Hide

FocusBar

FeedbackFeedback
Subscribe to Premium Member
87.18 (1y: +15%)
Market Cap 33.83 B P/E(ttm) 10.70
Enterprise Value 61.32 B P/B 4.90
DE- NYSE (USA)
Deere & Co
  • Currently 3.5/5
Business Predictability Rank: 3.5-Star
Back Testing Results:
Average gain of all 3.5-Star stocks: 9.3% per year.
% of Stocks that are in still loss if held for 10yrs: 9%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$87.18
Switch to:

GuruFocus Financial Strength Rank measures how strong a companyย’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry		 vs
history
Cash to Debt 0.189
DE's Cash to Debt is ranked lower than
87% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.09 vs. DE: 0.189 )
DE' s 10-Year Cash to Debt Range
Min: 0.04   Max: 0.31
Current: 0.19
0.04
0.31
Equity to Asset 0.103
DE's Equity to Asset is ranked lower than
95% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 0.40 vs. DE: 0.103 )
DE' s 10-Year Equity to Asset Range
Min: 0.09   Max: 0.22
Current: 0.1
0.09
0.22
Interest Coverage No Debt
DE's Interest Coverage is ranked higher than
62% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 10000.00 vs. DE: No Debt )
DE' s 10-Year Interest Coverage Range
Min: 1   Max: No Debt
Current: No Debt
F-Score: 5
Z-Score: 1.91
M-Score: -2.26
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry		 vs
history
Operating margin (%) 13.10
DE's Operating margin (%) is ranked higher than
77% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 6.60 vs. DE: 13.10 )
DE' s 10-Year Operating margin (%) Range
Min: 5.6   Max: 15.9
Current: 13.1
5.6
15.9
Net-margin (%) 8.5
DE's Net-margin (%) is ranked higher than
72% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 4.20 vs. DE: 8.5 )
DE' s 10-Year Net-margin (%) Range
Min: -0.5   Max: 8.7
Current: 8.5
-0.5
8.7
ROE (%) 44.8
DE's ROE (%) is ranked higher than
98% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 8.00 vs. DE: 44.8 )
DE' s 10-Year ROE (%) Range
Min: -1.6   Max: 44.8
Current: 44.8
-1.6
44.8
ROA (%) 5.4
DE's ROA (%) is ranked higher than
65% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 3.60 vs. DE: 5.4 )
DE' s 10-Year ROA (%) Range
Min: -0.3   Max: 5.8
Current: 5.4
-0.3
5.8
ROC (Joel Greenblatt) (%) 13.50
DE's ROC (Joel Greenblatt) (%) is ranked higher than
53% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 11.60 vs. DE: 13.50 )
DE' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 4.9   Max: 18
Current: 13.5
4.9
18
Revenue Growth (%) 13.4
DE's Revenue Growth (%) is ranked higher than
95% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.50 vs. DE: 13.4 )
DE' s 10-Year Revenue Growth (%) Range
Min: 3.5   Max: 13.4
Current: 13.4
3.5
13.4
EBITDA Growth (%) 28.7
DE's EBITDA Growth (%) is ranked higher than
97% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 8.30 vs. DE: 28.7 )
DE' s 10-Year EBITDA Growth (%) Range
Min: -10.8   Max: 28.7
Current: 28.7
-10.8
28.7
EPS Growth (%) 38.7
DE's EPS Growth (%) is ranked higher than
90% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 13.35 vs. DE: 38.7 )
DE' s 10-Year EPS Growth (%) Range
Min: -13   Max: 44.9
Current: 38.7
-13
44.9
ยป DE's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

