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DE, Deere & Company

Farm & Heavy Equipment capital-intensive

Deere builds the big machines that work the land — tractors, combines, planters and sprayers for farmers, and earthmoving and forestry gear for construction and forestry crews. It sells mostly through independent dealers, and a captive finance arm lends customers the money to buy the equipment. The bulk of the revenue comes from agricultural machinery, with construction and forestry a smaller share.

Latest annual: FY2025 10-K

DE · Deere & Company

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$45.7B

−11.7% YoY · 5% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $47.4B 5-yr avg $51.1B

Gross margin 48%

Operating margin 19.1% 5-yr avg 17.7%

ROIC 10% 5-yr avg 22%

Owner-earnings margin 14% 5-yr avg 12%

Free cash flow margin 14% 5-yr avg 12%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Production and Precision Agriculture (39%), Construction & Forestry (CF) (26%) and Small Agriculture and Turf (23%).
What moves the needle: The test that governs Deere is whether the brand, the dealer network, and the precision-farming technology bolted onto the machines add up to a real franchise — one that lets it price above the cost of steel and engines and keep the farmer when the next machine is due — or whether it is a skilled maker of cyclical hardware that earns its keep only in good years. Judge the gross margin and the return on capital across a full farm cycle rather than a single harvest, because agriculture turns with crop prices and farm income, and a captive lender means a downturn shows up twice: fewer machines sold and weaker credit. Single-source suppliers, tariffs on inputs, and the steady capital a heavy manufacturer must feed back in are the standing costs of staying in the game. The figures are in the record below.
Is it a good business?: Return on capital has sat near the cost of capital (median 11%). By owner earnings: roughly 12% of revenue reaches owners as cash, consistently. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Drafted from the company's filings and reviewed by hand; every number is shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 3 segments, the largest Production and Precision Agriculture at 39%.

Revenue by reportable segment, FY2025

Production and Precision Agriculture39%$17.7B
Construction & Forestry (CF)26%$11.7B
Small Agriculture and Turf23%$10.5B

