Is the business good?
How good a business is DE?
Deere & Company earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
12%
Return on invested capital · cost of capital 9.0% · 3.3 points above what the capital costs: growth creates value
- Operating margin
- 13%
Operating margin · Farm & Heavy Construction Machinery median 9.2% · 12 months to Q2 2026
- Cash conversion
- 1.40×
Cash conversion · 1.31× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −0.37%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 18% |
| FY2022 | 18% |
| FY2023 | 21% |
| FY2024 | 17% |
| FY2025 | 14% |
Details›
- Operating margin12 months to Q2 2026
- 13%
- Net margin12 months to Q2 2026
- 10%
- Free cash flow margin
- 14%
- R&D as % of revenue
- 5.0%
- Revenue, trailing twelve months
- $47.4B
- Free cash flow, trailing twelve months
- $6.68B
- Net income, trailing twelve months
- $4.78B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Farm & Heavy Construction Machinery
Ranks #4 of 12 by Smart Score