DE Deere & Co

Deere & Company manufactures agricultural, construction, and forestry equipment and provides precision farming technology through its John Deere brand. Sector: Industrials.

Deere & Co (DE) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Assessing the quality of returns on invested capital, ROIC is 6.64%, WACC is 7.13%, and the economic spread is -0.49%. On balance, the company is not clearing their capital cost hurdle, meaning reinvestment may be diluting rather than compounding value. Supporting metrics show ROE at 19.48% and ROA at 4.26%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

The market currently prices the company at trailing P/E of 32.45, forward P/E of 31.30, PEG of 2.09. The gap between P/E and forward P/E is small, suggesting the valuation is not contingent on a near-term earnings step-change. The PEG ratio is consistent with a company that is reasonably valued on a growth basis — not cheap, but not obviously expensive either. The current ratio of 2.27 is in an acceptable range, reflecting reasonable short-term financial health. Valuation and liquidity together frame a company where the price paid today is a reasonable bet on earnings delivery — but not a margin-of-safety purchase at current levels.

Looking at margins from gross to free cash flow, gross margin sits at 30.75%, operating margin at 15.99%, and free cash flow margin at 7.74%. The gross margin reading is middling — acceptable, but leaving less room for error at the production level. At this level, operating margins reflect businesses that are scaling with discipline without dramatic cost pressure. The company's cash conversion is middle-of-the-road — sufficient for operational needs, but leaving limited surplus for discretionary allocation. Margins indicate a company that is operating effectively in some areas while still showing efficiency gaps in others.

Projected 12-month EPS growth of 3.7% is a constructive signal — measured earnings expansion supports the forward valuation case without relying on aggressive extrapolation. Zooming out from the valuation discussion, TTM revenue growth of 12.96% pointing to stable operational progress without outsized acceleration, while the estimated 12-month price change of 14.26%, where target prices point to mid-range appreciation potential from current levels. Anchoring to reported revenues provides discipline; analyst price targets add context about how the market currently values that operating reality. The path to realizing analyst-implied returns runs through revenue execution, margin stability, and a macro environment that doesn't undermine either. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The fundamental picture is not broken, but neither is it clearly compelling — a hold posture reflects the absence of an obvious catalyst for re-rating in either direction.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.