Deere & Co

LTS : 0R2P
USA·Industrials·Farm & Heavy Construction Machinery·Ordinary Shares
$639.43
−24.99 (−4.07%)Oct 16 close
Market Cap
$172.71B
Enterprise Value
$227.37B
P/E (TTM)
34.60
P/B
6.67
Net Cash / (Debt)
−$54.60B
52-Week Range
$133 — $708
5-Year Range
$133 — $708
Avg Volume (3M)
1.04K
ListingsLTSXTERNYSE

Deere & Co (DE) makes and sells farm equipment (tractors, combines, planters) and construction/forestry machinery under the John Deere brand. Its largest segment serves large-scale commercial farmers with high-horsepower and precision agriculture equipment. A smaller segment covers mid-size agricultural equipment and turf/grounds care products. The construction segment sells excavators, dozers, and logging equipment.

Customers are primarily professional farmers, contractors, and forestry operators, reached through a dealer network of 2,000+ North American locations operating in 100+ countries. About 60% of revenue comes from the US and Canada.

Deere makes money by selling equipment and through its captive finance subsidiary, John Deere Financial, which earns interest income by financing equipment purchases for end customers and providing floor-plan financing to dealers.

Employees73,100IPONov 6, 2014SIC3523HQOne John Deere Place, Moline, IL, USA, 61265
to

Financials

Profitability

Metric
Current
Margins
Gross Margin
36.5%
Operating Margin
18.8%
EBITDA Margin
26.1%
Net Margin
11.3%
OCF Margin
16.7%
FCF Margin
7.2%
Returns on Capital
ROE
20.8%
ROA
4.7%
ROIC
7.7%
ROCE
13.1%
ROC (Greenblatt)
52.7%
3Y ROIIC
−2.6%
Consistency
Years Profitable / 10Y
10

Valuation

Metric
Current
Earnings Multiples
P/E (TTM)
34.60
Forward P/E
37.18
P/E ex-NRI
34.60
Shiller P/E (CAPE)
35.68
Cash Flow Multiples
P/FCF
53.66
P/OCF
23.29
P/Owner Earnings
60.86
FCF Yield
1.87%
Enterprise Value Multiples
EV / EBIT
24.13
EV / Forward EBIT
41.51
EV / EBITDA
19.51
EV / Forward EBITDA
32.65
EV / Revenue
5.10
EV / Forward Revenue
5.57
Asset / Sales
P/S
3.89
P/B
6.67
P/Tangible Book
8.49
Growth-Adjusted
PEG
2.31

Capital Returns

Metric
Current
Dividends
Dividend Yield (TTM)
1.01%
Forward Dividend Yield
1.01%
3Y Dividend Growth
14.1%
Payout Ratio
0.35
5Y Yield on Cost
2.27%
Buybacks & Dilution
3Y Buyback Ratio
3.30%
5Y Share Change
−14.2%
Combined
Shareholder Yield
1.45%

Balance Sheet

Metric
Current
Leverage
Debt / Equity
2.48
Gross Debt / EBITDA
5.51
Cash / Debt
0.15
Equity / Assets
0.25
Coverage
Interest Coverage
2.66
Short-Term Liquidity
Current Ratio
2.31
Quick Ratio
2.08
Cash Ratio
0.30
Composite Scores
Piotroski F-Score
6
Altman Z-Score
3.18

5-Step DuPont Analysis

ROE %
19.74%
Net Margin %
10.52%
Operating Margin %
17.98%
Operating Income
$8.22B
÷
Revenue
$45.75B
×
Tax Burden
0.7767
Net Income
$4.81B
÷
Pretax Income
$6.20B
×
Interest Burden
0.7536
Pretax Income
$6.20B
÷
Operating Income
$8.22B
×
Asset Turnover
0.44
Revenue
$45.75B
÷
Average Total Assets
$103.28B
Begin Total Assets
$103.12B
End Total Assets
$103.44B
×
Equity Multiplier
4.23
Avg Total Assets
$103.28B
÷
Avg Stockholders Equity
$24.39B
Begin Equity
$22.48B
End Equity
$26.30B