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Deere Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Deere has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Deere's Piotroski F-Score or its related term are showing as below:

NYSE:DE' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 8
Current: 8

1
8

During the past 13 years, the highest Piotroski F-Score of Deere was 8. The lowest was 1. And the median was 6.


Deere Piotroski F-Score Historical Data

The historical data trend for Deere's Piotroski F-Score 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
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 6.00 6.00 8.00

Deere Quarterly Data
Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21
Piotroski F-Score 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 6.00 7.00 9.00 8.00 8.00

Competitive Comparison

For the Farm & Heavy Construction Machinery subindustry, Deere's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Deere's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Oct21) TTM:Last Year (Oct20) TTM:
Net Income was 1224 + 1790 + 1667 + 1283 = $5,964 Mil.
Cash Flow from Operations was 143 + 1643 + 2528 + 3412 = $7,726 Mil.
Revenue was 9112 + 12058 + 11527 + 10885 = $43,582 Mil.
Gross Profit was 3036 + 3862 + 3709 + 2664 = $13,271 Mil.
Average Total Assets from the begining of this year (Oct20)
to the end of this year (Oct21) was
(75091 + 75480 + 78979 + 80688 + 84114) / 5 = $78870.4 Mil.
Total Assets at the begining of this year (Oct20) was $75,091 Mil.
Long-Term Debt & Capital Lease Obligation was $32,888 Mil.
Total Current Assets was $58,219 Mil.
Total Current Liabilities was $27,872 Mil.
Net Income was 517 + 666 + 811 + 758 = $2,752 Mil.

Revenue was 7631 + 9253 + 8925 + 9450 = $35,259 Mil.
Gross Profit was 2218 + 2617 + 2800 + 2513 = $10,148 Mil.
Average Total Assets from the begining of last year (Oct19)
to the end of last year (Oct20) was
(73011 + 71821 + 77326 + 77264 + 75091) / 5 = $74902.6 Mil.
Total Assets at the begining of last year (Oct19) was $73,011 Mil.
Long-Term Debt & Capital Lease Obligation was $32,734 Mil.
Total Current Assets was $51,361 Mil.
Total Current Liabilities was $23,481 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Deere's current Net Income (TTM) was 5,964. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Deere's current Cash Flow from Operations (TTM) was 7,726. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Oct20)
=5964/75091
=0.07942363

ROA (Last Year)=Net Income/Total Assets (Oct19)
=2752/73011
=0.03769295

Deere's return on assets of this year was 0.07942363. Deere's return on assets of last year was 0.03769295. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Deere's current Net Income (TTM) was 5,964. Deere's current Cash Flow from Operations (TTM) was 7,726. ==> 7,726 > 5,964 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Oct21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct20 to Oct21
=32888/78870.4
=0.41698787

Gearing (Last Year: Oct20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct19 to Oct20
=32734/74902.6
=0.43702088

Deere's gearing of this year was 0.41698787. Deere's gearing of last year was 0.43702088. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Oct21)=Total Current Assets/Total Current Liabilities
=58219/27872
=2.08879879

Current Ratio (Last Year: Oct20)=Total Current Assets/Total Current Liabilities
=51361/23481
=2.18734296

Deere's current ratio of this year was 2.08879879. Deere's current ratio of last year was 2.18734296. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Deere's number of shares in issue this year was 311.3. Deere's number of shares in issue last year was 317.2. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=13271/43582
=0.30450645

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=10148/35259
=0.28781304

Deere's gross margin of this year was 0.30450645. Deere's gross margin of last year was 0.28781304. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Oct20)
=43582/75091
=0.58038913

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Oct19)
=35259/73011
=0.48292723

Deere's asset turnover of this year was 0.58038913. Deere's asset turnover of last year was 0.48292723. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Deere has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Deere  (NYSE:DE) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Deere Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Deere's Piotroski F-Score 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 Corporation. 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 Corporation 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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