DE Guru Trades in Q2 2012

Jim Chanos 223,850 sh (+264.87%)
Steven Cohen 610,300 sh (+63.92%)
Manning & Napier Advisors, Inc 109,933 sh (+40.8%)
Tom Russo 12,350 sh (+20.78%)
Scott Black 85,181 sh (+11.78%)
Ken Heebner Sold Out
Paul Tudor Jones Sold Out
Ray Dalio Sold Out
PRIMECAP Management 1,987,900 sh (-0.02%)
Mario Gabelli 1,629,018 sh (-0.82%)
Chris Davis 163,567 sh (-4.69%)
Dodge & Cox 33,924 sh (-7.37%)
Pioneer Investments 1,102,150 sh (-19.54%)
Ken Fisher 23,438 sh (-99.56%)
» More
Q3 2012

DE Guru Trades in Q3 2012

Warren Buffett 3,978,767 sh (New)
Louis Moore Bacon 20,000 sh (New)
Robert Olstein 36,000 sh (New)
Jeremy Grantham 5,200 sh (New)
Steven Cohen 674,588 sh (+10.53%)
Tom Russo 12,450 sh (+0.81%)
Pioneer Investments Sold Out
PRIMECAP Management 1,986,800 sh (-0.06%)
Mario Gabelli 1,625,986 sh (-0.19%)
Scott Black 84,396 sh (-0.92%)
Dodge & Cox 33,224 sh (-2.06%)
Chris Davis 156,755 sh (-4.16%)
Manning & Napier Advisors, Inc 90,501 sh (-17.68%)
Jim Chanos 160,650 sh (-28.23%)
Ken Fisher 14,736 sh (-37.13%)
» More
Q4 2012

DE Guru Trades in Q4 2012

Paul Tudor Jones 5,700 sh (New)
Jim Simons 152,100 sh (New)
Jim Chanos 174,450 sh (+8.59%)
Warren Buffett 3,978,767 sh (unchged)
Tom Russo 12,450 sh (unchged)
PRIMECAP Management 1,986,800 sh (unchged)
Robert Olstein 36,000 sh (unchged)
Jeremy Grantham 6,200 sh (unchged)
Louis Moore Bacon Sold Out
Scott Black 84,061 sh (-0.4%)
Dodge & Cox 32,434 sh (-2.38%)
Chris Davis 145,506 sh (-7.18%)
Mario Gabelli 1,486,210 sh (-8.6%)
Manning & Napier Advisors, Inc 71,904 sh (-20.55%)
Ken Fisher 8,394 sh (-43.04%)
Steven Cohen 7,130 sh (-98.94%)
» More
Q1 2013

DE Guru Trades in Q1 2013

Ray Dalio 25,718 sh (New)
Bill Frels 2,725 sh (New)
John Buckingham 57,746 sh (New)
Jeremy Grantham 18,000 sh (+190.32%)
Paul Tudor Jones 14,100 sh (+147.37%)
Robert Olstein 52,000 sh (+44.44%)
Steven Cohen 9,908 sh (+38.96%)
Scott Black 105,257 sh (+25.22%)
PRIMECAP Management 1,989,100 sh (+0.12%)
Warren Buffett 3,978,767 sh (unchged)
Jim Simons Sold Out
Mario Gabelli 1,485,002 sh (-0.08%)
Tom Russo 12,405 sh (-0.36%)
Dodge & Cox 32,034 sh (-1.23%)
Chris Davis 141,288 sh (-2.9%)
Manning & Napier Advisors, Inc 69,036 sh (-3.99%)
Jim Chanos 163,650 sh (-6.19%)
Ken Fisher 5,619 sh (-33.06%)
» More
» Details

