Deere & Co (DE) Stock Analysis
Verdict: WATCH (do not buy)
Deere is battling a cyclical downturn in farm income that negates its tech-led margin premium, making the current P/E multiple unsustainable.
Investment score: 42/100
Analysis as of
Is Deere & Co stock worth reviewing? The TradeMates thesis
Avoid due to cycle peaking, expensive valuation relative to negative growth, and aggressive insider selling.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 50/100 (weight 15%)
- Technical Momentum: 25/100 (weight 15%)
- Earnings Quality: 65/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Deere & Co opportunities and risks
What speaks for DE
- Precision Ag Tech Lead
What speaks against DE
- Cyclical Farm Income Downturn
Peers and competitors
- TTC
- AGCO
- ALG
- LNN
- TWI
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| DE | 29.2x | 3.1x | 12.9x | 35.6% | 10.5% | 2.5% |
| TTC | 26.2x | 1.9x | 14.6x | 33.1% | 7.3% | 7.7% |
| AGCO | 10.3x | 0.8x | 7.0x | 24.9% | 7.4% | 6.9% |
| ALG | 17.6x | 1.1x | 7.7x | 24.2% | 6.2% | 6.2% |
| LNN | 19.3x | 1.8x | 12.0x | 30.0% | 9.3% | 6.4% |
| TWI | n/a | 0.2x | 11.9x | 13.6% | -4.7% | -6.7% |
| Peer median | 17.6x | 1.1x | 11.9x | 24.9% | 7.3% | 6.4% |
Frequently asked questions about Deere & Co (DE)
Is DE stock a good investment?
The TradeMates model rates Deere & Co as WATCH (do not buy) with an investment score of 42/100. Avoid due to cycle peaking, expensive valuation relative to negative growth, and aggressive insider selling. This is algorithmic model output, not personal investment advice.
Is DE stock a buy?
The TradeMates model verdict for DE is WATCH (do not buy) with an investment score of 42/100. Treat this as a model signal to review, not a personal buy recommendation.