📊 DE Key Takeaways
Is Deere & Co (DE) a Good Investment?
Deere & Co faces significant operational challenges despite maintaining high operating margins, as evidenced by negative operating cash flow of -$890M and negative free cash flow of -$1.1B. Revenue declined 11.7% year-over-year while net income growth of 0.6% masks underlying operational stress, suggesting the company is consuming cash despite reported profitability. The concerning cash position and high leverage (1.23x Debt/Equity) combined with deteriorating cash generation indicate potential difficulty sustaining current capital structure and shareholder returns.
Deere still shows meaningful gross profitability, solid interest coverage, and a balance sheet supported by substantial equity and cash, which suggests the business remains financially resilient through a weaker part of the cycle. However, the sharp revenue decline, negative operating and free cash flow, and unusually inconsistent margin data reduce confidence in earnings quality and near-term fundamental momentum. On balance, the company appears fundamentally durable but not cleanly strong enough for a more aggressive rating based on the current dataset.
Why Buy Deere & Co Stock? DE Key Strengths
- Exceptional operating margin of 94.0% demonstrates pricing power and operational efficiency in core business
- Strong interest coverage ratio of 12.6x indicates adequate ability to service debt obligations
- Substantial asset base of $103.4B with $6.8B in cash provides operational cushion
- Gross margin of 22.8% indicates the core equipment business remains meaningfully profitable despite lower sales
- Interest coverage of 12.6x suggests debt service is manageable even with a sizable debt load
- Cash of $6.80B and equity of $26.30B provide balance-sheet support during an industry downturn
DE Stock Risks: Deere & Co Investment Risks
- Negative operating cash flow of -$890M and negative free cash flow of -$1.1B indicate business is destroying cash despite reported profitability
- Revenue declining 11.7% YoY suggests weakening demand in farm machinery sector with limited near-term recovery visibility
- High leverage at 1.23x Debt/Equity with $32.4B long-term debt limits financial flexibility if operational performance continues deteriorating
- Extremely low ROE of 2.5% and ROA of 0.6% indicate poor capital efficiency and wealth destruction for shareholders
- Revenue fell 11.7% year over year, pointing to cyclical demand pressure and weaker operating momentum
- Operating cash flow of -$890.00M and free cash flow of -$1.15B indicate weak cash conversion in the latest period
- Reported operating income and margin appear inconsistent with gross profit, raising concerns about data quality and the reliability of some profitability signals
Key Metrics to Watch
- Operating Cash Flow - critical reversal needed to positive territory to validate profitability claims
- Revenue Trend - must stabilize and return to growth to justify current cost structure
- Free Cash Flow Generation - essential metric for debt service sustainability and capital allocation capacity
- Operating cash flow and free cash flow normalization
- Revenue trend and gross margin stability
Deere & Co (DE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DE Profit Margin, ROE & Profitability Analysis
DE vs Industrial Sector: How Deere & Co Compares
How Deere & Co compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Deere & Co Stock Overvalued? DE Valuation Analysis 2026
Based on fundamental analysis, Deere & Co shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Deere & Co Balance Sheet: DE Debt, Cash & Liquidity
DE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Deere & Co's revenue has grown significantly by 39% over the 5-year period, indicating strong business expansion. The most recent EPS of $34.63 reflects profitable operations.
DE Revenue Growth, EPS Growth & YoY Performance
DE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $8.5B | $656.0M | $2.42 |
| Q3 2025 | $12.0B | $1.3B | $4.75 |
| Q2 2025 | $12.8B | $1.8B | $6.64 |
| Q1 2025 | $8.5B | $869.0M | $3.19 |
| Q3 2024 | $13.2B | $1.7B | $6.29 |
| Q2 2024 | $15.2B | $2.4B | $8.53 |
| Q1 2024 | $12.2B | $1.8B | $6.23 |
| Q3 2023 | $14.1B | $1.9B | $6.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Deere & Co Dividends, Buybacks & Capital Allocation
DE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Deere & Co (CIK: 0000315189)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 16, 2026 | 8-K | de-20260312x8k.htm | View → |
| Mar 5, 2026 | 4 | xslF345X05/form4-03052026_090318.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/form4-03052026_090306.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/form4-03052026_090322.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/form4-03052026_080310.xml | View → |
❓ Frequently Asked Questions about DE
What is the AI rating for DE?
Deere & Co (DE) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 69% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DE's key strengths?
Claude: Exceptional operating margin of 94.0% demonstrates pricing power and operational efficiency in core business. Strong interest coverage ratio of 12.6x indicates adequate ability to service debt obligations. ChatGPT: Gross margin of 22.8% indicates the core equipment business remains meaningfully profitable despite lower sales. Interest coverage of 12.6x suggests debt service is manageable even with a sizable debt load.
What are the risks of investing in DE?
Claude: Negative operating cash flow of -$890M and negative free cash flow of -$1.1B indicate business is destroying cash despite reported profitability. Revenue declining 11.7% YoY suggests weakening demand in farm machinery sector with limited near-term recovery visibility. ChatGPT: Revenue fell 11.7% year over year, pointing to cyclical demand pressure and weaker operating momentum. Operating cash flow of -$890.00M and free cash flow of -$1.15B indicate weak cash conversion in the latest period.
What is DE's revenue and growth?
Deere & Co reported revenue of $9.6B.
Does DE pay dividends?
Deere & Co pays dividends, with $441.0M distributed to shareholders in the trailing twelve months.
Where can I find DE SEC filings?
Official SEC filings for Deere & Co (CIK: 0000315189) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DE's EPS?
Deere & Co has a diluted EPS of $2.42.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Deere & Co has a SELL rating with 69% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DE stock overvalued or undervalued?
Valuation metrics for DE: ROE of 2.5% (sector avg: 15%), net margin of 6.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy DE stock in 2026?
Our dual AI analysis gives Deere & Co a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DE's free cash flow?
Deere & Co's operating cash flow is $-890.0M, with capital expenditures of $256.0M. FCF margin is -11.9%.
How does DE compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 6.8% (avg: 10%), ROE 2.5% (avg: 15%), current ratio N/A (avg: 1.8).