Insider Trades

Latest Guru Trades with DE

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Scott Black 2013-03-31 Add 25.22%0.24%$85.55 - $95.05 $ 87.18-3%105257
Ray Dalio 2013-03-31 New Buy0.02%$85.55 - $95.05 $ 87.18-3%25718
Warren Buffett 2012-09-30 New Buy0.44%$73.65 - $82.72 $ 87.1812%3978767
Scott Black 2012-06-30 Add 11.78%0.12%$70.8 - $83.58 $ 87.1812%85181
Ray Dalio 2012-06-30 Sold Out 0.1%$70.8 - $83.58 $ 87.1812%0
Ray Dalio 2012-03-31 Add 154.51%0.06%$79.21 - $89.05 $ 87.1812%80218
PRIMECAP Management 2011-12-31 Reduce -34.26%0.12%$61.72 - $78.73 $ 87.1818%1988300
Ray Dalio 2011-12-31 Add 362.28%0.03%$61.72 - $78.73 $ 87.1818%31518
Ray Dalio 2011-09-30 Reduce -77.51%0.03%$67.05 - $86.44 $ 87.1814%6818
Mario Gabelli 2011-03-31 Reduce -49.16%1.17%$83.02 - $95.86 $ 87.18-4%1739984
Premium More recent guru trades are included for Premium Members only!!

Top Ranked Articles about Deere & Co

My Favorite Industrial Dividend Stocks With Low Forward P/E
May 11, 2013
The cheapest large cap industrial dividend stocks, measured by the lowest forward P/E, are valuated between 8.27 and 14.08. Sixteen of the 20 cheapest industrial stocks have a current buy or better rating. Read more...
Harvest Gains on a Quality Name while Mitigating Risk
March 24, 2013
Harvest Nice Gains while Offsetting Risk

Basic option selling can reward investors while also mitigating some degree of risk. This effect is magnified when writing both calls and puts with the same expiration date and on the same underlying shares.

This is true because at least one of the option buyers has to be wrong when expiration day rolls around. If the shares are above the strike price when the option expires they cannot also be below that same number. In many cases the stock in question may finish close enough to the chosen strike price that both call and put buyers end up losing money.

Selecting a good underlying stock is critical. An undervalued company is more likely to go up over time. Shares that pay dividends create income which reduces absolute risk and dampens downside.

Agricultural equipment manufacturer Deere (DE) provides a great vehicle for buy/write investors after pulling back from a January high of $95.60 to last weekโ€™s close at $87.72. The companyโ€™s long-term results have been stellar.



Deere now trades for just 10.3 times the projected EPS for the FY ending this October. DEโ€™s quarterly distribution was raised to 51 cents recently putting the current yield at an attractive 2.33%. The next ex-dividend date comes on Tuesday, March 26.

Buying shares at $87.72 while selling Jan. 18, 2014 $87.50 calls and puts makes for a healthy combination play. The best-case outcome will be obtained if the shares simply remain unchanged early next year.



Note: Iโ€™m counting four quarterly dividends if DE remains below the strike price. I assumed just three in the prior, best-case scenario, due to potential early call exercise if DE is trading well above $87.50.

A quick glance at the chart below shows that Deere has spent most of the past 15 months well into profitable territory based on the break-even point of $79.32.



The near-the-money buy/write combination allows for a greater than 21% total return while protecting against the first $8.40 per share (-9.5%) of loss if things donโ€™t go as well as expected.

Disclosure: Long DE shares

Read more...
Guru Stocks at 52-Week Highs: CMCSA, DE, CPB, and BAX
January 28, 2013
According to GuruFocus list of 52-week highs, these Guru stocks are trading at or near its highest price of the last 52 week. Read more...
How to Apply the Shiller P/E to Individual Stocks
June 27, 2012
- How To Apply The Shiller P/E To Individual Stocks
Shiller P/E, invented by Yale professor Robert Shiller, has been very successful in evaluating current market valuation and predicting future market returns. It is a great complement of the market valuation based on the ratio of total market cap over GDP. In this article we would like to discuss the interesting aspects of how to apply the Shiller P/E to individual companies. In the new improved 10-year financial page on GuruFocus, the stockโ€™s historical Shiller P/E ratio was added. A daily chart will be displayed if you click on the row of data. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 10.70
DE's P/E(ttm) is ranked lower than
1123594% of the 89 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 17.30 vs. DE: 10.70 )
DE' s 10-Year P/E(ttm) Range
Min: 5.86   Max: 49.61
Current: 10.7
5.86
49.61
P/B 4.90
DE's P/B is ranked lower than
999999% of the 100 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.51 vs. DE: 4.90 )
DE' s 10-Year P/B Range
Min: 1.65   Max: 6.2
Current: 4.9
1.65
6.2
P/S 0.94
DE's P/S is ranked lower than
999999% of the 100 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 0.78 vs. DE: 0.94 )
DE' s 10-Year P/S Range
Min: 0.39   Max: 1.74
Current: 0.94
0.39
1.74
EV-to-EBIT 12.2
DE's EV-to-EBIT is ranked lower than
1162790% of the 86 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 13.20 vs. DE: 12.2 )
DE' s 10-Year EV-to-EBIT Range
Min: 7.3   Max: 41.2
Current: 12.2
7.3
41.2
PEG 0.8
DE's PEG is ranked lower than
2325579% of the 43 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.56 vs. DE: 0.8 )
DE' s 10-Year PEG Range
Min: 0.35   Max: 44.63
Current: 0.8
0.35
44.63
Shiller P/E 15.6
DE's Shiller P/E is ranked lower than
100% of the Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: vs. DE: 15.6 )
DE' s 10-Year Shiller P/E Range
Min: 7.46   Max: 36.67
Current: 15.6
7.46
36.67