By geographyUnited States52%Western Europe14%Latin America12%Asia, Africa, Oceania, and Middle East9%Canada8%Central Europe and CIS3%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMay 2026
											Income statement
$26.6B	$29.7B	$37.4B	$39.3B	$35.5B	$44.0B	$52.6B	$61.3B	$51.7B	$45.7B	$47.4B	RevenueRevenue
32%	33%	—	—	—	—	—	—	—	—	48%	Gross marginGross mgn
10%	10%	9%	9%	10%	8%	7%	8%	9%	10%	10%	SG&A / revenueSG&A/rev
5%	5%	4%	5%	5%	4%	4%	4%	4%	5%	5%	R&D / revenueR&D/rev
$2.6B	$3.6B	$4.5B	$4.4B	$4.3B	$8.0B	$9.5B	$13.0B	$9.0B	$6.3B	$9.0B	Operating incomeOp. inc.
9.8%	12.0%	12.0%	11.2%	12.1%	18.2%	18.1%	21.2%	17.5%	13.7%	19.1%	Operating marginOp. mgn
$1.5B	$2.2B	$2.4B	$3.3B	$2.8B	$6.0B	$7.1B	$10.2B	$7.1B	$5.0B	$4.8B	Net incomeNet inc.
31%	31%	42%	21%	28%	22%	22%	22%	23%	20%	23%	Effective tax rateTax rate
											Cash flow & returns
$3.8B	$2.2B	$1.8B	$3.4B	$7.5B	$7.7B	$4.7B	$8.6B	$9.2B	$7.5B	$7.9B	Operating cash flowOp. cash
$1.6B	$1.7B	$1.9B	$2.0B	$2.1B	$2.0B	$1.9B	$2.0B	$2.1B	$2.2B	$2.3B	DepreciationDeprec.
$615M	($1.7B)	($2.6B)	($1.9B)	$2.5B	($369M)	($4.4B)	($3.7B)	($195M)	$52M	$675M	Working capital & otherWC & other
$644M	$595M	$896M	$1.1B	$820M	$848M	$1.1B	$1.5B	$1.6B	$1.4B	$1.3B	CapexCapex
2.4%	2.0%	2.4%	2.9%	2.3%	1.9%	2.2%	2.4%	3.2%	3.0%	2.7%	Capex / revenueCapex/rev
$3.1B	$1.6B	$926M	$2.3B	$6.7B	$6.9B	$3.6B	$7.1B	$7.6B	$6.1B	$6.7B	Owner earningsOwner earn.
11.7%	5.4%	2.5%	5.8%	18.7%	15.6%	6.8%	11.6%	14.7%	13.4%	14.1%	Owner earnings marginOE mgn
$3.1B	$1.6B	$926M	$2.3B	$6.7B	$6.9B	$3.6B	$7.1B	$7.6B	$6.1B	$6.7B	Free cash flowFCF
11.7%	5.4%	2.5%	5.8%	18.7%	15.6%	6.8%	11.6%	14.7%	13.4%	14.1%	Free cash flow marginFCF mgn
$199M	$284M	$5.2B	—	$66M	$244M	$498M	$82M	—	$101M	$101M	AcquisitionsAcquis.
$761M	$764M	$806M	$943M	$956M	$1.0B	$1.3B	$1.4B	$1.6B	$1.7B	$1.8B	Dividends paidDiv. paid
$205M	$6M	$958M	$1.3B	$750M	$2.5B	$3.6B	$7.2B	$4.0B	$1.1B	—	BuybacksBuybacks
7%	9%	7%	9%	7%	12%	26%	31%	24%	16%	10%	ROICROIC
23%	23%	21%	29%	21%	32%	35%	47%	31%	19%	17%	Return on equityROE
12%	15%	14%	20%	14%	27%	29%	40%	24%	13%	11%	Retained to equityRetained/eq
											Balance sheet
$4.3B	$9.3B	$3.9B	$3.9B	$7.1B	$8.0B	$4.8B	$7.5B	$7.3B	$8.3B	$7.9B	Cash & investmentsCash+inv
—	—	$5.0B	$5.2B	$4.2B	$4.2B	$6.4B	$7.7B	$5.3B	$5.3B	$7.6B	ReceivablesReceiv.
$3.3B	$3.9B	$6.1B	$6.0B	$5.0B	$6.8B	$8.5B	$8.2B	$7.1B	$7.4B	$8.2B	InventoryInvent.
$3.3B	$3.9B	$11.2B	$11.2B	$9.2B	$11.0B	$14.9B	$15.9B	$12.4B	$12.7B	$15.8B	Operating working capitalOper. WC
$816M	$1.0B	$3.1B	$2.9B	$3.1B	$3.3B	$3.7B	$3.9B	$4.0B	$4.2B	$4.5B	GoodwillGoodwill
$57.9B	$65.8B	$70.1B	$73.0B	$75.1B	$84.1B	$90.0B	$104.1B	$107.3B	$106.0B	$107.0B	Total assetsAssets
$23.7B	$25.9B	$27.2B	$30.2B	$41.3B	$43.8B	$12.6B	$17.9B	$13.5B	$13.8B	$48.1B	Total debtDebt
$19.4B	$16.6B	$23.3B	$26.4B	$34.3B	$35.8B	$7.8B	$10.5B	$6.2B	$5.5B	$40.2B	Net debt / (cash)Net debt
3.4×	4.0×	3.7×	3.0×	3.5×	8.1×	9.0×	5.3×	2.7×	2.0×	3.0×	Interest coverageInt. cov.
$6.5B	$9.6B	$11.3B	$11.4B	$12.9B	$18.4B	$20.3B	$21.8B	$22.8B	$25.9B	$27.4B	Shareholders’ equityEquity
0.3%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.2%	0.4%	0.3%	0.4%	Stock comp / revenueSBC/rev
											Per share
317M	323M	327M	321M	317M	314M	306M	294M	277M	272M	271M	Shares out (diluted)Shares
$84.16	$91.98	$114.14	$122.45	$112.26	$140.20	$171.65	$208.62	$186.63	$168.14	$174.95	Revenue / shareRev/sh
$4.81	$6.68	$7.23	$10.15	$8.69	$18.99	$23.28	$34.63	$25.62	$18.50	$17.66	EPS (diluted)EPS
$9.87	$4.95	$2.83	$7.15	$21.05	$21.90	$11.64	$24.15	$27.39	$22.45	$24.65	Owner earnings / shareOE/sh
$9.87	$4.95	$2.83	$7.15	$21.05	$21.90	$11.64	$24.15	$27.39	$22.45	$24.65	Free cash flow / shareFCF/sh
$2.40	$2.36	$2.46	$2.94	$3.02	$3.31	$4.29	$4.86	$5.79	$6.33	$6.48	Dividends / shareDiv/sh
$2.04	$1.84	$2.74	$3.49	$2.59	$2.70	$3.70	$5.10	$5.92	$5.01	$4.64	Cap. spending / shareCapex/sh
$20.59	$29.56	$34.49	$35.60	$40.86	$58.70	$66.15	$74.20	$82.41	$95.51	$101.17	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+8.0%/yr	+8.4%/yr
Owner earnings / share	+9.6%/yr	+1.3%/yr
EPS	+16.1%/yr	+16.3%/yr
Dividends / share	+11.4%/yr	+16.0%/yr
Capital spending / share	+10.5%/yr	+14.1%/yr
Book value / share	+18.6%/yr	+18.5%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

