DE
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MASTER
ESEN VERDICT
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Horizon6–12M
Confidence
Data coverage

DE Stock AI Analysis

ESEN AI analysis of DE stock updated every 12 hours.

ESEN Institutional Analysis

DE Systematic Research

Deere & Co presents a distinctive profile among capital goods manufacturers, with systematic screening highlighting a $160.0B market capitalization trading at a significant premium to tangible book value. The price-to-book ratio of 4.81 reflects market recognition of intangible assets and brand strength, while the P/E ratio of 33.55 positions DE at a valuation tier substantially above traditional machinery peers, warranting examination of quality metrics that may justify this positioning.

The company's profitability framework demonstrates institutional-grade characteristics. Return on equity of 18.25% indicates effective capital deployment despite a debt-to-equity ratio of 2.46, which remains elevated relative to conservative balance sheet standards. The net margin of 10.09% combined with an operating margin of 19.29% suggests pricing power and operational efficiency within the agricultural and construction equipment sectors. Revenue growth of 4.01% year-over-year provides steady top-line expansion, though the EPS decline of 14.62% year-over-year flags margin compression or share count dynamics requiring fundamental scrutiny.

Risk factors from a screening perspective include:

  • The current ratio of 0.91 falls below the 1.0 threshold, indicating potential working capital constraints in cyclical downturns
  • Beta of 0.9 suggests moderate sensitivity to broader equity market volatility
  • Trading 12.1% below its 52-week high of $674.19 reflects recent price discovery pressures

Relative to peers including Toro Company (TTC), AGCO Corporation, and Alamo Group (ALG), DE commands premium valuation multiples supported by market leadership positioning in agricultural machinery and precision agriculture technology integration.

Analysis updated monthly based on systematic screening of fundamentals, profitability, growth, and peer positioning.

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