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 2.17
DE's Dividend Yield is ranked lower than
1388888% of the 72 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.45 vs. DE: 2.17 )
DE' s 10-Year Dividend Yield Range
Min: 0.99   Max: 4.27
Current: 2.17
0.99
4.27
Dividend Payout 0.23
DE's Dividend Payout is ranked lower than
1754384% of the 57 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 0.30 vs. DE: 0.23 )
DE' s 10-Year Dividend Payout Range
Min: 0.19   Max: 0.86
Current: 0.23
0.19
0.86
Dividend growth (3y) 12.4
DE's Dividend growth (3y) is ranked lower than
4999995% of the 20 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 14.00 vs. DE: 12.4 )
DE' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 15.4
Current: 12.4
0
15.4
Yield on cost (5-Year) 4.33
DE's Yield on cost (5-Year) is ranked lower than
1369862% of the 73 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.46 vs. DE: 4.33 )
DE' s 10-Year Yield on cost (5-Year) Range
Min: 1.95   Max: 8.4
Current: 4.33
1.95
8.4
Share Buyback Rate 1.4
DE's Share Buyback Rate is ranked lower than
5263153% of the 19 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 0.40 vs. DE: 1.4 )
DE' s 10-Year Share Buyback Rate Range
Min: 3   Max: -1.6
Current: 1.4

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 1.3
DE's Price/Net Current Asset Value is ranked lower than
1030927% of the 97 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 3.60 vs. DE: 1.3 )
DE' s 10-Year Price/Net Current Asset Value Range
Min: 0.8   Max: 2
Current: 1.3
0.8
2
Price/Tangible Book 5.8
DE's Price/Tangible Book is ranked lower than
1030927% of the 97 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.70 vs. DE: 5.8 )
DE' s 10-Year Price/Tangible Book Range
Min: 2.4   Max: 6.4
Current: 5.8
2.4
6.4
Price/DCF (Projected) 3.3
DE's Price/DCF (Projected) is ranked lower than
2325579% of the 43 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.40 vs. DE: 3.3 )
DE' s 10-Year Price/DCF (Projected) Range
Min: 0.8   Max: 2.9
Current: 3.3
0.8
2.9
Price/Median PS Value 1
DE's Price/Median PS Value is ranked lower than
1010100% of the 99 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.10 vs. DE: 1 )
DE' s 10-Year Price/Median PS Value Range
Min: 0.7   Max: 1.6
Current: 1
0.7
1.6
Price/Peter Lynch Fair Value 0.9
DE's Price/Peter Lynch Fair Value is ranked lower than
3999996% of the 25 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 0.90 vs. DE: 0.9 )
DE' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.5   Max: 3.6
Current: 0.9
0.5
3.6
Price/Graham Number 1.7
DE's Price/Graham Number is ranked lower than
1123594% of the 89 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 1.30 vs. DE: 1.7 )
DE' s 10-Year Price/Graham Number Range
Min: 1.1   Max: 2.8
Current: 1.7
1.1
2.8
Earnings Yield (Greenblatt) 8.20
DE's Earnings Yield (Greenblatt) is ranked lower than
1075268% of the 93 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 7.20 vs. DE: 8.20 )
DE' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.4   Max: 13.7
Current: 8.2
2.4
13.7
Forward Rate of Return (Yacktman) 12.26
DE's Forward Rate of Return (Yacktman) is ranked lower than
2777775% of the 36 Companies
in the Global Farm & Construction Equipment industry.