272Mpeak FY2018

ROIC

16%low FY2020

Net debt ÷ owner earnings

0.9×peak FY2018

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$6.1Bowner earningsvs.$5.0Bnet incomelow FY2018

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $5.0B of profit into $6.1B of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$5.0B

Owner earnings$6.1B · 13% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$5.0B	$7.1B	$10.2B	$7.1B	$6.0B
Depreciation & amortizationnon-cash charge added back	+$2.2B	+$2.1B	+$2.0B	+$1.9B	+$2.0B
Stock-based compensationreal costnon-cash, but a real cost	+$151M	+$208M	+$130M	+$85M	+$82M
Working capital & othertiming of cash in and out, other non-cash items	+$52M	−$195M	−$3.7B	−$4.4B	−$369M
Cash from operations	$7.5B	$9.2B	$8.6B	$4.7B	$7.7B
Capital expenditurecash put back in to keep running and to grow	−$1.4B	−$1.6B	−$1.5B	−$1.1B	−$848M
Owner earnings	$6.1B	$7.6B	$7.1B	$3.6B	$6.9B
Owner-earnings marginowner earnings ÷ revenue	13%	15%	12%	7%	16%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $151M), owner earnings is nearer $5.9B.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Restated past financials

“Prior period results for Deere & Company were not restated, as the adjustment was considered immaterial to our financial statements. 5.”

The figures below are only as sound as the controls that produced them. read the note →

Will it survive?

Can it pay its interest? 2.9×

Adequate

Operating income $9.0B ÷ interest expense $3.2B

What this means
Comfortable in a normal year, but below the margin of safety Graham looked for. Worth checking how stable the coverage has been across a full cycle.
How heavy is the debt, net of cash? $38.4B · 4.2× operating profit

Heavy net debt

Cash $8.3B − debt $46.7B

What this means
Netting $8.3B of cash and short-term investments against $46.7B of debt leaves $38.4B owed, about 4.2× a year's operating profit (5.2× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 9%

Solid through the cycle

10-yr median, range 7%–31%; 11% latest = NOPAT $7.2B ÷ invested capital $64.4B

Industry peers: median 12%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 11% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 12%

Solid through the cycle

10-yr median margin, range 2%–19%; latest $6.1B = operating cash $7.5B − maintenance capex $1.4B

Industry peers: median 8%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 13% of revenue this year, a 12% median across 10 years. Treating stock comp as the real expense it is (less $151M of SBC) leaves $5.9B.
Are earnings backed by cash? 1.48×

Cash-backed

Cash from ops $7.5B ÷ net income $5.0B

In the filing’s words The filing discloses a restatement of previously reported figures — some numbers in the record have moved since they were first filed; read what changed, and why, before trusting the trend.

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 47%

Returns about half

Dividends + buybacks $2.9B ÷ Owner Earnings $6.1B

What this means
Of $6.1B Owner Earnings, $2.9B (47%) went back to shareholders, $1.7B dividends, $1.1B buybacks. Net of $151M stock comp, the real buyback was about $987M. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.61×

Harvesting

Capex $1.4B ÷ depreciation $2.2B

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 4 of 4 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $45.7B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity —

Current ratio ≥ 2× · —

What this means
Current assets / liabilities not in the data yet.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Pass

Uninterrupted dividends · paid every year (10)

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +268%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $27.53/share (latest year $18.62), the averaged base the calculator's gate runs on, and book value is $96.13/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 4 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 11% → 17% (3-yr avg ends)

In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

What this means
Through the cycle the operating margin widened — about 11% early to 17% lately, median 12% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +13%/yr

What this means
Owner earnings grew about 13% a year over the record.
Worst year 2016 · 9.8% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −1.7%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“Additionally, if we are unable to match or surpass the advances of artificial intelligence that our competitors implement for their products or for internal operations, our competitive position could be impacted.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Debt maturity

the debt note, SEC EDGAR →

Not how much it owes, but when it falls due, and against what. The ladder the company files, beside cash on hand and a year's owner earnings.

