
Deere & Company

DE (Deere & Company) trades at 5.0x EV/Revenue — reasonably priced for a industrials company with solid margins (37%) and moderate growth (+7% YoY). The business is profitable at 26% EBIT margins. Forward PE of 31x.
Stocks trending on Reddit's WallStreetBets outperform the market by 1.5% in the first week — but underperform by 4% over 6 months.
Deere & Company is the world's largest manufacturer of agricultural equipment, producing tractors, combines, and precision farming technology that helps farmers increase productivity. The company also manufactures construction and forestry equipment, serving customers globally through a network of independent dealers. Deere generates revenue through equipment sales, parts and services, and financial services including equipment financing.
Deere is transitioning from a cyclical equipment manufacturer to a technology-enabled agriculture solutions provider. The company targets mid-single-digit revenue growth driven by precision agriculture adoption, international expansion, and construction market recovery. Smart farming solutions and autonomous equipment represent multi-billion dollar opportunities as labor shortages intensify.
Operating margins typically range 12-16% with strong leverage to volume given high fixed costs. The company has demonstrated margin expansion capability through pricing discipline, cost reduction, and higher-margin precision agriculture offerings. Free cash flow generation is strong in up-cycles but can turn negative during severe downturns due to working capital swings.
Deere maintains the strongest competitive moat in agriculture through superior dealer network, brand loyalty, and technology integration. Key competitors include CNH Industrial and AGCO in agriculture, plus Caterpillar in construction. The company's John Deere Operations Center creates switching costs by centralizing farm data and equipment management.
Limited recent financial data is available for detailed quarterly analysis. The agricultural equipment sector has faced headwinds from elevated interest rates impacting farmer financing costs and cautious spending amid margin pressures. Construction markets show signs of stabilization after recent weakness.
Analyst sentiment typically focuses on agricultural commodity price trends, farmer income levels, and timing of equipment replacement cycles. The investment community closely watches precision agriculture adoption rates and recurring revenue growth. Coverage tends to be cyclically-oriented given the sector's inherent volatility.
Deere is the premium play on global agriculture modernization, but investors must navigate significant earnings cyclicality tied to farm economics and commodity cycles.
Gold Eagle provides data and AI-generated analysis for informational purposes only. Not investment advice. All data from public sources.








| '25E | '26E | '27E | '28E | |
|---|---|---|---|---|
| Revenue | $38.3B | $41.1B | $45.1B | $50.4B |
| Growth | — | +7% | +10% | +12% |
| EBITDA | — | $10.9B | $11.9B | $13.3B |
| Growth | — | +10% | +12% | |
| FCF | $3.2B | — | — | — |
| Margin | 8% | — |
| — |
| — |
| EPS (PF) | $18.42 | $17.83 | $23.01 | $27.97 |
| Growth | — | (3%) | +29% | +22% |