( Industry Median: 12.34 vs. DE: 12.26 )
DE' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1.6   Max: 31.6
Current: 12.26
1.6
31.6

Business Description

Deere & Company was incorporated under the laws of Delaware in 1958. The Company is a provider of advanced products and services for agriculture and forestry and a major provider of advanced products and services for construction, lawn and turf care, landscaping and irrigation. The Company and its subsidiaries have operations which are categorized into three major business segments: agriculture and turf; construction and forestry; and credit. The agriculture and turf segment, created by combining the former agricultural equipment and commercial and consumer equipment segments, manufactures and distributes a full line of farm and turf equipment and related service parts - including large, medium and utility tractors; loaders; combines, cotton and sugarcane harvesters and related front-end equipment and sugarcane loaders; tillage, seeding and application equipment, including sprayers, nutrient management and soil preparation machinery; hay and forage equipment, including self-propelled forage harvesters and attachments, balers and mowers; turf and utility equipment, including riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, and commercial mowing equipment, along with a broad line of associated implements; integrated agricultural management systems technology; precision agricultural irrigation equipment and supplies; landscape and nursery products; and other outdoor power products. The construction and forestry segment manufactures, distributes to dealers and sells at retail a broad range of machines and service parts used in construction, earthmoving, material handling and timber harvesting - including backhoe loaders; crawler dozers and loaders; four-wheel-drive loaders; excavators; motor graders; articulated dump trucks; landscape loaders; skid-steer loaders; and log skidders, feller bunchers, log loaders, log forwarders, log harvesters and related attachments. The credit segment primarily finances sales and leases by John Deere dealers of new and used agriculture and turf equipment and construction and forestry equipment. In addition, it provides wholesale financing to dealers of the foregoing equipment, provides operating loans, finances retail revolving charge accounts, offers certain crop risk mitigation products and invests in wind energy generation. Its competitors are AGCO Corporation, CNH Global N.V., Kubota Tractor Corporation, The Toro, Caterpillar, Inc., Komatsu Ltd., Volvo Construction Equipment (part of Volvo Group AB), CNH Global N.V., Tigercat Industries Inc. and Ponsse Plc. The Company is subject to a wide variety of state, federal and international environmental laws, rules and regulations.
Company Website
SEC Reports
Industry: Farm & Construction Equipment
Compare:CAT, KMTUY, KUB, ZLIOF, PUTKY
Traded in other countries:DCO.Germany
ยป More Articles for DE

Headlines

Articles On GuruFocus.com
My Favorite Industrial Dividend Stocks With Low Forward P/E May 11 2013 
Deere: Fundamental Stock Research Analysis May 06 2013 
Animal Appreciation Day Apr 23 2013 
Focus on the Big Picture Apr 20 2013 
Harvest Gains on a Quality Name while Mitigating Risk Mar 24 2013 
18 Stocks Growing Their Cash Dividends Mar 04 2013 
Early Movers for Wednesday Feb. 13, 2013 Feb 13 2013 
Guru Stocks at 52-Week Highs: CMCSA, DE, CPB, and BAX Jan 28 2013 
10-year Shiller P/E Exposes Cyclical Overvaluation and Undervaluation Jan 26 2013 
Deere & Co: Fundamental Stock Research Analysis Dec 20 2012 


Personalized Checklist





Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names
Free 7-day Trial