| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 28 | 35.6x | 17.3x | Bottom tier | |
Growth | 16 | 8.0% | 7.1% | Bottom tier | |
Quality | 71 | 8.8% | 4.5% | Top tier | |
Safety | 48 | 4.2x | 2.6x | Around median | |
Capital Return | 85 | 1.01% | 0.06% | Top tier | |
Momentum | 86 | 50.3% | -1.6% | Top tier | |
Sentiment | 76 | 18 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
84% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Deere & Company manufactures agricultural, construction, forestry, and turf care equipment, sells precision agriculture technologies and digital solutions associated with their use, and provides customer financing. Its equipment operations are divided into Production & Precision Agriculture, Small Agriculture & Turf, and Construction & Forestry. Differences in demand cycles across these businesses are evident in its results: weak purchases of large agricultural equipment are offset by support from infrastructure and data center projects and from dairy and livestock customers.
In quarter 3 of fiscal year 2026, ended 2026-08-02, revenue according to EL7 data was approximately $12.6 billion, net income was $1.4 billion, and diluted earnings per share were $5.11. The operating margin calculated by EL7 was 20.6%, while operating cash flow according to EL7 data was approximately $2.2 billion for the same period. A reliable year-over-year revenue comparison is unavailable because the definition of the revenue line item differs between the periods, so these figures alone do not establish accelerating sales growth.
In quarter 3 of fiscal year 2026, ended 2026-08-02, Production & Precision Agriculture recorded sales of $3.998 billion and an operating margin of 13.2%, compared with sales of $3.383 billion and a margin of 18.4% for Small Agriculture & Turf, and sales of $3.618 billion and a margin of 12.1% for Construction & Forestry. These are segment margins, separate from the operating margin calculated by EL7. Financial Services generated net income of $219 million for the same period, illustrating that Deere's profitability combines sales of equipment and technologies with financing their use.
Q3 FY2026
Last 12 months to 2026-08-02
When: 2026-11-25
Fiscal year 2026 net income comes in within the range of $4.75 billion to $5 billion
Production & Precision Agriculture sales decline approximately 10% in fiscal year 2026 compared with the previous fiscal year
The median target from 11 analysts is $741, within a range of $570 to $813, a method that prices in expected growth and is inherently inclined toward optimism. The discounted cash flow model gives a value of $484, within a range of $342 to $713 and at a discount rate of 9.0%, to measure the value of expected cash generation; it is inherently conservative and follows analysts' earnings estimates. The industry-multiple value is $412, within a range of $259 to $540, based on next year's earnings at a median multiple of 18.4 across 10 companies, valuing Deere relative to its peers. The no-growth value is $75 at a discount rate of 9.0%, representing what remains when current after-tax operating profit is held constant forever. The cash flow and industry-multiple estimates are relatively close compared with the higher analyst target, while the no-growth value remains far below all three methods, illustrating the different weights assigned to recovery and future growth across the approaches.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Management said on the 2026-08-20 call that it sees fiscal year 2026 as the bottom of the agricultural equipment cycle, but expects a gradual recovery that varies across regions. Orders for model year 2027 sprayers and planters were up by a mid-single-digit percentage compared with the previous year's total program, although the program had not yet closed at the time of the call. By contrast, Deere expects Production & Precision Agriculture sales to decline approximately 10% in fiscal year 2026 compared with the previous fiscal year. The increase in early orders therefore remains an encouraging indicator that requires confirmation from farm income and final orders.
Deere said on the 2026-08-20 call that using See & Spray delivers herbicide savings exceeding 50%, linking the technology purchase to lower farm costs. The technology was included in approximately one-third of North American sprayer orders for model year 2027, with factory-installed adoption on track to nearly double compared with the previous program. More than 40% of planter orders in the region also included advanced technologies such as ExactRate, ExactShot, and FurrowVision. These indicators support demand for precision solutions, but do not mean that weak purchases of large equipment have ended.
Automated analysis for informational purposes only — not investment advice.
Small Agriculture & Turf margin reaches 14.5% in fiscal year 2026
Operating cash flow according to EL7 data was approximately $7.2 billion over the last 12 months through 2026-08-02, compared with net income of $4.9 billion for the same period. This represents cash conversion of 149% of net income. Free cash flow calculated by EL7 (operating cash flow minus capital expenditure) for the last 12 months was approximately $6.0 billion for the same period. These figures support the quality of cash generation, while financing needs to be assessed separately because total debt according to EL7 data reached $64.2 billion in quarter 3 of fiscal year 2026, ended 2026-08-02.
Construction & Forestry generated sales of $3.618 billion and an operating margin of 12.1% in quarter 3 of fiscal year 2026, ended 2026-08-02. Deere expects its sales to grow approximately 20% in fiscal year 2026 compared with the previous fiscal year, supported by infrastructure, data centers, and energy. On the 2026-08-20 call, the company said orders cover 4 to 5 months and customer backlogs extend into fiscal year 2027. However, diversification does not eliminate differences within the segment, as the company expects the global forestry equipment industry to decline approximately 10% in fiscal year 2026 compared with the previous fiscal year.
Over 90 days through 2026-10-19, 21 open-market sales by one insider were recorded, valued at $23.4 million. All sales, totaling $23.4 million, were executed under prearranged 10b5-1 trading plans, compared with $0 outside those plans. No open-market purchases were recorded during the same period, with a purchase value of $0. These details describe the trades and do not independently determine the outlook for demand for Deere equipment or its earnings.