Deere & Company (DE) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Deere & Company

Updated on October 31, 2026 · accounts published on August 20, 2026

A highly profitable industrial business with shrinking sales and a heavily indebted balance sheet

Deere trades at a P/E of 37.5 over the last 12 months, 78 % above its ten-year median of 21.1, while EPS fell 28 % year over year.

• Is Deere expensive or cheap? At a P/E of 37.5, Deere trades 78 % above its ten-year median and higher than in 90 % of the last decade.
• How is the business doing? Revenue fell 12 % and EPS 28 % over the last 12 months, yet the operating margin holds at 19 %, above its 15 % average.
• How strong is the balance sheet? Net debt was $211.96 per share in fiscal 2025, 31 % of the price and 4.8× EBITDA, above the healthy ceiling of 3×.
• What to expect from the next earnings? Deere reports on November 25, 2026; analysts expect EPS of $4.07 after it beat estimates in each of the last 8 quarters.
• Does Deere turn its margin into cash, and at what cycle multiple does it trade? In fiscal 2025 free cash flow was 64 % of net income, short of the 85 % healthy mark, while capex took 9.5 % of revenue.

Is Deere expensive or cheap?

Over the last 12 months Deere trades at a P/E of 37.5. That is 45 % above its sector median of 25.8 and far above its own ten-year median of 21.1. Over the decade the P/E has ranged from 10.0 to 44.9, so the current figure sits near the top. EV/EBITDA is 20.3×, against a seven-year average of 13.3×. Earnings fell while the share price rose 46 % in a year, which pushed the multiple up. The stock is 5 % below its 52-week high of $709.48. A free cash flow yield of 1.4 % leaves little cushion if profits do not recover.

How is the business doing?

Over the last 12 months revenue fell 11.6 % and EPS fell 27.8 %, a clear downturn. Margins have held up better. The operating margin of 19.0 % is in line with 18.8 % in fiscal 2025 and well above the 15.0 % average for fiscal 2014-2025. ROIC of 22.1 % is 13.0 points above the sector median of 9.1 %. By Deere's own history, though, that is unusually high: over the past ten fiscal years ROIC topped 10 % only once, with a low of 3.0 % in 2016. Revenue per share grew 8.3 % a year over fiscal 2020-2025.

How strong is the balance sheet?

Leverage is the weak spot. In fiscal 2025 net debt was $211.96 per share: $247.72 of debt less $35.76 of cash. That equals 31 % of the current price and 4.8× EBITDA, well above the 3× considered healthy for industrials. Over the last 12 months debt to equity is 2.29 and the current ratio is 0.77. The Altman Z of 2.9 sits in the grey zone, just under the 2.99 safe threshold, and the Piotroski score of 5 of 9 is middling. The dividend yields 1.0 %, has risen for 8 consecutive fiscal years and took 34 % of fiscal 2025 earnings.

What to expect from the next earnings?

The next report is due November 25, 2026. Consensus calls for EPS of $4.07 for the quarter. That is below the $5.10 reported on August 20, 2026, which beat the $4.69 expected by 8.7 %. Deere has beaten EPS estimates in 8 of the last 8 quarters. Over the last 30 days the 2026 EPS consensus barely moved, from $18.12 to $18.08 across 18 analysts, and revenue estimates were also stable. Of the 46 analysts covering the company, 20 recommend buying, 20 holding and 6 selling. That split fits a stock priced near the top of its decade range.

Does Deere turn its margin into cash, and at what cycle multiple does it trade?

Industrials are semi-cyclical, so a single year's earnings can mislead. The order book, operating margin and cash conversion say more about the business. Deere passes the margin test, with 18.8 % in fiscal 2025 against a healthy floor of 12 %. Cash conversion is weaker: free cash flow was 64.3 % of net income, short of the 85 % benchmark. Capex took 9.5 % of revenue, above the healthy 4 % to 8 % range. On cycle-aware measures, EV/EBITDA of 20.3× is far above the seven-year average of 13.3×. The P/E of 37.5 compares with a ten-year average of 22.6.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.