Deere & DE
Deere & Company is a leading global manufacturer of agricultural and construction machinery, operating through a dealer network and offering financial and technological services for the agribusiness sector. Deere shows moderate growth (revenue +4.9%) and a low net dividend yield (0.94%), but its valuation is demanding (P/E 38.32) and its balance sheet is highly leveraged (Net Debt/EBITDA 6.70), making it vulnerable to a high interest rate environment and the cyclicality of the agricultural sector.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Deere & Company is a leading global manufacturer of agricultural and construction machinery, operating through a dealer network and offering financial and technological services for the agribusiness sector. Deere shows moderate growth (revenue +4.9%) and a low net dividend yield (0.94%), but its valuation is demanding (P/E 38.32) and its balance sheet is highly leveraged (Net Debt/EBITDA 6.70), making it vulnerable to a high interest rate environment and the cyclicality of the agricultural sector.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.0 |
| Quality / Moat | 4.9 |
| Valuation | 2.5 |
| Growth | 5.2 |
| Dividend | 5.5 |
| Momentum | 7.2 |
| Risk & Context | 6.3 |
OVERALL SCORE: 4.6/10
Context and risks
Deere has significant exposure to export markets, especially China, and to the evolution of the trade war. The recent truce between Trump and Xi reduces the risk of tariffs, but regulatory and geopolitical uncertainty over agricultural trade remains a relevant factor for the demand for its machinery.
News considered in the analysis
- Deere, ADM and Bunge: 3 Farm Stocks Giving Investors Dividends For America’s Harvest — Listículo genérico sobre dividendos del sector agrícola, sin información nueva sobre Deere.
- Trump and Xi Buy Time on Trade. Farm and Chip Stocks Are Watching Closely. — La tregua comercial entre EE.UU. y China reduce el riesgo de aranceles a la maquinaria agrícola, un mercado relevante para Deere.
- Is Deere (DE) Stock Reasonable After Its Strong Q2 Beat? — El sólido resultado del Q2 ya es conocido, pero el análisis sobre si el precio es razonable sugiere que el mercado aún está asimilando las implicaciones para el resto del año.
- 1 Unpopular Stock That Deserves Some Love and 2 Facing Headwinds — Artículo de opinión genérico sin información específica y accionable sobre Deere.
- Can Share Buybacks Continue to Prop Up Toro Stock? — Noticia sobre un competidor (Toro), sin impacto directo en los fundamentales de Deere.
Verdict: Hold. The quality of the business and positive momentum (7.24) do not offset the high debt and expensive valuation in a context of rising rates.
Main risk: The high financial leverage (Net Debt/EBITDA of 6.70) is the main risk, as a high interest rate environment or a slowdown in the agricultural cycle could pressure its ability to generate cash flow and meet its obligations.
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