'26$8.9B

'27$8.9B

'28$9.2B

'29$6.6B

'30$4.6B

Bars scaled to the largest single year.

Due in the next 12 months$8.9Bthe first rung: what must be repaid or rolled over within the year

Within two years$17.9Bthe near wall, the part most exposed to today’s credit conditions

Biggest single year$9.2Bin 2028the lumpiest maturity, where a refinancing, if needed, is largest

Due over the next five years$38.2Bthe near slice; the balance sheet carries $46.7B of debt in all

Against what the business has and earns

Cash & short-term investments, May 3, 2026$7.9B

One year of owner earnings (FY2025)$6.1B

Together, against $8.9B due next year1.6×

Cash on hand as of May 3, 2026 plus a year’s owner earnings comes to $14.0B against the $8.9B due in the twelve months after the Nov 2, 2025 schedule: 1.6 times it.

Maturity schedule extracted from the company’s Nov 2, 2025 annual report and reconciled to the balance-sheet debt.

How the cash was used, 2016–2025

Over the record, the business generated $56.4B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$10.6B · 19%
Dividends$11.3B · 20%
Buybacks$21.7B · 38%
Retained (debt / cash)$12.8B · 23%

Returned to owners$33.0B
72% of the owner earnings the business produced over the span, $11.3B as dividends and $21.7B as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt rose $24.4B and cash and short-term investments rose $3.6B.
Average price paid for buybacks—
Buybacks ran $21.7B over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−14.4%
The diluted count fell from 317M to 271M, so the buybacks outran the stock issued to staff.
Dividend record$6.33/sh
Paid in 10 of the years on record, the per-share dividend growing about 11% a year. It was never cut over the span.
Return on what it retained35%
Of the earnings it kept rather than paid out ($14.4B over the span), annual owner earnings (first three years vs last three) grew $5.0B, so each retained $1 added about 0.35 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Mr. May	$19.9M	$48.0M	$6.9B
2022	Mr. May	$20.3M	$38.6M	$3.6B
2023	Mr. May	$26.7M	$29.0M	$7.1B
2024	Mr. May	$27.8M	$31.0M	$7.6B
2025	Mr. May	$27.9M	$15.0M	$6.1B

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$151M
The slice of the business handed to employees in shares this year, 0% of revenue, equal to 2% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Deere & Company is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereDid receivables and inventory outpace sales?13% → 17% of sales
Receivables and inventory grew from $3.3B to $8.2B while revenue grew 78%: working capital is climbing faster than sales (13% of revenue then, 17% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
Look hereAre "one-time" charges a yearly habit?6 of 10 years
Management took an impairment or write-down in 6 of the last 10 years, $534M in all. Taken across the majority of the record, the "one-time" label is wearing thin — ask whether these are past deals coming due rather than genuinely isolated events. Read it beside the goodwill the company still carries.

And these came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Farm & Heavy Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
CATCaterpillar Inc.	$67.6B	31%	14.3%	19%	12%
DEDeere & Company	$45.7B	56%	12.9%	11%	12%
CMICummins Inc.	$33.7B	25%	11.3%	20%	8%
BKRBaker Hughes Company	$27.7B	66%	5.1%	3%	4%
ETNEaton Corporation PLC	$27.4B	33%	16.3%	12%	11%
JCIJohnson Controls International PLC	$23.6B	34%	9.7%	7%	6%
CARRCarrier Global Corporation Common Stock	$21.7B	27%	13.1%	14%	9%
AGCOAgco Corp /de	$10.1B	23%	5.6%	10%	5%
Group median	—	32%	12.1%	11%	8%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Deere & Company has delivered.

Today’s price $

Through the cycle, Deere & Company earns about $5.3B on its 11.7% median owner-earnings margin. This year’s 13.4% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($5.3B) Net of stock comp (−$166M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+7%/yr

Owner-earnings growth · ’16→’25+13%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $6.7B on 270M shares outstanding, per the 10-Q cover, as of 2026-05-03; net debt $40.2B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh DE against another business →

The owners of DE: the meeting and the votes →

Cite: Owner Scorecard, "Deere & Company (DE), the owner's record," https://ownerscorecard.com/c/DE, data as of 2026-07-09.

Manual order: ← DDT its page in the Manual DEA →

Industry order: ← CNH the Farm & Heavy Equipment chapter GBX →