NYSE · Industrials

Deere & Company

DE · Farm & Heavy Construction Machinery

$589.24

▲ 0.77 (0.13%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 36.9%

Operating Margin 20.8%

Net Income Margin 13.5%

Fin. Health

B⤢

Years to Pay Off Debt 36.2 yrs

Working Capital vs Long-Term Debt $554M

Working Capital $42.8B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 5.80x

Cash Flow

C⤢

Free Cash Flow $874M

CapEx % of Net Income 59.7%

Owner Earnings $3.4B

Profitability

Gross Profit Margin 36.9%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 20.8%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 13.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 36.2 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $554M

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $42.8B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $874M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 59.7%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $3.4B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Deere & Company

Deere & Company engages in the manufacture and distribution of 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 four-wheel-drive track and row crop tractors, harvesters, cotton pickers and strippers, sugarcane harvesters and loaders, soil preparation, tillage, seeding, and crop care equipment, as well as application equipment, including sprayers and nutrient management, soil preparation machinery, and related attachments and service parts. The Small Agriculture and Turf segment offers specialty, utility, and compact tractors; self-propelled forage harvesters and attachments; rotary mowers, hay and forage equipment, and utility vehicles; turf and utility equipment, including riding lawn, commercial mowing, and 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. The Construction and Forestry segment provides backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, skid-steer loaders, milling machines, recyclers, slipform and asphalt pavers, surface miners, compactors, tandem, static rollers, mobile crushers and screens, mobile and stationary asphalt plants, and log harvesters; and road building and rehabilitation 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. Deere & Company has a strategic partnership with Tarter USA to develop and produce flex wing rotary cutters. The company was founded in 1837 and is headquartered in Moline, Illinois.

Market Data

Market Cap $159.1B

Enterprise Value $197.6B

P/E (TTM) 33.33

Dividend Yield 1.10%

Exchange NYSE

Key Margins

Gross Profit 36.9%

Operating Margin 20.8%

Net Margin 13.5%

Company Info

Sector Industrials

Industry Farm & Heavy Construction Machinery

Employees 73100

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Deere & Company at $589.24.

The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.

At $589.24, the stock trades at a 382% premium to its Graham Number of $122.32. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q2 2026	Q4 2025
Gross Profit %	36.9%▲	32.6%
Operating Margin %	20.8%▲	15.7%
Net Income %	13.5%▲	8.8%
Diluted EPS	6.55▲	3.93

Balance Sheet Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Total Assets	$107.0B	$106.0B	N/A
Total Debt	$64.2B▼	$64.2B•	N/A
Working Capital	$42.8B▲	$42.4B•	N/A
Years to Pay Debt	36.19	60.33	N/A

Cash Flow Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Free Cash Flow	$874M▼	$2.6B•	N/A
Owner Earnings	$3.4B	$3.0B	N/A
CapEx % of Net Income	59.7%	128.4%	N/A

