 guidance was raised, with net income now projected at $4.5–$5 billion, supported by robust order books and ongoing innovation.
Q4 2025 Q4 2025 2025-11-26
Fiscal 2025 saw resilient performance with $5B net income and strong margins despite market and tariff headwinds. FY26 guidance anticipates lower large ag sales but growth in small ag, turf, and construction, with continued focus on tech innovation and inventory management.
Q3 2025 Q3 2025 2025-08-14
Net sales and net income declined year-over-year amid challenging market conditions, but disciplined execution led to strong margins and significant inventory reductions. Fiscal 2025 guidance remains cautious, with ongoing tariff and trade uncertainties, but technology adoption and financial services support provide optimism.
Q2 2025 Q2 2025 2025-05-15
Q2 saw strong execution with an 18.8% margin despite a 16% sales decline and $100M in tariff headwinds. Fiscal 2025 guidance widened due to ongoing trade volatility, with $500M in expected tariff impacts and continued investment in innovation and U.S. manufacturing.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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