DE Investment Analysis Report & Stock Research, Deere & Company

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Deere & Company (DE)

DE Stock Report

2-Year Price History

Recent Price
(6/22 7:28PM) -2.8%
$38.93
52-Week Price
$24.51 - $74.18
Market Capitalization
$16.5 Billion
Dividend Yield
2.90%
Most Recent Dividend
$1.03
All Financial News about DE is here.

About Deere & Company

Deere & Company is considered to operate in the Industrial Goods sector. They specifically operate in the Farm/Construction Machinery business segment contained within the Industrial industry.

The Company operates through four business segments; agricultural equipment, commercial and consumer equipment, construction and forestry and credit. It provides products and services for agriculture, forestry, construction, landscaping and irrigation.

Ockham's Rating

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DE Revenue

As a value investing shop, we are interested in seeing how DE's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.17x and the low end of the range at 0.65x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for DE of 0.60x is well below its normal historic Price to Sales levels. At a price of $40.06, DE is 35% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.

DE Cash Earnings

As the old saying goes, "Cash is King!" However, we prefer to capture a few other items within our analysis to identify "cash earnings". Nevertheless, an analysis of Cash Earnings is absolutely pivotal to assessing a company's value, and currently DE is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for DE, the current level of Cash Earnings compared to its historical levels helps identify where DE is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 11.11 and a historical low Cash Earnings per share ratio of 6.31, an investor can relate where value becomes optimal.

So with DE's current price (latest close of $40.06) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, DE is 21% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with DE.

DE Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

In DE’s case, the estimated annual dividend is $1.12 resulting in a current dividend yield of 2.80%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from DE against the historic high and low levels over the past 10 years. The highest dividend yield from DE over this period was 4.57% while the lowest dividend yield was 1.08% Given this range, the current dividend yield for DE is below its historical median and not terribly attractive from this perspective.

Peer Comparison

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Deere & Company Industry Grouping

(6/22/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding DE) 7.85 3.93 » 40.86 0.73 0.41 » 1.90 14.29% 18.37%
*10 year range does not include current year values
Caterpillar, Inc. CAT $19.5 Billion $32.36 4.43 3.45 » 11.95 0.40 0.37 » 1.29 17.66% 42.20%
Illinois Tool Works, Inc. ITW $17.2 Billion $34.46 9.53 6.46 » 19.60 0.99 0.90 » 2.60 9.60% 19.24%
Deere & Company DE $16.5 Billion $38.93 6.91 4.20 » 16.71 0.60 0.47 » 1.61 12.99% 24.52%
PRECISION CASTPARTS CORP. PCP $10.8 Billion $77.25 9.44 4.12 » 74.88 1.28 0.37 » 3.26 25.71% 16.92%
Hitachi Limited HIT $10.5 Billion $31.26 3.93 1.92 » 75.68 0.10 0.07 » 0.72 10.12% 0.87%
Kubota LTD KUB $9.6 Billion $37.56 11.89 3.69 » 22.21 0.88 0.34 » 1.64 8.39% 12.60%
>
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The latest TV Media Discussion

