DeereXSWX:DE +0.89%87 ROC (Joel Greenblatt) % is 68.61% as of Apr. 2026, which is 48% above its 10-year median of 46.22. GuruFocus rates XSWX:DE with a GF Score™ of 87/100 and a GF Value™ of CHF299.04. The stock has 6 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Deere ranks better than 88.52% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Deere's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 68.61%.
The historical rank and industry rank for Deere's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:DE'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 27.38 Med: 46.22 Max: 86.37
Current: 51.61
During the past 13 years, Deere's highest ROC (Joel Greenblatt) % was 86.37%. The lowest was 27.38%. And the median was 46.22%.
XSWX:DE's ROC (Joel Greenblatt) % is ranked better than 88.52% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 13.24
vs XSWX:DE: 51.61
Deere's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 8.00% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for Deere's ROC (Joel Greenblatt) % 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.
XSWX:DE vs PCAR, CNH, OSK: ROC (Joel Greenblatt) % Comparison
For the Farm & Heavy Construction Machinery subindustry, Deere's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Deere's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 68.61% mean?
Deere (XSWX:DE) has a ROC (Joel Greenblatt) % of 68.61% as of Apr. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Deere and its competitors. This is 48% above median its historical median of 46.22. Over the past decade, Deere's ROC (Joel Greenblatt) % has ranged from 27.38 to 86.37. According to the industry distribution chart, Deere ranks #24 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 11.5%.
Is Deere's ROC (Joel Greenblatt) % too high?
Deere's current ROC (Joel Greenblatt) % of 68.61% is 48% above median its 10-year median of 46.22. Over the past 10 years, this metric has ranged from a low of 27.38 to a high of 86.37. The Farm & Heavy Construction Machinery industry median ROC (Joel Greenblatt) % is 13.24. Deere's value of 68.61% is 418.2% above this industry median. Based on the distribution chart, Deere ranks #24 out of 209 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, reflecting its overall financial health beyond just this single metric.
How does Deere's ROC (Joel Greenblatt) % compare to PCAR and CNH?
According to the Farm & Heavy Construction Machinery industry distribution chart, Deere ranks #24 out of 209 companies for ROC (Joel Greenblatt) %. This places Deere in the top 12% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 13.24. Deere's value of 68.61% is 418.2% above this benchmark. Historically, Deere's own ROC (Joel Greenblatt) % has ranged from 27.38 to 86.37 over the past decade. While the company's 10-year median is 46.22 vs. the industry median of 13.24, 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 ROC (Joel Greenblatt) % for a Farm & Heavy Construction Machinery company?
The median ROC (Joel Greenblatt) % among Farm & Heavy Construction Machinery companies is 13.24, based on 209 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deere's current ROC (Joel Greenblatt) % of 68.61% is 418.2% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Deere and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROC (Joel Greenblatt) % is 13.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deere's current ROC (Joel Greenblatt) % is 68.61%, which is 48% above median its own 10-year median of 46.22. 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?
Deere (XSWX:DE) has a current ROC (Joel Greenblatt) % of 68.61%. The stock's GF Value™ is CHF299.04, compared to a current price of CHF503.79 — trading 68.5% above its estimated fair value. The current ROC (Joel Greenblatt) % is 68.61%, which is 48% above median its 10-year median of 46.22 and 418.2% above the Farm & Heavy Construction Machinery industry median of 13.24. Deere's overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Deere (XSWX:DE), the current ROC (Joel Greenblatt) % is 68.61% 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 (XSWX:DE) Overvalued in 2026?
Based on GuruFocus' analysis, Deere stock appears to be overvalued.
The current stock price of CHF503.79 is trading 68.5% above its estimated GF Value™ of CHF299.04.
Key valuation signals for XSWX:DE:
ROC (Joel Greenblatt) %: 68.61% (48% above median its 10-year median of 46.22)
GF Value™: CHF299.04 vs. price of CHF503.79 (68.5% above fair value)
Industry Position: 418.2% above the Farm & Heavy Construction Machinery median (#24 of 209)
No single metric tells the full story. See the XSWX: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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