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Deere & Company
DE
421.89 (-0.43%) 1.80
114.57(B)
Industrials
Machinery
Deere & Company engages in the manufacture and distribution of various equipment worldwide. The company operates through four segments: Production and Precision Agriculture Small Agriculture and Turf Construction and Forestry and Financial Services. The Production and Precision Agriculture segment provides large and mid-size tractors combines cotton pickers and strippers sugarcane harvesters and loaders soil preparation tillage seeding and crop care equipment as well as application equipment including sprayers and nutrient management soil preparation machinery for grain growers and related attachments and service parts. The Small Agriculture and Turf segment offers rotary mowers hay and forage equipment forage harvesters utility tractors and related loaders and attachments; turf and utility equipment including riding lawn commercial mowing and golf course equipment and utility vehicles; and other outdoor power products as well as implements for mowing tilling snow and debris handling aerating residential commercial golf and sports turf care applications. The Construction and Forestry segment provides backhoe loaders crawler dozers and loaders four-wheel-drive loaders track loaders excavators motor graders articulated dump trucks landscape and skid-steer loaders scraper systems milling machines recyclers slipform and asphalt pavers surface miners compactors tandem static rollers mobile crushers and screens mobile and stationary asphalt plants log skidders and harvesters log feller bunchers and log loaders and forwarders; and road building and rehabilitation equipment. The Financial Services segment finances sales and leases agriculture and turf and construction and forestry equipment. It also offers wholesale financing to dealers of the foregoing equipment; and extended equipment warranties as well as finances retail revolving charge accounts. The company was founded in 1837 and is headquartered in Moline Illinois.
Holdings:
Shares:
Cost basis:

Deere & Company (DE) price target and intrinsic value estimate

DE's fair price estimate is $196.3

This valuation is based on a fair P/E of 9.1 and EPS estimates of $21.68

The median analyst price target for DE is $472.5.

Analyst price targets range from $341.2 to $550.0

Is DE overvalued or undervalued?

DE is currently trading at $421.89

DE is overvalued by 115% using the pevaluation method.

DE is undervalued by 11% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Low $147.2
Median $196.3
High $245.4
Fair P/E
Margin of safety

Analyst valuation

Low $341.2
Median $472.5
High $550.0
Strong Buy5
Buy7
Hold11
Sell0
Strong Sell1

Discounted cash-flow

TTM FCFFCF est.Growth FCFTerminal FCF
10%
5%
5y
10%
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: None/narrow
None/narrowMediumWideVery wide

Overview

Market data

Market cap:$114.57(B)
Enterprise value:$172.20(B)
Total Equity:$22.93(B)
Shares outstanding:271.58(M)
Div. yield:1.39%
P/S:2.26
P/E:16.40
P/FCF:25.88
P/B:5.02
EPS:$25.7
FCF per share:$16.3
Dividend per share:$5.9

Income (TTM)

RevenueGrossNet
Revenue$51.53(B)
Gross profit$15.20(B)
EBITDA$11.35(B)
Net income$7.10(B)
Gross margin29.5%
Net margin13.8%

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$107.32(B)
Total liabilities$84.39(B)
Cash & Short-term inv.$6.00(B)
Long-term debt$6.53(B)
Debt issued$18.10(B)
Debt repaid$-15.09(B)

Cash flow (TTM)

CFOCFICFF
FCF$4.43(B)
CapEx$-4.80(B)
Dividends paid$-1.60(B)
Stock issued$0
Stock repurchased$-4.01(B)
Stock-based comp.$208.00(M)

Future Growth

Revenue

CAGR: 6.4%
FY+1$39.07(B)
FY+2$42.01(B)
FY+3$44.24(B)

Net Income

CAGR: 9.3%
FY+1$5.39(B)
FY+2$6.06(B)
FY+3$6.83(B)
FY+4$7.19(B)
FY+5$7.71(B)

EPS

CAGR: 14.0%
FY+1$19.72
FY+2$22.74
FY+3$25.68
FY+4$29.92
FY+5$33.36

FCF per share

CAGR: 9.5%
FY+1$26.82
FY+2$29.38

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Historical Financials

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