11:19:47 AM DE $42.79 Deere & Company
6 days ago (06/16)
“…>> brian: not too bad, rich edson. >> there are worse, there are >> brian: very sensible. >> very much, president bushing >> brian: dagen drove a converted JOHN DEERE lawn >> dagen: and we had wheels where I combru up, that's all that mattered wheels and an >> brian: as long as could you >> dagen: we're rolling ahead, coming along, everybody, more with alexis and we go back to …” …more details…
5:21:00 PM DE $45.90 Deere & Company
Fast Money
13 days ago (06/09)
“…Helping them. Look at the dollar. Who is this going to benefit? I say sell. >> DEERE makes cool hats. I don't trust stocks that go up $8 a day. Why not wait for the breakout and stay long target, for instance, mcdonald's, for they benefit from foreign …” …more details…
5:46:06 PM DE $46.39 Deere & Company
Fast Money
17 days ago (06/05)
“…The week's best performing sector was, drum roll, please, industrial etf. The xli jumping 6% this week. Any buyers on those names, honeywell, DEERE, caterpillar, et cetera? >> I think it's been a great run and I would be very reluctant if we're on this desk saying we don't know this recession is over anytime soon those things have had a great run. >> wait for the fed meeting. …” …more details…
3:37:18 PM DE $46.63 Deere & Company
18 days ago (06/04)
“…Business stocks, the ticker symbol for the atm. Is moo. It's jumping up 3%. Including monsanto, potash, DEERE is in there, mosaic. The agra business companies moving higher. Commodities is higher. In demand expected to rise as >> liz: sandra smith, what >> we talk about the retailer, a buzz kill for the …” …more details…
11:04:58 AM DE $46.14 Deere & Company
18 days ago (06/04)
“…Goldman sachs an upgrade over at bernstein. A price target of $176 a share. You can see it at 146. Certainly some move to the upsides and keycorp an upgrade and also, DEERE, aur own fox 50 index, one of the best performers and deer got an upgrade, and DEERE up 17% and certainly a good winner there. Citigroup, up 51/2% and don't forget on june 8th when trading begins, citigroup will be out of the dow jones industrial so, it's interesting to see it …” …more details…
5:27:17 PM DE $44.73 Deere & Company
Fast Money
19 days ago (06/03)
“…In the commodity space sold off they were looking at it as a >> i'll just give you the trade then if you believe their numbers are feeding through look at tex, cat, DEERE, those are names in the space. It's not about the second quarter the restocking trade expecting in the third and this is an exciting time in the space and this pullback is actually -- this is your place to build that list with joy global, tex, DEERE, caterpillar. >> one thing to keep in consideration, joy global was 15.38 on march 3rd. It's trading now 36. That's a pretty huge move. Valuations, tim makes a great point it's not about this …” …more details…
3:03:22 PM DE $47.18 Deere & Company
21 days ago (06/01)
“…Participating in the rally we saw in the broader markets here. That's what people are talking about late in the day. Other than that, industrials big name. DEERE, union pacific, honeywell performed great. Honeywell, multi-month high. We're starting to see that with commodity-related names like transports. …” …more details…
12:13:55 PM DE $46.85 Deere & Company
21 days ago (06/01)
“…Elsewhere the big manufacturing numbers in china that are helping out our market here it's the commodity play. The big industrial companies. DEERE, union pacific, honeywell. You look at big commodity names. U.S. Steel breaking out to a multimonth high here. These are not new yearly highs but hulty month breakouts. …” …more details…
10:08:41 AM DE $46.22 Deere & Company
21 days ago (06/01)
“…And, of course, manufacturing numbers in china were great, the dollar is weak here today. You look at your big industrial names that have international exposure, commodity exposure like DEERE, union pacific, are to the upside. All the big commodity names. >> very quickly, they've already told us we're out of time. Does gm trade today? We got a memo they're suspended …” …more details…
3:02:57 PM DE $42.27 Deere & Company
5/22/2009 3:02 PM
