MMarketMath

DE

StalwartQuality: Medium (67/100)1 red flag

Deere & Company · Industrials · Agricultural & Farm Machinery

$648.64

52w 433.00 – 674.19

20y monthly, adjusted

Mkt cap

$175.1B

P/E

34.8

P/FCF

28.7

FCF yield

3.5%

ROE

19.4%

Shldr yield

1.6%

div 1.0% + bb 0.7%

What today's price assumes

At $175.1B, the market is pricing in 12.6% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 7.1% per year — the price asks for acceleration beyond the historical record.

Simple DCF per-share range: $344 · $433 · $540 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 10.9× across 19 years, DE would trade near $301/share (25th–75th percentile: $225–$431); it trades at 23.5× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

−4.6%

Rev 5y

+5.2%

Rev 10y

+4.7%

EPS 5y

+16.3%

EPS 10y

+12.4%

FCF 5y

−1.8%

FCF 10y

+7.1%

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $24.1B
2008: $28.4B
2009: $23.1B
2010: $26.0B
2011: $32.0B
2012: $36.2B
2013: $37.8B
2014: $36.1B
2015: $28.9B
2016: $26.6B
2017: $29.7B
2018: $37.4B
2019: $39.3B
2020: $35.5B
2021: $44.0B
2022: $52.6B
2023: $61.3B
2024: $51.7B
2025: $45.7B
$0$20.0B$40.0B$60.0B
07
11
15
19
23

Net income

2007: $1.8B
2008: $2.1B
2009: $873.5M
2010: $1.9B
2011: $2.8B
2012: $3.1B
2013: $3.5B
2014: $3.2B
2015: $1.9B
2016: $1.5B
2017: $2.2B
2018: $2.4B
2019: $3.3B
2020: $2.8B
2021: $6.0B
2022: $7.1B
2023: $10.2B
2024: $7.1B
2025: $5.0B
$0$5.0B$10.0B
07
11
15
19
23

Free cash flow

2007: $1.7B
2008: $836.7M
2009: $1.1B
2010: $1.5B
2011: $1.3B
2012: −$151.5M
2013: $2.1B
2014: $2.5B
2015: $3.1B
2016: $3.1B
2017: $1.6B
2018: $926.0M
2019: $2.3B
2020: $6.7B
2021: $6.9B
2022: $3.6B
2023: $7.1B
2024: $7.6B
2025: $6.1B
$0$2.0B$4.0B$6.0B
07
11
15
19
23

Diluted shares (lower is better)

2007: 455.0M
2008: 436.3M
2009: 424.4M
2010: 428.6M
2011: 422.4M
2012: 401.5M
2013: 389.2M
2014: 366.1M
2015: 336.0M
2016: 316.6M
2017: 323.3M
2018: 327.3M
2019: 320.6M
2020: 316.6M
2021: 314.0M
2022: 306.3M
2023: 293.6M
2024: 277.1M
2025: 271.7M
0200.0M400.0M
07
11
15
19
23

Margins

0%10%20%07101316192225
Net marginFCF margin

Capital returned (dividends + buybacks)

2007: $1.9B
2008: $2.1B
2009: $476.6M
2010: $842.3M
2011: $2.3B
2012: $2.3B
2013: $2.3B
2014: $3.5B
2015: $3.6B
2016: $966.7M
2017: $770.0M
2018: $1.8B
2019: $2.2B
2020: $1.7B
2021: $3.6B
2022: $4.9B
2023: $8.6B
2024: $5.6B
2025: $2.9B
$0$2.5B$5.0B$7.5B
07
11
15
19
23

Cash vs long-term debt

$0$10.0B$20.0B$30.0B07101316192225
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $17.4B
Q3'23: $15.8B
Q4'23: $15.4B
Q1'24: $12.2B
Q2'24: $15.2B
Q3'24: $13.2B
Q4'24: $11.1B
Q1'25: $8.5B
Q2'25: $12.8B
Q3'25: $12.0B
Q4'25: $12.4B
Q1'26: $9.6B
Q2'26: $13.4B
$0$5.0B$10.0B$15.0B
23
24
24
25
26