Income Statement

	2026	2025
Tax Rate For Calcs	0	0
Normalized EBITDA	3,599,000	2,748,000
Net Income From Continuing Operation Net Minority Interest	1,773,000	1,065,000
Reconciled Depreciation	594,000	561,000
Reconciled Cost Of Revenue	8,266,000	8,155,000
EBITDA	3,599,000	2,748,000
EBIT	3,005,000	2,187,000
Net Interest Income	-712,000	-762,000
Interest Expense	712,000	762,000
Normalized Income	1,773,000	1,065,000
Net Income From Continuing And Discontinued Operation	1,773,000	1,065,000
Total Expenses	10,364,000	10,199,000
Diluted Average Shares	270,800	271,100
Basic Average Shares	270,100	270,300
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	1,773,000	1,065,000
Net Income Common Stockholders	1,773,000	1,065,000
Net Income	1,773,000	1,065,000
Minority Interests	3,000	5,000
Net Income Including Noncontrolling Interests	1,770,000	1,060,000
Net Income Continuous Operations	1,770,000	1,060,000
Earnings From Equity Interest Net Of Tax	-5,000
Tax Provision	518,000	354,000
Pretax Income	2,293,000	1,425,000
Other Income Expense	277,000	292,000
Other Non Operating Income Expenses	277,000	235,000
Net Non Operating Interest Income Expense	-712,000	-762,000
Interest Expense Non Operating	712,000	762,000
Operating Income	2,728,000	1,895,000
Operating Expense	2,098,000	2,044,000
Other Operating Expenses	306,000	-415,000
Research And Development	583,000	680,000
Selling General And Administration	1,209,000	854,000
Gross Profit	4,826,000	3,939,000
Cost Of Revenue	8,266,000	8,155,000
Total Revenue	13,092,000	12,094,000
Operating Revenue	13,092,000	12,094,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	266,494	266,079
Ordinary Shares Number	269,937	270,352
Share Issued	536,431	536,431
Net Debt	55,876,000	55,621,000
Total Debt	64,162,000	64,250,000
Tangible Book Value	21,918,000	20,400,000
Invested Capital	91,187,000	89,847,000
Working Capital	42,815,000	42,447,000
Net Tangible Assets	21,918,000	20,400,000
Capital Lease Obligations	381,000	353,000
Common Stock Equity	27,406,000	25,950,000
Total Capitalization	69,667,000	69,494,000
Total Equity Gross Minority Interest	27,460,000	26,007,000
Minority Interest	54,000	57,000
Stockholders Equity	27,406,000	25,950,000
Gains Losses Not Affecting Retained Earnings	-2,768,000	-3,032,000
Other Equity Adjustments	-2,768,000	-3,032,000
Treasury Stock	36,831,000	36,362,000
Retained Earnings	61,228,000	59,676,000
Capital Stock	5,777,000	5,668,000
Common Stock	5,777,000	5,668,000
Total Liabilities Net Minority Interest	79,541,000	79,989,000
Total Non Current Liabilities Net Minority Interest	45,664,000	47,534,000
Other Non Current Liabilities	1,644,000	235,000
Derivative Product Liabilities	538,000	389,000
Employee Benefits	799,000	2,932,000
Non Current Pension And Other Postretirement Benefit Plans		1,355,000	2,004,000
Non Current Deferred Liabilities	422,000	434,000
Non Current Deferred Taxes Liabilities	422,000	434,000
Long Term Debt And Capital Lease Obligation	42,261,000	43,544,000
Long Term Debt	42,261,000	43,544,000
Current Liabilities	33,877,000	32,455,000
Other Current Liabilities			1,827,000
Current Deferred Liabilities	1,498,000	1,371,000
Current Deferred Revenue	1,498,000	1,371,000
Current Debt And Capital Lease Obligation	21,901,000	20,706,000
Current Capital Lease Obligation	381,000	353,000
Current Debt	21,520,000	20,353,000
Other Current Borrowings	14,809,000	15,484,000
Commercial Paper	6,030,000	4,218,000
Current Notes Payable	681,000	651,000
Pensionand Other Post Retirement Benefit Plans Current		120,000	133,000
Payables And Accrued Expenses	10,478,000	10,258,000
Current Accrued Expenses	5,264,000	5,331,000
Interest Payable	558,000	524,000
Payables	5,214,000	4,927,000
Other Payable	349,000	334,000
Dueto Related Parties Current	29,000	10,000
Dividends Payable	442,000	443,000
Total Tax Payable	1,090,000	1,155,000
Accounts Payable	3,304,000	2,985,000
Total Assets	107,001,000	105,996,000
Total Non Current Assets	30,309,000	31,094,000
Other Non Current Assets	3,461,000	736,000
Defined Pension Benefit	3,450,000	3,273,000
Non Current Deferred Assets	2,361,000	2,701,000
Non Current Deferred Taxes Assets	2,361,000	2,284,000
Non Current Accounts Receivable		1,935,000	2,288,000
Financial Assets		393,000	357,000
Investments And Advances		510,000	122,000
Investmentin Financial Assets
Available For Sale Securities
Long Term Equity Investment		510,000	122,000
Investmentsin Associatesat Cost		510,000	122,000
Goodwill And Other Intangible Assets	5,488,000	5,550,000
Other Intangible Assets	975,000	1,362,000
Goodwill	4,513,000	4,188,000
Net PPE	15,549,000	15,996,000
Accumulated Depreciation		-12,011,000	-11,161,000
Gross PPE	15,549,000	28,007,000
Construction In Progress		2,280,000	2,455,000
Other Properties	15,549,000	11,900,000
Machinery Furniture Equipment		7,684,000	7,125,000
Buildings And Improvements		5,679,000	5,168,000
Land And Improvements		464,000	390,000
Current Assets	76,692,000	74,902,000
Hedging Assets Current		72,000	254,000
Assets Held For Sale Current			2,944,000
Restricted Cash		257,000	193,000
Prepaid Assets		259,000	238,000
Inventory	8,188,000	7,508,000
Inventories Adjustments Allowances	-2,677,000	-2,721,000
Other Inventories		102,000	106,000
Finished Goods	6,119,000	5,769,000
Work In Process	1,079,000	956,000
Raw Materials	3,667,000	3,402,000
Receivables	59,169,000	57,119,000
Receivables Adjustments Allowances		-69,000	-66,000
Other Receivables	51,598,000	51,406,000
Duefrom Related Parties Current		396,000	3,000
Accounts Receivable	7,571,000	5,386,000
Allowance For Doubtful Accounts Receivable		-69,000	-66,000
Gross Accounts Receivable		5,386,000	5,392,000
Cash Cash Equivalents And Short Term Investments	9,335,000	9,687,000
Other Short Term Investments	1,430,000	1,411,000
Cash And Cash Equivalents	7,905,000	8,276,000