“…Look at red robin gourmet burger. They are cutting the promotion. Campbell is doing well all day long. DEERE is good. The obama administration talked about the triple-a it gave us a little little little oom of to the market. …” …more details…
10:06:26 AM DE $42.79 Deere & Company
5/22/2009 10:06 AM
“…This, and the news that red robin losing customers and mcdonald's, doesn't seem that way and you can see the casino stocks, and certainly a winner there, and spint and DEERE on the fox 50 members. And DEERE is showing a gain of about 3%. And we're watching oil and gold, certainly, as well. 61.05 for oil. 960 for gold. We're up, too, and I took it out of the negative and toss it back …” …more details…
6:35:59 PM DE $44.03 Deere & Company
Mad Money
5/20/2009 6:35 PM
“…Exxon is an oil company, the world's largest. Wells fargo we dealt with that earlier it's a bank, I own it for my charitable trust. It's a consumer product drug. JOHN DEERE we want to cover that the best farm equipment company in the world. And disney, the excellent, well-run company everybody's short because they're idiots. Jonas brothers. We have entertainment, we've got …” …more details…
6:35:37 PM DE $44.03 Deere & Company
Mad Money
5/20/2009 6:35 PM
“…>> caller: i've got johnson & johnson. >> caller: yeah. Disney. >> caller: wells fargo. >> common theme. >> caller: JOHN DEERE. And exxonmobil. Jim, am I diversified? First may I point out that yesterday I said that the "wall street journal" wrote an article that was negative about farms and what happened? DEERE reported a number the you clearly would have missed that if you watched the "wall street journal." at the same time monsanto having one of the biggest moves ever. I want to point out against the editorial people at the "wall …” …more details…
5:05:02 PM DE $44.33 Deere & Company
Fast Money
5/20/2009 5:05 PM
“…Held in there? >> at the same time the dollar index is down to a five-month how much is this really a demand story versus just simply dollar >> well, look, it's not completely the dollar inverse trade. Even DEERE told us their numbers weren't that bad this morning and that was a catalyst to the so I think if you look at the dollar weakness, yes, it's part of the reason why I like gold long-term. It's not necessariliy like oil here. And I do think you have some real demand. …” …more details…
12:46:31 PM DE $44.90 Deere & Company
5/20/2009 12:46 PM
“…Stock price of the s&p was we were challenged in the everybody was talking about the it has not happened. Today, target has come out and beat, JOHN DEERE has come out with less than disappointing earnings, and you can see the commodity names participate. And resiliency is the theme right now on the marketplace. >> we were talking yesterday on …” …more details…
6:03:59 AM DE $43.50 Deere & Company
Squawk Box
5/20/2009 6:03 AM
“…The fed has to release minutes of its last fomc meeting. That's later on this afternoon. Also expecting quarterly numbers from target, limited brands and DEERE & company. A piece in the journal this morning talking about DEERE, joe, and how fewer tractors >> there is no part of the economy that isn't affected globally by what we're talking …” …more details…
6:08:55 PM DE $43.25 Deere & Company
Mad Money
5/19/2009 6:08 PM
“…The fert qulooirz stocks. Why? They're feeling the credit it's because the farmers are plan like mad. Will this article keep from you owning agco, which has been red how about DEERE? Let's use that as a litmus. DEERE reports tomorrow. Now, if DEERE is good, you will the author of this article because there's no accountability in this. Do you think that lauren eder or the "journal" will write, oops, sorry, wrote that article, kept you out of DEERE. No. I want to know if he's right to scare you out of the stock. Let's find out tomorrow. I'm going to go back. If DEERE's bad, listen, but you know what? I know that spin was totally negative and it kept you out of the fert qulooirz stocks, which have been just the hottest in the business. The most frequent topic of these negatively spun stories is about the weak dollar. …” …more details…
5:30:48 PM DE $43.30 Deere & Company
Fast Money
5/19/2009 5:30 PM