Net income by quarter

Q2'23: $2.9B
Q3'23: $3.0B
Q4'23: $2.4B
Q1'24: $1.8B
Q2'24: $2.4B
Q3'24: $1.7B
Q4'24: $1.2B
Q1'25: $869.0M
Q2'25: $1.8B
Q3'25: $1.3B
Q4'25: $1.1B
Q1'26: $656.0M
Q2'26: $1.8B
$0$1.0B$2.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$13.4B+4.7%$1.8B−1.7%6.55$1.9B
Q1'26$9.6B+13.0%$656.0M−24.5%2.42−$890.0M
Q4'25 *$12.4B+11.2%$1.1B−14.5%3.92$4.0B
Q3'25$12.0B−8.6%$1.3B−25.7%4.75$2.9B
Q2'25$12.8B−16.2%$1.8B−23.9%6.64$1.7B
Q1'25$8.5B−30.2%$869.0M−50.4%3.19−$1.1B
Q4'24 *$11.1B−27.7%$1.2B−47.4%4.57$5.1B
Q3'24$13.2B−16.8%$1.7B−41.8%6.29$3.2B
Q2'24$15.2B−12.4%$2.4B−17.1%8.53$1.9B
Q1'24$12.2B−3.7%$1.8B−10.6%6.23−$908.0M
Q4'23 *$15.4B−0.8%$2.4B+5.5%8.23$5.7B
Q3'23$15.8B+12.0%$3.0B+58.1%10.20$3.0B
Q2'23$17.4B+30.0%$2.9B+36.3%9.65$1.1B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue−4.6%+5.2%+4.7%+3.8%
Operating cash flow+16.7%−0.1%+7.1%+8.2%
Free cash flow+19.6%−1.8%+7.1%+9.7%
EPS (diluted)−7.4%+16.3%+12.4%+10.1%
Equity+8.6%+14.9%+14.4%+9.9%
LT debt+6.5%+4.4%+6.8%
Diluted shares−3.9%−3.0%−2.1%−3.0%
Stock price+18.0%+12.9%+24.5%+17.1%

$100, 3 years ago

$164vs $176 in SPY

18.0% vs 20.7%/yr

$100, 5 years ago

$183vs $181 in SPY

12.9% vs 12.6%/yr

$100, 10 years ago

$898vs $412 in SPY

24.5% vs 15.2%/yr

$100, 15 years ago

$1,067vs $813 in SPY

17.1% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$1.70

$48.1B created / $28.3B retained

Last 10 years

$2.85

$102.7B created / $36.1B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

28.7%

OCF ÷ (equity + debt)

OCF / EV yield

4.5%

MC vs 10× OCF

2.34

≤1 = priced under 10× OCF

Debt / FCF

SBC / FCF

2.5%

Owner earnings

$5.9B

OCF − capex − SBC

OE yield

3.4%

Share count 5y

−2.8%

per year; negative = buybacks

Checklist

18 of 24 checks pass · 75%. Checks with structurally missing inputs are excluded.

Growth & Consistency

4/7

  • Revenue growth

    5.2% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    16.3% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    -1.8% · 5y CAGR ≥ 5%

    fail
  • Revenue rises consistently

    6 of 9 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    -0.1% vs 5.2% · OCF CAGR ≥ 0.9× revenue CAGR

    fail

Profitability

5/5

  • Net margin

    11.0% · ≥ 8%

    pass
  • Operating margin

    · ≥ 10%

    na
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    19.4% · ≥ 12%

    pass
  • Cash ROIC

    28.7% · ≥ 12%

    pass
  • FCF margin

    13.4% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $7.5B vs NI $5.0B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

4/4

  • Debt payable from cash flow

    no debt · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    · cash ≥ 50% of LT debt

    pass
  • Leverage

    · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $25.9B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    · interest ≤ 15% of operating income

    na

Capital Allocation

4/4

  • Share count flat or shrinking

    -2.8% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    2% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    47% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    10 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

1/4

  • FCF yield

    3.5% · ≥ 3%

    pass
  • Earnings multiple

    34.8 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    12.6% vs 7.1% · implied FCF growth ≤ historical FCF CAGR

    fail
  • Shareholder yield

    1.6% · dividends + buybacks ≥ 2% of market cap

    fail

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Revenue declining

Latest fiscal-year revenue fell more than 3% versus the prior year.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202545,6845,02718.507,4591,3606,0991,7201,1381518,27625,950272
202451,7169,0397,10025.629,2311,6407,5911,6054,0072087,32422,836277
202361,25112,95810,16634.638,5891,4987,0911,4277,2161307,45821,785294
202252,5779,5087,13123.284,6991,1343,5651,3133,597854,77420,262306
202144,0248,0125,96318.997,7268486,8781,0402,538828,01732,88818,431314
202035,5404,3052,7518.697,4838206,663956750817,06632,73412,937317
201939,2584,4153,25310.153,4121,1202,2929431,253823,85730,22911,413321
201837,3584,4762,3687.241,822896926806958843,90427,23711,288327
201729,7383,5742,1596.682,1965951,6017646689,33525,8919,557323
201626,6442,5891,5244.813,7646443,120761205714,3366,520317
201528,8633,1401,9405.773,7596943,0658162,771664,1626,758336
201436,0675,2183,1628.633,5261,0482,4787862,731793,78724,3819,063366
201337,7955,9283,5379.093,2541,1582,0967531,531813,50421,57810,266389
201236,1575,1093,0657.631,1681,319-1526981,588754,65222,4536,842402
201132,0134,5642,8006.632,3261,0571,2705931,667693,64716,9606,800422
201026,0053,4081,8654.352,2827621,521484359713,79116,8156,290429
200923,1121,6078742.061,9859071,0784733714,65217,3924,819424
200828,4383,4202,0534.701,9491,1128374481,678712,21113,8996,533436
200724,0821,8224.002,7591,0231,7373871,518822,2797,156455

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.