DeereDE +2.18%87 Return-on-Tangible-Equity is 32.94% as of Apr. 2026, which is 15% below its 10-year median of 38.67. GuruFocus rates DE with a GF Score™ of 87/100 and a GF Value™ of $377.63 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 199 Farm & Heavy Construction Machinery companies, Deere ranks better than 81.91% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Deere's annualized net income for the quarter that ended in Apr. 2026 was $7,092 Mil. Deere's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $21,529 Mil. Therefore, Deere's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 32.94%.
The historical rank and industry rank for Deere's Return-on-Tangible-Equity or its related term are showing as below:
DE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 23.28 Med: 38.67 Max: 64.99
Current: 23.28
During the past 13 years, Deere's highest Return-on-Tangible-Equity was 64.99%. The lowest was 23.28%. And the median was 38.67%.
DE's Return-on-Tangible-Equity is ranked better than 81.91% of 199
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.27
vs DE: 23.28
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Deere Return-on-Tangible-Equity Related Terms
Deere Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Deere's Return-on-Tangible-Equity 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.
DE vs PCAR, CNH, OSK: Return-on-Tangible-Equity Comparison
For the Farm & Heavy Construction Machinery subindustry, Deere's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Deere's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 32.94% mean?
Deere (DE) has a Return-on-Tangible-Equity of 32.94% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Deere and its competitors. This is 15% below median its historical median of 38.67. Over the past decade, Deere's Return-on-Tangible-Equity has ranged from 23.28 to 64.99. According to the industry distribution chart, Deere ranks #36 out of 199 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 18.1%.
Is Deere's Return-on-Tangible-Equity too high?
Deere's current Return-on-Tangible-Equity of 32.94% is 15% below median its 10-year median of 38.67. Over the past 10 years, this metric has ranged from a low of 23.28 to a high of 64.99. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Equity is 9.27. Deere's value of 32.94% is 255.3% above this industry median. Based on the distribution chart, Deere ranks #36 out of 199 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Deere has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deere's Return-on-Tangible-Equity compare to PCAR and CNH?
According to the Farm & Heavy Construction Machinery industry distribution chart, Deere ranks #36 out of 199 companies for Return-on-Tangible-Equity. This places Deere in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.27. Deere's value of 32.94% is 255.3% above this benchmark. Historically, Deere's own Return-on-Tangible-Equity has ranged from 23.28 to 64.99 over the past decade. While the company's 10-year median is 38.67 vs. the industry median of 9.27, Deere has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Equity among Farm & Heavy Construction Machinery companies is 9.27, based on 199 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deere's current Return-on-Tangible-Equity of 32.94% is 255.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Deere and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Equity is 9.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deere's current Return-on-Tangible-Equity is 32.94%, which is 15% below median its own 10-year median of 38.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deere stock overvalued right now?
Based on GuruFocus' analysis, Deere (DE) is currently considered Significantly Overvalued. The stock's GF Value™ is $377.63, compared to a current price of $626.63 — trading 65.9% above its estimated fair value. The current Return-on-Tangible-Equity is 32.94%, which is 15% below median its 10-year median of 38.67 and 255.3% above the Farm & Heavy Construction Machinery industry median of 9.27. Deere's overall GF Score™ is 87/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Deere (DE), the current Return-on-Tangible-Equity is 32.94% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Deere (DE) Overvalued in 2026?
Based on GuruFocus' analysis, Deere stock appears to be overvalued.
The current stock price of $626.63 is trading 65.9% above its estimated GF Value™ of $377.63.
GuruFocus considers Deere to be Significantly Overvalued.
Key valuation signals for DE:
Return-on-Tangible-Equity: 32.94% (15% below median its 10-year median of 38.67)
GF Value™: $377.63 vs. price of $626.63 (65.9% above fair value)
Industry Position: 255.3% above the Farm & Heavy Construction Machinery median (#36 of 199)
No single metric tells the full story. See the DE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deere is the world's leading manufacturer of agricultural equipment and a major producer of construction machinery. The company is divided into four reporting segments: production & precision agriculture, or PPA, small agriculture & turf, or SAT, construction & forestry, or CF, and financial services, or FS, its captive finance subsidiary. The core PPA business is the largest contributor to sales and profits by far. Geographically, Deere sales are 60% US/Canada, 17% Europe, 14% Latin America, and 9% rest of the world. Deere goes to market through a robust dealer network that includes over 2,000 dealer locations in North America with reach into over 100 countries. John Deere Financial provides retail financing for machinery to its customers and wholesale financing for dealers.
87GF Score
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