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Deere Owner Earnings per Share (TTM)

: 8.42 (As of Jan. 2022)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Deere's Owner Earnings per Share (TTM) ended in Jan. 2022 was $8.42. It's Price-to-Owner-Earnings ratio for today is 43.79.


The historical rank and industry rank for Deere's Owner Earnings per Share (TTM) or its related term are showing as below:

DE' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 12.21   Med: 22.52   Max: 253.49
Current: 43.8


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Deere was 253.49. The lowest was 12.21. And the median was 22.52.


DE's Price-to-Owner-Earnings is ranked worse than
83.13% of 83 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 15.37 vs DE: 43.80

Deere's Earnings per Share (Diluted) for the three months ended in Jan. 2022 was $2.92. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2022 was $18.04. It's PE Ratio ratio for today is 20.44.

Deere's EPS without NRI for the three months ended in Jan. 2022 was $2.92. Its EPS without NRI for the trailing twelve months (TTM) ended in Jan. 2022 was $18.04. It's PE Ratio without NRI ratio for today is 20.44.


Deere Owner Earnings per Share (TTM) Historical Data

The historical data trend for Deere's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Deere Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.65 -2.73 0.92 12.49 16.95

Deere Quarterly Data
Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.26 17.63 15.83 16.95 8.42

Competitive Comparison

For the Farm & Heavy Construction Machinery subindustry, Deere's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Deere Owner Earnings per Share (TTM) Distribution

For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Deere's Owner Earnings per Share (TTM) falls into.



Deere Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Deere's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 5,643
Depreciation, Depletion and Amortization 1,998
Change In Deferred Tax -193
5Y Average of Maintenance Capital Expenditure 2,701
Change In Working Capital -2,143
Shares Outstanding (Diluted Average) 309

1. Start with "Net Income" from income statement. Deere's Net Income for the trailing twelve months (TTM) ended in Jan. 2022 was $5,643 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Deere's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jan. 2022 was $1,998 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Deere's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jan. 2022 was $-193 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $2,701 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Deere's 5-Year Average Maintenance Capital Expenditure = $2,701 Mil

5. "Change In Working Capital" is from cashflow statement. Deere's Change In Working Capital for the trailing twelve months (TTM) ended in Jan. 2022 was $-2,143 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Deere's Shares Outstanding (Diluted Average) for the months ended in Jan. 2022 was 309.400 Mil.

Deere's Onwer Earnings Per Share for Jan. 2022 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 5643 +1998+-193
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-2700.6632767398+-2143)/309.400
=8.42

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=368.67/8.42
=43.79

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Deere Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Deere's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Deere Business Description

Deere logo
Industry
Address
One John Deere Place, Moline, IL, USA, 61265
Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through a robust dealer network, which includes over 1,900 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.
Executives
Howze Marc A officer: Group Pres., Life Sol & CAO DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Reed Cory J officer: Pres, Ag & Turf Prod & Prec Ag DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Von Pentz Markwart officer: PresAg Turf Small Ag & Turf DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Kalathur Rajesh officer: President, JD Financial & CIO DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Stone John H officer: Pres., WW Const & For & Pow Sy ONE JOHN DEERE PLACE MOLINE IL 61265
Field James M. officer: Pres., C&F Division DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Erwin Tami A. director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Holliday Charles O Jr director 1007 MARKET ST WILMINGTON DE 19898
Jones Clayton M director 400 COLLINS ROAD NE CEDAR RAPIDS IA 52498
Smith Sherry M director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SMITH SHERRY M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Page Gregory R director EATON CENTER 1111 SUPERIOR AVENUE CLEVELAND OH 44114
Heuberger Alan Cletus director 2365 CARILLON POINT KIRKLAND WA 98033
Talton Sheila director C/O ACCO BRANDS CORPORATION 300 TOWER PARKWAY LINCOLNSHIRE IL 60201
Jain Dipak C director 130 EAST RANDOLPH DRIVE CHICAGO IL 60601
Stockton Dmitri L director 777 LONG RIDGE ROAD SYNCHRONY FINANCIAL C/O CORP. SECRETARY STAMFORD CT 06902

Deere Headlines

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