Deere & Co. (NYSE:DE), known by its John Deere brand, is a manufacturer of so many different products from recreational utility vehicles to lawn mowers and other agricultural equipment. Deere is a solid company that has been around for over 175 years, and it doesn't look as if it is going anywhere. Building a worldwide brand is never easy, but now that Deere has accomplished that feat, it can now continue to expand its product line, attracting more and new customers who wouldn't normally purchase its products.
Since 1986 DE has been increasing its dividend. This strong company has been rewarding its shareholders with dividend increase for almost 30 years. With a 2.53% dividend and a strong company outlook, it doesn't look as if this trend of increasing dividends will reverse.
- Warning! GuruFocus has detected 3 Warning Signs with DE. Click here to check it out.
- DE 15-Year Financial Data
- The intrinsic value of DE
- Peter Lynch Chart of DE
DE is solid but follows the same trend of the overall market as far as being a bit overvalued. Priced at about 3 times its book value and 36 times its free cash flow generating ability, DE is a little overpriced. Investors could be willing to look past the overvaluation in order to buy a great company, which is fine. I think it would be best to wait until the price moves back towards fair value in order to buy a great company at a great price, a win-win.