“…Runs like a deer, or so i'm tomorrow they report earnings but you don't need to wait for profit reports to get -- DEERE up 7%. Is it too late to jump in on the ag stock bandwagon? There are a lot of ways to play and jeff, I know you've been playing the fertilizer names like agrium. >> indeed I have. I haven't been long DEERE because they look like just big souped-up gm machines to me and we know what's happening to gm. So what i've been doing I bought ford on the dip and haven't touched it since and that's about three weeks old and as well as just ignoring DEERE entirely. >> if you look at an april 23rd, c & h global reported a lousy the street was looking for a profit 206 cents. If you extract a little and see what they said about global demand for farm equipment it doesn't bode well for JOHN DEERE. That and the fact the credit market hurts farmers as well. If you can't get loans you can't buy equipment. That comes into play this DEERE to me as you mentioned gets ahead of itself. 15 times forward earnings to me i'm not running after JOHN DEERE another stock that makes sense I just don't think it makes sense >> the fertilizer names for me they've got to wait for me. I feel i'll just step in it if I buy now and -- >> that's a smart reaction. She knows you don't go out chasing a company with a slogan nothing runs like a DEERE. That's a good smart answer. >> I actually have a JOHN DEERE lawn tractor and nothing runs less than this DEERE, by the and it's always broken. But I love to cut my grass -- yeah, I cut my grass. Can you believe that? The ambassador cuts his own grass. Anyway, JOHN DEERE always >> fertilizer. >> it really is. One quick point. The talf deals are actually also geared toward farm equipment, et cetera. I do think there's going to be …” …more details…
6:12:06 PM DE $41.96 Deere & Company
Mad Money
5/15/2009 6:12 PM
“…>> caller: a big iowa boo-yah to you, jim! >> secrecy that's a spirited boo-yah toned the week. The guy obviously came to play. What's on your mind? What's on your mind, skipper? >> caller: I was curious what you're thinking about JOHN DEERE. I know they've come back here recently a little. But with the construction industry and the farm industry and just industry in general, >> I think that DEERE's up too it reports next week. I would not buy that stock until I saw the quarter. By the way, monsanto has been the hot ag stock and the fertilizers have had a big year but DEERE has been executing I think that stock up at 41 could be in for a bout of profit taking unless they nail the I don't want you to -- >> I don't want you to pull the trigger on JOHN DEERE. If you want to make money in this market, you've got to start thinking like a pro. You've got to start paying attention to the key electoral swing state calls. …” …more details…
5:52:09 PM DE $41.91 Deere & Company
Fast Money
5/15/2009 5:52 PM
“…>> if you're ever going to try to put up a good quarter in the time you want to do it and that's exactly where target is but i've made my bed with walmart, I like walmart better. >> DEERE reporting earnings next week, profit of $1.08 is >> the profits are going to be off we already know that. But this stock hooz made a big i'd love to he soo a bit of a …” …more details…
12:18:34 PM DE $41.95 Deere & Company
5/15/2009 12:18 PM
“…Term trade. The s&p to 950 and maybe 1,000. You keep putting money in commodities, infrastructure plays. I like JOHN DEERE and caterpillar. You have a double and take profits. On a fullback, you go back in. >> you got it. >>> up next, thousands of auto dealers and the employees will …” …more details…
6:37:50 PM DE $45.40 Deere & Company
5/5/2009 6:37 PM
“…We heard senator mccain --. Neil: did you hear president's remarks on this, the companies take advantage because including in that swath of evil companies that do this are general electric and pfizer and caterpillar. Neil: and DEERE AND ibm and microsoft and list goes on. >> financial services but we also heard, as I started to say, during the campaign we heard senator mccain talk about having the …” …more details…
6:36:17 PM DE $45.40 Deere & Company
5/5/2009 6:36 PM
“…>> but it can increase shareholder value if they concentrate their resources in one place. >> because they can use them more efficiently. Neil: try telling that to and caterpillar and DEERE. They are everywhere. >> what is the answer here? Is the answer to say, we are going to ship everything, why have any workers here? Why not ship --. Neil: all of these companies …” …more details…
6:18:25 PM DE $45.11 Deere & Company
5/4/2009 6:18 PM
“…Only do more to shift those jobs neil: well, the president's people, congressman, say companies like caterpillar and DEERE would not be affected by this because this is an issue of those who get an exclusive credit here for doing something abroad that they shouldn't be doing and claiming the credit for. Neither of which would apply to …” …more details…
5:13:29 PM DE $42.88 Deere & Company
Fast Money
5/1/2009 5:13 PM
“…In 1999. Commodities haven't really moved. If we're getting a big move in the pmis and getting global growth, cat, terrix, DEERE, and the bdiy, we know this is erratic index, but look at the shippers who have been able to work out their balance problems. Dry ships, gnks. These are interesting plays. …” …more details…
7:10:14 AM DE $38.92 Deere & Company
4/27/2009 7:10 AM
“…Packages of the antiflu remedy ready to deliver anywhere in the world within a 24 hour period. Shares of both roche and glaxo are rising this morning. Closer to home, however, DEERE field based baxter is seeking a sample of the swine flu to begin work on a custom vaccine targeted for the specific strain …” …more details…
3:23:33 PM DE $38.92 Deere & Company
4/15/2009 3:23 PM
“…Talk about where you like to aim your guns and pull the trr where you're buy. >> there are a couple of simple concepts. What is the strong company that will get stronger? Is it JOHN DEERE, procter & gamble, pepsipepsi/coke? Who is going to win that war? Which didn't listen to te efficient capital market guys two years ago and leveraged …” …more details…
11:10:24 AM DE $36.66 Deere & Company
4/13/2009 11:10 AM
“…Added. Have you talked about buying some names, but are they new names you've added recently in say the last month as the market has run up. >> the last two or three months we've been adding to positions in jacobs engineering and DEERE AND cat, we're big believers in the infrastructure call, the infrastructure play, we think these names, caterpillar and DEERE pan the balance sheets are strong enough going forward we think the dividend flow is probably going to be reasonably decent e bill. Great to see you. Chief investment officer at umb asset management. …” …more details…
5:12:08 PM DE $37.26 Deere & Company
Fast Money
4/9/2009 5:12 PM
“…Were demand driven and the things that I got excited about in the xodity space and john and I have been on that trade and there's more to go there, I it was the people like DEERE AND joy global and the people exposed to the real buildout. These were the outperformers and people can't just bank on the underlying commodity price. There's real demand that these guys are banking on and there's …” …more details…
4:20:56 PM DE $34.98 Deere & Company
4/7/2009 4:20 PM
“…Corporate bonds. So that's the first sign of a b a zero interest3ygrate is fixed incomemd investors to look to DEERE AND caterpillar are not going to fail, so they're moving into that part of the sector. That means that a and a morgan stanley and, arguably, the capital markets business of a jpm are going+a} to …” …more details…
2:06:26 PM DE $35.02 Deere & Company
4/7/2009 2:06 PM
“…This will be only credit card and autote. This is only the second such auction and a lot is riding on this time more loans are eligible. Things like caterpillar and JOHN DEERE machines. Some of the biggest potential players in that space for one are not playing today. They're waiting to see how the and of course, if everyone waits …” …more details…
5:45:01 PM DE $35.07 Deere & Company
Fast Money
3/27/2009 5:45 PM
“…>> a downgrade. Another chatter that make a is not going to happen but this stock is -- what $1.50? It's an option. >> pop here for DEERE. Up 14% on the week. >> a good durable goods' orders and hadic sales exploding. The felts. You know? >> yeah it's a nice division. >> rated for DEERE. Nothing sounds like a deer. >>thing. Anand iii a l lot o of pepeoplele araren't't looookingng for tech araren't't looooking for tech …” …more details…
2:55:03 PM DE $33.52 Deere & Company
3/25/2009 2:55 PM
“…President's going to tell them on friday guys, i'm working with you, don't give back the tarp. But that's just my gut what will happen friday. Jim has a little game. Which stock would you rather buy? DEERE or hershey? >> this is just a classic where we are right now. And the answer is I think you want to get a little more in the defensive names. I'm really confident that hershey's going to have a great quarter. DEERE's going to have a great we're back in that world. It's great when you so-called beat the estimates because they're lowered so much. But then you don't raise them? See, I think DEERE's estimates are too high, and I think they have to lower guidance. Hershey on the other hand, I think the estimates are too low, and I think they'll raise so right now even though it's economically not sensitive, I prefer hershey to DEERE. I like it. Great dichotomy of where the market is right now. >> everyone talks about the biggest producers of chocolate or chocolate beans in the world are in africa. …” …more details…
1:37:03 PM DE $34.11 Deere & Company
3/25/2009 1:37 PM
“…Which is the biggest part of any balance sheet of any corporation anywhere in the world. >> united parcel's doing very JOHN DEERE's doing very well. Harley-davidson is doing well. This is typical of businesses scared to death somehow employees are going to be able to determine their own destiny. If the prices of wal-mart go up …” …more details…
3:02:47 PM DE $35.44 Deere & Company
3/24/2009 3:02 PM
“…Up volume, but evidence a lot of great names in the green. DEERE getting new coverage at good to get that. Bank, mixed bag. Goldman is still in the green talk about them returning the tarp money may be after the stress test, after earnings but they're eager to do so. …” …more details…
2:11:36 PM DE $35.61 Deere & Company
3/24/2009 2:11 PM
“…Call that it was cut to a neutral from a buy. Goldman sachs reducing the 2009 and 2010 earning estimate. Look at the movers here. DEERE AND underarmor, other names we're watching. Citi came out with buy rating on them. Each time we pull back, you may want to try to get in …” …more details…
9:32:41 AM DE $33.80 Deere & Company
3/24/2009 9:32 AM
“…Side. Ge, and gm, ge above that $10 level and quickly analyst calls worth take ago look at here. Disney cut to neutral from a DEERE a buy rating over at jeffries and underarmor, a few to look at under armor down 5.2% and after yesterday's run off, …” …more details…
3:03:57 PM DE $33.62 Deere & Company
3/23/2009 3:03 PM
“…That's important. Industrials have all had a great and there's been no concerted efforts. Off the market. So right across the boy, textron, DEERE, all the transports rupp 6%, 7%. Oil has been comfortably above $50 for a number of days now. Even exxonmobil, which normally doesn't move on that kind of …” …more details…
5:43:33 PM DE $30.67 Deere & Company
Happy Hour
3/16/2009 5:43 PM
“…Going down? "happy hour" ag play. What is the ag play. Seed, fertilizer process every and tractor. Monsanto, bunge process sever and DEERE tractors. Know you the bunge chart. Long term downtrend. Flat for a long time. Takes out that $55 high right there keep your high …” …more details…
11:12:06 AM DE $30.92 Deere & Company
3/16/2009 11:12 AM
“…Figuring some of the big movers, and a big mover here today. You can see how they're faring and some of them are red there, you can see what other names here are in the green, from fedex to DEERE. Gte. A buy reading over at goldman sachs and also, general dieynamics that's what we're looking at. …” …more details…
View All Deere & Company News

Key Fundamentals

DE - Deere & Company Fundamentals
Price (6/22 7:28PM) $38.93
Volume (6/22 7:28PM) 6.3 Million
Last Close Price $40.06
10 Day Average Volume 4.8 Million
13 Week Price Range $31.79 - $47.98
52 Week Price Range $24.51 - $74.18
LTM Revenue $24.6 Billion
 
Shares Outstanding (10/2008) 422.8 Million
Market Capitalization $16.5 Billion
Shares Held By Institutions 318.4 Million
Institutional Holders 911
% Shares Held By Institutions 75.30%
Earnings Per Share (EPS) $4.70
P/E Ratio 10.50
Book Value Per Share $16.25
 
Gross Margin 26.10%
Annual Dividend 1.12
Dividend Yield 2.90%
Beta 1.76
Fiscal Year Ends October
NASDAQ 1766.19

-61.28  -3.35%
S&P; 500 893.04

0  0.00%
^DIA 83.32

-1.99  -2.33%