DEERE & CO (DE) Stock Analysis

Analysis from 10-Q filed 2026-08-27. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 5.8%. FCF margin 12.5%. D/E 2.1x. Source: 10-Q filed 2026-08-27.

Metric	Value	Context
ROIC	5.8%	Below expectations
FCF Margin	12.5%	Healthy cash flow
Debt/Equity	2.1x	Elevated debt

ROIC 5.8% — Bottom 50% of sector peers. FCF margin 12.5% — Top 25%.

Explore DEERE & CO: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for DE: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: DEERE & CO earns 5.8% ROIC, Bottom 50% in Industrials

ROIC TTM 5.8%, sector median 7.2%, Bottom 50%. DuPont: NOPAT margin 10.1% × asset turnover 0.5x. Operating margin 13.4%. Source: 10-Q filed 2026-08-27.

Metric	DE	Rating	Context
Return on Invested Capital (ROIC)	5.8%	Warning	Below sector median of 7.2%
Return on Equity (ROE)	18.3%	Good	Efficient use of shareholder equity
Operating Margin	13.4%	Good	Moderate operational efficiency

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Cash Flow: DEERE & CO generates $6.0B FCF at 12.5% margin, positive NaN/8 quarters

FCF TTM $6.0B. FCF margin 12.5%, Top 25%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-27.

Metric	DE	Rating	Context
Free Cash Flow Margin	12.5%	Good	Healthy cash generation
Free Cash Flow (TTM)	$6.0B	Good	Positive cash generation
OCF/Net Income	1.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: DEERE & CO at 2.1x leverage, 2.2x interest coverage

Debt/Equity 2.1x. Total debt $57.7B, cash & investments $8.9B. Interest coverage 2.2x. Source: 10-Q filed 2026-08-27.

Metric	DE	Rating	Context
Debt to Equity	2.1x	Warning	Elevated leverage
Net Cash Position	$-48.7B	Warning	Net debt position
Interest Coverage	2.2x	Adequate	Monitor debt obligations

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Valuation: DEERE & CO trades at 37.2x earnings

P/E 37.2x. EV/Sales 4.8x. FCF yield 3.3%. Dividend yield 1.0%. Source: 10-Q filed 2026-08-27.

Metric	DE	Rating	Context
P/E Ratio	37.2x	Adequate	Premium valuation
EV/Sales	4.8x	Good	Growth premium priced in
FCF Yield	3.3%	Adequate	Lower cash yield
Dividend Yield	1.0%	Adequate	Growth focus over income

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Capital Allocation: DEERE & CO returns 1.4% shareholder yield, reducing shares 0.3% YoY

Total shareholder yield 1.4% (div 1.0% + buyback 0.4%). Share count -0.3% YoY. Capital returned $2.5B TTM. Source: 10-Q filed 2026-08-27.

Metric	DE	Rating	Context
Total Shareholder Yield	1.4%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.4%	Adequate	Minimal buyback activity
Share Count Change (YoY)	-0.3%	Adequate	Net share reduction (accretive)
Total Capital Returned (TTM)	$2.5B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	5.8%	Bottom 50%	0.8x below
Free Cash Flow Margin	12.5%	Top 25%	2.1x above
Operating Margin	13.4%	Top 50%	1.9x above
Return on Equity (ROE)	18.3%	Top 50%	1.8x above
P/E Ratio	37.2x	N/A	-

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Financial Scorecard

Metric	DE	Rating	Sector Context
Return on Invested Capital (ROIC)	5.8%	Warning	Bottom 50% of sector (median: 7.2%)
Free Cash Flow Margin	12.5%	Good	Top 25% of sector (median: 6.1%)
Debt to Equity Ratio	206.0%	Warning	High financial leverage
P/E Ratio (Price-to-Earnings)	37.2x	Adequate	High expectations priced in
Free Cash Flow Yield	3.3%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is DEERE & CO's Return on Invested Capital (ROIC)?

DEERE & CO (DE) has a trailing twelve-month Return on Invested Capital (ROIC) of 5.8%. The 8-quarter median ROIC is 6.0% with a improving trend. Sector median 7.2%. Source: 10-Q filed 2026-08-27.

Q: What is DEERE & CO's Free Cash Flow Margin?

DEERE & CO (DE) has a free cash flow margin of 12.5%, generating $6.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-08-27.

Q: What is DEERE & CO's P/E ratio and how does it compare to peers?

DEERE & CO (DE) trades at a P/E ratio of 37.2x, which is above the sector median of N/A. EV/Sales 4.8x. FCF yield 3.3%. Source: 10-Q filed 2026-08-27.

Q: Does DEERE & CO pay a dividend?

DEERE & CO (DE) currently pays a dividend yield of 1.0%. Total shareholder yield (dividend + buybacks) 1.4%. Source: 10-Q filed 2026-08-27.

Q: How much debt does DEERE & CO have?

DEERE & CO (DE) has a debt-to-equity ratio of 2.1x with total debt of $57.7 billion. Interest coverage 2.2x. Net debt $48.7 billion. Source: 10-Q filed 2026-08-27.

Q: What is DEERE & CO's revenue and earnings growth?

DEERE & CO (DE) grew revenue by 8.0% year-over-year. EPS -5.9% YoY. Source: 10-Q filed 2026-08-27.

Q: Is DEERE & CO buying back stock?

DEERE & CO (DE) repurchased $699.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.4%. Share count -0.3% YoY. Source: 10-Q filed 2026-08-27.

Q: How does DEERE & CO compare to competitors in Industrials?

Compared to other companies in Industrials, DEERE & CO (DE) shows: ROIC 5.8%, sector median 7.2% (Bottom 50%). FCF margin 12.5%, sector median 6.1% (Top 25%). These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.

Q: What warning signs should I watch for with DEERE & CO?

Quantitative warning flags for DEERE & CO (DE): 1) debt/equity 2.1x (above 1.5x threshold); 2) interest coverage 2.2x (below 5x). Source: 10-Q filed 2026-08-27.

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Data Source: Data sourced from 10-Q filed 2026-08-27. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.