Cash Flow

	2026	2025	2024
Free Cash Flow	874,000	2,628,000
Repurchase Of Capital Stock	-198,000	-2,000
Repayment Of Debt	-2,575,000	-2,461,000
Issuance Of Debt	4,917,000	2,454,000
Capital Expenditure	-1,058,000	-1,367,000
End Cash Position	8,135,000	8,533,000
Beginning Cash Position	7,073,000	8,847,000
Effect Of Exchange Rate Changes	-4,000	-31,000
Changes In Cash	1,066,000	-283,000
Financing Cash Flow	863,000	-3,022,000
Cash Flow From Continuing Financing Activities	863,000	-3,022,000
Net Other Financing Charges	4,000	-36,000
Cash Dividends Paid	-437,000	-438,000
Common Stock Dividend Paid	-437,000	-438,000
Net Common Stock Issuance	-198,000	-2,000
Common Stock Payments	-198,000	-2,000
Net Issuance Payments Of Debt	1,494,000	-2,546,000
Net Short Term Debt Issuance	1,398,000	-479,000
Short Term Debt Payments
Net Long Term Debt Issuance	96,000	-2,067,000
Long Term Debt Payments	-2,575,000	-4,521,000
Long Term Debt Issuance	2,671,000	2,454,000
Investing Cash Flow	-1,729,000	-1,256,000
Cash Flow From Continuing Investing Activities	-1,729,000	-1,256,000
Net Other Investing Changes	-833,000	-408,000
Net Investment Purchase And Sale	-41,000	22,000
Sale Of Investment	114,000	127,000
Purchase Of Investment	-155,000	-105,000
Net Business Purchase And Sale		-12,000
Purchase Of Business		-12,000
Net PPE Purchase And Sale	-416,000	-858,000
Sale Of PPE	642,000	509,000
Purchase Of PPE	-1,058,000	-1,367,000
Operating Cash Flow	1,932,000	3,995,000
Cash Flow From Continuing Operating Activities	1,932,000	3,995,000
Change In Working Capital	-286,000	2,254,000
Change In Other Working Capital	-13,000	-41,000
Change In Payables And Accrued Expense	1,153,000	466,000
Change In Inventory	8,000	251,000
Change In Receivables	-1,434,000	1,578,000
Changes In Account Receivables	-1,434,000	1,578,000
Other Non Cash Items	-179,000	209,000
Stock Based Compensation	28,000	47,000
Provisionand Write Offof Assets	91,000	38,000
Asset Impairment Charge		12,000	72,000
Deferred Tax	-86,000	-186,000
Deferred Income Tax	-86,000	-186,000
Depreciation Amortization Depletion	594,000	561,000
Depreciation And Amortization	594,000	561,000
Net Income From Continuing Operations	1,770,000	1,060,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $12.5B ▲ $13.1B +4.5%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 39.2% ▼ 36.9% -2.4pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 21.8% ▼ 20.8% -0.9pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 14.4% ▼ 13.5% -0.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$13.1B/qtr (≈$52.4B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

2.26x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$874M

vs Positive

Operating Cash Flow

$1.9B

Latest quarter · Buffett's cash reality check

ROIC

2.9%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

5.8x

Net Assets: $27.5B

Peers & Industry

No auto-detected peers for Farm & Heavy Construction Machinery. You can manually compare DE against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.16%

Low — management has little skin in the game

Return on Equity (ROE)

6.5%

Weak — poor returns on equity

Return on Assets (ROA)

1.7%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$1.1B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+2.2% YoY

Debt is roughly stable

Leadership Team

John May II

Chairman, President & CEO

Age 56

Pay: $8,282,891

0.467% of net income

Ryan Campbell

President of Worldwide Construction, Forestry & Power Systems

Age 50

Pay: $2,870,301

0.162% of net income

Deanna Kovar

President of Worldwide Ag & Turf Div, Production and Precision Ag and Americas and Australia

Age 46

Pay: $2,926,661

0.165% of net income

Brent Norwood

CFO & Senior VP

Age 43

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	6.79%	18,315,823
Vanguard Capital Management LLC	6.12%	16,525,075
Capital World Investors	4.55%	12,272,894
State Street Corporation	3.93%	10,611,381
JPMORGAN CHASE & CO	3.52%	9,490,443
Price (T.Rowe) Associates Inc	2.92%	7,884,662
FMR, LLC	2.42%	6,529,794
Geode Capital Management, LLC	2.11%	5,685,963

⚠️ Very high debt-to-equity — leverage risk

Risk Analysis

Beta (Market Risk)

0.93

Low volatility — more stable than the market

Short Interest

1.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

3.76x

High leverage — significant financial risk

Current Ratio

2.21x

Strong liquidity — Graham approved

52-Week Price Range

Low: $433.00 Current: $589.24 High: $674.19

Currently at 65% of 52-week range

Deere & Company

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis